Silicom’s revenues soared 19%. Stock up 13%
30 April, 2017
"In March, we announced the largest Design Win in our history from one of the Cloud industry's major players. We expect this Win to build to over $30 million per year"
Silicom Ltd. stock in NASDAQ (SILC) rose 13% during last Thursday following the positive results of its financial report. Revenues for the first quarter of 2017 totalled $25.3 million, up 19% compared with $21.4 million in the first quarter of 2016. This was the Company’s best-ever revenues for a first quarter, and brought Silicom’s trade value in the stock market to $400 million.
Silicom from Kfar-saba, Israel, provides for OEM customers high-performance networking and data infrastructure solutions to increase data center efficiency. Its 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 Smart adapters.
Growth in Cyber Cloud
Silicom’s President and CEO, Shaike Orbach, said that the strong first quarter results demonstrate the growing momentum of the company’s business. “We benefit from the long-term relationships 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. 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.”
Lately Silicom had a mile stone contract: “In March, we announced the largest Design Win in our history, reflecting our selection by one of the Cloud industry’s major players to deliver a critical connectivity component for its Cloud offerings. Based on the customer’s guidance, once we move past final scale-up challenges, we expect this Win to build to over $30 million per year. We also believe it will pave the way to additional large opportunities.”
He meant cyber: Earlier this month Silicom announced that it has secured an important first Design Win for several versions of its Bypass cards from a well-established Cyber Security customer which has now standardized on Silicom as its networking add-on solution provider. Shipments against this Design Win are expected to ramp up to approximately $1 million per year. In parallel, the customer is considering the potential use of Silicom’s vCPE appliances as part of its Cloud offering.