KFAR SAVA, Israel, March 13, 2018 /PRNewswire/ -- Silicom
Ltd. (NASDAQ: SILC) today announced that the top-10 Cloud
player that awarded Silicom its largest-ever design win (reported
in March 2017) has decided to abort
the new cloud infrastructure architecture for which it had ordered
the Silicom 100-Gigabit-Switch-Fabric-On-A-NIC product.
In communicating its decision, the customer indicated that the
cancellation was unrelated to Silicom's product, development or
support, which was flawless; rather, its decision to abort the
configuration was based on issues and challenges faced at a much
higher level of the new Cloud architecture.
Silicom has open POs related to the cancelled program that are
due for delivery within the first and second quarters of 2018. The
Company is now evaluating the impact of the news on the results of
these quarters, as well as on its future results.
Commenting on the news, Shaike
Orbach, Silicom's President and CEO, said, "While we are
obviously disappointed with the customer's decision, we are
encouraged by the technological success of the highly complex
product that we developed for them: a success which has generated
significant admiration for Silicom within this giant customer and
its Tier-1 server manufacturer partners. We hope to leverage this
trust to address additional significant opportunities with both the
customer and its partners."
About Silicom
Silicom Ltd. is an industry-leading provider of high-performance
networking and data infrastructure solutions. Designed primarily to
improve performance and efficiency in Cloud and Data Center
environments, Silicom's solutions increase throughput, decrease
latency and boost the performance of servers and networking
appliances, the infrastructure backbone that enables advanced Cloud
architectures and leading technologies like NFV, SD-WAN and Cyber
Security. Our innovative solutions for high-density networking,
high-speed fabric switching, offloading and acceleration, which
utilize a range of cutting-edge silicon technologies as well as
FPGA-based solutions, are ideal for scaling-up and scaling-out
cloud infrastructures.
Silicom products are used by major Cloud players, service
providers, telcos and OEMs as components of their infrastructure
offerings, including both add-on adapters in the Data Center and
stand-alone virtualized/universal CPE devices at the edge.
Silicom's long-term, trusted relationships with more than 150
customers throughout the world, its more than 400 active Design
Wins and more than 300 product SKUs have made Silicom a "go-to"
connectivity/performance partner of choice for technology leaders
around the globe.
For more information, please visit: http://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, Silicom's increasing dependence for substantial revenue
growth on a limited number of customers in the evolving cloud-based
market, the speed and extent to which cloud-based and cloud-focused
solutions are adopted by the market, likelihood that it will rely
increasingly on customers which provide cloud-based and
cloud-focused solutions in this evolving market, resulting in an
increasing dependence on a smaller number of larger customers,
difficulty in commercializing and marketing of Silicom's products
and services, maintaining and protecting brand recognition,
protection of intellectual property, competition and other factors
detailed in the company's periodic filings with the Securities and
Exchange Commission. These forward-looking statements can generally
be identified as such because the context of the statement will
include words, such as "expects," "should," "believes,"
"anticipates" or words of similar import. Similarly, statements
that describe future plans, objectives or goals are also
forward-looking statements. In light of significant risks and
uncertainties inherent in forward-looking statements, the inclusion
of such statements should not be regarded as a representation by
the company that it will achieve such forward-looking statements.
The company disclaims any duty to update such statements, whether
as a result of new information, future events, or otherwise.
Company
Contact:
Eran Gilad,
CFO
Silicom
Ltd.
Tel:
+972-9-764-4555
E-mail:
erang@silicom.co.il
|
Investor Relations
Contact:
Ehud
Helft
GK Investor
Relations
Tel: +1 646 201
9246
E-mail:
silicom@gkir.com
|
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SOURCE Silicom Ltd