Israeli company Silicom (Nasdaq SILC), which provides networking and data infrastructure solutions, today released its financial results for the fourth quarter of 2023 and announced a five-year strategic plan that includes the layoffs of seventy employees, or 22.5% of its workforce.
Most of Silicom’s employees are in Israel and its headquarters is in Kfar Sava. At the end of 2022, the company had 246 employees in Israel, and a few dozen others in the United States 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 writedown of assets intangible. On a non-GAAP basis, Silicom reported net income of $10.2 million, down 51.8% from 2022.
“The primary objective of the five-year strategic plan is to create significant shareholder value over time, by gradually increasing earnings per share (EPS) to over $3 in 2028,” the company said in its statement. This compares to EPS of $1.52 in 2023. The company highlighted the strength of its balance sheet, with cash and securities of $140 million, or $21 per share. It plans to repurchase 1.6 million of its shares over two years.
Liron Eizenman, Chairman and CEO of Silicom, said: “We face a difficult transition period fueled by macroeconomic headwinds and customer inventory reduction. We believe our five-year strategic plan will enable us to return Silicom to progressive and steady revenue and EPS growth, creating significant value for our shareholders, even during periods of market volatility.
Silicom has a market capitalization of $116 million.
Published by Globes, Israel Business News – fr.globes.co.il – February 1, 2024.
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