SILC

[berloga]

No news today, why is it falling???  We still are holding for the long term.

[buddjas1]

Has to be an earnings leak.

[Se7en]

Has to be an earnings leak.

that has to be a big leak, already over 1mill shares traded ... but I don't think that's the reason, people often say this when a stock falls a lot but I don't 'buy' it ...

[David Randolph]

Has to be an earnings leak.

The CEO talked a lot about quarterly "fluctuations" in the past, and that has kept SILC's valuation in check. If there's a "fluctuation" in SILC's quarterly earnings I'm going to have to find a way to buy it.

[mbaugh]

I don't have a position in this stock, but I believe thats about to change real soon!  My take on what happened is that although there wasn't any news that we know of, due to the general market sell-off last Friday, I believe a large hedge fund had to sell to meet margin calls due to other positions going lower.  With SILC's float at around 3-4 million, it can easily move up or down big with a large order buying or leaving at one time.  We have so many hedge funds in the market now, so this type of action is not uncommon.  I'm going to watch the movement tomorrow and will be ready to buy this if it gains support at its 200 dma.

Good Luck Folks!

[AussieTrader]

SILC has around 6M shares outstanding. It only had a small % of shares short (around 200K). Institutional holdings are around 20% of outstanding shares (approx 1.3m). Not exactly stats to predict such a meteoric sell off.

Today's volume was an historic record for SILC and interestingly it was this same week in 2006 (23rd Oct) that SILC had another huge volume day that effectively was the start of it's rise from being a $6 share to most recently a $25 share.

No one can know what the sell off was caused by, technicaly it looks horrendous.  Will be watching for support to 'appear' before I make any judgements.

Good trading

[AussieTrader]

No one can know what the sell off was caused by, technicaly it looks horrendous.  Will be watching for support to 'appear' before I make any judgements.

Good trading

$17 zone has been significant support / resistance being tested multiple times going back to early 2007.

[Garoh]

It's at the 200MA now, time to buy ... ?! 

going to $16 for sure 

Just wait , Very bad gap down ..

Still waiting for the target 

[setravis]

(SILC).......
ACHIEVES NEW DESIGN CONTRACT: Silicom Ltd. (SILC) has achieved a new design win for
its Bypass adapters from a company in the WAN optimization market, bringing the total number
of players in the WAN Optimization market which use Silicom cards to seven.

[AussieTrader]

$17 zone has been significant support / resistance being tested multiple times going back to early 2007.

I entered earlier than I first expected purely because price action seemed to be bouncing off support nicely. The previous times it has tested that level it has proceeded to revert back toward the resitance zone within 10 sessions or so. Today closed above the 200MA which hopefully sets the stage for perhaps a repeat of that pattern. Mid to low $24 is a tough nut to crack and hold for SILC. For me part of this trade may become a reversion entry with profit taking in the resistance zone.

[AussieTrader]

I entered earlier than I first expected purely because price action seemed to be bouncing off support nicely. The previous times it has tested that level it has proceeded to revert back toward the resitance zone within 10 sessions or so. Today closed above the 200MA which hopefully sets the stage for perhaps a repeat of that pattern. Mid to low $24 is a tough nut to crack and hold for SILC. For me part of this trade may become a reversion entry with profit taking in the resistance zone

Exited earlier than expected also! Closed my position Friday at $18.78 as I had some concerrn of the struggle to regain the 200SMA especially on a day when the markets were posting good action.

[BigSully1]

Silicom Reports Q3 Results: Q3 Sales up 59%; 9-Month Sales up 74% to $19.3M with $0.72 EPS
Monday October 29, 8:45 am ET


KFAR SAVA, Israel--(BUSINESS WIRE)--Silicom Ltd. (NASDAQ and TASE: SILC) today reported results for the third quarter and nine months ended September 30, 2007.
ADVERTISEMENT


Revenues for the third quarter of 2007 were $6.6 million, a 59% increase compared with $4.2 million in the parallel quarter of 2006. Net income for the period increased by 147% to $1.6 million, or $0.25 per basic and diluted share, compared to $666,000, or $0.12 per diluted share ($0.13 per basic share), for the third quarter of 2006.

Revenues for the first nine months of 2007 increased by 74% to a record $19.3 million compared with $11.1 million for the first nine months of 2006. Net income for the period increased by 191% to $4.5 million, or $0.72 per diluted share ($0.75 per basic share), compared with $1.5 million, or $0.29 per diluted share ($0.30 per basic share), for the first nine months of 2006.

Commenting on the results, Shaike Orbach, President and CEO, said, "We are very proud of our results for the quarter, especially the exceptional 24.8% net margin, which demonstrates once again the robustness of our business model. The strong sales that we have achieved throughout the year have enabled us to grow our year-to-date revenues by 74% while nearly tripling our net income for the period.

"This growth is tracking the continued strong development of our target markets - especially the WAN Optimization, Security and Network Appliances segments - which continue to increase the need for our multi-port connectivity and BYPASS products and to be an important growth engine for our company. Having secured two Design Wins during the third quarter and a new WAN Optimization Design Win just a week ago, we have now accumulated a total of 50 Design Wins and established an expanded footprint in our most important target markets."

