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New Design Wins from Major Customer to Boost Silicoma?s Revenues by ~$2M/Year

^{Published on 2011-01-12 05:11:39 - Market Wire}
 

KFAR SAVA, Israel--([ BUSINESS WIRE ])--Silicom Ltd. (NASDAQ:SILC)(TASE:SILC) today announced that one of its largest customers, a worldwide leading provider of application acceleration, virtualization and cloud computing solutions, has selected Silicom to supply an additional three products, including two encryption cards and one special networking card. Based on the customera™s forecasts, Silicom expects the volume of purchase orders for these cards to ramp up gradually to approximately $2 million per year, bringing the customera™s purchases from Silicom to a total of approximately $5 million per year.

"As such, we believe that each of our 70+ OEM customers, many of them market leaders, represents a fertile platform for significant incremental business. To take full advantage of this platform, we continue to focus on the provision of superb customer service and to build out our technology advantage."

In parallel, the customer continues to discuss with Silicom additional projects and applications in which Silicoma™s standard and specialized products meet the functional requirements of its popular appliances.

aThese Design Wins confirm the revenue-driving potential of our existing customer base,a commented Shaike Orbach, Silicoma™s President and CEO. aAs demonstrated so many times in the past, once our customers begin working with us, they come to appreciate our products, technology and service, and, over time, expand their use of our products to meet the needs of their new appliances. In fact, we are already in talks with this strategic customer regarding the use of additional Silicom products for a number of applications.

aAs such, we believe that each of our 70+ OEM customers, many of them market leaders, represents a fertile platform for significant incremental business. To take full advantage of this platform, we continue to focus on the provision of superb customer service and to build out our technology advantage.a

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About Silicom

Silicom Ltd. is an industry-leading provider of high-performance networking solutions designed to increase the throughput and availability of networking appliances and server-based systems.

Silicoma™s large and growing base of OEM customers includes most of the market-leading players in the areas of WAN Optimization, Security and other mission-critical gateway applications. Silicoma™s products include a variety of multi-port 1/10 Gigabit Ethernet server adapters, innovative internal and external BYPASS solutions and advanced Smart adapters, including SSL encryption solutions and Redirector adapters.

In addition, Silicom's patent-pending new SETAC (Server To Appliance Converter) product family is a unique solution that enables standard servers to be configured as network appliances with high-density front networking ports and no-hassle port modularity.

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.