EX-99 5 exhibit_4.htm

6-K

Exhibit 4

Silicom Ltd. and its Consolidated Subsidiary

Consolidated Balance Sheets as of December 31

						2005			2006
			Note			US$ thousands			US$ thousands
Assets
Current assets
Cash and cash equivalents				3			2,276			4,513
Marketable securities				4			-			1,009
Accounts receivable:
Trade, net							2,395			3,277
Other				5			444			301
Inventories				6			2,994			3,739
Deferred taxes				16H			-			46
Total current assets							8,109			12,885
Marketable securities				4			-			3,811
Assets held for employees' severance benefits							587			730
Property, plant and equipment, net				7			292			379
Other assets, net				8			57			48
Total assets							9,045			17,853

By: /s/ Avi Eizenman
——————————————
Avi Eizenman
Chairman of the Board of Directors By: /s/ Shaike Orbach
——————————————
Shaike Orbach
Chief Executive Officer By: /s/ Eran Gilad
——————————————
Eran Gilad
Chief Financial Officer

Kfar-Saba, Israel
May 29, 2007

The accompanying notes are an integral part of these consolidated financial statements.

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Silicom Ltd. and its Consolidated Subsidiary

Consolidated Balance Sheets as of December 31

						2005			2006
			Note			US$ thousands			US$ thousands
Liabilities and shareholders' equity
Current liabilities
Short-term bank credit				10			500			-
Trade accounts payable							2,020			2,481
Other accounts payable and accrued expenses				9			822			971
Total current liabilities							3,342			3,452
Long-term liability
Liability for employees' severance benefits				11			1,031			1,220
Total liabilities							4,373			4,672
Commitments and contingencies				12
Shareholders' equity				13
Ordinary shares, NIS 0.01 par value; 10,000,000 shares
authorized; 4,351,050 and 5,213,600 issued as at
December 31, 2005 and 2006, respectively;
4,336,079 and 5,198,629 outstanding as at
December 31, 2005 and 2006, respectively							14			16
Additional paid-in capital							5,950			11,858
Treasury shares (at cost) - 14,971 ordinary shares as at
December 31, 2005 and 2006							(38	)		(38	)
Retained earnings (accumulated deficit)							(1,254	)		1,345
Total shareholders' equity							4,672			13,181
Total liabilities and shareholders' equity							9,045			17,853

The accompanying notes are an integral part of these consolidated financial statements.

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Silicom Ltd. and its Consolidated Subsidiary

Consolidated Statements of Income for the Year Ended December 31

						2004			2005			2006
			Note			US$ thousands except for share and per share data
Sales				14			4,559			10,876			16,118
Cost of sales							2,999			6,507			9,827
Gross profit							1,560			4,369			6,291
Operating expenses
Research and development costs, gross							1,596			1,561			1,820
Less: grant participation				12A			(145	)		(98	)		-
Research and development costs, net							1,451			1,463			1,820
Selling and marketing expenses							718			903			1,105
General and administrative expenses							614			695			980
Total operating expenses							2,783			3,061			3,905
Operating income (loss)							(1,223	)		1,308			2,386
Financial income (expenses), net				15			(17	)		14			167
Income (loss) before income tax benefit							(1,240	)		1,322			2,553
Income tax benefit				16			-			-			46
Net income (loss)							(1,240	)		1,322			2,599
Income (loss) per share:
Basic income (loss) per ordinary share							(0.296	)		0.311			0.506
Diluted income (loss) per ordinary share							(0.296	)		0.303			0.487
Weighted average number of ordinary
shares used to compute basic income
(loss) per share (in thousands)							4,190			4,256			5,138
Weighted average number of ordinary
shares used to compute diluted income
(loss) per share (in thousands)							4,190			4,364			5,341

The accompanying notes are an integral part of these consolidated financial statements.

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