By Sabela Ojea
Shares of SiliCom plunged after the networking and data infrastructure solutions posted a major hit to profitability in the third quarter and warned of a challenging 2024.
At 3:16 p.m. EDT on Thursday, shares were down 32% to $15.20, on pace for its largest percent decrease since Sept. 5, 2002. The stock has dropped 63% since the year started.
The networking and data infrastructure solutions posted a net profit of $1.2 million, or 18 cents a share, compared with $6.0 million, or 88 cents a share, for the same period a year earlier.
Revenue dropped 23% to $30.1 million.
Additionally, the company said revenue will decline by over a half in the fourth quarter, to between $20 million and $21 million. SiliCom expects to return to double-digit growth in 2025.
Write to Sabela Ojea at [email protected]
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