[October 25, 2010] |
|
PLX Technology, Inc. Reports Third Quarter 2010 Financial Results
SUNNYVALE, Calif. --(Business Wire)--
PLX Technology, Inc. (NASDAQ: PLXT) today announced revenues of
$30.2 million and net income of $1.1 million, or $0.03 per share
(diluted) for the third quarter, ended Sept. 30, 2010.
"Our quarterly revenue exceeded $30M for the first time in the company's
history, fueled by continued growth and record sales of PCI Express
products," said Ralph Schmitt, president and CEO of PLX Technology.
"Market-leading data center customers drove PCI Express Gen 2 switch
revenue up by 17 percent. We also saw our first production shipments of
our new USB 3.0 storage and our 7800 family of network-attached storage
products for use in the home."
GAAP Financial Comparison
|
|
|
|
|
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
Quarterly Results
|
|
|
|
Year to Date
|
|
|
|
Q3 2010
|
|
|
|
Q3 2009
|
|
|
|
Q2 2010
|
|
|
|
2010
|
|
|
|
2009
|
Net revenues
|
|
|
$
|
30.2
|
|
|
|
$
|
21.6
|
|
|
|
|
$
|
29.7
|
|
|
|
$
|
88.8
|
|
|
|
$
|
56.2
|
|
Operating expense
|
|
|
$
|
15.3
|
|
|
|
$
|
14.2
|
|
|
|
|
$
|
15.6
|
|
|
|
$
|
45.6
|
|
|
|
$
|
49.1
|
|
Operating income (loss)
|
|
|
$
|
2.6
|
|
|
|
$
|
(2.0
|
)
|
|
|
|
$
|
1.9
|
|
|
|
$
|
6.2
|
|
|
|
$
|
(17.9
|
)
|
Net income (loss)
|
|
|
$
|
1.1
|
|
|
|
$
|
(1.9
|
)
|
|
|
|
$
|
1.7
|
|
|
|
$
|
4.3
|
|
|
|
$
|
(21.4
|
)
|
Earnings (loss) per share (diluted)
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.05
|
)
|
|
|
|
$
|
0.04
|
|
|
|
$
|
0.11
|
|
|
|
$
|
(0.61
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Results
|
|
|
|
Year to Date
|
|
|
|
Q3 2010
|
|
|
|
Q3 2009
|
|
|
|
Q2 2010
|
|
|
|
Q3 2010
|
|
|
|
Q3 2009
|
Net revenues
|
|
|
$
|
30.2
|
|
|
|
$
|
21.6
|
|
|
|
|
$
|
29.7
|
|
|
|
$
|
88.8
|
|
|
|
$
|
56.2
|
|
Operating expense
|
|
|
$
|
13.8
|
|
|
|
$
|
13.0
|
|
|
|
|
$
|
14.5
|
|
|
|
$
|
42.0
|
|
|
|
$
|
41.1
|
|
Operating income (loss)
|
|
|
$
|
4.1
|
|
|
|
$
|
(0.8
|
)
|
|
|
|
$
|
3.0
|
|
|
|
$
|
9.8
|
|
|
|
$
|
(9.8
|
)
|
Net income (loss)
|
|
|
$
|
2.7
|
|
|
|
$
|
(0.7
|
)
|
|
|
|
$
|
2.8
|
|
|
|
$
|
8.0
|
|
|
|
$
|
(13.3
|
)
|
Earnings (loss) per share (diluted)
|
|
|
$
|
0.07
|
|
|
|
$
|
(0.03
|
)
|
|
|
|
$
|
0.07
|
|
|
|
$
|
0.20
|
|
|
|
$
|
(0.39
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP results exclude share-based compensation, including employee
stock ownership plan (ESOP) expenses, amortization of acquired
intangibles, and acquisition and restructuring related expenses.
Product Information and Strategic Direction
"We announced the strategic acquisition of a well-recognized 10GBase-T
Ethernet PHY leader, Teranetics, during the third quarter, increasing
our markets served, as well as our penetration into the data center,"
said Schmitt. "This combination will allow us to leverage customer
relationships and technology leadership in each company's respective
space to expand the reach as a combined organization. With the continued
growth and convergence of interconnect technologies in the data center,
we now have a significant position in what we believe will be the two
dominant high-speed IO standards well into the future."
