On Wednesday, connectivity solutions developer Silicom Ltd. (Nasdaq:SILC; TASE:SILC) filed with the US Securities and Exchange Commission (SEC) a shelf prospectus to raise up to $80 million in a secondary offering on Nasdaq.
Silicom's share price has risen 160% in the past 12 months. The share price rose 3.2% at the opening on Nasdaq today to $60.74, giving a market cap of $432 million, after falling 14% yesterday. The share price fell 3.5% by mid-afternoon on the TASE today to NIS 209.80.
The Kfar Saba-based company managed by president and CEO Shaike Orbach is a part of the Zisapel brothers' RAD Group. The company had $55 million in cash at the end of 2013. Orbach said that it plans to use the money for "scaling the business", i.e. make acquisitions, although it not yet announced anything, except for negligible purchases of technology late last year.
Even without acquisitions, Silicom is doing well. It reported 50% revenue growth in 2013 to $73.3 million. GAAP-based net profit rose 73% to $17.1 million and non-GAAP net profit rose 68% to $17.8 million ($2.45 per share). It will distribute a dividend of $7.2million ($1 per share) on April 17 on its profit from 2013.
Silicom is just the latest Israeli company to plan a secondary offering on Nasdaq. AudioCodes Ltd. (Nasdaq: AUDC; TASE: AUDC) has raised almost $30 million and Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC) has raised over $50 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2014
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