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- **Design Win Momentum**: 8 design wins year-to-date, nearing 2025 target of 7-9, with 2026 target of 7-9 new wins.
- **Revenue Growth**: Q3 2025 revenue $15.6 million, Q4 guidance $15-16 million, supporting 2026 double-digit growth.
- **Financial Strength**: Gross margin improved to 31.8%, $76 million cash reserves, and no debt.
- **Strategic Opportunities**: AI applications in NICs and FPGAs, telecom spending on edge systems, and PQC leadership driving long-term growth.

**【CEO Summary Section】**
- Achieved 8 major design wins year-to-date, nearing the upper end of the 2025 target range of 7-9 design wins.
- 2026 target set at 7-9 new design wins across FPGA, Edge, and SmartNICs, driven by strong customer engagement.
- Q3 2025 revenue of $15.6 million, within guidance, with Q4 2025 revenue expected in the $15 million to $16 million range.
- Key design wins include a $4 million annual customer for Edge systems, a $1 million annual customer for edge devices, and a $3 million annual customer for 5G/WiFi connectivity solutions.
- Post-quantum cryptography (PQC) solution secured a $2 million annual run rate with a global application delivery leader.
- Strong balance sheet with $114 million in working capital and $76 million in cash, supporting long-term growth.
- Long-term goal of achieving EPS above $3 with revenue scaling to $150 million to $160 million.

**【CFO Financial Commentary】**
- Q3 2025 revenue of $15.6 million, up 6% year-over-year, with non-GAAP gross margin of 31.8% (vs. 28.8% in Q3 2024).
- Operating expenses of $7.4 million, higher due to currency weakness, resulting in a net loss of $2.1 million.
- Cash reserves of $76 million (no debt), representing $20 per share, providing financial flexibility.

**【Q&A Highlights】**
- AI opportunities in high-speed NICs (400-gig), FPGAs for proprietary protocols, and edge inference systems.
- Telecom service providers and OEMs are investing in Silicom's products for next-generation infrastructure, with design win potential in the pipeline.

Silicom Ltd. (SILC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SILC

SILC fundamentals

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