Dallas, Texas 07/23/2014 (FINANCIALSTRENDS) – Silicom Ltd.(NASDAQ:SILC) the Israel-based hardware major saw mixed reaction on the stock markets after it posted profits of $4.3 million for the second quarter of this fiscal.
The company which has a major presence in the production of servers and appliances for the networking segment has reported that in the first half of 2014, the company has been able to report growth annually. The growth remained the same for the previous quarter as well. But in the second quarter revenue was found to decline sequentially by over 6% in comparison to previous quarter.
Second Quarter Growth
Post announcement of the result, shares of this electronic component major crashed by over 25%, given the drastic drop in EPS reported for the quarter at $0.50. This was much lower than the analyst estimate of $0.48. Revenue for the quarter was reported at $17 million, which was lower than the $18.92 million for Silicom Ltd. (NASDAQ:SILC).
The company spokesman commented that demand decline may persist into the second half as well. According to CEO and President Shaike Orbach,”we continue to believe in the long-term power of our growth engines: especially our more than 100 existing customers, many of whom are industry leaders, our proven portfolio of mission-critical products, and our impressive roadmap of innovative new product lines that give us entry into high-potential new opportunities.”
Silicom Ltd. (NASDAQ:SILC) has been working in the vertical of data infrastructure and has been driving data center efficiency. The solutions offered by SILC are found to have maximized throughput besides server-based operations.
In recent times SILC has been working on other verticals such as security as well as other mission-critical segments, which are fast-growing, virtualized as well as big data markets with cloud computing service platform.