Silicom Ltd (NASDAQ: SILC) shares are trading lower by more than 23% after it reported lower-than-expected second quarter (Q2) results.
The Kefar Sava, Israel-based company reported revenue growth of 12% year-on-year to $38.13 million, beating the analyst consensus of $38.76 million.
Non-GAAP EPS of $0.66 vs. $0.70 a year ago.
Adjusted gross margin stood at $12.26 million, and adjusted operating income reached $4.75 million in the quarter.
Silicom held $63 million in cash, cash equivalents, and marketable securities.
The company plans to accelerate the pace of repurchasing shares under its $15 million Share Repurchase Plan announced earlier.
Outlook: Silicom sees Q3 revenue of $30 million-$31 million versus the analyst consensus of $44.06 million.
The company expects a slower quarter due to easing supply chain issues, component lead times, and a sluggish macroeconomy.
Silicom CEO Liron Eizenman cited “significant macro headwinds” for impacting 2023 revenue expectations and warned that they may have an effect on results for the first half 2024.
“We believe that we will re-establish a growth trajectory once our customer activities and inventory levels return to normal,” Eizenman said.
Price action: SILC shares are down by 23.3% at $29.95 on the last check Monday.
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Edited by Kyana Jeanin Rubinfeld and Jason Reed
