Israeli company Silicom (Nasdaq SILC), which provides networking and data infrastructure solutions, reported its financial results for the fourth quarter of 2023 today, and announced a five-year strategic plan that includes the layoffs of seventy employees, 22.5% of its workforce.
Most of Silicom’s employees are in Israel, and its head office is in Kfar Sava. At the end of 2022, the company had 246 employees in Israel, and a few dozen more in the US and Denmark. In 2023, its revenue fell 17.6%, to $124 million, and it swung to a net loss, of $3 million, following a $9.6 million write down of intangible assets. On a non-GAAP basis, Silicom posted a net profit of $10.2 million, 51.8% lower than in 2022.
"The main objective of the 5-Year Strategic Plan is to create significant shareholder value over time, increasing Earnings Per Share (EPS) gradually to above $3 in 2028," the company said in its announcement. This compares with EPS of $1.52 in 2023. The company stressed the strength of its balance sheet, with cash and securities of $140 million, amounting to $21 per share. It plans to buy back 1.6 million of its shares over two years.
Silicom president and CEO Liron Eizenman said, ""We are facing a tough transition period fueled by macro-economic headwinds and customer drawdowns of stockpiled inventories. We believe that our 5-Year Strategic Plan will allow us to return Silicom to gradual and steady growth of our revenues and EPS, creating significant value for our shareholders even in times of market volatility."
Silicom has a market cap of $116 million.
Published by Globes, Israel business news - en.globes.co.il - on February 1, 2024.
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