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Silicom Announces A Major Design Win For Its Intelligent External BYPASS Switch (IBS)

Silicom Ltd. (NASDAQ:SILC)(TASE:SILC) today announced an important Design Win for its 10Gbps external Intelligent BYPASS Switch (IBS). The customer, a rapidly-growing provider of policy enforcement solutions, will provide the IBS as part of its latest network appliance family. According to the customer’s current demand and projections, Silicom expects the Design Win to contribute significant revenues exceeding $1 million per year.

“We are excited to have achieved this significant Design Win, the first major Design Win that we have achieved for our IBS product line within the traffic management and policy enforcement market segment,” commented Shaike Orbach, Silicom’s President and CEO. “This win demonstrates that our ‘intelligent solution’ concept has begun to penetrate, and that it answers a real need faced by the network appliance industry in general and the traffic management/policy enforcement market segment specifically. This confirms our conviction that the IBS has the potential to become an important growth driver for our business by generating significant revenues and expanding our total addressable market - a conviction that is further strengthened now that another company within this space has already begun evaluating the IBS.”

Silicom’s customer will use the Intelligent Bypass switch (IBS) to assure the continued flow of network traffic if its in-line appliances should fail. As an intelligent solution, the IBS generates a “heartbeat” with which it is able to relieve the in-line application from the task of sensing a failure and initiating the Bypass process, thereby facilitating an exceedingly simple integration of the external BYPASS into the network.

For this customer, Silicom has enhanced the IBS with a number of additional advanced, differentiating features. The capabilities added include expanded security and authentication features, support of new protocols, global management implementation capabilities and TAP technologies, all of which take the IBS to the next level, making it a perfect fit for appliance vendors looking to add 10Gbps Intelligent Bypass switches to their offerings.

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