Silicom suspends dividend in expectation of design wins

Silicom Ltd. (NASDAQ: SILC) has announced that it expects to close several major, strategic new SD-WAN and NFV-related vCPE Design Wins from major telcos, the first of which it expects to announce in the near term, the company said.

Given the significant size of each of these expected deals, their financial terms and the meaningful working capital that may be required to support them once they ramp up, the company has decided to suspend its dividend distributions to increase its available funds and to support its long-term growth.

Silicom Ltd. is an industry-leading provider of high-performance networking and data infrastructure solutions. Designed primarily to improve performance and efficiency in Cloud and Data Center environments, Silicom´s solutions increase throughput, decrease latency and boost the performance of servers and networking appliances, the infrastructure backbone that enables advanced Cloud architectures and technologies like NFV, SD-WAN and Cyber Security.