PLX: Fiscal 3Q10 Financial Results

PLX Technology, Inc. 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."

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:

• 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.