The following is a summary of the Silicom Ltd. (SILC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Silicom reported Q1 2024 revenues of $14.4 million, a significant decrease from Q1 2023's $37.2 million.
Despite incurring a net loss of $2.4 million, the company noted a strong operating cash flow of over $13 million.
The company's net cash position stood strong at over $80 million, with working capital and marketable securities totalling $133 million.Gross profit for Q1 2024 was $4.1 million with a gross margin of 28.5%, compared to Q1 2023's $11.9 million gross profit and 32% gross margin.
Loss per share in the quarter was $0.38.
Business Progress:
Silicom is following a five-year strategic plan targeted at restoring steady growth, increasing earnings per share to approximately $3 by 2028 and levering their robust cash position via aggressive share buybacks.
In Q1 2024, Silicom repurchased around 250,000 shares totaling $4.1 million under their current share repurchase plan.
As part of its growth strategy, the company is expanding potential design wins and restructured its sales compensation to encourage this.
R&D remains a focus, with two significant product families in development, targeting both existing customer base and new customers in the AI space.
For 2024, the company projects revenues about $70 million, while Q2 is expected to generate between $15 million to $17 million, with plans for a compound annual growth rate of approximately 20% beginning 2025.
More details: Silicom IR
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