Silicom Ltd (SILC) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Silicom first quarter 2025 results conference call. All participants are present in listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have not received it, please contact Silicom's investor relations team at. EK Global Investor Relations at +1 (212) 378-8040 or view it in the news section of the company's website www.silicom-usa.com. I would now like to hand over the call to Mr. Kenny Green of EK Global Investor Relations. Mr. Green, would you like to begin, please.

女士們、先生們，感謝你們的支持。歡迎參加 Silicom 2025 年第一季業績電話會議。所有參與者均處於只聽模式。管理層正式演講後，將給予問答環節的指導。提醒一下，本次會議正在錄製中。大家現在應該都已經收到該公司的新聞稿了。如果您尚未收到，請聯絡 Silicom 的投資者關係團隊。請聯絡 EK 全球投資者關係部，電話：+1 (212) 378-8040，或造訪公司網站 www.silicom-usa.com 的新聞欄位查看。現在，我將把電話轉給 EK 全球投資者關係部的 Kenny Green 先生。格林先生，請您開始吧。

Thank you, operator. I would like to welcome all of you to Silicom's quarterly results conference call. Before we start, I would like to draw your attention to the following Safe Harbor statement. This conference call contains forward-looking statements. Such statements may include but are not limited to anticipated future financial operating results in Silicom's outlook and prospects.

謝謝您，接線生。歡迎大家參加 Silicom 的季度業績電話會議。在我們開始之前，我想提請您注意以下安全港聲明。本次電話會議包含前瞻性陳述。此類聲明可能包括但不限於 Silicom 展望和前景中預期的未來財務經營業績。

Those statements are based on management's current beliefs, expectations, and assumptions and assumptions which may be affected by subsequent business, political, environmental, regulatory, economic, and other factors and conditions and are subject to known and unknown risks and uncertainties and factors, many of which are outside of Silicom's control, which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements.

這些聲明是基於管理層當前的信念、期望和假設，這些信念、期望和假設可能會受到後續業務、政治、環境、監管、經濟和其他因素和條件的影響，並受到已知和未知的風險和不確定性和因素的影響，其中許多超出了 Silicom 的控制範圍，這可能導致實際結果與前瞻性聲明中表達或暗示的預期存在重大差異。

These include but are not limited to Silicom's increasing dependence for substantial revenue growth on a limited number of customers, the speed and extent to which Silicom solutions are adopted by the relevant market.

這些包括但不限於 Silicom 對有限數量客戶實現大幅收入成長的依賴程度不斷提高，以及相關市場採用 Silicom 解決方案的速度和程度。

Difficulties in the commercialization and marketing of telecoms products and services, maintaining and protecting brand recognition, protection of intellectual property competition, disruptions to manufacturing and sales and marketing, development and customer support activities, the impact of war in Israel and in Ukraine, rising inflation, changing its interest rates, volatile exchange rates, tariffs as well as any continuing or new effects resulting from the COVID-19 pandemic and global economic uncertainty which may impact customer demand through customers exercising greater caution and selectivity with their short term IT investment plans.

電信產品和服務的商業化和營銷困難、品牌認知度的維護和保護困難、知識產權競爭的保護困難、製造、銷售和營銷、開發和客戶支援活動的中斷、以色列和烏克蘭戰爭的影響、通貨膨脹上升、利率變化、匯率波動、關稅以及新冠疫情和全球經濟不確定性造成的任何持續或新的影響，這些客戶都可能透過客戶在短期 IT 投資需求中更加謹慎和選擇性客戶。

The factors noted are not exhaustive. Further information about the company's business, including information about factors that can materially affect Silicom's results of operations and financial conditions, are discussed in Silicom's annual report on Form 20 and other documents filed by the company and that may be subsequently filed by the company from time to time with the Securities and Exchange Commission. Therefore, there can be no assurance that actual future results will not differ significantly from anticipated results. Consequently, investors are reminded not to rely on these forward-looking statements. Silicom does not undertake to update any forward-looking statement as a result of new information or future events or developments except as may be required by law.

所列的因素並不詳盡。有關公司業務的更多信息，包括可能對 Silicom 的經營業績和財務狀況產生重大影響的因素的信息，在 Silicom 的 20 號表格年度報告和公司提交的其他文件中進行了討論，並且公司隨後可能會不時向美國證券交易委員會提交這些文件。因此，無法保證未來的實際結果不會與預期結果有重大差異。因此，提醒投資者不要依賴這些前瞻性陳述。除非法律要求，否則 Silicom 不承擔因新資訊或未來事件或發展而更新任何前瞻性聲明的責任。

In addition, following the company's disclosure of certain non-GAAP financial measures in today's earnings release, such non-GAAP financial measures will be discussed during this call. Such non-GAAP measures are used by management to make strategic decisions, forecast huge result, and evaluate the company's current performance. Management believes that the presentation of these non-GAAP financial measures is useful to investors' understanding and assessment of the company's ongoing corporations and prospects for the future. Unless otherwise stated, it should be assumed that the financials discussed in this conference call will be on a non-GAAP basis. non-GAAP financial measures disclosed by management are provided as additional information to investors to provide them with an alternative method for assessing the company's and operating results.

