Silicom Ltd. Files 20-F Annual Report for Fiscal Year Ended December 31, 2023

TL;DR

<b>Silicom Ltd. has submitted its 20-F annual report, providing a comprehensive overview of its financial performance and business activities for the fiscal year ending December 31, 2023.</b>

AI Summary

SILICOM LTD. (SILC) filed a Foreign Annual Report (20-F) with the SEC on April 30, 2024. Silicom Ltd. filed its annual report on Form 20-F for the fiscal year ended December 31, 2023. The report details financial information and business operations for the period. Key financial metrics and disclosures are provided for the fiscal years 2021, 2022, and 2023. The filing includes information on the company's business address in Kfar-Sava, Israel. Silicom Ltd. operates in the Computer Communications Equipment industry.

Why It Matters

For investors and stakeholders tracking SILICOM LTD., this filing contains several important signals. This filing is crucial for investors and stakeholders to assess Silicom's financial health, operational performance, and strategic direction over the past fiscal year. The 20-F report provides detailed disclosures required by the SEC, offering insights into the company's market position, risks, and future outlook.

Risk Assessment

Risk Level: medium — SILICOM LTD. shows moderate risk based on this filing. The filing is a standard annual report (20-F) which typically contains a broad range of information, including risk factors, but does not highlight any immediate or severe new risks in the provided header information.

Analyst Insight

Review the detailed financial statements and risk factors within the full 20-F filing to understand Silicom's performance and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report Period)
• 2024-04-30 — Filing Date (Date of Submission)
• 3.10% — Weighted Average Interest Rate (2022) (Bank Deposits)
• 4.57% — Weighted Average Interest Rate (2023) (Bank Deposits)
• 138 thousand — Accrued Interest (2022) (Bank Deposits)
• 188 thousand — Accrued Interest (2023) (Bank Deposits)

Key Players & Entities

• SILICOM LTD. (company) — Filer name
• 0001178913-24-001474 (other) — Accession Number
• 2024-04-30 (date) — Filing Date
• 2023-12-31 (date) — Fiscal Year End
• Kfar-Sava (location) — Business Address City
• 97297644555 (phone) — Business Phone
• NASDAQ National Market (market) — Stock Exchange Mentioned
• 3576 (other) — Standard Industrial Classification Code

FAQ

Glossary

Restricted share units

Units of company stock that are granted to employees but cannot be sold or transferred until certain conditions are met. (Indicates a form of employee compensation and potential future dilution.)

Treasury shares

Company's own shares that it has repurchased from the open market. (Presented as a reduction of equity, impacting share count and potentially EPS.)

Filing Documents

• zk2431324.htm (20-F) — 2662KB
• exhibit_4-4.htm (EX-4.4) — 4KB
• exhibit_8-1.htm (EX-8.1) — 4KB
• exhibit_12-1.htm (EX-12.1) — 11KB
• exhibit_12-2.htm (EX-12.2) — 10KB
• exhibit_13-1.htm (EX-13.1) — 4KB
• exhibit_13-2.htm (EX-13.2) — 4KB
• exhibit_15-1.htm (EX-15.1) — 3KB
• 0001178913-24-001474.txt (&nbsp;) — 11408KB
• silc-20231231.xsd (EX-101.SCH) — 73KB
• silc-20231231_cal.xml (EX-101.CAL) — 69KB
• silc-20231231_def.xml (EX-101.DEF) — 186KB
• silc-20231231_lab.xml (EX-101.LAB) — 757KB
• silc-20231231_pre.xml (EX-101.PRE) — 378KB
• zk2431324_htm.xml (XML) — 2449KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No (APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS) Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No This annual report on Form 20-F includes certain "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934. The use of the words "projects", "expects", "may", "plans", or "intends", or words of similar import, identifies a statement as "forward-looking." There can be no assurance, however, that actual results will not differ materially from our expectations or projections. Factors that could cause actual results to differ from our expectations or projections include the risks and uncertainties relating to our business described in this report at Item 3 titled "Risk Factors." As used herein or in any document incorporated by reference hereto, the "Company", "Silicom Ltd.", "Silicom", "Registrant", "we", "us", or "our" refers to Silicom Ltd. and its subsidiaries. We have prepared our consolidated financial statements in United States dollars and in accordance with accounting principles generally accepted in the United States. All references herein to "dollars", "US

Risk Factors

Risk Factors 6 Item 4. INFORMATION ON THE COMPANY. 33 A. History and Development of the Company 33 B. Business Overview 34 Principal Markets 37 Manufacturing and Suppliers 38 Marketing Channels 39 Patents and Licenses 41 Competition 42 Governmental Regulation Affecting the Company 43 C. Organizational Structure 44 Item 4A. UNRESOLVED STAFF COMMENTS 45 Item 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 45 Impact of Inflation and Currency Fluctuations on Results of Operations, Liabilities and Assets 50 C. Research and development, patents and licenses, etc. 52 E. Critical Accounting Estimates 54 Item 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 56 A. Directors and Senior Management 56 B. Compensation 59 Board of Directors 65 External Directors 65 Audit Committee 70 Compensation Committee 71 D. Employees 77 E. Share Ownership 79 Item 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 80 A. Major Shareholders 80 B. Related Party Transactions 81 ITEM 8. FINANCIAL INFORMATION 83 A. Consolidated Statements and Other Financial Information 83 B. Significant Changes 83 Item 9. THE OFFER AND LISTING 84 A. Offer and Listing Details 84 Markets and Share Price History 84 4 Item 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 107 Interest Rate Risk 107 Foreign Currency Exchange Risk 108 Item 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 109 PART II. 110 Item 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 110 Item 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 110 Item 15. CONTROLS AND PROCEDURES 110 Disclosure Controls and Procedures 110 Management's Annual Report on Internal Control over Financial Reporting 110 Inherent Limitations on Effectiveness of Controls 111 Changes in Internal Control over Financial Reporting 111 Item 15A. CONTROLS AND PROCEDURES 111 Item 1

IDENTITY

Item 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT, AND ADVISERS Not Applicable. Item 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not Applicable. Item 3. KEY INFORMATION A. [Reserved] B. Capitalization and Indebtedness Not Applicable. C. Reason for the Offer and Use of Proceeds Not Applicable. D. Risk Factors This annual report and statements that we may make from time to time may contain forward-looking information. There can be no assurance that actual results will not differ materially from our expectations, the risks and uncertainties relating to our business described below. 6 Summary of Risk Factors An investment in our ordinary shares is subject to a number of risks. The following summarizes some, but not all, of these risks. Please carefully consider all of the information discussed in "Item 3. Key Information—D. Risk Factors" in this annual report for a more thorough description of these and other risks. Risks Related to Our Business and Industry We may not be able to capitalize, as planned, on our Design Wins. The market for Cloud-based and Cloud-focused solutions is rapidly developing, and if it develops in ways that differ from our expectations, our business could be harmed. The market for Edge Networking Devices to Telcos and service providers for NFV or SD-WAN deployments is rapidly developing, and if it develops in ways that differ from our expectations, our business could be harmed. Rapid development of our business in the Cloud-based, Telco and service providers' markets may require us to offer our potential customers with longer payment terms to better position ourselves in these markets, to hold higher inventory levels and to significantly increase our need for working capital. Our networking and data infrastructure solution products which are targeted by us mainly to customers in the OEM, Cl

View Full Filing

View this 20-F filing on SEC EDGAR