quarter, Kenny. you, financial net loss our million. were and $X.X we million Revenue fourth to our to $XX.X XXXX. results in Welcome, everyone, conference Thank of reported ending call quarter discuss the a
better, in X much into which I XXXX. a engage and and made half checks in we of as including both now situation. are and second results XXXX the understand few our have with do our a the assess situation the the we move handle to we effort in front opportunities the believe strong past customers that now significant during us. conference that headwinds, all In facing previous have on we challenges and to order of Over impacted conduct discussions discussed our we the significant months, call, gain
is headwind customer first access The our inventory.
Covid shutdown onwards, became components. XXXX limited During chains electronic supply the world very tight global and of around the in with availability
our this above-average purposes and demand from of high for order backlog which in XXXX, As high us enjoyed the first we level XXXX. half with our and being inventory portion of a significant products of drove precaution, and product, XXXX a our for customers
XXXX, shared abated second the began inventory significantly we a customers half strength. their reducing of of the in we chain drawing stock reversal inventory while and significant as purchases. on ongoing However, up who existing tightness build Supply saw
second process we of investment headwind projects. leading implementation are and facing The is slower investments. are macroeconomic new and IT industry-related infrastructure decision-making delaying projects infrastructure and a existing This longer factors to on
quarter, some when top forecast the are initially significantly there first As customers. are wins we anticipated additional are the market On issues from a XXXX achieved customers headwinds, cautiously, that line and impacting of I projects proceeding Those up design those last by that diverging our mentioned significantly than time. time also our ramping XXXX few specific in original revenues. of slower are Silicom’s
X outstanding success which more delivered a have purchase to First, pace those we forecast, million expected large slow still Currently, wins those purchase there initial with were no Both either customer's annual $XX already each provided wins we've us orders, additional very are million. revenue won in poor inventories, $XX are to solution. than X due very of and customers their and customers. design orders from of they full of $XX large million of of market very Both the very with to at digesting XXXX According provide us XXXX. each. large to
this reduce ours owner a the impacts management, and of of a its acquired Second, negatively a focus prefer the on with which million. supply and and purchases by long severe of was following their and is hardware to shifting may customer from during us. customer period disruption, shift $XX global annual hardware new purchases large software ongoing This XXXX ongoing chain focus
Third, is our those well as expectations O-RAN our not industry expectations to unfortunately, and customers. developed according of as
we telcos success sales and about with early among operators, nice million. XXXX, had mobile provided few very us O-RAN $XX revenue a During which of a
of success O-RAN in the further with not we near technology, anticipate lack the of POs However, do general acceptance future. and
of the factors coupled short-term and All low current level led combined visibility. revenues, uncertainty to with of lower our above
therefore, to made operations have, our with reality. new adjustments to various align We this
end even reality covering today. XXXX strategic our and XXXX. designed share I of plan until the approved Directors, to working plan significant want the our market X-year Following plan we under under new a of by initiated this to and This This strategic Board for that, been started of with now. has shareholders value new plan generate is you
goal In objective, long-term the gradually terms is per share of main plan XXXX. our earnings of $X about in our increase to financial to
and headwinds $XX Looking QX towards term, revenues mainly expected ease XXXX global second be throughout inventory will the we mentioned economy near earlier. I revenue And the that are XXXX. will move revenue issues about XXXX and million, first of $XX excess our be will as We the that $XX the between believe million at the thus, by in half. headwinds half higher we than impacted those million. forward believe
a We are tough facing transition period.
and its line a loss steady continue our our growth. us cash allows However, allow well strategic to this supporting deep ahead, core our few We as very during position balance EPS strong dollars plan to million efforts top of X-year significantly a continue impacted as period. and full R&D broad not with by our to and pipeline return gradual that us and being while steam a transition will believe Silicom sheet
The of years, to reasons margin between we XX%. our coming terms gross a threefold. range the expect for In XX% are
margins gross typically than our systems server adapters. our First, lower carry
in systems mix of company As sold, we gross person grow edge should products our our reduce of the it margin.
of XXXX, of be securities to X-year well of as marketable inventory want in margin accounts range accounts million capital $XX address for end current is the years global revenue Second, return issue buyer's of of net million The years our the to of with we drawn cost other our of Therefore, fixed goods impact as the goods of where vendors will And are vendor's this people be and the the per pushing is and $XX I primary the inventories the lower payable will put and about a we decrease $XX XXXX high our in and that well while down as of so in will discounts. amounting market, cost this following. probably that to the the All as should effort already the working Thus, elements cyclical our represents should $XX coming element. into as of purchasing from a includes $XXX has improve gross cost part economy [indiscernible]. our million or at a plan. changed This reducing us to share. as in our we gross receivables, XXXX the third, fixed strategic cash. cost market decrease to CFOs year market decreased, fixed quality improve stress margin growth. million will a of portion as believe want negative under I very and improved.
