EXHIBIT 99.1
PLX TECHNOLOGY, INC. REPORTS FIRST-QUARTER RESULTS
SUNNYVALE, Calif. - (April 16, 2003) - PLX Technology, Inc. (NASDAQ: PLXT) today
announced financial results for the first quarter ended March 31, 2003.
For the first quarter ended March 31, 2003, the Company reported net revenues of
$8.5 million, a 16 percent decrease from the $10.1 million reported for the
first quarter of 2002 and a one percent decrease from the $8.6 million reported
for the fourth quarter of 2002. Net losses under generally accepted accounting
principles (GAAP), which includes the effect of acquisition-related costs were
$816,000, or $0.04 per share, for the first quarter of 2003, compared with net
losses under GAAP of $271,000, or $0.01 per share, for the prior year quarter.
Pro forma net losses for the first quarter ended March 31, 2003, which excludes
the effect of acquisition-related costs, were $226,000, or $0.01 per share
(diluted), compared to pro forma net income of $514,000, or $0.02 per share
(diluted), for the prior year quarter. A reconciliation between net losses on a
GAAP basis and pro forma net losses is provided in a table immediately following
the Pro Forma Consolidated Statements of Operations.
The Company's gross margins in the first quarter were 70 percent. As a result of
selling some previously written-down inventory, the Company recorded a benefit
of approximately $204,000, or two gross margin points in the first quarter.
Cash and investments decreased to $21.3 million at March 31, 2003 from $21.7
million at December 31, 2002.
"In the first quarter our new product initiatives continued to show results,"
said Michael Salameh, president of PLX. "Our 66MHz PCI chips account for over
10 percent of our business and are used in approximately 30 customer designs. In
the first quarter, we added over a dozen new design wins around our 66MHz
products. Also in the quarter, several communication-equipment suppliers
developed new products using PLX's HyperTransport chips and are now in the
software development and system validation stage. The PCI-Express standard, the
focus of our new product development efforts, gained momentum as Intel and other
industry leaders announced products that incorporate this new interconnect.
"We estimate second-quarter revenues to be between $8.2 million and $9.2
million. We are projecting a wide range because turns business has been variable
and unpredictable. We anticipate that second-quarter operating expenses on a
GAAP basis will be between $6.6 million and $6.8 million and on a pro forma
basis (which excludes the effect of acquisition-related costs of approximately
$500,000 for the quarter) will be between $6.1 million and $6.3 million. We
expect gross margins to remain in the 65 to 70 percent range."
The Company will be conducting a conference call today at 2:00 p.m. (PST) to
discuss its first-quarter financial results. There will also be a live Webcast
and a replay of the conference call that will be available through the Investors
section of the PLX Web site at www.plxtech.com until April 23, 2003. The Webcast
can also be accessed through www.ccbn.com.
Event archives are normally available one to two hours after the event ends. For
the live event, listeners should go to the Web site at least fifteen minutes
before the event starts to download and install any necessary audio software.
About PLX
PLX Technology, Inc. (www.plxtech.com), based in Sunnyvale, Calif., USA, is the
leading supplier of standard I/O interconnect silicon to the communications,
server, storage and embedded-control industries. The PLX solution provides a
competitive edge to our customers through an integrated combination of
high-performance silicon, hardware and software design tools, and partnerships.
These innovative solutions are designed to enable our customers to develop
communications equipment with industry-leading performance, scalability and
reliability. Furthermore, the combination of PLX product features, supporting
development tools and partnerships allows customers to bring their designs to
market faster. PLX PCI I/O Accelerator and HyperTransport Tunnel-to-Dual PCI-X
devices are designed into a wide variety of embedded PCI communication systems,
including switches, routers, line cards, media gateways, base stations, access
multiplexors and remote access concentrators.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This release includes statements that qualify as forward-looking statements
under the Private Securities Litigation Reform Act of 1995. These statements
include statements about the Company's estimated revenues, estimated expenses
and estimated margins for the second quarter of 2003, and our expected future
turns business. Such statements involve risks and uncertainties which may cause
actual results to differ materially from those set forth in these statements.
Factors that could cause actual results to differ materially include risks and
uncertainties such as reduced demand for products of electronic equipment
manufacturers which include the Company's products due to adverse economic
conditions in general or specifically affecting the Company's markets, technical
difficulties and delays in the development process, errors in the products,
reduced backlog of the Company's customers, unexpected expenses and the
political climate. You are also referred 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, 2002, which identify 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, THE PLX LOGO AND POWERDRIVE 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.