此外，繼公司在今天的收益報告中揭露某些非公認會計準則財務指標後，這些非公認會計準則財務指標將在本次電話會議上進行討論。管理階層使用此類非公認會計準則指標來制定策略決策、預測重大績效並評估公司當前績效。管理階層認為，這些非公認會計準則財務指標的呈現有助於投資人了解和評估公司的持續經營和未來前景。除非另有說明，否則應假定本次電話會議中討論的財務資料將採用非公認會計準則 (non-GAAP) 基礎。管理層揭露的非公認會計準則財務指標作為補充資訊提供給投資者，為他們提供評估公司和營運績效的另一種方法。

These measures are not in accordance with or a substitute for GAAP. A full reconciliation of non-GAAP's and financial GAAP measures are included in today's earnings release, which you can find on telecom's website.

這些措施不符合或不能取代 GAAP。今天的收益報告包含了非公認會計準則和財務公認會計準則指標的完整對賬，您可以在電信網站上找到。

And with us on the line today we have Mr. Liron Eizenman, President of the CEO, and Mr. Eran Gilad, CFO. Liron will begin with an overview of the results followed by Iran who will provide the analysis of the financials. We'll then turn the call over to the question and answer session, and with that we would now like to hand the call over to Liron. Liron , please go ahead.

今天與我們一起在線的還有首席執行官總裁 Liron Eizenman 先生和首席財務官 Eran Gilad 先生。Liron 將首先概述結果，然後由 Iran 提供財務分析。然後，我們將把電話轉入問答環節，現在我們想將電話交給 Liron。Liron，請繼續。

Thank you, Kenny. I would like to welcome everyone to our conference call to discuss the results of the first quarter of 2025. We are pleased with our start to 2025, which reflects solid execution and progress in line with our strategic plan aimed at bringing renewed revenue growth, profitability and ultimately increased shareholder value. In addition, we saw significant design with momentum and made strong progress growing our mid and long-term pipelines.

謝謝你，肯尼。歡迎大家參加我們的電話會議，討論 2025 年第一季的業績。我們對 2025 年的開局感到滿意，這反映了我們按照旨在帶來新的收入增長、盈利能力並最終提高股東價值的戰略計劃進行的穩健執行和進展。此外，我們看到了具有發展勢頭的重要設計，並在中長期管道發展方面取得了長足的進步。

The quarter demonstrates that we are advancing and achieving meaningful milestones with various customers and projects, and all this makes us more optimistic that we will drive an acceleration in revenue growth in 2026 and beyond. In terms of the financial results, we delivered revenues of $14.4 million which were in line with our targets. Delivered gross margin in operating expenses in line with our strategic plans. Our balance sheet has therefore continued to remain very strong. Our working capital and marketable securities amounted to $119 million including $77 million in cash deposits, and highly rated bonds we know that. All this represents about $21 per share.

本季度表明，我們正在與各種客戶和專案一起取得進展並實現有意義的里程碑，所有這些都使我們更加樂觀地認為，我們將在 2026 年及以後推動營收成長加速。就財務表現而言，我們的收入達到 1,440 萬美元，符合我們的目標。營業費用的毛利率符合我們的策略計畫。因此，我們的資產負債表持續保持強勁。我們的營運資金和有價證券總額為 1.19 億美元，其中包括 7,700 萬美元的現金存款和我們所知的高評級債券。所有這些相當於每股約 21 美元。

This ensures we can maintain adequate investment in our business and its growth engines, even in this very volatile market without compromise. From a strategic perspective, I'm very happy to report that we are on track with our plan to return to solid double digit growth rate materializing gradually from 2026. To remind you, the long-term financial goals of our strategic plan are to deliver an EPS above $3 based on revenues between $150 million and $160 million.

這確保了我們能夠對我們的業務及其成長引擎保持充足的投資，即使在這個非常動盪的市場中也不會妥協。從策略角度來看，我很高興地報告，我們正在按照計劃逐步實現從 2026 年開始恢復穩健的兩位數成長率。提醒您，我們策略計畫的長期財務目標是基於 1.5 億美元至 1.6 億美元的收入實現每股收益 3 美元以上。

The most tangible indicator of our progress is the impressive number of designs closed during the quarter and the breadth and depth of our design win opportunity funnels. Our renewed focus on our core product lines coupled with the deep relationships with our customers and potential new customers has created a solid pipeline enabling our future growth potential. So, far in 2025 we've already seen success in converting this pipeline to design wins, the main indication for the progress of our strategic plan. We expect to continue to convert this pipeline to further design winds throughout 2025.

我們取得進展的最明顯指標是本季完成的設計數量令人印象深刻，以及我們的設計獲勝機會管道的廣度和深度。我們重新專注於核心產品線，加上與客戶和潛在新客戶的深厚關係，為我們未來的成長潛力創造了堅實的管道。因此，到 2025 年，我們已經成功將該管道轉化為設計勝利，這是我們戰略計劃進展的主要指標。我們預計將在 2025 年繼續將該管道轉換為進一步的設計風。

In our previous call, we discussed our target of achieving between 7 and 9 new design ways in 2025, and we are well on track. Since the beginning of the year, we have been awarded 3 important new wins, 2 with cybersecurity leaders and 1 with the Global Network Test Equipment Company, which together encompasses our food product range from Smart Nix and FPGA-based products to our advanced edge systems. All three are repeat customers of ours that already rely on Silicom products to give their system performance edge, and all three have decided to expand their business with us as they embark on a new project. I want to highlight those recent designs in more detail.

