GettyIsrael-based Silicom is a niche producer of customized network interface cards, which has been an excellent business for the company for many years. Silicom managed to return to growth in FY2003 and profitability in FY2005 by pursuing this business niche. In the chart below, you can see the breakdown of Silicom’s revenues by end markets based on FY 2017 figures. Pekin Hardy Strauss Wealth ManagementBecause Silicom competes in a niche business which requires significant technical expertise, Silicom also generates attractive profit margins. Once this expensive and exhausting process is over, if Silicom gets the contract, Silicom generally becomes the sole source supplier for 2 to 4 years.

Source: Forbes April 23, 2019 16:29 UTC