Silicom (NASDAQ: SILC) reported Q1 EPS of $0.42, $0.07 better than the analyst estimate of $0.35. Revenue for the quarter came in at $29 million versus the consensus estimate of $28.25 million.

Shaike Orbach, Silicom's President and CEO, commented, "The first quarter was a period of significant growth in revenues and net profit, driven primarily by our continued success in each of our target markets, including SD-WAN for our smart platforms and Cloud for our smart acceleration and FPGA cards.

"Our Design Win momentum in the 5G O-RAN market has been especially strong, as demonstrated both by our recent strategic wins with top-tier telcos, and by the fruitful discussions we are having with numerous telco, cloud and related OEM players of all sizes. This continues to confirm what we have been asserting for some time: that the decoupling/disaggregation trend is accelerating, that the 5G ORAN transition is building steam, and that our unique Smart Platforms and Smart Card performance-boosting products are essential solutions for some of their critical challenges."

Mr. Orbach continued, "In fact, we are being sought out by all types of 5G players - DU/equipment suppliers and 'hyper-scaler' partners as well as telcos – who are looking for solution providers able to make the complex new technologies deliver. They appreciate the fact that we continue to come through for them, providing them with the advanced architecture and strategic products required - some of which we have available already today, and many more that we will be bringing to market soon. With each new 5G-related win, our positioning within this growing market strengthens, bringing us additional market players hoping to find answers."

Mr. Orbach concluded, "As such, with growing 5G momentum and continued strength in expanding SD-WAN and Cloud markets, we are at the beginning of what we believe will become a strong multi-year growth trajectory for our company, driven by the industry's most powerful mobile infrastructure transition in a decade."

GUIDANCE:

Silicom sees Q2 2021 revenue of $29-30 million, versus the consensus of $27.19 million.

• Management projects revenues of $29 to $30 million for the second quarter of 2021. The midpoint of this range represents approximately 28% growth over the second quarter of 2020.

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