KFAR SAVA, Israel, Sept. 9, 2019 /PRNewswire/ -- Silicom Ltd.
(NASDAQ: SILC) today announced that one of the world's largest
companies has commissioned Silicom to design and build a
task-specific FPGA-based card. The customer will integrate the
customized product inside its autonomous vehicles during a
preliminary limited deployment project.
Silicom will first design the card and manufacture a pilot batch
for a set fee, after which the manufacturing will move to the
customer's contract manufacturer and Silicom will receive a license
fee for each card deployed. According to the customer's
projections, total revenues from the project will reach
approximately $2 million, the
majority of which will stem from licensing fees. The agreed-upon
license fee structure establishes a mechanism for ongoing revenue
flows if the client decides to utilize Silicom's FPGA technology in
wide-deployment AV offerings.
"This win is exciting for us on three different levels,"
commented Shaike Orbach, Silicom's
President & CEO. "First, while we continue to focus on our
mainstream Networking, Cloud, Data Center and Telecom clients,
additional significant players from other markets have begun
reaching out to us, indicating that our solutions and positioning
are relevant to them as well. In addition, this win positions us
favorably to benefit from the booming AV market, from opportunities
within both the vehicles and their supporting data centers. And
third, this win secures another giant customer for us: a client
whose many products and divisions offer virtually limitless
opportunities for additional sales of our technologies and
concepts. In fact, we are already participating in this customer's
tender for another high-potential FPGA-based project."
Mr. Orbach continued: "Silicom's unique Packet Mover technology
and FPGA design expertise are emerging as important enablers for
all these industries, as well as our ability to integrate
third-party IP such as AI (Artificial Intelligence), Encryption,
DPI (Deep Packet Inspection), Compression, 5G and others into their
functionality. Given the astronomical growth projections for the AV
market, it is hard to overstate the boost that this market could
offer Silicom."
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, SD-WAN, NFV and Edge markets, the speed and extent to
which solutions are adopted by these markets, likelihood that
Silicom will rely increasingly on customers which provide solutions
in these evolving markets, 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 /
Gavriel Frohwein
GK Investor
Relations
Tel: +1 646 668
3559
E-mail:
silicom@gkir.com
|
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SOURCE Silicom Ltd.