Silicom (SILC) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $14.5M, down from $18.8M in Q4 2023; full-year 2024 revenue was $58.1M, down from $124.1M in 2023.

• Achieved Q4 2024 results in line with expectations, maintaining progress on strategic plan for renewed revenue growth and profitability.

• Management highlights strong design win momentum and expects a return to double-digit growth from 2026, with recurring revenue from key customer engagements.

• Focused on SD-WAN/SASE, Smart NICs, FPGA-based products, and hardware acceleration for global Tier-1 customers.

• Strategic plan targets EPS of $3+ and revenues of $150–160M, with double-digit growth from 2026 and continued share buybacks.

Financial highlights

• Q4 2024 revenue was $14.5 million, down from $18.8 million in Q4 2023; full-year 2024 revenue was $58.1 million.

• Q4 2024 gross profit was $4.2 million (gross margin 29.1%), compared to $5.3 million (28%) in Q4 2023; full-year gross profit was $16.6 million.

• Q4 2024 operating loss was $2.7 million, versus $1.5 million in Q4 2023; full-year operating loss was $13.3 million.

• Q4 2024 net loss was $3.4 million, or $0.58 per share, compared to $0.5 million loss, or $0.07 per share, in Q4 2023; full-year net loss was $8.3 million, or $1.37 per share.

• Generated $17.3 million in cash during 2024; $10 million used for share repurchases.

Outlook and guidance

• Q1 2025 revenue expected to remain stable at $14–$15 million.

• 2025 growth projected in low single digits; strong double-digit annual growth anticipated from 2026.

• Targeting EPS above $3 at $150–$160 million annual revenue.

• Aiming for 7–9 new Design Wins in 2025.

• Continued expense control and share buybacks to support financial objectives.