KFAR SAVA, Israel, March 15, 2018 /PRNewswire/ -- Silicom
Ltd. (NASDAQ: SILC) today announced that it expects to close
several major, strategic new SD-WAN and NFV-related vCPE Design
Wins from major telcos, the first of which it expects to announce
in the near term. Given the significant size of each of these
expected deals, their financial terms and the meaningful working
capital that may be required to support them once they ramp up, the
Company has decided today to suspend its dividend distributions to
increase its available funds and to support its long-term
growth.
"Although we cannot yet formally announce any of these potential
wins, we have already begun working on them with our customers, who
assume – as do we - that the current situation will transform into
a 'full win' within a short time. As such, we must make sure that
we have all the financial resources to fulfill demanding supply
commitments once these potential wins reach their full deployment
run rate," commented Shaike Orbach,
Silicom's President and CEO.
"These wins, once finalized, have the power to drive our growth
for years to come. Taken individually, each one is expected to ramp
over time to tens of millions of dollars per year while offering
endless opportunities for further sales."
Mr. Orbach concluded, "By building our financial reserves, we
are readying ourselves to spring into action as soon as we get the
final go-ahead. We are confident that this is the right strategy
for building the Company to the next level, thereby serving the
long-term interests of our shareholders."
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: 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.