This strategic acquisition and new partnerships broaden the revenue
landscape for the company. The following significant events were
publicly announced during the third quarter:
-
Acquisition of Teranetics, 10GBase-T PHY leader
-
Demonstration of the world's first PCI Express 3.0 switches running
over optical cable at the Intel Developer Forum
-
Announcement of new USB 3.0 DAS devices passing the SuperSpeed USB
compliance testing
-
Fujitsu's selection of PLX's USB Duet technology for its Lifebook
personal computers
-
New partnerships with inXtron, Paragon Software and Tuxera Inc. that
strengthen PLX's high-performance NAS portfolio and software
capabilities
Business Outlook
The following statements are based on current expectations. The company
does not intend to update, confirm or change this guidance until its
fourth-quarter 2010 earnings release, although it may provide additional
details regarding its guidance during today's scheduled conference call.
-
Net revenues for the fourth quarter ending Dec. 31, 2010, are expected
to be between $28 million and $31 million.
-
Gross margins are expected to be approximately 57 percent.
-
Operating expense will include spending for R&D and SG&A of
approximately $19.9 million, charges for stock-based compensation of
approximately $400,000, acquisition-related costs of approximately
$400,000 and amortization of acquired intangibles before Teranetics of
approximately $650,000. The amortization of acquired intangibles for
Teranetics is dependent upon acquisition accounting which will be
completed during the fourth quarter.
PLX management plans to conduct a conference call and webcast today at
3:00 p.m. (PDT) to discuss its third quarter 2010 financial results, as
well as its fourth quarter 2010 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 719.457.2644. A recorded
replay of this webcast will be available on the PLX website beginning at
6:00 p.m. (PDT) on October 25, 2010, through 6:00 p.m. (PDT) on November
1, 2010. To listen to the replay via telephone, call 719.457.0820 and
use access code 1145974.
For the live webcast, listeners should go to the PLX website 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 provides manufacturers worldwide with innovative
software-enriched silicon through feature differentiation, high-quality
interoperability and superior performance. www.plxtech.com.
Use of Non-GAAP Financial Information
To supplement PLX's financial statements presented on a GAAP basis, PLX
has provided non-GAAP financial information, including non-GAAP net
income (loss), non-GAAP earnings (loss) per share (diluted), non-GAAP
operating income (loss) and non-GAAP operating expenses. These non-GAAP
results exclude share-based compensation, including ESOP expenses,
acquisition and restructuring-related charges, and amortization of
acquired intangibles. A reconciliation of the adjustments to GAAP
results is included in the tables below. Non-GAAP financial information
is not meant as a substitute for GAAP results, but is included because
management believes such information is useful to PLX investors for
informational and comparative purposes. In addition, certain non-GAAP
financial information is used internally by management to evaluate and
manage the company. The non-GAAP financial information used by PLX may
differ from that used by other companies. These non-GAAP measures should
be considered in addition to, and not a substitute for, the results
prepared in accordance with GAAP.
Safe Harbor Statement
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 estimated net revenues,
estimated operating expenses and estimated gross margins, which are set
forth under the heading "Business Outlook" and the statements regarding
