The network equipment maker reported net income of 94 cents a share over the fourth quarter ended December, 24 cents higher than analysts surveyed by Yahoo! Finance had expected. Quarterly revenue of $25.4 million was more than double the year-ago quarter and exceeded expectations by nearly $5 million. Gross margin improved 210 basis points to 39.8% compared to the December-ended quarter of 2012.
Over fiscal 2013, the Israel-based business recorded net income of $2.45 a share, a 68% year-over-year increase and nearly 11% higher than consensus. Revenue of $73.3 million was 50% higher than 2012 and beat expectations by $4.71 million.
"Q4 was a breakthrough quarter that capped off our best year on record," said CEO Shaike Orbach in a statement. "Our record of growing the company by 50% quarter after quarter confirms our ability to create essential products for some of IT's hottest Big-Data-driven markets, including SDN, virtualization and cloud computing. With over 90 OEM customers, including most of the market leaders, we have become the 'de facto' standard for OEMs in these sectors, all of whom are looking for a performance boost and an 'edge' for their server-based offerings."TheStreet Ratings team rates SILICOM LTD as a Buy with a ratings score of A-. The team has this to say about their recommendation: "We rate SILICOM LTD (SILC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
- You can view the full analysis from the report here: SILC Ratings Report
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