The Biggest Costumer of Silicom Failed to Find a Second Source
30 January, 2018
Silicom’s President & CEO: "This is a very complex card". Silicom’s 2017 revenues totalled a record $125.7 million, up 25% compared with $100.3 million in 2016
Silicom reported all-time record revenues for the fourth quarter and full year ended December, 2017. Revenues for the fourth quarter of 2017 totalled $37.8 million, Silicom’s highestever
revenues for a quarterly period. This is up 33% compared to the fourth quarter of 2016. For the full year 2017, Silicom’s revenues totalled a record $125.7 million, up 25%
compared with $100.3 million in 2016.
Shaike Orbach, Silicom’s President & CEO, said that the growth is being driven by massive infrastructure transition. “Cloud & Web 2.0 companies, telcos, service providers and end-users are
all scrambling to keep up with the data-avalanche. For example, we have been chosen by one of the Cloud industry’s leading innovators to design and supply its next-generation Switch-Fabric-on-a-NIC product. This is a revolutionary concept that could, once it reaches a steady state, give us revenues of up to $75 million per year. We also continue to secure new design wins for our cyber security, SD-WAN, NFV, fintech and other Cloud solutions.”
On March, 2017, Silicom announced that it has achieved the most significant design win in its history. This design win, from a top-10 Cloud player, is for a highly customized version of Silicom’s 100-Gigabit high bandwidth switch fabric on a NIC cloud solution. Based on the customer’s guidance, Silicom forecasts that revenues related to the design win will build to more than $30 million per year. During the Earnings Conference Call yesterday, Shaike Orbach revealed hat this costumer had already made a purchase order of more than $10 million.
During the conversation he also said that one of Silicom’s major costumers tried to find second source to the company’s cards, but failed. “There is no second source. Seems like second source will not be available during 2018 and if at all it will, it’s going to be towards the end, but even that is not for sure. This is a very complex card. Concluding the development and making sure that everything works as it should, is not a simple task.”
Silicom from Kfar Sava, Israel, provides high-performance networking and data infrastructure solutions. 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 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).
Silicom’s website: www.silicom.co.il