Customer Relationship Pays off for Silicom: Major New Design Win With SD-WAN Pioneer for Customized
vCPE/Edge Appliance
- Design Win’s Multi-Million Dollar Potential: Customer Commits to Order $1.3M Over 18 Months While
Forecasting $2.5M in 1st Year, $5M/Yr Thereafter -
Silicom Ltd. (NASDAQ:SILC) today announced that it has received another Design Win from a
leader in the emerging SD-WAN (Software-Defined Wide Area Network) space, the customer to whom Silicom has been supplying
encryption offload cards since last July.
The current Design Win is for an innovative vCPE/Edge appliance for the virtualized environment, a product developed originally
as a reference design for Intel. Silicom has signed an agreement to customize the appliance against the customer’s commitment to
order more than $1.3 million of appliances within 18 months of product completion. At the same time, the customer has forecast that
the deployment of these systems will ramp quickly, with orders reaching approximately $2.5 million within the first year and then
about $5 million per year thereafter.
“We are pleased and proud that this groundbreaking SD-WAN player continues to expand its business with Silicom, coming to us
again and again for innovative new performance solutions,” commented Shaike Orbach, Silicom’s President & CEO. “The trusting
relationship that has evolved between our firms has made it natural for them to check out - and then select - our vEdge/CPE
appliance. We are excited by the sheer volume of sales likely to flow from this win, as demonstrated by the customer’s initial
commitment and strong forecasts.
“In fact, the customer’s forecast is another clear demonstration of the momentum of the SD-WAN market, as both enterprises and
service providers begin adopting the new technology to enable their transition to the Cloud, NFV and the virtualized environment.
We believe that our favorable positioning in this market, due both to our basis in the WAN Optimization market and the unique new
technologies that we have developed, will enable us to benefit strongly from the momentum of this ‘hot’ new market space, making
SD-WAN a significant new revenue driver for Silicom.”
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About Silicom
Silicom Ltd. is an industry-leading provider of high-performance networking and data infrastructure solutions. Designed
primarily to increase data center efficiency, Silicom’s solutions dramatically improve the performance and availability of
networking appliances and other server-based systems.
Silicom’s products are used by a large and growing base of OEM customers, many of whom are market leaders, as
performance-boosting solutions for their offerings in the Cyber Security, Network Monitoring and Analytics, Traffic Management,
Application Delivery, WAN Optimization, High Frequency Trading and other mission-critical segments within the fast-growing data
center, enterprise networking, virtualization, cloud computing and big data markets. Silicom’s product portfolio includes
multi-port 1/10/25/40/100 Gigabit Ethernet server adapters, Intelligent Bypass solutions, Encryption accelerators, Ultra Low
Latency solutions, Time Stamping and other innovative Smart adapters. These products are available for incorporation directly into
our OEM customers' systems, or provided as part of Silicom’s patented SETAC (Server To Appliance Converter), a unique approach to
the provision of high quality standard platforms with modular front connectivity.
For more information, please visit: www.silicom.co.il
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown
risks, uncertainties, or other factors not under the Company's control, which may cause actual results, performance, or
achievements of the Company to be materially different from the results, performance, or other expectations implied by these
forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with
the Securities and Exchange Commission. The Company disclaims any duty to update such statements.
Company Contact:
Silicom Ltd.
Eran Gilad, Tel: +972-9-764-4555
CFO
E-mail: erang@silicom.co.il
or
Investor Relations Contact:
GK Investor Relations
Ehud Helft, Tel: +1 646 201 9246
E-mail : silicom@gkir.com
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