PLX Technology, Inc. Reports Second Quarter 2010 Financial Results
[ Back ]   [ More News ]   [ Home ]
PLX Technology, Inc. Reports Second Quarter 2010 Financial Results

Second Quarter Results

SUNNYVALE, Calif. — (BUSINESS WIRE) — July 26, 2010 — PLX Technology, Inc. (NASDAQ: PLXT) today announced second quarter 2010 revenues of $29.7 million and net income of $1.7 million, or $0.04 per share (diluted).

“We have now had four successive growth quarters with strong trends continuing in some of our newer network attach storage and USB-interconnect products,” said Ralph Schmitt, president and CEO of PLX. “Bookings remain strong and we expect to see a robust third quarter, which will be seasonally driven by storage and supported with continued strength in the enterprise-based PCI Express® business.”

         
GAAP Financial Comparison
(in millions, except per share amounts)
Quarterly Results Year to Date

Q2 2010

Q2 2009

Q1 2010

2010

2009

Net revenues

$ 29.7 $ 18.2 $ 28.8 $ 58.5 $ 34.6
Operating expense $ 15.6 $ 16.6 $ 14.7 $ 30.2 $ 34.9
Operating income (loss) $ 1.9 $ (6.5 ) $ 1.7 $ 3.6 $ (15.8 )
Net income (loss) $ 1.7 $ (9.1 ) $ 1.5 $ 3.2 $ (19.6 )
Earnings (loss) per share (diluted) $ 0.04 $ (0.26 ) $ 0.04 $ 0.08 $ (0.57 )
 
Non-GAAP Financial Comparison
(in millions, except per share amounts)
Quarterly Results Year to Date

Q2 2010

Q2 2009

Q1 2010

Q2 2010

Q2 2009

Net revenues

$ 29.7 $ 18.2 $ 28.8 $ 58.5 $ 34.6
Operating expense $ 14.5 $ 13.6 $ 13.7 $ 28.2 $ 28.1
Operating income (loss) $ 3.0 $ (3.4 ) $ 2.7 $ 5.7 $ (8.9 )
Net income (loss) $ 2.8 $ (6.0 ) $ 2.5 $ 5.3 $ (12.7 )
Earnings (loss) per share (diluted) $ 0.07 $ (0.18 ) $ 0.07 $ 0.13 $ (0.37 )
 

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

PLX continues to innovate and deliver industry-leading products with key customer engagements.

“PLX’s new-product-execution machine continues to deliver, with the release of our new NAS product and USB3 controllers,” said Schmitt, “Both of these advanced consumer products have already won designs at market-leading customers. We also achieved our first successful PCI Express Gen 3 interoperation. This is a critical step to building out the next-generation high-speed PCI Express ecosystem, at which PLX is at the forefront.”

The following products and developments were publicly announced during the second quarter:

Business Outlook

The following statements are based on current expectations. The Company does not intend to update, confirm or change this guidance until its third quarter 2010 earnings release, although it may provide additional details regarding its guidance during today’s scheduled conference call.

PLX management plans to conduct a conference call and webcast today at 2:00 p.m. (PDT) to discuss its second quarter 2010 financial results, as well as its third 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 719.325.2483. A recorded replay of this webcast will be available on the PLX website beginning at 5:00 p.m. (PDT) on July 26, 2010, through 5:00 p.m. (PDT) on August 2, 2010. To listen to the replay via telephone, call 719.457.0820 and use access code 4599281.

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 our 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 caption “Business Outlook” and the statements regarding the Company’s expectations for the third 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 report on Form-10Q for the quarter ended March 31, 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 Six Months Ended
June 30

June 30

March 31

June 30

2010 2009 2010 2010 2009
 
Net revenues $ 29,721 $ 18,178 $ 28,819 $ 58,540 $ 34,635
Cost of revenues   12,232   8,076     12,471   24,703   15,587  
Gross margin 17,489 10,102 16,348 33,837 19,048
 
Operating expenses:
Research and development 8,234 8,570 7,553 15,787 16,473
Selling, general and administrative 6,701 7,084 6,463 13,164 13,979
Acquisition and restructuring related costs - 99 - - 2,729
Amortization of purchased intangible assets   649   854     648   1,297   1,708  
Total operating expenses 15,584 16,607 14,664 30,248 34,889
 
Income (loss) from operations 1,905 (6,505 ) 1,684 3,589 (15,841 )
Interest income and other, net 48 117 61 109 165
Loss on fair value assessment   -   (2,652 )   -   -   (3,842 )
 
Income (loss) before provision for income taxes 1,953 (9,040 ) 1,745 3,698 (19,518 )
Provision for income taxes   264   16     239   503   35  
 
