Silicom Ltd. (NASDAQ:SILC)(TASE:SILC) today announced that the Security Business Unit of one of its major customers, a Fortune-100 company and one of the world’s largest providers of networking security solutions, has selected Silicom to supply the multi port server adapters required for its new firewall appliances. Based on the customer’s forecasts, Silicom expects sales of these adapters to ramp up to an initial level of approximately $2 million per year until its older generation of appliances is fully replaced by the new one, and then to continue to grow gradually.

The Design Win represents a strategic departure for this customer, which has traditionally relied on internally-developed customized solutions for use in its appliances. The customer gave Silicom an opportunity to create a solution for a specific challenge in one of its appliances, and, impressed by the speed of its response and the technological excellence of its solution, recognized the advantage of utilizing Silicom products in conjunction with its own. As such, the customer has now developed confidence in Silicom’s technologies and solutions, and may begin to consider their deployment throughout its portfolio.

This is the second business unit within the customer’s organization to use Silicom products. Since 2006, Silicom has been supplying bypass cards for the customer’s WAN Optimization appliances, with 2010 sales totaling approximately $1.5 million.

Commenting on the news, Mr. Shaike Orbach, Silicom’s President and CEO, said, “We are proud and excited to have achieved this major new Design Win with such an important and prestigious client, the first step in what we hope will become a long-term, ongoing relationship with this Business Unit. Although today’s Design Win relates only to one of the customer’s firewall appliances, our solutions are relevant to many of their security offerings, and they are already evaluating our bypass solutions for an additional appliance. As such, we believe this first deal opens up a virtually unlimited range of opportunities for additional Design Wins, with each new win representing the potential to generate a significant ongoing flow of orders.”

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