在我們先前的電話會議中，我們討論了到 2025 年實現 7 到 9 種新設計方式的目標，目前我們正順利推進。自今年年初以來，我們已獲得 3 項重要的新合同，其中 2 項來自網路安全領導者，1 項來自全球網路測試設備公司，這些合約涵蓋了我們的食品產品系列，從 Smart Nix 和基於 FPGA 的產品到我們先進的邊緣系統。這三家公司都是我們的回頭客，他們已經依靠 Silicom 產品來提升其係統性能，而這三家公司都決定在開展新專案時與我們拓展業務。我想更詳細地介紹一下這些最近的設計。

Number one, a US-based global provider of advanced network testing equipment solutions selected a 100 gigabit network interface cards for the next generation platform. This customer placed an initial purchase order to cover its new product introduction needs, and we expect mass deployment to begin in early 2026. Once the product ramps up, we expect the total business with this customer to be $2.5 million per year. We are very proud that this global giant turned to us for a performance edge, and it speaks volumes about the innovation at the heart of our high performances and our reliability as a design partner. Customs such as this represents the backbone of our business with the potential to secure new designs with a shorter sale cycle process contributing to a growing base of revenues.

第一，一家總部位於美國的全球先進網路測試設備解決方案供應商為下一代平台選擇了 100 千兆網路介面卡。該客戶下了初始採購訂單以滿足其新產品的推出需求，我們預計將於 2026 年初開始大規模部署。一旦產品產量增加，我們預計與該客戶的總業務額將達到每年 250 萬美元。我們非常自豪這家全球巨頭向我們尋求性能優勢，這充分說明了我們高性能的核心創新以及我們作為設計合作夥伴的可靠性。這樣的客戶是我們業務的支柱，有可能透過更短的銷售週期流程獲得新的設計，從而增加收入。

Number two, we also want to design ring with the US-based cybersecurity leader choosing our latest Alterra Base 400 gig FPGA smart card for its new network monitoring offering. The customer placed an initial order with us, and at full ramp up we expect revenues will reach $3 million per year. This designing represents the successful conclusion of many. Of collaboration of collaborative efforts with the customer, as a full service supplier, we work closely with the customer to meet the feature set and performance requirements to deliver them as a complete solution fully integrated and tested within a server. This demonstrates the added value of Silicom's engineering talent whose customers often view as an extension of their own R&D team.

第二，我們也希望與美國網路安全領導者合作設計環路，為其新的網路監控產品選擇我們最新的 Alterra Base 400 gig FPGA 智慧卡。客戶向我們下了初始訂單，我們預計在全面擴張後，年收入將達到 300 萬美元。這次設計代表著許多設計的成功。作為全方位服務供應商，我們與客戶密切合作，共同努力，滿足功能集和效能要求，以在伺服器內完全整合和測試的完整解決方案的形式向他們提供。這體現了 Silicom 工程人才的附加價值，客戶通常將其視為自己研發團隊的延伸。

This will demonstrate the importance of the full packages we offer a uniquely broad product line based on advanced technology, hands-on collaboration with the customer, and a rapid development and the delivery capability.

這將證明我們提供的全套產品的重要性，即基於先進技術、與客戶的實際合作以及快速開發和交付能力的獨特廣泛的產品線。

Number three, a major US cybersecurity customer of ours awarded us a design for a customized version of a wireless connectivity enabled Silicom edge system incorporating a Silicom network interface card for the next generation of one of its leading product lines.

第三，我們的一個美國主要網路安全客戶授予我們一個設計方案，即一個定製版的無線連接 Silicom 邊緣系統，該系統包含一個 Silicom 網路介面卡，用於其領先產品線之一的下一代產品。

Our ability to carry out the required customization quickly and to provide. The system and the network interface card that are incorporated within the system together with our deep wireless know-how were key factors in securing the win. We expect demand to continue to build for our edge systems, smart network interface cards, and innovative products that integrate the, becoming a key driver of our future growth. Initial orders have been received, and we expect to start to ramp up during the second half of 2025 with revenues of $2 million per year at the full run rate. This win expands the relationship that Silicom has been building with the client for several years, ramping up the range of products sold from network interface cards to complex edge systems.

我們有能力快速地進行所需的客製化並提供。該系統和系統內建的網路介面卡以及我們深厚的無線技術知識是確保勝利的關鍵因素。我們預計，對我們的邊緣系統、智慧網路介面卡和整合創新產品的需求將持續成長，成為我們未來成長的主要驅動力。我們已經收到了首批訂單，預計在 2025 年下半年開始增加產量，以滿載運轉計算，年收入將達到 200 萬美元。這場勝利擴大了 Silicom 多年來與客戶建立的合作關係，擴大了從網路介面卡到複雜邊緣系統的銷售產品範圍。

Those types of rain are now our focus, building steady, long-term, and trusting relationships that give rise to multiple deals, leveraging a reliable diversified revenue stream from an expanding base over the long term. The relationships are based on deep trust built over a long period of time and show slow but solid growth, supporting the success of our strategic plan.

