(By Balaseshan) Silicom Ltd. (NASDAQ: SILC), a provider of networking and data infrastructure solutions, reported a 26% growth in quarterly earnings on strong sales backed by higher demand for all of its products.
Earnings for the fourth quarter were $3.03 million or $0.43 per share, up from $2.40 million or $0.34 per share in the previous year quarter. Adjusted earnings per share (EPS) rose to $0.49 from $0.36.
Sales jumped 50.7% to $16.69 million. Gross margin for the latest quarter decreased to 37.7% from 42.5%.
For the full year 2012, earnings rose to $9.9 million, or $1.42 per share, from $8.2 million, or $1.18 per share, last year. Adjusted EPS increased to $1.52 from $1.24.
Revenue grew 23% to $48.7 million. Gross margin for the year declined to 40.8% from 43.4%.
As of December 31, 2012, the company's cash, cash equivalents, bank deposits and marketable securities totalled $56.9 million, or $8.12 per outstanding share, up $2.1 million from the end of the third quarter, and up $7.7 million from last year.
The company said addition of massive new projects with virtually unlimited expansion of target markets give visibility for continued accelerated growth in 2013 and beyond.
"With a superb and growing product portfolio, an unmatched customer platform, a sterling reputation and virtually endless markets, we are positioned to deliver on our promises and to continue generating strong growth, profits and value for our shareholders in the years ahead," said Shaike Orbach, President and CEO.
On January 14, the company said its board has adopted a policy for distributing dividends, subject to all applicable laws. According to this policy, each year the company will distribute a dividend of up to 50% of its annual distributable profits.
As part of the stated policy, Silicom's board reserves the right to declare additional dividend distributions, to change the rate of dividend distributions (either as a policy or on a one-time basis), to cancel a specific distribution or to cancel the policy as a whole at any time, at its sole discretion.
SILC is trading up 13.44% at $22.11 on Wednesday. The stock has been trading between $13.11 and $22.90 for the past 52 weeks.