Silicom Ltd. (NASDAQ:SILC) Q4 2022 Earnings Call Transcript

Alex Henderson: Right, thanks. I’ll cede the floor.

Operator: The next question is from Alex Anderson of Needham & Company. Please go ahead.

Alex Henderson: I was hoping somebody else was going to queue, but nobody else is queuing, myself continue. Given the improvement in cash flow, given the volatility in the stock market, do you anticipate utilizing the cash in terms of buybacks or any other activity that — how should we think about use of cash in this environment?

Liron Eizenman: Still, right now, we feel that the best use for our cash, given the uncertainty still to be able to use it for inventories if we would need to do so. And for components, we don’t have any other plans at the moment for that.

Alex Henderson: All right. That was our last question. Thanks.

Operator: The next question is from Shawn Boyd of Next Mark Capital. Please go ahead.

Shawn Boyd: Thanks for taking the question. Can you hear me okay?

Liron Eizenman: Yes, we can.

Shawn Boyd: Just one for me. I want to get back to the gross margin and this quarter. I think you call that product mix, but can you elaborate just a bit on that? And also, is that something that continues into the first half of this coming year? Or do we kind of move back to that 35%, 36% level that we saw in the previous two quarters? Thank you.

Eran Gilad: So we still see that we’re going to be in the same range. We don’t see any reason to change the range right now. We still believe will be in the 32 to 36.

Liron Eizenman: Shawn, does that answer your question?

Shawn Boyd: I got it. I got it. Yes. Thank you.

Liron Eizenman: Thank you.

Operator: There are no further questions at this time. Before I ask Mr. Eizenman to go ahead with his closing statement, I would like to remind participants that replay of this call will be available tomorrow on Silicom’s Website, www.silicom-usa.com. Mr. Eizenman, would you like to make your concluding statement?

Liron Eizenman: Thank you, operator. Thank you everybody for joining the call and for your interest in Silicom. We look forward to hosting you on our next call in 3 months time. Good day.

Operator: Thank you. This concludes Silicom’s fourth quarter 2022 results conference call. Thank you for your participation. You may go ahead and disconnect.