現在，這些類型的雨水就是我們的重點，建立穩定、長期和信任的關係，從而促成多項交易，從長期不斷擴大的基礎中利用可靠的多元化收入來源。這些關係建立在長期建立的深厚信任的基礎上，並呈現緩慢但穩健的成長，支持了我們策略計畫的成功。

The power of each design is not only to generate its own stream of recurring revenues but also to open the door to multiple additional opportunities. This combination, along with the growing number of potential new customers who are currently evaluating and testing our products, underlines our confidence in achieving our target for 7 to 9 design wins during 2025.

每種設計的力量不僅在於產生自己的經常性收入流，還在於打開多個額外機會的大門。這種結合，加上目前正在評估和測試我們產品的潛在新客戶數量不斷增長，凸顯了我們對實現 2025 年獲得 7 到 9 個設計勝利的目標的信心。

While our recent design wins will have a minor positive impact on our financial results in 2025, we believe those and others that we expect to sign in the coming months will form the foundation for a significant growth in 2026. I note that if the opportunities in the pipeline went faster than expected, we could achieve the goals of our strategic plan significantly sooner than currently projected.

雖然我們最近贏得的設計合約將對我們 2025 年的財務業績產生較小的積極影響，但我們相信，這些合約以及我們預計在未來幾個月簽署的其他合約將為 2026 年的顯著增長奠定基礎。我注意到，如果通路中的機會比預期進展得更快，我們就能比目前預期的更快實現策略計畫的目標。

Our pipeline of opportunities that the input of our design wind funnel is very broad across all our products, including Ad systems, Smarts, and FPGAs, and includes both new and existing customers. This pipeline includes the leading names in the cybersecurity, service provider and networking industries, highlighting the strength and appeal of our technology offerings. We believe that during the coming years we will see more and more opportunities turn into design wins and we are constantly adding further opportunities at the entry point the fundal.

我們的設計風向漏斗輸入的機會管道非常廣泛，涵蓋我們所有產品，包括廣告系統、智慧型裝置和 FPGA，並且涵蓋新客戶和現有客戶。該管道包括網路安全、服務供應商和網路產業的領先品牌，凸顯了我們技術產品的實力和吸引力。我們相信，在未來幾年，我們將看到越來越多的機會轉化為設計勝利，並且我們正在繼續在基礎的切入點增加更多的機會。

This is the main engine behind our strategy for growth. I want to highlight our new investor presentation available on our website, which includes examples of many opportunities in our pipeline. It also shows examples of the opportunities that made it through the funnel and became design wins, driving revenue growth. We are seeing the positive impact of our strategic plan, expanding the pool of future opportunities with small to medium design wins, as well as potential deals in the range of double digit millions of dollars in annualized revenue.

這是我們成長策略背後的主要動力。我想重點介紹我們網站上的新投資者介紹，其中包括我們正在籌備的許多機會的例子。它也展示了透過漏斗並成為設計勝利、推動收入成長的機會的例子。我們看到了策略計畫的正面影響，透過中小型設計勝利擴大了未來的機會池，以及年收入達數百萬美元的潛在交易。

Considering the impressive pipeline and by executing all aspects of the strategy, we continue to believe that we will achieve the main goal of our strategy to create significant value for our shareholders with GPS of about $3 based on revenues in the range of $150 million to $160 million over the long term. A fast ramp up of a few of the potential deals we have in the pipeline may help us to achieve this goal much faster than currently indicated in our strategic plan and we are fully focused on making this happen.

考慮到令人印象深刻的產品線，並透過執行該策略的各個方面，我們仍然相信，我們將實現我們策略的主要目標，即在長期收入在 1.5 億美元至 1.6 億美元範圍內的基礎上，以約 3 美元的 GPS 為股東創造重大價值。快速推進我們正在進行的一些潛在交易可能會幫助我們比目前戰略計劃中指出的更快地實現這一目標，我們正全力以赴地實現這一目標。

Looking ahead in terms of guidance, we continue to project low single digit growth for 2025, with double digit growth expected for 2026. For the second quarter, we expect between $14.5 billion and $15.5 million in revenue.

展望未來，我們繼續預測 2025 年將實現低個位數成長，而 2026 年則有望實現兩位數成長。我們預計第二季的營收將在 145 億美元至 1,550 萬美元之間。

In summary, we are pleased with our progress. We are very optimistic about our ability to continue to execute on our growth and fully focus on meeting our goal of creating value for our customers and for our shareholders. We are advancing towards our mid and long term goals with a robust pipeline that positions us well for double digit growth from 2026 onwards. As I've mentioned, we aim to achieve 7 to 9 design within 2025, of which 3 have already won, which demonstrates we are well on track. Looking further ahead, our focus remains on delivering long term shareholder value, targeting an EPS above $3 on annual revenues of $150million to $160 million as I said.

