PLX Technology, Inc. Reports Third-Quarter 2009 Financial Results
http://www.businesswire.com/news/home/20091027006487/en
* Revenue Increased 19 Percent over Q2 `09, to $21.6M
* Operating Expenses Decreased 15 Percent Quarter over Quarter
* PCI Express Revenue Grows Significantly
SUNNYVALE, Calif.--(Business Wire)--
PLX Technology, Inc. (NASDAQ: PLXT) today announced financial results for the
third quarter ended September 30, 2009.
"As projected last quarter, our enterprise customers led the way in driving the
majority of our revenue growth," said Ralph Schmitt, PLX chief executive
officer. "Our PCI Express business continues to diversify with faster growth in
the networking, storage and embedded applications. The consumer storage business
was first to recover and we continued to see robust revenue trends during Q3."
For the third quarter ended September 30, 2009, PLX reported net revenues of
$21.6 million, a 19 percent increase from the $18.2 million reported in the
second quarter ended June 30, 2009, and a four percent increase from the $20.8
million reported in the third quarter ended September 30, 2008.
The net loss for the third quarter ended September 30, 2009, was $1.9 million,
or a loss of $0.05 per share (diluted). This compares with a net loss of $9.1
million, or a loss of $0.26 per share (diluted), in the second quarter ended
June 30, 2009, and a net income of $798,000, or $0.03 per share (diluted), in
the third quarter ended September 30, 2008.
The Company`s gross margin for the third quarter ended September 30, 2009, was
56.3 percent, as compared with 55.6 percent for the second quarter ended June
30, 2009, and 58.5 percent for the third quarter ended September 30, 2008.
Operating expenses were $14.2 million for the third quarter ended September 30,
2009, as compared with $16.6 million in the second quarter ended June 30, 2009,
and $11.6 million in the third quarter ended September 30, 2008. Third quarter
2009 operating expenses included stock-based compensation expense of $164,000,
amortization of acquired intangibles of $854,000 and restructuring costs of
$171,000 associated with the downsizing of PLX`s Singapore office. The Company
continues to reduce its recurring expenses.
Cash and investments decreased by $229,000 in the quarter ended September 30,
2009. The Company`s $1.9 million quarterly loss includes non-cash items totaling
$1.8 million. At September 30, 2009, cash and investments were $38.5 million, a
decrease of $8.6 million from $47.1 million at December 31, 2008.
Product Information
PLX made key announcements across all product families in the third quarter:
* Within the storage family, the industry`s highest-performance, lowest-power
consumer storage controller offering FireWire 800 and USB 2.0 interfaces was
introduced.
* The PCI Express family revenues exceeded the $100 million mark with over 16
million ports shipped to date.
* The industry`s largest PCI Express switches at 96 lanes and 24 ports were
announced with the support for ACS technology, a key requirement of I/O
virtualization applications.
* A design with ASUS that showcases a PLX PCI Express switch enabling the
world`s first SATA 6Gb/s motherboard was announced.
* Within PLX`s connectivity family, key design milestones were announced that
bring to market a diverse set of USB 3.0 (SuperSpeed USB) solutions for a wide
variety of applications.
Business Outlook
"We are tracking towards our goal of profitability in Q4`09," said Schmitt. "Our
expenses have come in line as projected and we continue to see bookings to
support a revenue-growth quarter. Our channel inventory actually decreased in
the past quarter as our customers are taking product to meet true end demand.
There is no indication of inventory builds or double ordering."
The following statements are based on current expectations. The Company does not
intend to update, confirm or change this guidance until its fourth-quarter
earnings release, although it may provide additional detail regarding its
guidance during today`s scheduled conference call.
* Net revenues for the fourth quarter ended December 31, 2009, are expected to
be between $22.5 million and $25.5 million.
* Gross margins are expected to be approximately 55 percent.
* Operating expenses are expected to be approximately $14.0 million. Included in
operating expenses are share-based compensation and acquisition-related
amortization charges of approximately $1.0 million.
PLX management plans to conduct a conference call today at 3:00 p.m. PDT to
discuss its third-quarter financial results, as well as its fourth-quarter
outlook. A live Webcast of the conference call will be available through the
Investor Relations section of the PLX Website at www.plxtech.com/investors,
which also can be heard live via telephone at 785.830.1997. A recorded replay of
this Webcast will be available on the PLX Website beginning 6:00 p.m. (PDT) on
October 27, 2009, through 6:00 p.m. (PST) on November 3, 2009. To listen to the
replay via telephone, call 719.457.0820 and use access code 9608746.
For the live Webcast, listeners should go to the PLX Web site at least 15
minutes before the event starts to download and install any necessary audio
software.