the Company's expectations for the fourth quarter. 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, 2009, and PLX's quarterly reports on Form-10Q for the quarters ended
March 31, 2010, and June 30, 2010, 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
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
2010
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
30,234
|
|
|
$
|
21,559
|
|
|
$
|
29,721
|
|
$
|
88,774
|
|
$
|
56,194
|
|
Cost of revenues
|
|
|
12,307
|
|
|
|
9,420
|
|
|
|
12,232
|
|
|
37,010
|
|
|
25,007
|
|
Gross margin
|
|
|
17,927
|
|
|
|
12,139
|
|
|
|
17,489
|
|
|
51,764
|
|
|
31,187
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
7,605
|
|
|
|
7,550
|
|
|
|
8,234
|
|
|
23,392
|
|
|
24,023
|
|
Selling, general and administrative
|
|
|
6,570
|
|
|
|
5,608
|
|
|
|
6,701
|
|
|
19,734
|
|
|
19,587
|
|
Acquisition and restructuring related costs
|
|
|
510
|
|
|
|
171
|
|
|
|
-
|
|
|
510
|
|
|
2,900
|
|
Amortization of purchased intangible assets
|
|
|
648
|
|
|
|
854
|
|
|
|
649
|
|
|
1,945
|
|
|
2,562
|
|
Total operating expenses
|
|
|
15,333
|
|
|
|
14,183
|
|
|
|
15,584
|
|
|
45,581
|
|
|
49,072
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
2,594
|
|
|
|
(2,044
|
)
|
|
|
1,905
|
|
|
6,183
|
|
|
(17,885
|
)
|
Interest income and other, net
|
|
|
(1
|
)
|
|
|
149
|
|
|
|
48
|
|
|
108
|
|
|
314
|
|
Loss on fair value assessment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
(3,842
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision for income taxes
|
|
|
2,593
|
|
|
|
(1,895
|
)
|
|
|
1,953
|
|
|
6,291
|
|
|
(21,413
|
)
|
Provision for income taxes
|
|
|
1,445
|
|
|
|
(41
|
)
|
|
|
264
|
|
|
1,948
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
1,148
|
|
|
$
|
(1,854
|
)
|
|
$
|
1,689
|
|
$
|
4,343
|
|
$
|
(21,407
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share
|
|
$
|
0.03
|
|
|
$
|
(0.05
|
)
|
|
$
|
0.05
|
|
$
|
0.12
|
|
$
|
(0.61
|
)
|
Shares used to compute basic per share amounts
|
|
|
37,098
|
|
|
|
37,005
|
|
|
|
37,081
|
|
|
37,068
|
|
|
35,195
|
|
Diluted net income (loss) per share
|
|
$
|
0.03
|
|
|
$
|
(0.05
|
)
|
|
$
|
0.04
|
|
$
|
0.11
|
|
$
|
(0.61
|
)
|
Shares used to compute diluted per share amounts
|
|
|
37,683
|
|
|
|
37,005
|
|
|
|
37,884
|
|
|
37,795
|
|
|
35,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PLX TECHNOLOGY, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in thousands)
|
|
|
|
|
|
|
|
September 30 2010
|
|
December 31 2009
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and investments
|
|
$
|
43,132
|
|
|
$
|
40,015
|
|
Accounts receivable, net
|
|
|
12,921
|
|
|
|
9,167
|
|
Inventories
|
|
|
14,168
|
|
|
|
9,628
|
|
Property and equipment, net
|
|
|
11,452
|
|
|
|
10,856
|
|
Goodwill
|
|
|
1,367
|
|
|
|
1,367
|
|
Other intangible assets
|
|
|
3,695
|
|
|
|
5,640
|
|
Other assets
|
|
|
5,711
|
|
|
|
7,347
|
|
Total assets
|
|
$
|
92,446
|
|
|
$
|
84,020
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
7,320
|
|
|
$
|
6,489
|
|
Accrued compensation and benefits
|
|
|
3,256
|
|
|
|
1,261
|
|
Accrued commissions
|
|
|
729
|
|
|
|
740
|
|
Other accrued expenses
|
|
|
2,249
|
|
|
|
1,657
|
|
Short term capital lease obligation
|
|
|
1,131
|
|
|
|
776
|
|
Long term capital lease obligation
|
|
|
295
|
|
|
|
1,098
|
|
Total liabilities
|
|
|
14,980
|
|
|
|
12,021
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Common stock, par value
|
|
|
37
|
|
|
|
37
|
|
Additional paid-in capital
|
|
|
155,098
|
|
|
|
153,939
|
|
Accumulated other comprehensive loss
|
|
|
(122
|
)
|
|
|
(87
|
)
|
Accumulated deficit
|
|
|
(77,547
|
)
|
|
|
(81,890
|
)
|
Total stockholders' equity
|
|
|
77,466
|
|
|
|
71,999
|
|
Total liabilities and stockholders' equity
|
|
$
|
92,446
|
|
|
$
|
84,020
|
|
|
|
|
|
|
|
|
|
|
|
PLX TECHNOLOGY, INC.