總而言之，我們對我們的進展感到滿意。我們對繼續實現成長並全力專注於實現為客戶和股東創造價值的目標的能力感到非常樂觀。我們正朝著中長期目標邁進，強大的產品線為我們從 2026 年起實現兩位數成長奠定了良好基礎。正如我所提到的，我們的目標是在 2025 年之前實現 7 到 9 項設計，其中 3 項已經獲獎，這表明我們的進度順利。展望未來，我們仍將專注於實現長期股東價值，正如我所說，我們的目標是每股收益超過 3 美元，每年營收達到 1.5 億至 1.6 億美元。

A faster ramp up of a few of the potential deals we have within the pipeline may help us to achieve this goal faster. We have a solid designing roster full of Tier one customers coupled with a superb product and a robust pipeline of opportunities. We have strong financial foundation with a solid balance sheet, with a very dedicated and loyal team possessing decades of experience in the hardware business. We are optimistic about our ability to execute our strategy, strategic plan and meet our goals.

加快我們正在進行的一些潛在交易可能會幫助我們更快地實現這一目標。我們擁有一群實力雄厚的設計人員，其中不乏一級客戶，此外還有卓越的產品和豐富的商機。我們擁有強大的財務基礎和穩健的資產負債表，並擁有一支非常敬業且忠誠的團隊，在硬體業務方面擁有數十年的經驗。我們對執行策略、策略計劃和實現目標的能力充滿樂觀。

We look forward to reporting on our progress as we continue executing on our growth strategy. With that, I will now hand over the call to Eran for a detailed review of the reported results. Eran, please go ahead.

我們期待在繼續執行成長策略的同時報告所取得的進展。說完這些，我現在將電話交給 Eran，讓他詳細審查報告的結果。Eran，請繼續。

Thank you Liron and good day to everyone.

謝謝 Liron，祝大家有個愉快的一天。

Revenues for the first quarter of 2025 were $14.4 million similar to the $14.4 million reported in the first quarter of last year. The geographical revenue breakdown over the last 12 months was as follows. North America 78%, Europe and Israel 14%, Far East and rest of the world, 8%.

2025 年第一季的營收為 1,440 萬美元，與去年第一季報告的 1,440 萬美元相似。過去 12 個月的地區收入分佈如下。北美佔78%，歐洲和以色列佔14%，遠東和世界其他地區佔8%。

During the last 12 months, our 10% plus customers together accounted for about 24% of our revenues. I will be presenting the rest of the financial results on a non-GAAP basis which excludes the non-cash compensation expenses in respect of options and RSUs granted to the directors, officers, and employees, taxes on amortization of acquired intangible assets, as well as lease liabilities is financial income.

在過去的 12 個月中，我們的 10% 以上的客戶合計貢獻了我們約 24% 的收入。我將以非 GAAP 為基礎呈現其餘財務結果，其中不包括授予董事、高級職員和員工的選擇權和 RSU 的非現金薪酬費用、收購無形資產攤銷稅以及租賃負債的財務收入。

For the full reconciliation from GAAP to non-GAAP numbers, please refer to the press release we issued earlier today. Gross profit for the first quarter of 2025 was $4.4 million representing the gross margin of 30.3% compared to the gross profit of $4.1 million or gross margin of 28.5% in the first quarter of 2024.

有關 GAAP 與非 GAAP 數據的完整對賬，請參閱我們今天早些時候發布的新聞稿。2025 年第一季的毛利為 440 萬美元，毛利率為 30.3%，而 2024 年第一季的毛利為 410 萬美元，毛利率為 28.5%。

As discussed previously, our short to mid-term expected gross margin range is between 27% to 32%, and as our revenues grow from current levels over the longer the longer term, it is expected to increase towards the upper end.

如前所述，我們短期至中期預期的毛利率範圍在 27% 至 32% 之間，並且隨著我們的收入在較長時期內從當前水平增長，預計毛利率將向較高水平增長。

Operating expenses in the first quarter of 2025 were $6.7 million compared with $6.8 million reported in the first quarter of 2024. Operating loss for the first quarter of 2025 was $2.4 million compared to an operating loss of $2.7 million as reported in the first quarter of 2024. Net loss for the quarter was $2.1 million compared to a net loss of $2.4 million in the first quarter of 2024. Loss per share in the quarter was $0.37. This is compared with loss per share of $0.38 as reported in the first quarter of last year.

2025 年第一季的營運費用為 670 萬美元，而 2024 年第一季的營運費用為 680 萬美元。2025 年第一季的營業虧損為 240 萬美元，而 2024 年第一季報告的營業虧損為 270 萬美元。本季淨虧損為 210 萬美元，而 2024 年第一季淨虧損為 240 萬美元。本季每股虧損為0.37美元。去年同期每股虧損為0.38美元。

Now turning to the balance sheet as of March 31, 2025, our working capital and marketable securities amounted to $119 million including $140 million in high quality inventory, accounts receivable net of accounts payable of $3 million and $77 million dollars in cash equivalents and highly rated marketable securities with no debt. That ends my summary. I would like to hand back over to the operator for questions and answers session operator.