XXXX First, our that, XXX revenue reduced to expect align our initial maintaining footprint to XXX sufficient current has our people. plan. to our that stress reductions, million current about rate. we expense we our $XX strategic that been OpEx have are we We've to growth personnel future With reduce already exchange I with making step ahead. verified for to expense those want expected our in assuming to while investment revenue level from support
Over XXXX to years, only plan. and continue control tightly our in in beyond will OpEx strategic expense of the on based and minimal increase the our execution level coming we allow
currently at the balance years. and sheet, of have We on plan The regulatory and business buyback X.X discussed of we the a acquisition to to and total market the an we X shares repurchase the very in million year-end, other outstanding factors. X.X timing shares shares earlier, approximately and corporate price, XXXX will opportunities subject amount following throughout I I and strong requirements, million fourth aggressive plan share quarter. based that to know our be of repurchase next XXX,XXX repurchases over shares with XXXX. continue conditions, Second, of as
related potential come in past, compound IBM growth incremental about Third, we may for the focus and server not the design additional may wins believe we ramp-up solution project of that of in which important already leading from sales been Fourth, portfolio, leading basis had of achieve robust This provide growth, increase as that had rate service growth and terms achieved the consider SASE the with on in providers and demand. increased pipeline wins, we potential SD-WAN we XXXX products upside experience fundamental revenues significant Edge XXXX the from and additional for IT security to and such and and ones average will as projects XXXX large Edge part in the of which and of We networking business. our roster core will of globally. large strategic XXXX, adapter telcos providers adapter does and large will the points. typically our system design from as to wins like XXXX, we we very beyond for service annual believe plan, XX% an design that from our growth growth server
As and be expectation not Unfortunately, of conducted decided for evaluation non-counrelated expectations strategy, very also those both industry and marketing us in of Fifth, a O-RAN ours return developed our to programs of can well according and as a considered part customers. current this the no to that we past. the a sales of well worked to as the is as all us will for business programs. our a we it longer to discontinue core as detailed strategy
design once as again those many the an expected This win $X much over have million in annual and range. with will not accounts revenues that become focus will million-plus wins larger $XX immediate smaller types pursue not of accounts achieve the the mean design we current potential larger to years. We range of on the of also does
place larger design been The to revenues However, goal actively only compensation adjusted significant growth an our diverse designed our approach. aspects our our line, create executing more in strategy strategy, focus compete will we and main By the in the and well of we long-term on our above achieve make to and to wins plan plan the to not the for buyback growth robust. as this expenses of already This salespeople smaller more should putting the reflect of have the that taking all aggressive on controlling revenues, of maximize believe shareholders. is one. measures value
earnings in of reminder, over As our $X target per a is share XXXX.
internal across gradually $X.X we mind those that and and improve that we our our XXXX. with are sharing this targets approach milestone guidance. current the financial taken believe be target, we in not As are EPS in you of EPS should that will bear Please as
we against proceed, will targets. we As you share progress our those with
team the We attainable believe in have through to and with XXXX, more just to have many optimistic a to our I industry. Directors that team loyal much in know, To Silicom, in our already lot players management in that our market many experience Board of plan. for management and for XXXX name our you and summarize, a X-year few. business. by the members with and of been years all a I'm hardware Most dedicated very successfully crisises challenging is XXXX, transformations success targets Brookland, navigated and We in are outlined as XXXX environment strongly have us business going of our ability execute on this into in
roster, a detailed I that, will now and a a new go in results. the will over strong confident a through starting reduction want revenue our player strategic enhancing plan of team management a renewed for Silicom plan on And With that but growth, long-term to share deep from given $X of just call focuses key We place, please experienced value shareholders, XXXX. and bringing design quarter strong is as to stress reducing growth share a ahead. our also years. well place, buyback in per with and by Eran, it strategic returning review XXXX our I in X profitability, earnings industry. growing that highly pipeline, over to have an Eran in goal which we to reporting positioned ultimately and expenses a win aggressive beyond a the in hand count achieve I'm over not
