Silicom in major design win with computer giant

The company said that design win was from the security division of one of the worlds largest server manufacturers.

Silicom Ltd. (Nasdaq:SILC; TASE:SILC) yesterday announced its first design win from a tier-1 conglomerate. The company said that design win for the SETAC-derivative 1-Gbps and 10-Gbps fiber bypass modules was from the security division of one of the worlds largest server manufacturers.

Silicom did not mention the name of the company, but it is one of four computer giants: IBM Corporation (NYSE: IBM), Intel Corporation (Nasdaq: INTC), Hewlett Packard Co. (NYSE: HPQ), or Dell Inc. (Nasdaq: DELL).

Silicom has received initial orders under the contract, but the substantial revenue potential is not immediate. The company's SETAC products, which make servers more modular, are a new growth engine for it.

Silicom also announced three other contracts in Europe, two Internet security solution providers and one mobile broadband network optimization and acceleration provider.

Silicom president and CEO Shaike Orbach said, The rate at which our SETAC business is now growing confirms that SETAC is a concept whose time has come." He added, In the SETAC business, as with our other product lines, each design win leads to a flow of orders over years... Therefore these design wins make us more confident than ever regarding the SETACs potential to drive our sales, and about the prospects for our overall sales and profits for both the short term and the long term."

Silicom's share price rose 3.5% on the TASE today to NIS 65, after rising 4.1% yesterday, and rising 8% on Nasdaq to $16.61, giving a market cap of $115 million.

The company posted a net profit of $4.3 million on $20.5 million revenue in the first half of 2012.

Published by Globes [online], Israel business news - - on October 16, 2012

Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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