6-K 1 d30294.htm 6-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of October, 2003

SILICOM LTD.

(Translation of Registrant’s name into English)

8 Hanagar St., P.O.Box 2164, Kfar-Sava 44425, Israel

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F x    Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes o     No x

Attached hereto and incorporated by reference herein is Registrant’s press release dated October 20th, 2003 announcing Registrant’s third quarter financial results.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

SILICOM Ltd.
(Registrant)


BY: /S/ Ilan Erez
——————————————
Ilan Erez
Chief Financial Officer

Dated: October 20th, 2003

EARNINGS RELEASE

FOR IMMEDIATE RELEASE

SILICOM REPORTS THIRD QUARTER
AND FIRST NINE MONTH 2003 RESULTS

        KFAR SAVA, Israel—October 20, 2003 — Silicom Ltd. (NASDAQ:SILCF) today reported financial results for the third quarter and nine months ended September 30, 2003.

        Revenues for the third quarter of 2003 were $680,000, compared to $512,000 for the third quarter of 2002. Net loss for the quarter was ($460,000), or ($0.11) per share, compared to ($676,000), or ($0.16) per share, for the third quarter of 2002.

        Revenues for the first nine months of 2003 were $2,705,000, compared to $1,931,000 for the parallel period of 2002. Net loss for the period was ($1,227,000), or ($0.30) per share, compared to ($1,811,000), or ($0.44) per share, for the first nine months of 2002.

        Commenting on the results, Shaike Orbach, President and CEO, said, “Although we are reporting year-over-year growth, our revenues remain low, reflecting cautious markets for our traditional products and long sales cycles for new ones. Our focus is now on achieving initial sales of our state-of-the-art Server/Storage Networking Cards with the industry’s major manufacturers. Our U.S. offices are spearheading the effort, and are encouraged by progress with several key players. In parallel, we continue with a range of research and development projects to leverage the Company’s significant core expertise.”

Silicom Ltd. is an industry-leading provider of communications connectivity solutions and advanced enabling technologies, making it the preferred time-to-market and performance partner to many of the industry’s significant players. With core expertise in high performance, innovative technologies for networking and operating systems, the Company develops high-performance networking solutions for manufacturers of storage, Internet traffic management, security, and other types of server-based systems characterized by multi-port high-performance environments. Silicom also offers an extensive range of PC Cards, PCI cards and USB products. For more information, please visit: www.silicom.co.il.

Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties, or other factors not under the Company’s control, which may cause actual results, performance, or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company’s periodic filings with the Securities and Exchange Commission. The Company disclaims any duty to update such statements.

Contact:

Ilan Erez, CFO
Silicom Ltd.
Tel: +972-9-764-4555
E-mail: ilane@silicom.co.il

FINANCIAL TABLES FOLLOW

Silicom Ltd. Consolidated Summary of Results
(Unaudited)

U.S. dollars, in thousands, except for per share amounts

Three-month period
ended September 30, 		Nine-month period
ended September 30,
 
2003
2002
 2003
2002
Sales     $ 680   $ 512   $ 2,705   $ 1,931  
Cost of sales     436    397     1,591    1,513  
Gross profit     244    115     1,114    418  
Research and development costs, gross     403    343     1,240    1,077  
Less - royalty bearing participations     (36 )  100     (102 )  (34 )
Research and development costs, net     367    443     1,138    1,043  
Selling and marketing expenses     200    242     776    772  
General and administrative     144    150     450    537  
      711    835     2,364    2,352  
Operating loss     (467 )  (720 )   (1,250 )  (1,934 )
 
Financial income, net     7    44     23    123  
Loss before taxes on income     (460 )  (676 )   (1,227 )  (1,811 )
Taxes on income     ---    ---     ---    ---  
Loss for the period   $ (460 ) $ (676 ) $ (1,227 ) $ (1,811 )
 
Basic and diluted loss per share   $ (0.11 ) $ (0.16 ) $ (0.30 ) $ (0.44 )
Weighted average number of shares  
outstanding - Basic EPS (in thousands)     4,110    4,110     4,110    4,110  
Weighted average number of shares  
outstanding - Diluted EPS (in thousands)     4,110    4,110     4,110    4,110  

Silicom Ltd. Consolidated Balance Sheets
(U.S dollars, in thousands)

September 30, 2003
(Unaudited)
December 31, 2002
(Audited)
Assets            
 
Current assets  
Cash and cash equivalents   $ 880   $ 861  
Short term investments     1,527    3,799  
Trade receivables     427    504  
Other receivables     238    277  
Inventories     1,033    1,221  
      4,105    6,662  
 
Long-term investments     1,088    -  
Severance pay fund     485    408  
Property and equipment, net     292    257  
Other assets     71    77  
 
Total assets   $ 6,041   $ 7,404  
Liabilities and shareholder's equity  
 
Current liabilities  
Trade payables     272    561  
Other payables and accrued liabilities     448    415  
Total current liabilities     720    976  
 
Liability for severance pay     863    743  
Total liabilities     1,583    1,719  
Shareholders' Equity  
Share capital and additional paid in capital     5,550    5,550  
Treasury stock     (38 )  (38 )
Retained earnings (deficit)     (1,054 )  173  
      4,458    5,685  
Total liabilities and shareholders equity   $ 6,041   $ 7,404