================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of October 2000 Galileo Technology Ltd. -------------------------------------------------------------------------------- (Translation of registrant's name into English) Moshav Manof, D.N. Misgav 20184, Israel -------------------------------------------------------------------------------- (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F |X| Form 40-F |_| Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes |_| No |X| NY2:\973713\02\47312.0006 1 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GALILEO TECHNOLOGY LTD. Date: October 17, 2000 By /s/ Avigdor Willenz ----------------------------------------- Name: Avigdor Willenz Title: Chief Executive Officer and Chairman of the Board 2 EXHIBIT INDEX ------------- Sequential Item Page Number ---- ----------- 1. Press Release from the Registrant dated October 17, 2000. 4 3

PART I. FINANCIAL INFORMATION Pages Item 1. Financial Statements (Unaudited): Condensed Consolidated Balance Sheets June 30, 2000 and December 31, 1999 2 Condensed Consolidated Statements of Operations Three months and six months ended June 30, 2000 and 1999 3 Condensed Consolidated Statements of Cash Flows Six months ended June 30, 2000 and 1999 4 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 Item 3. Quantitative and Qualitative Disclosures about Market Risk 15 PART II. OTHER INFORMATION Item 1. Exhibits - Exhibit Index 16 Signatures

June 30, December 31, 2000 1999 ------------------------------ (Unaudited) (1) ASSETS Current assets: Cash and cash equivalents $ 57,070 $ 42,648 Short-term investments 50,396 63,005 Accounts receivable, net 10,584 12,523 Inventories 11,545 8,094 Prepaid expenses and other assets 2,287 3,049 ------------------------------ Total current assets 131,882 129,319 Other assets 8,091 2,031 Property and equipment, net 12,462 9,388 ------------------------------ Total assets $ 152,435 $ 140,738 ============================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 8,134 $ 6,495 Accrued and other liabilities 8,023 8,969 Deferred income 2,394 1,817 ------------------------------ Total current liabilities 18,551 17,281 Accrued severance pay 731 500 Other liabilities 1,675 1,652 Commitments Shareholders' equity: Ordinary shares 76,133 74,440 Deferred compensation (186) (432) Accumulated other comprehensive income (loss) 388 (124) Retained earnings 55,143 47,421 ------------------------------ Total shareholders' equity 131,478 121,305 ------------------------------ Total liabilities and shareholders' equity $ 152,435 $ 140,738 ==============================

Three Months Ended Six Months Ended --------------------------- ---------------------------- June 30, June 30, June 30, June 30, 2000 1999 2000 1999 --------------------------- ---------------------------- Net sales $ 24,318 $ 18,271 $ 44,470 $ 33,423 Cost of sales 9,573 6,247 18,819 11,694 --------------------------- ---------------------------- Gross profit 14,745 12,024 25,651 21,729 Operating expenses: Research and development 5,977 3,679 11,979 6,964 Selling, marketing and administrative 4,180 2,971 7,948 5,382 --------------------------- ---------------------------- Total operating expenses 10,157 6,650 19,927 12,346 --------------------------- ---------------------------- Operating income 4,588 5,374 5,724 9,383 Other income (expense), net 1,372 1,076 2,406 2,292 --------------------------- ---------------------------- Income before provision for income taxes 5,960 6,450 8,130 11,675 Provision for income taxes 300 320 408 580 --------------------------- ---------------------------- Net income $ 5,660 $ 6,130 $ 7,722 $ 11,095 =========================== ============================ Earnings per share: Basic $ 0.13 $ 0.15 $ 0.18 $ 0.27 =========================== ============================ Diluted $ 0.13 $ 0.14 $ 0.17 $ 0.25 =========================== ============================ Shares used in computing earnings per share: Basic 42,579 41,010 42,406 40,852 =========================== ============================ Diluted 45,059 44,544 45,148 44,316 =========================== ============================

Six Months Ended -------------------------------- June 30, June 30, 2000 1999 -------------------------------- Cash flows from operating activities Net income $ 7,722 $ 11,095 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and other 2,302 1,163 Amortization of deferred compensation 246 256 Changes in operating assets and liabilities: Accounts receivable 1,939 (3,091) Inventories (3,451) (581) Prepaid expenses and other assets 785 (744) Accounts payable 1,639 (107) Accrued and other liabilities (946) 1,098 Deferred income 577 (74) Accrued severance pay and other liabilities 231 85 -------------------------------- Net cash provided by operating activities 11,044 9,100 Cash flows from investing activities Purchases of short-term investments (1,730) (26,382) Maturities of short-term investments 14,851 9,485 Purchases of property and equipment (5,376) (1,910) Other assets (6,060) (51) -------------------------------- Net cash provided by (used in) investing activities 1,685 (18,858) Cash flows from financing activities Proceeds from issuance of ordinary shares 1,827 2,080 Repurchase of treasury shares (134) (77) Repayment of long-term debt -- (6) -------------------------------- Net cash provided by financing activities 1,693 1,997 Net increase (decrease) in cash and cash equivalents 14,422 (7,761) Cash and cash equivalents at beginning of period 42,648 45,607 -------------------------------- Cash and cash equivalents at end of period $ 57,070 $ 37,846 ================================

Three Months Ended June 30, Six Months Ended June 30, --------------------------------- ------------------------------ 2000 1999 2000 1999 --------------------------------- ------------------------------ Numerator used for both basic and diluted earnings per share - net income $ 5,660 $ 6,130 $ 7,722 $ 11,095 ================================= ============================== Denominator for basic earnings per share- Weighted average shares 42,579 41,010 42,406 40,852 ================================= ============================== Denominator for diluted earnings per share: Denominator for basic earnings per share 42,579 41,010 42,406 40,852 Effect of dilutive securities- Employee share options 2,480 3,534 2,742 3,464 --------------------------------- ------------------------------ 45,059 44,544 45,148 44,316 --------------------------------- ------------------------------ Earnings per share: Basic $ 0.13 $ 0.15 $ 0.18 $ 0.27 ================================== =============================== Diluted $ 0.13 $ 0.14 $ 0.17 $ 0.25 ================================== =============================== Potentially dilutive securities excluded from computations as the effect would be antidilutive 2,390 13 2,603 15 ================================== ===============================

Three Months Ended Six Months Ended June 30, June 30, 2000 1999 2000 1999 --------------------------------------------------- Net sales 100% 100% 100% 100% Cost of sales 39.4 34.2 42.3 35.0 --------------------------------------------------- Gross profit 60.6 65.8 57.7 65.0 Operating expenses: Research and development 24.5 20.1 26.9 20.8 Selling, marketing and administrative 17.2 16.3 17.9 16.1 --------------------------------------------------- Total operating expenses 41.7 36.4 44.8 36.9 Operating income 18.9 29.4 12.9 28.1 Other income (expense), net 5.6 5.9 5.4 6.8 --------------------------------------------------- Income before provision for income taxes 24.5 35.3 18.3 34.9 Provision for income taxes 1.2 1.8 0.9 1.7 --------------------------------------------------- Net income 23.3% 33.5% 17.4% 33.2% ===================================================

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