The deal is worth an initial $1 million, and could reach millions of dollars a year.
Networking solutions developer Silicom Ltd. (Nasdaq:SILC; TASE:SILC) today announced a strategic new design win from a Tier-1 Chinese networking equipment company. The customer has placed initial purchase orders, for multi-port adapters to be used in its servers and server-based networking equipment products, and provided a short term forecast demonstrating an annual revenue potential of $1 million
The customer has indicated that its annual purchases could several times this amount once it completes its migration to the Silicom products, a process which will be based on its experience with Silicom and its performance over time.
Silicom president and CEO Shaike Orbach said, “This is an important design win which positions Silicom ideally to benefit from China’s unprecedented data center construction boom and escalating demand for cloud, mobility and big data networks. The build-out is strongly backed by the Chinese government, which is encouraging both global and local companies to make massive investments in regional data centers throughout China." He added, "We feel optimistic about China as a driver of our sales, and about our overall sales prospects for both the short-term and the long-term."
Published by Globes [online], Israel business news - www.globes-online.com - on September 24, 2012
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