Silicom Secures $500K Initial Order of 10GbaseT Adapters

Silicom Ltd. has secured a strategic design win from a new customer, one of the storage virtualization industry’s strongest emerging players, for its 10GbaseT network adapters.

The company has received initial purchase orders totaling approximately $500,000, most of which were already shipped, while guidance provided by the customer indicates that 2014 sales related to the design win will total approximately $1 million. Given the high growth currently experienced by the customer and the storage virtualization industry, the design win is expected to result in several million dollars of sales per year as it matures.

“The phenomenal growth of the cloud and virtualized data centers began with virtualization of data center server compute nodes, and the virtualization of other components is just now beginning,” commented Shaike Orbach, Silicom’s president and CEO. “The next massive growth wave is being created by the adoption of SDN (or networking virtualization) and storage virtualization, the latter creating the need for a new generation of storage solutions. These cutting-edge solutions are bringing servers into the storage segment – servers that also need Silicom solutions to boost their performance and features.”

“This is obviously an important new growth driver for Silicom. We are excited to achieve our first major Design Win with a storage virtualization leader and believe that it is likely to lead to additional business, both with this customer and others,” Orbach continued. “Strategically, this win is equally important. The addition of storage virtualization solutions to our broad range of existing solutions for the cloud virtualized data center completes our offering into this exploding market, making it relevant for all virtualized components: server compute nodes, SDN networking components and virtualized storage. We believe this unique positioning as a one-stop-shop of solutions for all components of the virtualized data center has the power to become a major new growth driver for our business.”