Silicom has announced that the security division of an existing Silicom OEM customer, an industry-leading Japanese Server Manufacturer, has selected various Silicom networking and encryption server adapters for its new line of security appliances. The customer has already placed initial orders for the Silicom products and it is now ramping up production.

The customer has selected a broad range of Silicom's product offerings, including 10 Gbps server adapters, multi-port 1Gbps adapters and encryption products. Silicom forecasts that total revenues to this customer will reach approximately $1.5 million annually.

"This is a key win for Silicom as it demonstrates the success of our strategy to increasingly penetrate additional divisions of our OEM customers," commented Shaike Orbach, Silicom's President and CEO. "This success is indicative of the significant potential that is available to us at all our big OEM customers, where an initial success, no matter how big or small, has the potential to lead to additional wins within the same or other divisions at the organization. This dramatically increases the scope of the business opportunities open to us. We are proud of our achievement with this customer, especially given the time and effort it takes to qualify at Japanese companies, which ultimately shows how we can successfully leverage our existing customer base to expand sales."

Mr. Orbach continued, "This important win, together with the breakthrough deal for SETAC which we announced last month, demonstrates two independent growth avenues for Silicom. Our traditional business of server adapters continues to grow. This trend is driven by the addition of new customers, the sale of more products to current customers, as well as through wins with our customers' new solutions. In parallel, our SETAC strategy is gaining tremendous traction, and this underscores our optimism for the business both in the short and long term. "