Silicom approves 5-year strategic plan

Silicom reported a 5-Year Strategic Plan recently approved by its Board of Directors. The main objective of the 5-Year Strategic Plan is to create significant shareholder value over time, increasing EPS gradually to above $3 in 2028. The primary elements of the plan include an increased focus on the company’s core Server Adapter and Edge solution portfolios, for which there is fundamental demand, together with reductions in workforce and other expenses. To date, implementation of the plan has resulted in the discontinuation of two non-core programs and a downsizing of Silicom’s workforce from 310 to 240 employees. Associated one-time impairment of intangible assets and related write-offs of Cost of Sales have been reflected in the dompany’s Q4 GAAP financial results, with reconciliation detailed in the Non-GAAP financial results. The starting point for the plan is the company’s balance sheet, which, as of year-end, included working capital and marketable securities totalling $140M or approximately $21 per share. Based on this balance sheet, the company plans to continue with share buyback in 2024 and 2025, repurchasing a total of approximately 1.6 million shares during the next two years.