現在來看看截至 2025 年 3 月 31 日的資產負債表，我們的營運資本和有價證券總額為 1.19 億美元，其中包括 1.4 億美元的高品質庫存、300 萬美元的應收帳款扣除應付帳款後的淨額以及 7,700 萬美元的現金等價物等價物和無價證券債務的高價物。我的總結到此結束。我想將問答環節的發言權交還給接線員。

Thank you, ladies and gentlemen. At this time, we will begin the question-and-answer session. (Operator Instructions)

謝謝各位，女士們、先生們。現在，我們將開始問答環節。（操作員指示）

Ryan Koontz, Needham & Company.

瑞安·孔茨 (Ryan Koontz)，Needham & Company。

Great, thanks for the question, and great to hear about the progress with your, new design wins there. Are there particular milestones you're tracking for those design wins, after you have these initial, orders and contracts with these customers that you can maybe, I'm not looking for specifics, but just at a high level what's what sort of milestones you're tracking and how you feel about the progress of those wins, as we look for over the next few quarters. Thank you.

太好了，感謝您的提問，很高興聽到您的新設計的進展。在您與這些客戶簽訂了初步訂單和合約之後，您是否正在追蹤這些設計勝利的特定里程碑，也許，我不是在尋找具體細節，而是在高層次上，您正在追蹤什麼樣的里程碑，以及您對這些勝利的進展有何感想，正如我們在接下來的幾個季度中所期待的。謝謝。

So, every design is a little bit different, but in general there's, once we get the win, there's the first stage where we need to probably need to do some customizations for the customer, maybe some development. So, that's obviously one milestone we need to keep track of our internal process of the development and customization, make sure with the customer everything is clear on the specs and what they're supposed to get and when. Once we are ready, we're shipping samples or shipping first, for ship it to the customer. We want to see they're happy. We want to see if we get the green light for mass production, but that's another very important milestone.

所以，每個設計都有點不同，但總的來說，一旦我們獲得勝利，第一階段我們可能需要為客戶做一些定制，也許進行一些開發。因此，這顯然是我們需要追蹤開發和客製化內部流程的里程碑，確保客戶清楚了解所有規格以及他們應該得到什麼以及何時得到。一旦我們準備好了，我們就會發送樣品或先發貨，然後再發送給客戶。我們希望看到他們幸福。我們想看看是否能獲得大規模生產的批准，但這是另一個非常重要的里程碑。

And the third one is when we start mass production, start shipping the products, we work very closely with them to see that they're happy with that they're selling it to their customers. Their customers are happy. That's, I would say the three main milestone, but every project is a little bit different.

第三個是，當我們開始大規模生產、開始運送產品時，我們會與他們密切合作，以確保他們對將產品銷售給客戶感到滿意。他們的顧客很高興。這就是我想說的三個主要里程碑，但每個項目都有點不同。

That's great. Thanks for that. And it sounds like one year design lens is with an Alterra design or are you seeing an increased, mix and or requirement, from customers to roll out the FPGA based, NICs cards or interface.

那太棒了。謝謝。聽起來一年的設計鏡頭是採用 Alterra 設計，或者您是否看到客戶對推出基於 FPGA 的 NIC 卡或介面的混合和/或需求有所增加。

We see quite a lot of demand in every one of our, let's say main product lines. So FPGA is definitely one of them, and there is definitely a key partner for us for our FPGA business. So, definitely we see a lot of interest in that market, and the proof for that is that we actually saw a designing as we published, earlier this year.

我們發現，我們的每條產品線，例如主要產品線，都有相當大的需求。因此，FPGA 肯定是其中之一，對於我們的 FPGA 業務來說，它肯定是一個關鍵合作夥伴。因此，我們確實看到人們對該市場有很大興趣，證據就是我們在今年稍早發佈時確實看到了設計。

And we also announced just recently, actually last week, a cooperation we're doing with an IP partner of ours called Iddentico where we announced a strategic partnership with them that allows us now to bring together a product that is very critical for the cybersecurity and other network vendors equipment. To protect their equipment and solutions not only for today but for post-quantum encryption that will become very important soon. So, this is something that we're both investing in and also seeing a lot of traction in.

我們最近，實際上是上週，也宣布了與我們的 IP 合作夥伴 Iddentico 的合作，我們宣布與他們建立戰略合作夥伴關係，這使我們能夠整合對網路安全和其他網路供應商設備至關重要的產品。不僅要保護現在的設備和解決方案，而且要保護即將變得非常重要的後量子加密。所以，這是我們都在投資並且看到很多進展的事情。

Great, and maybe one more if I could, what are your thoughts around, tariffs and how that gets implemented? Is that something you expect your customers to pay, or we have to, or you have to pay that and maybe you have to, add a line item around tariffs what you're thinking around the tariff situation. I know it's fluid right now, but any kind of baseline would be helpful.

太好了，如果可以的話，我再問一個問題，您對關稅及其實施方式有何看法？這是您希望客戶支付的費用嗎？或者我們必須支付，或者您必須支付，也許您必須在關稅周圍添加一個項目，您對關稅情況有何看法？我知道現在情況不穩定，但任何基線都會有幫助。

Yes, so as you said, it's very fluid. So, that's number one. At least at the moment, Silicom, we do not see an immediate impact. Our products at the moment are exempt because of their classification, so they're exempt from any tariff right now. We definitely monitor that very closely and stay very alert to see how that pans out eventually.

