Silicom (NASDAQ: SILC) reported Q2 EPS of $0.26, in-line with the analyst estimate of $0.26. Revenue for the quarter came in at $23 million versus the consensus estimate of $22.07 million.

Financial Results:

• Silicom's revenues for the second quarter of 2020 totalled $23.0 million compared with $25.4 million compared for the second quarter of 2019.
• On a GAAP basis, net income for the quarter totalled $1.3 million, or $0.18 per share (basic and diluted), compared with $2.3 million, or $0.30 per share (basic and diluted), for the second quarter of 2019.
• On a non-GAAP basis (as described and reconciled below), net income for the quarter totalled $1.8 million, or $0.26 per share (basic and diluted), compared with $2.9 million, or $0.38 per share (basic and diluted), for the second quarter of 2019.

Comments of Management

Shaike Orbach, Silicom's President and CEO, commented, "The second quarter was another period of solid revenues and profits despite the ongoing COVID-19 disruptions to our supply chain and logistics. While the uncertainty of the situation may still lead to short-term delays in telco and cloud infrastructure investments, the booming demand for network capacity is leading to long-term acceleration of their SD-WAN, NFV, Security and 5G network build-out plans. We believe that this is a fundamental market change that will increase long-term demand for our innovative enabling solutions, which increase network flexibility and capacity while reducing network costs.

"The increased demand for capacity is already having an impact on our target markets, both new and traditional. For example, our Intelligent Bypass solutions were selected in April to maximize the throughput of a massive governmental broadband network, resulting in a $15 million Design Win. The fact that the project's integrator expects additional similar projects over time is just one demonstration of the continuous pipeline of opportunities that we see in each of our target markets."

Mr. Orbach concluded, "While the environment remains uncertain, with a long list of design wins, a healthy cash balance, solid baseline activities and strong market fundamentals, we are well positioned and optimistic about our long-term prospects. As such, we continue to project that we will achieve a double-digit CAGR (Compound Annual Growth Rate) for several years ahead - once our markets return to normal."

For earnings history and earnings-related data on Silicom (SILC) click here.