Net income (loss) $ 1,689 $ (9,056 ) $ 1,506 $ 3,195 $ (19,553 )
 
Basic net income (loss) per share $ 0.05 $ (0.26 ) $ 0.04 $ 0.09 $ (0.57 )
Shares used to compute basic per share amounts   37,081   35,061     37,025   37,053   34,275  
Diluted net income (loss) per share $ 0.04 $ (0.26 ) $ 0.04 $ 0.08 $ (0.57 )
Shares used to compute diluted per share amounts   37,884   35,061     37,816   37,846   34,275  
 
 

PLX TECHNOLOGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)

   
June 30 December 31
2010 2009
ASSETS
 
Cash and investments $ 45,168 $ 40,015
Accounts receivable, net 8,654 9,167
Inventories 13,449 9,628
Property and equipment, net 11,009 10,856
Goodwill 1,367 1,367
Other intangible assets 4,343 5,640
Other assets   5,675     7,347  
Total assets $

89,665

  $ 84,020  
 
LIABILITIES

 

Accounts payable $ 7,935 $ 6,489
Accrued compensation and benefits 2,826 1,261
Accrued commissions 478 740
Other accrued expenses 822 1,657
Short term capital lease obligation 1,163 776
Long term capital lease obligation   439     1,098  
Total liabilities 13,663 12,021
 
STOCKHOLDERS' EQUITY
 
Common stock, par value 37 37
Additional paid-in capital 154,773 153,939
Accumulated other comprehensive loss (113 ) (87 )
Accumulated deficit   (78,695 )   (81,890 )
Total stockholders' equity   76,002     71,999  
Total liabilities and stockholders' equity $ 89,665   $ 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 Six Months Ended
June 30 June 30 March 31 June 30
2010 2009 2010 2010 2009
Net Income Reconciliation
GAAP Net Income (Loss) $ 1,689 $ (9,056 ) $ 1,506 $ 3,195 $ (19,553 )
Acquisition and restructuring related costs - 99 - - 2,729
Share-based compensation 463 2,120 346 809 2,460
Amortization of purchased intangible assets   649     854     648     1,297     1,708  
Non-GAAP Net Income (Loss) $ 2,801   $ (5,983 ) $ 2,500   $ 5,301   $ (12,656 )
 
Earnings Per Share Reconciliation
GAAP Diluted Income (Loss) Per Share $ 0.04 $ (0.26 ) $ 0.04 $ 0.08 $ (0.57 )
Effect of acquisition and restructuring related costs - - - - 0.08
Effect of share-based compensation 0.01 0.06 0.01 0.02 0.07
Effect of amortization of purchased intangible assets   0.02     0.02     0.02     0.03     0.05  
Non-GAAP Diluted Income (Loss) Per Share $ 0.07   $ (0.18 ) $ 0.07   $ 0.13   $ (0.37 )
 
Operating Income Reconciliation
GAAP Operating Income (Loss) $ 1,905 $ (6,505 ) $ 1,684 $ 3,589 $ (15,841 )
Share-based compensation - COGS 10 69 7 17 79
Share-based compensation - R&D 165 595 144 309 704
Share-based compensation - SG&A 288 1,456 195 483 1,677
Acquisition and restructuring related costs - 99 - - 2,729
Amortization of purchased intangible assets   649     854     648     1,297     1,708  
Non-GAAP Operating Income (Loss) $ 3,017   $ (3,432 ) $ 2,678   $ 5,695   $ (8,944 )
 
Operating Expense Reconciliation
GAAP Operating Expenses $ 15,584 $ 16,607 $ 14,664 $ 30,248 $ 34,889
Share-based compensation - R&D (165 ) (595 ) (144 ) (309 ) (704 )
Share-based compensation - SG&A (288 ) (1,456 ) (195 ) (483 ) (1,677 )
Acquisition and restructuring related costs - (99 ) - - (2,729 )
Amortization of purchased intangible assets   (649 )   (854 )   (648 )   (1,297 )   (1,708 )
Non-GAAP Operating Expenses $ 14,482   $ 13,603   $ 13,677   $ 28,159   $ 28,071  
 
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 Six Months Ended
June 30 June 30 March 31 June 30
2010 2009 2010 2010 2009
Net Revenues by Geography
Americas 19% 17% 15% 17% 20%
Asia Pacific 72% 74% 76% 74% 69%
Europe 9% 9% 9% 9% 11%


Contact:

CommonGround Communications (for PLX)
Jerry Steach, 415-222-9996
Email Contact
or
PLX Technology, Inc.
Arthur O Whipple, CFO, 408-774-9060
Email Contact