Silicom tumbles 20% in pre-market on Q2 earnings decline
Server connectivity solutions provider Silicom Ltd. (Nasdaq:SILC) has shed 20% in pre-market trading today after reporting ahead of the opening a drop in its second-quarter earnings. For the quarter ended June 30, revenues were $5.2 million, down from $6.6 million for the same period a year ago. Net income was $0.3 million, or $0.05 per share, compared with $1.6 million, or $0.25 per share for the period a year earlier. The Israel-based company said it had experienced a decline in purchases from its largest customer.
“On the one hand, our revenues for the quarter suffered from both the difficult market environment, which has affected the revenues of many players in the network appliance value chain, and from a significant reduction in orders from our largest customer. We have been impacted by the customer’s new appliance configurations, which reflect its decision to begin offering our copper BYPASS cards as an optional add-on rather than as a standard component, as well as by its low quarterly volume of orders for fiber cards,” said president and CEO Shaike Orbach in a statement.
Ahead of today’s opening, shares are at $6.29, down $1.56 from Friday’s close. Shares have ranged from $6.12 to $28.24 during the past year.
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