Silicom says customer cancels new cloud infrastructure architecture order
Silicom announced that the "top-10 Cloud player" that awarded Silicom its largest-ever design win, as reported in March 2017, has decided to abort the new cloud infrastructure architecture for which it had ordered the Silicom 100-Gigabit-Switch-Fabric-On-A-NIC product. In communicating its decision, the customer indicated that the cancellation was unrelated to Silicom's product, development or support, "which was flawless; rather, its decision to abort the configuration was based on issues and challenges faced at a much higher level of the new Cloud architecture," the company said. Silicom has open POs related to the cancelled program that are due for delivery within the first and second quarters of 2018. The company is now evaluating the impact of the news on the results of these quarters, as well as on its future results. Shaike Orbach, Silicom's President and CEO, said, "While we are obviously disappointed with the customer's decision, we are encouraged by the technological success of the highly complex product that we developed for them: a success which has generated significant admiration for Silicom within this giant customer and its Tier-1 server manufacturer partners. We hope to leverage this trust to address additional significant opportunities with both the customer and its partners."