Silicom (NASDAQ: SILC) reported Q4 EPS of $1.17, $0.55 better than the analyst estimate of $0.62. Revenue for the quarter came in at $45.5 million versus the consensus estimate of $34 million.

Shaike Orbach, Silicom\'s President and CEO, commented, "We are excited to report all-time high revenues, both for a quarterly period and for a full year. This accomplishment is even more dramatic after neutralizing the impact of the cancellation of our biggest-ever project by our top-10 Cloud player customer in March 2018, all aspects of which are now completely included in our reports. Since our revenues from the cancelled project were about $10 million lower in 2018 than they were in 2017, excluding its revenues from both years gives us over 15% year-over-year revenue growth for 2018. This confirms – as we asserted immediately after the cancelation of the project - that our sales engines remain powerful and that our long-term prospects remain intact.

"This double-digit growth is being driven primarily by our uCPE/EDGE product lines, which are benefitting from some of the market\'s hottest trends, such as the transition to SD-WAN and NFV and the powerful need that it is creating for our uniquely reliable and innovative products. During the quarter, we announced that one of the world\'s largest service providers selected our modular uCPE units for its worldwide NFV implementation, with SD-WAN integrated as one of its network functions. Earlier, we announced a win with a major telco and other SD-WAN related wins, all of which - while still in the early stages of deployment with many unknowns – have begun contributing nicely to our revenues. While uncertainty about our customers\' product launch and ramp-up plans may affect the timing of our Edge product revenues, we are increasingly confident about their strong, long-term growth potential."

Mr. Orbach concluded, "These wins, including our recent FPGA-related Design Win announcement and the numerous opportunities that are moving forward in our pipeline, confirm our favorable positioning and our overall growth potential. To serve these customers, we continue to build out all aspects of our capabilities and to expand our value-added support."

GUIDANCE:

Silicom sees Q1 2019 revenue of $30-31 million, versus the consensus of $28.93 million.

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