Silicom (NASDAQ: SILC) reported Q4 EPS of $0.41, $0.08 better than the analyst estimate of $0.33. Revenue for the quarter came in at $25.5 million versus the consensus estimate of $25.14 million.

Comments of Management

Shaike Orbach, Silicom's President and CEO, commented, "The fourth quarter\'s solid results and 2019 as a whole represent the successful transition that we have been carrying out during the last five years. As the market is moving to Cloud Data Centers, Virtualized Edge Computing and decoupling of software and hardware, we have shifted our focus from networking appliances for on-premise data centers to Cloud data centers and Edge computing.

"Our significant investments in R&D and sales efforts during these years, together with our targeted IP and technology acquisitions, positioned us correctly to address the global transitioning's derivative markets - primarily, SD-WAN, Cloud data centers, Cyber Security, NFV and 5G. Our Edge products are crucial components within the Virtualized Edge and the software and hardware decoupling trends, and our FPGA smart cards are key elements in Cloud and Edge computing acceleration."

Mr. Orbach continued, "We have been able to secure numerous significant Design Wins in these markets that we now expect to drive double-digit growth for us in 2020 and beyond. The recent selection of our uCPEs by one of the US's largest healthcare chains for its SD-WAN deployment is a demonstration of our growth potential in the Enterprise market, over and beyond our earlier Telco-related wins.

"Affirmations such as these, coupled with strong market tailwinds, confirm the bold decision we took in 2015 to invest so heavily in Edge computing and FPGA-based solutions in order to remain ahead of the curve. Now, as our early design wins in these markets mature into revenues and an increasing number of opportunities appear on the horizon, we are ready to harvest the fruits of these efforts. We look forward to a strong 2020, followed by even sharper growth in 2021 and beyond."

GUIDANCE:

Silicom sees Q1 2020 revenue of $25-26 million.

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