是的，正如你所說，它非常流暢。所以，這是第一點。至少目前，Silicom，我們還沒有看到直接的影響。我們的產品目前因其分類而獲得免稅，因此現在免徵任何關稅。我們肯定會密切關注此事並保持高度警惕，看看最終結果如何。

We're looking at different models and what would make sense if we would make a change, what kind of change, but I think it's very fluid as you said, and right now since our products are exempt, we don't see any immediate demand. We just keep in touch with our customers, hear their thoughts and just keep tracking whatever comes out, so we'll make sure that we can react if we need to react when something comes out.

我們正在研究不同的模型，以及如果我們做出改變會有什麼意義，什麼樣的改變，但我認為正如你所說，它非常不穩定，現在由於我們的產品是免稅的，我們沒有看到任何直接的需求。我們只是與客戶保持聯繫，聽取他們的想法並持續追蹤任何出現的情況，這樣我們就能確保在出現問題時我們能夠做出必要的反應。

Okay that's great. That's all I got thank you.

好的，太好了。這就是我所得到的感謝。

The next question is from Christopher Wormzin of DNB. Please go ahead.

下一個問題來自 DNB 的 Christopher Wormzin。請繼續。

Yes, thanks my question. Yes, just having a look at some of the assignments you have in your in your pipeline with the data infrastructure, storage networking kind of thing, 10 million units or dollars per year, sorry, just trying to understand like what kind of applications you're seeing here more specifically driving this kind of step change in your in your growth in the next years compared to historical levels.

是的，謝謝我的問題。是的，只是看一下您在資料基礎設施、儲存網路等方面的一些任務，每年 1000 萬個單位或 1000 萬美元，抱歉，只是想了解您在這裡看到的應用程式類型，更具體地說，與歷史水平相比，推動未來幾年的成長發生這種階躍變化。

So, I mean I think I would also refer you to our investor presentation to look at the pipeline a little bit. We try to give the pipeline over three main product lines, and that is over our SMARTech, over our FPGA product, and over our ed systems, and we see quite a lot of demand in all of them.

所以，我的意思是我想我也會請你參考我們的投資人介紹，稍微了解一下管道。我們嘗試在三條主要產品線上提供管道，即我們的 SMARTech、我們的 FPGA 產品和我們的 ed 系統，並且我們看到所有這些產品線都有相當大的需求。

We see, in cybersecurity definitely that's one area that really requires us to put up new products out there, higher speeds in networking are needed, more acceleration and offloading from the main CPU is needed as encryption, decryption and compression, decompression is becoming more challenging as the main CPUs need to do more and more. We see also with our edge systems more and more as we also provide higher end solutions into the market. We're able to support our customers not only with lower end systems but also with our higher end systems. We've seen a few examples of those design wins in the last year.

我們看到，在網路安全領域，這絕對是一個真正需要我們推出新產品的領域，需要更高的網路速度，需要主 CPU 的更多加速和卸載，因為加密、解密和壓縮、解壓縮變得更具挑戰性，因為主 CPU 需要做越來越多的事情。隨著我們向市場提供更高端的解決方案，我們也越來越多地看到我們的邊緣系統。我們不僅能夠為客戶提供低階系統支援，還能為客戶提供高階系統支援。去年我們已經看到了一些這類設計成功的例子。

So, I think overall we see a lot of demand for networking there's a lot of networking needs out there, and we are, as we work very closely with customers, they really trust us on both on the R&D level and later on the mass production level.

因此，我認為總體而言，我們看到了對網路的大量需求，存在大量網路需求，而且由於我們與客戶密切合作，他們非常信任我們，無論是在研發層面還是在後來的大規模生產層面。

We are the right partner for them, and they keep bringing to us more and more business. Just an example for that is the last three designs we announced are from existing customers, basically trusting us with more and more projects, and those customers have a lot of hardware projects, so it's a lot of our pipeline is also from existing customers, not only new customers.

我們是他們合適的合作夥伴，他們不斷為我們帶來越來越多的業務。舉個例子，我們宣布的最後三個設計來自現有客戶，他們基本上信任我們，把越來越多的項目交給我們，而且這些客戶有很多硬體項目，所以我們的許多產品線也來自現有客戶，而不僅僅是新客戶。

Don MacKinnon, Landlots Good Securities

Don MacKinnon，Landlots Good Securities

Thank you. Did you already give an update on your share buyback program and what occurred during the quarter.

謝謝。您是否已經更新了股票回購計劃以及本季發生的情況？

We moved forward during the first quarter, and we purchased the a few 100 a few dozen thousands of buy big shares. It's down.

我們在第一季就取得了進展，買了幾百到幾萬股大盤股。它倒下了。

And so just Like 36,000 shares is all you bought back.

所以你只買回了 36,000 股。

Can you repeat your Question.

你能重複一下你的問題嗎？

Yes, how many shares did you buy in the quarter and what average price.

是的，請問您這個季度買了多少股，平均價格是多少。

You first of all, I would say that during the last five quarters, I mean starting 2024, we purchased over 700,000 shares. The portion in quarter one was a little bit less than 100,000 shares.