About PLX
PLX Technology, Inc. (Nasdaq: PLXT), based in Sunnyvale, Calif., USA, is an
industry-leading global provider of semiconductor based connectivity solutions
primarily targeting the enterprise and consumer markets. The Company executes on
innovative software enriched silicon through feature differentiation,
high-quality interoperability and performance. www.plxtech.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release includes statements that qualify as forward-looking
statements under the Private Securities Litigation Reform Act of 1995. These
include statements about the Company`s continuing reduction to recurring
expenses and estimated net revenues, estimated operating expenses, estimated
gross margins, and tracking towards the goal of profitability for the fourth
quarter of 2009, which are set forth under the caption "Business Outlook." Such
statements involve risks and uncertainties, which may cause actual results to
differ materially from those set forth in the statements. Factors that could
cause actual results to differ materially include risks and uncertainties, such
as reduced demand for products of electronic equipment manufacturers that use
the Company`s products, adverse economic conditions in general or those
specifically affecting the Company`s markets, technical difficulties and delays
in the development process, errors in the products, reduced backlog for the
Company`s customers and unexpected expenses. Please refer to the documents filed
by the Company with the SEC from time to time, including, but not limited to,
the Annual Report on Form 10-K for the year ended December 31, 2008, and PLX`s
quarterly report on Form 10-Q for the quarters ended March 31, 2009, and June
30, 2009, which identifies important risk factors that could cause actual
results to differ from those contained in the forward-looking statements. All
forward-looking statements are made as of today, and the Company assumes no
obligation to update such statements.
PLX and the PLX logo are trademarks of PLX Technology, Inc., which may be
registered in some jurisdictions.All other product names that appear in this
material are for identification purposes only and are acknowledged to be
trademarks or registered trademarks of their respective companies.
PLX TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30 September 30 June 30 September 30
2009 2008 2009 2009 2008
Net revenues $ 21,559 $ 20,790 $ 18,178 $ 56,194 $ 66,895
Cost of revenues 9,420 8,630 8,076 25,007 27,034
Gross margin 12,139 12,160 10,102 31,187 39,861
Operating expenses:
Research and development 7,550 6,000 8,570 24,023 20,289
Selling, general and administrative 5,608 5,436 7,084 19,587 17,952
Acquisition and restructuring related costs 171 - 99 2,900 -
Amortization of purchased intangible assets 854 150 854 2,562 593
Total operating expenses 14,183 11,586 16,607 49,072 38,834
Income (loss) from operations (2,044 ) 574 (6,505 ) (17,885 ) 1,027
Interest income and other, net 149 336 117 314 1,200
Loss on fair value assessment - - (2,652 ) (3,842 ) -
Income (loss) before provision for income taxes (1,895 ) 910 (9,040 ) (21,413 ) 2,227
Provision (benefit) for income taxes (41 ) 112 16 (6 ) 442
Net income (loss) $ (1,854 ) $ 798 $ (9,056 ) $ (21,407 ) $ 1,785
Basic net income (loss) per share $ (0.05 ) $ 0.03 $ (0.26 ) $ (0.61 ) $ 0.06
Shares used to compute basic per share amounts 37,005 28,009 35,061 35,195 28,270
Diluted net income (loss) per share $ (0.05 ) $ 0.03 $ (0.26 ) $ (0.61 ) $ 0.06
Shares used to compute diluted per share amounts 37,005 28,122 35,061 35,195 28,415
PLX TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30 December 31
2009 2008
(unaudited) (unaudited)
ASSETS
Cash and investments $ 38,523 $ 47,127
Accounts receivable, net 7,969 5,712
Inventories 8,323 7,257
Property and equipment, net 11,016 10,590
Goodwill 1,367 -
Other intangible assets 6,494 -
Other assets 8,266 6,574
Total assets $ 81,958 $ 77,260
LIABILITIES
Accounts payable $ 6,623 $ 4,003
Accrued compensation and benefits 1,637 2,360
Accrued commissions 702 475
Other accrued expenses 1,663 1,219
Short term note payable 1,149 -
Long term note payable 860 -
Total liabilities 12,634 8,057
STOCKHOLDERS' EQUITY
Common stock, par value 37 28
Additional paid-in capital 153,806 132,159
Accumulated other comprehensive loss (24 ) 104
Accumulated deficit (84,495 ) (63,088 )
Total stockholders' equity 69,324 69,203
Total liabilities and stockholders' equity $ 81,958 $ 77,260
PLX TECHNOLOGY, INC.
SUPPLEMENTAL DATA (Unaudited)
(in thousands, expect for percent data)
Three Months Ended Nine Months Ended
September 30 September 30 June 30 September 30
2009 2008 2009 2009 2008
Net Revenues by Geography
Americas 15 % 32 % 17 % 18 % 32 %
Asia Pacific 76 % 53 % 74 % 72 % 55 %
Europe 9 % 15 % 9 % 10 % 13 %
Share-Based Compensation*
Three Months Ended Nine Months Ended
September 30 September 30 June 30 September 30
2009 2008 2009 2009 2008
Manufacturing $ 6 $ 14 $ 69 $ 85 $ 47
Research and development 62 273 595 766 1,027
Selling, general and administrative 102 400 1,456 1,779 1,459
$ 170 $ 687 $ 2,120 $ 2,630 $ 2,533
* includes FAS123R option expense and ESOP expense
CommonGround Communications (for PLX)
Jerry Steach, 415-222-9996
jsteach@plxtech.com
or
PLX Technology, Inc.
Arthur O. Whipple, 408-774-9060
CFO
investor-relations@plxtech.com
Copyright Business Wire 2009
