Global Network Test Equipment Giant Selects Silicom's High-Speed Server Adapter for its Next-Generation Offering | SILC Stock News

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Apr 17, 2025
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  • Silicom Ltd. (SILC, Financial) secures a significant $2.5 million annual revenue deal with a major US-based network testing equipment provider.
  • Mass deployment of Silicom's 100 gigabit Network Interface Cards (NICs) is scheduled for early 2026.
  • The deal expands Silicom's role from supplying systems to providing both systems and cards, enhancing participation in future hardware tenders.

Silicom Ltd. (SILC), a leading provider of networking and data infrastructure solutions, has announced a major contract win with a prominent US-based global network testing equipment provider. This partnership marks an expansion of their existing collaboration, with Silicom's high-performance 100 gigabit Network Interface Cards (NICs) selected for the provider's next-generation platform.

The initial order, which caters to New Product Introduction needs, sets the stage for mass deployment expected to commence in early 2026. At full ramp-up, Silicom anticipates the engagement will generate approximately $2.5 million in annual revenue.

This agreement not only boosts Silicom's revenue stream but also strategically positions the company to participate in the majority of the client's future hardware tenders. By advancing from a systems provider to a comprehensive solutions partner, Silicom enhances its capacity to build steady, long-term customer relationships, thereby creating a more predictable and diversified income source.

Silicom CEO, Liron Eizenman, emphasized the significance of this partnership, highlighting the company's innovative NIC technology and the strategic alignment with their business model aimed at increasing shareholder value through reliable and diversified revenue streams.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.