Silicom Announces First Design Win For Innovative PCI-E/NVMe Compression Solution

KFAR SAVA, Israel, May 16, 2017

Silicom has already received initial purchase orders from the customer and based on the customer's guidance, the Company expects production orders to ramp up to approximately $1 million per year. In parallel, the Company intends to market the product to the broad range of storage appliance companies that are currently designing new offerings that use the NVMe standard.

"We are excited to be one of the first to offer a next-generation compression solution that leverages the latest compression technology and the NVMe standard," commented Shaike Orbach, Silicom's CEO. "This super-fast, super-powerful compression module will help storage appliances deliver the exciting speeds that should be – but have not yet been – achievable for SSD and flash-based solutions. As such, we are experiencing strong interest in our design and concept.

"As so often in the past, our ability to identify this unfilled market derived from our ongoing close communication with existing clients across all market segments, together with our relationship with suppliers, which continues to give us an insider's insight into upcoming technology innovations. Given our early entry into this market and the expectation that NVMe demand will scale significantly, we believe that the storage market can become a significant growth engine in years to come."

About Silicom

Silicom Ltd. is an industry-leading provider of high-performance networking and data infrastructure solutions. Designed primarily to increase data center efficiency, Silicom's solutions dramatically improve the performance and availability of networking appliances and other server-based systems.

Silicom's products are used by a large and growing base of OEM customers, many of whom are market leaders, as performance-boosting solutions for their offerings in the Cyber Security, Network Monitoring and Analytics, Traffic Management, Application Delivery, WAN Optimization, High Frequency Trading and other mission-critical segments within the fast-growing data center, enterprise networking, virtualization, cloud computing and big data markets. Silicom's product portfolio includes multi-port 1/10/25/40/100 Gigabit Ethernet server adapters, Intelligent Bypass solutions, Encryption accelerators, Ultra Low Latency solutions, Time Stamping and other innovative Smart adapters. These products are available for incorporation directly into our OEM customers' systems, or provided as part of Silicom's patented SETAC (Server To Appliance Converter), a unique approach to the provision of high quality standard platforms with modular front connectivity.