EDITORIAL CONTACT: COMPANY CONTACT:
JERRY STEACH RAFAEL TORRES, CFO
COMMONGROUND COMMUNICATIONS (FOR PLX) PLX TECHNOLOGY, INC.
TEL: 650.967.3071 TEL: 408.774.9060
jsteach@plxtech.com rtorres@plxtech.com
PLX TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts)
THREE MONTHS ENDED
March 31, MARCH 31, DECEMBER 31,
2003 2002 2002
------------ ------------ ------------
Net revenues $ 8,503 $ 10,118 $ 8,556
Cost of revenues 2,515 3,361 2,675
------------ ------------ ------------
Gross margin 5,988 6,757 5,881
Operating expenses:
Research and development 3,713 3,659 3,514
Selling, general and administrative 3,058 3,338 2,646
Amortization of purchased intangible assets 133 133 133
------------ ------------ ------------
Total operating expenses 6,904 7,130 6,293
Loss from operations (916) (373) (412)
Interest income and other, net 108 231 260
------------ ------------ ------------
Loss before provision for income taxes (808) (142) (152)
Provision for income taxes 8 129 49
------------ ------------ ------------
Net loss $ (816) $ (271) $ (201)
============ ============ ============
Basic and diluted net loss per share $ (0.04) $ (0.01) $ (0.01)
============ ============ ============
Shares used to compute basic and diluted per share amounts 21,135 23,432 21,204
============ ============ ============
PLX TECHNOLOGY, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(Excluding Acquisition-Related Costs and Amortization of Goodwill and
Intangible Assets)
(Unaudited)
(in thousands, except per share amounts)
THREE MONTHS ENDED
March 31, March 31, December 31,
2003 2002 2002
------------ ------------ ------------
Net revenues $ 8,503 $ 10,118 $ 8,556
Cost of revenues 2,515 3,361 2,675
------------ ------------ ------------
Gross margin 5,988 6,757 5,881
Operating expenses:
Research and development 3,256 3,085 3,056
Selling, general and administrative 3,058 3,260 2,646
------------ ------------ ------------
Total operating expenses 6,314 6,345 5,702
Income (loss) from operations (326) 412 179
Interest income and other, net 108 231 260
------------ ------------ ------------
Income (loss) before provision for income taxes (218) 643 439
Provision for income taxes 8 129 49
------------ ------------ ------------
Net income (loss) $ (226) $ 514 $ 390
============ ============ ============
Diluted net income (loss) per share $ (0.01) $ 0.02 $ 0.02
============ ============ ============
Shares used to compute diluted per share amounts 21,135 24,087 21,204
============ ============ ============
A RECONCILIATION BETWEEN NET LOSS ON A GAAP BASIS AND
PRO FORMA NET INCOME (LOSS) IS AS FOLLOWS:
GAAP net loss $ (816) $ (271) $ (201)
Amortization of deferred stock-based compensation 457 652 458
Amortization of purchased intangible assets 133 133 133
------------ ------------ ------------
Pro forma net income (loss) $ (226) $ 514 $ 390
============ ============ ============
PLX TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
MARCH 31, DECEMBER 31,
2003 2002 (1)
------------ ------------
(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents $ 4,166 $ 5,482
Short-term investments 16,142 13,131
Accounts receivable, net 3,320 2,568
Inventories 847 1,003
Income tax receivable 3,635 3,635
Other current assets 2,197 1,793
------------ ------------
Total current assets 30,307 27,612
Property and equipment, net 31,749 31,962
Long-term investments 1,002 3,067
Goodwill 8,054 8,054
Other intangible assets 837 970
Other assets 277 310
------------ ------------
Total assets $ 72,226 $ 71,975
============ ============
LIABILITIES
Current liabilities:
Accounts payable $ 1,949 $ 1,582
Accrued compensation and benefits 1,075 932
Deferred revenues 689 613
Accrued commissions 208 201
Other accrued expenses 689 683
------------ ------------
Total current liabilities 4,610 4,011
STOCKHOLDERS' EQUITY
Common stock, par value 21 21
Additional paid-in capital 74,977 74,953
Deferred compensation (443) (900)
Notes receivable for employee stock purchases (67) (67)
Accumulated other comprehensive income 33 46
Accumulated deficit (6,905) (6,089)
------------ ------------
Total stockholders' equity 67,616 67,964
------------ ------------
Total liabilities and stockholders' equity $ 72,226 $ 71,975
============ ============
(1) Derived from audited financial statements