Silicom (NASDAQ: SILC) reported Q2 EPS of $0.44, $0.06 better than the analyst estimate of $0.38. Revenue for the quarter came in at $27.6 million versus the consensus estimate of $27.24 million.

Comments of Management

Shaike Orbach, Silicom's President and CEO, commented, "We are pleased to report revenues which are in line with our plans, confirming the fundamental strength of our business and the soundness of our strategic plan. "During the quarter, we were excited to close two strategic deals that demonstrated the unique fit of our products for the connectivity needs of SD-WAN and NFV related markets, both at the CPE level and in the hubs. In April, a Tier-1 telco selected our edge devices for its SD-WAN-based deployment, and at the end of the quarter, a Tier-1 Internet and content provider chose our Switch-on-a-NIC for its SD-WAN-ready distribution hub infrastructure. These clients chose our products as critical building blocks that maximize the performance of their SD-WAN and NFV-related infrastructures, demonstrating that our concepts are powerful at the data center, hub and CPEs levels. With products that are important at every segment of the communications network, every service provider represents the opportunity for an almost unlimited series of Design Wins."

Mr. Orbach continued, "Indeed, we are leveraging these successes by reaching out to additional service providers, and also returning to existing CPE customers to discuss their need for Data Center as well as SD-WAN hub solutions - and vice versa. We are pleased with the reaction so far and believe that it will translate into long-term growth for our Company."

Guidance for the Third Quarter

Management projects that revenues for the third quarter of 2018 will total $30 to $31 million.

For earnings history and earnings-related data on Silicom (SILC) click here.