首先，我想說的是，在過去的五個季度中，也就是從 2024 年開始，我們購買了超過 70 萬股。第一季的份額略少於100,000股。

Okay. Why wouldn't you buy more, or the market conditions just didn't allow you. What can you explain.

好的。為什麼你不買更多，或是市場條件不允許你買。你能解釋什麼。

This is a result of the activity in the market in each day when the volume is not so high, it means that the portion that we are able to purchase is limited.

這是由於每天市場活動量不太高造成的，這意味著我們能夠購買的部分是有限的。

Right, and how much do you have left in your current in terms of dollars, the current shares buyback program.

對，那麼，您目前的股票回購計畫還剩下多少美元呢？

During, I would say that during the last year we purchased over $8 million.

我想說，去年我們買了價值超過 800 萬美元的產品。

And what's left.

還有什麼。

Can you repeat.

你能重複一遍嗎？

Yes, how much is left in the.

是的，還剩下多少。

How much is left about $8 million.

還剩下多少錢，大約800萬美元。

Okay, thank you. And my next question, last question.

好的，謝謝。我的下一個問題，也是最後一個問題。

A year and a half ago when revenues declined, some of your major customers were still working off excess inventory and some of your larger opportunities. Is that passed and are they going to start reordering their larger quantities or are those opportunities drawn away.

一年半前，當收入下降時，您的一些主要客戶仍在消化過剩庫存和一些較大的機會。這是否通過了？他們是否會開始重新訂購更多數量，或者這些機會是否被剝奪了。

I'm sorry, I couldn't hear the first part of the question. Can you repeat.

抱歉，我聽不清楚問題的第一部分。你能重複一遍嗎？

Yes, I believe, about a year and a half ago you had some large opportunities so in, closed design when and so those customers that built up excess inventory during COVID and they were working off those inventories. On large deployments and they were going to then come back and reorder products as I recall from you once they worked off their internal inventories.

是的，我相信，大約一年半前，您有一些很大的機會，所以在封閉式設計中，那些在 COVID 期間積累了過剩庫存的客戶正在處理這些庫存。在大規模部署中，一旦他們處理完內部庫存，他們就會回來重新訂購產品，我記得是這樣。

So, I mean, we did mention there's access inventories to some of our customers and we do see some relief in that we said we will continue to see that in 2025.

所以，我的意思是，我們確實提到了我們的一些客戶可以獲得庫存，而且我們確實看到了一些安慰，我們說過我們將在 2025 年繼續看到這種情況。

We see some relief some customers are coming and buying back again some things they didn't buy for a while. I wouldn't say this problem completely went away. Partially it went away. We think it will continue throughout 2025, and we'll see some ramp up coming back. Each project is different, and each situation is different. I don't know to say that all of them will come back. It really depends on the situation.

我們感到欣慰的是，有些顧客又回來買一些他們有一段時間沒買的東西。我不會說這個問題已經完全消失了。它部分消失了。我們認為這種趨勢將持續到 2025 年，我們將看到一些回升。每個項目都不同，每個情況也不同。我不知道他們是否都會回來。這確實取決於具體情況。

We don't know exactly how it will come back because, technology moves on situations within certain companies changes along the way. We hope that many of them will come back and will buy more. We keep in touch with them, but it really changes from case to case. We know for sure this is something we said back then that we know for sure that we don't know exactly who will come back and we know that maybe some of them will not. So, that is again something we're tracking very closely. There's good and bad here, some did not, some were still keeping track and hopefully their business will pick up, but the, I hope that answers your question.

我們不知道它究竟會如何恢復，因為技術不斷發展，某些公司的情況也在不斷變化。我們希望他們中的許多人會回來併購買更多。我們與他們保持聯繫，但具體情況確實會有所不同。我們確信這是我們當時說過的話，我們確信我們不知道究竟誰會回來，我們知道也許其中一些不會回來。所以，這也是我們正在密切關注的事情。這裡有好有壞，有些人沒有，有些人仍在跟踪，希望他們的業務會好轉，但是，我希望這能回答你的問題。

Yes, thank you and good luck. Thank.

是的，謝謝你，祝你好運。感謝。

You. Thank you.

你。謝謝。

(Operator Instructions)

（操作員指示）

There are no further questions at this time before I ask Mr. Eizenman to go ahead with his closing statement, I would like to remind participants that a replay of this call will be available by tomorrow on Silicom's website www.silicom-usa.com. Mr. Eizenman, would you like to make your concluding statement.

目前沒有其他問題了，請艾森曼先生開始他的總結發言。我想提醒各位與會者，本次電話會議的回放將於明天在Silicom的網站www.silicom-usa.com上發布。艾森曼先生，請您做最後發言。

Thank you, operator.

謝謝您，接線生。

Thank you, everybody for joining the call and for your interest in Silicom. We look forward to hosting you on our next call in 3 months. Good day.

感謝大家參加電話會議並對 Silicom 感興趣。我們期待在 3 個月後的下次電話會議上再次接待您。再會。

Thank you. This concludes Silicom's first quarter 2025 results conference call.

謝謝。Silicom 2025 年第一季業績電話會議到此結束。

Thank you for your participation. You may go ahead and disconnect.

感謝您的參與。您可以繼續並斷開連線。