Silicom Ltd. (SILC) has reported a 36.11 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $2.60 million, or $0.35 a share in the quarter, compared with $1.91 million, or $0.26 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.87 million, or $0.52 a share compared with $3.03 million or $0.41 a share, a year ago.

Revenue during the quarter grew 18.66 percent to $25.34 million from $21.36 million in the previous year period. Gross margin for the quarter expanded 68 basis points over the previous year period to 37.82 percent. Total expenses were 87.21 percent of quarterly revenues, down from 88.72 percent for the same period last year. This has led to an improvement of 151 basis points in operating margin to 12.79 percent.

Operating income for the quarter was $3.24 million, compared with $2.41 million in the previous year period.

However, the adjusted operating income for the quarter stood at $4.54 million compared to $3.57 million in the prior year period. At the same time, adjusted operating margin improved 117 basis points in the quarter to 17.90 percent from 16.73 percent in the last year period.

Mr. Shaike Orbach, Silicom's president and chief executive officer, commented, "Our strong first quarter results demonstrate the growing momentum of our business. We continue to benefit from the long-term relationships we have established with our 'traditional' OEM customers, while beginning to enjoy the fruits of the significant investment we have made over the past several years in Cloud connectivity product lines, which are proving to be an exact fit for this emerging industry segment. In fact, the lines between our 'traditional' and new Cloud businesses are blurring, as many of our long-time clients initiate new Cloud product lines and turn naturally to Silicom for the required connectivity components."