|
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
1
|
(unaudited, in thousands, except for per share data)
|
(not prepared in accordance with GAAP)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30
|
|
September 30
|
|
June 30
|
|
September 30
|
|
2010
|
|
2009
|
|
2010
|
|
2010
|
|
2009
|
Net Income Reconciliation
|
|
|
|
|
|
|
|
|
|
GAAP Net Income (Loss)
|
$
|
1,148
|
|
|
$
|
(1,854
|
)
|
|
$
|
1,689
|
|
|
$
|
4,343
|
|
|
$
|
(21,407
|
)
|
Acquisition and restructuring related costs
|
|
510
|
|
|
|
171
|
|
|
|
-
|
|
|
|
510
|
|
|
|
2,900
|
|
Share-based compensation
|
|
386
|
|
|
|
170
|
|
|
|
463
|
|
|
|
1,195
|
|
|
|
2,630
|
|
Amortization of purchased intangible assets
|
|
648
|
|
|
|
854
|
|
|
|
649
|
|
|
|
1,945
|
|
|
|
2,562
|
|
Non-GAAP Net Income (Loss)
|
$
|
2,692
|
|
|
$
|
(659
|
)
|
|
$
|
2,801
|
|
|
$
|
7,993
|
|
|
$
|
(13,315
|
)
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Reconciliation
|
|
|
|
|
|
|
|
|
|
GAAP Diluted Income (Loss) Per Share
|
$
|
0.03
|
|
|
$
|
(0.05
|
)
|
|
$
|
0.04
|
|
|
$
|
0.11
|
|
|
$
|
(0.61
|
)
|
Effect of acquisition and restructuring related costs
|
|
0.01
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
0.08
|
|
Effect of share-based compensation
|
|
0.01
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.07
|
|
Effect of amortization of purchased intangible assets
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.05
|
|
|
|
0.07
|
|
Non-GAAP Diluted Income (Loss) Per Share
|
$
|
0.07
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.07
|
|
|
$
|
0.20
|
|
|
$
|
(0.39
|
)
|
|
|
|
|
|
|
|
|
|
|
Operating Income Reconciliation
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income (Loss)
|
$
|
2,594
|
|
|
$
|
(2,044
|
)
|
|
$
|
1,905
|
|
|
$
|
6,183
|
|
|
$
|
(17,885
|
)
|
Share-based compensation - COGS
|
|
8
|
|
|
|
6
|
|
|
|
10
|
|
|
|
25
|
|
|
|
85
|
|
Share-based compensation - R&D
|
|
155
|
|
|
|
62
|
|
|
|
165
|
|
|
|
464
|
|
|
|
766
|
|
Share-based compensation - SG&A
|
|
223
|
|
|
|
102
|
|
|
|
288
|
|
|
|
706
|
|
|
|
1,779
|
|
Acquisition and restructuring related costs
|
|
510
|
|
|
|
171
|
|
|
|
-
|
|
|
|
510
|
|
|
|
2,900
|
|
Amortization of purchased intangible assets
|
|
648
|
|
|
|
854
|
|
|
|
649
|
|
|
|
1,945
|
|
|
|
2,562
|
|
Non-GAAP Operating Income (Loss)
|
$
|
4,138
|
|
|
$
|
(849
|
)
|
|
$
|
3,017
|
|
|
$
|
9,833
|
|
|
$
|
(9,793
|
)
|
|
|
|
|
|
|
|
|
|
|
Operating Expense Reconciliation
|
|
|
|
|
|
|
|
|
|
GAAP Operating Expenses
|
$
|
15,333
|
|
|
$
|
14,183
|
|
|
$
|
15,584
|
|
|
$
|
45,581
|
|
|
$
|
49,072
|
|
Share-based compensation - R&D
|
|
(155
|
)
|
|
|
(62
|
)
|
|
|
(165
|
)
|
|
|
(464
|
)
|
|
|
(766
|
)
|
Share-based compensation - SG&A
|
|
(223
|
)
|
|
|
(102
|
)
|
|
|
(288
|
)
|
|
|
(706
|
)
|
|
|
(1,779
|
)
|
Acquisition and restructuring related costs
|
|
(510
|
)
|
|
|
(171
|
)
|
|
|
-
|
|
|
|
(510
|
)
|
|
|
(2,900
|
)
|
Amortization of purchased intangible assets
|
|
(648
|
)
|
|
|
(854
|
)
|
|
|
(649
|
)
|
|
|
(1,945
|
)
|
|
|
(2,562
|
)
|
Non-GAAP Operating Expenses
|
$
|
13,797
|
|
|
$
|
12,994
|
|
|
$
|
14,482
|
|
|
$
|
41,956
|
|
|
$
|
41,065
|
|
|
|
|
|
|
|
|
|
|
|
1 Refer to " Use of Non-GAAP Financial Information" in
the press release for a discussion of management's use of non-GAAP
financial measures.
|
|
|
PLX TECHNOLOGY, INC.
|
SUPPLEMENTAL DATA (Unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30
|
|
|
September 30
|
|
|
June 30
|
|
|
September 30
|
|
|
|
2010
|
|
|
2009
|
|
|
2010
|
|
|
2010
|
|
2009
|
Net Revenues by Geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
20%
|
|
|
15%
|
|
|
19%
|
|
|
18%
|
|
18%
|
Asia Pacific
|
|
|
68%
|
|
|
76%
|
|
|
72%
|
|
|
72%
|
|
72%
|
Europe
|
|
|
12%
|
|
|
9%
|
|
|
9%
|
|
|
10%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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