Exhibit 99.1
PLX Technology, Inc. Reports First-Quarter 2004 Financial Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 15, 2004--PLX
Technology, Inc. (NASDAQ:PLXT) today announced financial results for
the first quarter ended March 31, 2004.
For the first quarter, PLX reported net revenues of $11.6 million,
a 10 percent increase from the $10.6 million reported for the fourth
quarter of 2003 and a 37 percent increase from the $8.5 million
reported for the first quarter of 2003.
Net income under U.S. generally accepted accounting principles
(GAAP), which included the effect of acquisition-related costs, was
$0.3 million, or $0.01 per share (diluted), for the first quarter of
2004. This compared with a net loss under GAAP of $0.8 million, or a
loss of $0.04 per share (diluted), for the prior-year and net income
under GAAP of $0.3 million, or $0.01 per share (diluted), for the
prior quarter.
Pro forma net income for the first quarter of 2004, which excluded
the effect of acquisition-related costs, was $0.6 million, or $0.02
per share (diluted). This compared with pro forma net loss of $0.2
million, or a loss of $0.01 per share (diluted), for the prior year
and pro forma net income of $0.6 million, or $0.03 per share
(diluted), for the prior quarter. A reconciliation between net income
(loss) under GAAP and pro forma net income (loss) is provided in a
table immediately below the Pro Forma Consolidated Statements of
Operations.
The company's gross margin for the first quarter was 72 percent.
As a result of the sale of previously written-down inventory, PLX
recorded a benefit of approximately $0.1 million, which accounted for
approximately one percentage point, for the first quarter.
Operating expenses for the first quarter of 2004 were $7.7
million, compared to $7.2 million in the prior quarter. The increase
was primarily due to mask fabrication, prototyping and other external
engineering expenses associated with the development of PCI Express
and PCI bridge products.
At March 31, 2004, cash, cash equivalents and total investments
increased to $25.1 million from $23.1 million at year-end 2003.
"In the first quarter we were encouraged by continued improvements
in financial performance, as well as progress in long-term growth
initiatives," said Mike Salameh, president and CEO of PLX Technology.
"We started sampling two new PCI-to-PCI bridge chips and continued
growing revenues for this product line. We performed successful
interoperability testing and development of our planned PCI Express
products in preparation for announcement and sampling.
"Also in the first quarter, we signed a definitive agreement to
acquire NetChip Technology, a leading supplier of silicon based on the
Universal Serial Bus (USB) standard, adding another interconnect
silicon growth dimension to our business. We expect to close the
NetChip acquisition late in the second quarter, pending the necessary
vote of PLX stockholders and other customary closing conditions. We
expect the transaction to be accretive to PLX's earnings, excluding
the effect of acquisition-related costs.
"We estimate second-quarter revenues to be between $12 million and
$13 million. We project a wide range because our turns business has
been variable and unpredictable. We expect gross margins to be between
69 percent and 71 percent.
"We anticipate that second-quarter operating expenses on a GAAP
basis will be between $8.5 million and $9.0 million. On a pro forma
basis, which excludes acquisition-related costs of approximately $0.3
million, we expect operating expenses to be between $8.2 million and
$8.7 million. The expected increase in expenses is attributable
primarily to mask charges and other engineering expenses related to
anticipated tapeouts of PCI Express chips. In the third quarter, we
expect tapeout-related expenses to decline, resulting in total pro
forma operating expenses that are relatively consistent with those of
the fourth and first quarters."
PLX management plans to conduct a conference call today at 2:00
p.m. PST to discuss its first-quarter financial results, as well as
its second-quarter outlook. There will also be a live Webcast and a
replay of the conference call available through the Investors section
of the PLX Web site at www.plxtech.com until April 22, 2004.
For the live Webcast, listeners should go to the Web site at least
15 minutes before the event starts to download and install any
necessary audio software. The archived Webcast is typically available
one to two hours after the end of the live call.
USE OF PRO FORMA FINANCIAL INFORMATION: In addition to reporting
financial results in accordance with generally accepted accounting
principles, or GAAP, PLX reports pro forma financial results. Pro
forma net income (loss) and earnings (loss) per share exclude
acquisition-related charges, such as amortization of purchased
intangible assets and deferred compensation. PLX's management believes
these pro forma measures are useful to investors because they provide
supplemental information that facilitates comparisons with prior
periods. Management uses these pro forma measures to evaluate its
financial results, develop budgets and manage expenditures. The method
PLX uses to produce pro forma results is not computed according to
GAAP, is likely to differ from the methods used by other companies and
should not be regarded as a replacement for corresponding GAAP
measures. Investors are encouraged to review the reconciliation of
these pro forma financial measures to the comparable GAAP results,
which are provided in a table immediately below the Pro Forma
Consolidated Statements of Operations.