Mr. Orbach continued, "To benefit fully from our favorable positioning, we continue to develop new, innovative solutions in line with market needs, another step in our plan for becoming a 'one-stop shop' for best-in-breed appliance connectivity solutions. By keeping an 'ear to the ground,' we are able to identify unmet needs and to continuously expand our addressable markets, fueling sustainable future growth. We are working to take advantage of our favorable positioning in fast-growing markets and are optimistic regarding our ability to deliver strong growth over the long term."

Conference Call Details:

Silicom's Management will host an interactive conference today, October 29th, at 9am EDT (6am Pacific Time, 3pm Israel Time) to review and discuss the results. To participate, please call one of the following numbers approximately 10 minutes before that time.

US: 1 888 281 1167 
UK: 0 800 917 9141 
ISRAEL: 03 918 0609 
INTERNATIONAL: +972 3 918 0609 
At: 9am Eastern Time, 6am Pacific Time, 3pm Israel Time 


For those unable to listen to the live call, a replay of the call will be available for three months from the day after the call under the investor relations section of Silicom's website, at: www.silicom.co.il

About Silicom

Silicom Ltd. is an industry-leading provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, WAN Optimization and security appliances and other mission-critical gateway applications. 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.

Silicom Ltd. Consolidated

Summary of Results

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

             
Three-month period
ended September 30,
  Nine-month period
ended September 30,

       
   
2007
(Unaudited)
  2006 (Unaudited)   2007 (Unaudited)   2006 (Unaudited) 
Sales  $  6,640   $  4,179    $  19,306   $  11,101   
Cost of sales     3,990      2,520         11,624      6,805     
Gross profit     2,650      1,659         7,682      4,296     
         
Research and development costs, gross   524
   441
    1,587
   1,349
 
Less – royalty bearing participations     ---
     (8
)
     ---
     (11
)

Research and development costs, net   524
   449
    1,587
   1,360
 
         
Selling and marketing expenses   365    315     1,147    811   
General and administrative     316      275         858      689     
    1,205      1,039         3,592      2,860     
         
Operating income   1,445    620     4,090    1,436   
         
Financial income, net     297      46         649      97     
Income before taxes on income   1,742    666     4,739    1,533   
Taxes on income     96      ---         279      ---     
Net income  $  1,646   $  666      $  4,460   $  1,533     
         
         
Basic income per share  $  0.25   $  0.13      $  0.75   $  0.30     
         
Weighted average number of shares outstanding - Basic EPS (in thousands)       

6,495
       

5,198
         

5,976
       

5,118
   
         
Diluted income per share  $  0.25   $  0.12      $  0.72   $  0.29     
         
Weighted average number of shares outstanding – Diluted EPS (in thousands)       

6,707
       

5,347
         

6,174
       

5,329
   
Silicom Ltd. Consolidated Balance Sheets

(U.S. dollars, in thousands)

   
September 30, 2007
(Unaudited)
   
December 31, 2006
(Audited)

Assets
   
     
Current assets     
Cash and cash equivalents  $  10,353    $  4,513   
Short term investments   3,218     1,009   
Trade receivables   4,937     3,277   
Other receivables   251     301   
Inventories   5,137     3,739   
Deferred taxes     48         46     
  23,944     12,885   
     
Long term investments   17,433     3,811   
Severance pay fund   854     730   
Property and equipment, net   609     379   
Other assets     42         48     
     
Total assets  $  42,882      $  17,853     
     
Liabilities and shareholder's equity     
     
Current liabilities     
Trade payables
  2,396     2,481   
Other payables and accrued liabilities
  1,633     971   
Total current liabilities
  4,029     3,452   
     
Liability for severance pay   1,499     1,220   
     
Total liabilities
  5,528     4,672   
     
Shareholders' Equity     
Share capital and additional paid in capital
   
31,587     11,874   
Treasury stock
  (38  )    (38  ) 
Retained earnings
  5,805     1,345   
  37,354     13,181   
Total liabilities and shareholders equity  $
42,882
   $
17,853
 






Contact:
Silicom Ltd.
Eran Gilad, CFO, Tel: +972-9-764-4555
[email protected]
or
Investor Relations:
GK Investor Relations
Kenny Green / Ehud Helft, Tel: 1 646-201-9246
[email protected]

[BigSully1]

Missed a bit on the consensus top line figure, but met the bottom line with strong margins. Looks like there probably was a leak, and should  alreadty be more than priced in. I'm going to look for a bargain this morn.

[ygtrdr]

Where's the next major support for this one? 16? I want to buy but am hesitant. Thanks.

[David Randolph]

Where's the next major support for this one? 16? I want to buy but am hesitant. Thanks.

Support is around $17 on close. Since March SILC doesn't close below $17.

I'll listen to the conference call and will consider SILC to buy tomorrow at the open. It is roughly at the same price I sold it, and that was a mistake, so I need to consider the buying hypothesizes strongly.

Good luck if you already own it