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 customers
through an integrated combination of high-performance silicon,
hardware and software design tools, and partnerships. These innovative
solutions are designed to enable 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 include statements about the company's estimated revenues,
estimated expenses, estimated gross margins, and estimated ongoing
acquisition-related costs for the second quarter of 2004, the expected
broadening of the company's exposure to new customers and design
opportunities, the strength of the PCI bridge products, the proposed
acquisition of NetChip and its anticipated accretive impact on the
company's earnings, and the company's expectations of future turns
business. 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 which include the
company's products, due to 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, unexpected
delays in closing the NetChip acquisition, unexpected expenses, and
the political climate. 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, 2003
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 TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended
March 31 March 31 December 31
2004 2003 2003
------------ --------- ----------
Net revenues $11,642 $8,503 $10,592
Cost of revenues 3,229 2,515 $2,988
------------ --------- -----------
Gross margin 8,413 5,988 7,604
Operating expenses:
Research and development 4,057 3,713 3,626
Selling, general and
administrative 3,678 3,058 3,562
Amortization of purchased
intangible assets 297 133 297
------------ --------- -----------
Total operating expenses 8,032 6,904 7,485
Income (loss) from operations 381 (916) 119
Interest income and other, net 68 108 219
------------ --------- -----------
Income (loss) before provision for
income taxes 449 (808) 338
Provision for income taxes 172 8 13
------------ --------- -----------
Net income (loss) $277 $(816) $325
============ ========= ===========
Basic net income (loss) per share $0.01 $(0.04) $0.01
============ ========= ===========
Shares used to compute basic per
share amounts 23,876 21,135 23,833
============ ========= ===========
Diluted net income (loss) per
share $0.01 $(0.04) $0.01
============ ========= ===========
Shares used to compute diluted per
share amounts 25,181 21,135 24,929
============ ========= ===========
PLX TECHNOLOGY, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(Excluding Acquisition-Related Costs and Amortization
of Intangible Assets)
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended
March 31 March 31 December 31
2004 2003 2003
------------- ----------- ------------
Net revenues $11,642 $8,503 $10,592
Cost of revenues 3,229 2,515 2,988
------------- ----------- ------------
Gross margin 8,413 5,988 7,604
Operating expenses:
Research and development 4,048 3,256 3,615
Selling, general and
administrative 3,669 3,058 3,548
------------- ----------- ------------
Total operating expenses 7,717 6,314 7,163
Income (loss) from
operations 696 (326) 441
Interest income and other,
net 68 108 219
------------- ----------- ------------
Income (loss) before
provision for income taxes 764 (218) 660
Provision for income taxes 172 8 13
------------- ----------- ------------
Net income (loss) $592 $(226) $647
============= =========== ============
Basic net income (loss)
per share $0.02 $(0.01) $0.03
============= =========== ============
Shares used to compute
basic per share amounts 23,876 21,135 23,833
============= =========== ============
Diluted net income (loss)
per share $0.02 $(0.01) $0.03
============= =========== ============
Shares used to compute
diluted per share amounts 25,181 21,135 24,929
============= =========== ============
A reconciliation between net income (loss) on a GAAP basis and pro
forma net income (loss) is as follows:
GAAP net income (loss) $277 $(816) $325
Amortization of deferred
stock-based compensation 18 457 25
Amortization of purchased
intangible assets 297 133 297
------------- ----------- ------------
Pro forma net income
(loss) $592 $(226) $647
============= =========== ============
PLX TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31 December 31
2004 2003 (1)
---------------- -------------------
(unaudited)
ASSETS
Current assets:
Cash and investments $25,129 $23,056
Accounts receivable, net 6,042 4,998
Inventories 1,417 1,893
Property and equipment, net 30,696 31,068
Goodwill 15,998 15,998
Other intangible assets 2,434 2,730
Other assets 2,103 2,060
---------------- --------------
Total assets $83,819 $81,803
================ ==============
LIABILITIES
Current liabilities:
Accounts payable $2,678 $1,768
Accrued compensation and
benefits 1,561 1,427
Deferred revenues 1,126 991
Accrued commissions 308 368
Other accrued expenses 1,551 1,228
---------------- --------------
Total current liabilities 7,224 5,782
---------------- --------------
STOCKHOLDERS' EQUITY
Common stock, par value 24 24
Additional paid-in capital 84,756 84,508
Deferred compensation (26) (44)
Notes receivable for employee
stock purchases (70) (70)
Accumulated other
comprehensive income (18) (49)
Accumulated deficit (8,071) (8,348)
---------------- --------------
Total stockholders' equity 76,595 76,021
---------------- --------------
Total liabilities and
stockholders' equity $83,819 $81,803
================ ==============
(1) Derived from audited financial statements
CONTACT: PLX Technology, Inc.
Rafael Torres, CFO, 408-774-9060
rtorres@plxtech.com
or
CommonGround Communications (for PLX)
Jerry Steach, 415-222-9996
jsteach@plxtech.com