Exhibit 99.1
PLX Technology, Inc. Reports First Quarter 2005 Financial Results;
Company Continues To Penetrate Emerging PCI Express Market,
Broadens PCI Express and USB Product Lines
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 19, 2005--PLX
Technology, Inc. (Nasdaq:PLXT) today announced financial results for
the first quarter fiscal 2005 which ended March 31, 2005.
For the first quarter, PLX reported net revenues of $13.2 million,
a 14 percent increase from the $11.6 million reported for the first
quarter of 2004, and a one percent decrease from the $13.3 million
reported for the fourth quarter of 2004.
Net losses for the first quarter of 2005, under U.S. generally
accepted accounting principles (GAAP), which included the effect of
acquisition-related costs, was $0.5 million, or a loss of $0.02 per
share (diluted). This compared with net income under GAAP of $0.3
million, or $0.01 per share (diluted), for the prior-year first
quarter and net losses under GAAP of $0.7 million, or a loss of $0.03
per share (diluted), for the fourth quarter of 2004.
Pro forma net income for the first quarter of 2005, which excluded
the effect of acquisition-related costs, was $70,000, or $0.00 per
share (diluted). This compared with pro forma net income of $0.6
million, or $0.02 per share (diluted), for the prior year's first
quarter and pro forma net losses of $0.2 million, or a loss of $0.01
per share (diluted), for the fourth quarter of 2004. 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 of 2005 was 63
percent, compared with 63 percent for the prior quarter.
Operating expenses on a GAAP basis for the first quarter of 2005
were $9.1 million, compared with $9.3 million for the prior quarter.
On a pro forma basis, which excludes acquisition-related costs of
approximately $0.6 million and $0.5 million for the quarters ended
March 31, 2005 and December 31, 2004, respectively, operating expenses
were $8.4 million, compared with $8.8 million.
The Company's balance sheet remained strong. At March 31, 2005,
cash, cash equivalents and total investments were $30.3 million,
compared to $30.3 million at year-end 2004. Additionally, there
continues to be no debt.
"In the first quarter, we continued gaining momentum in our PCI
Express initiative," said Michael Salameh, PLX(R) chief executive
officer. "We completed our initial PCI Express roll-out plans when we
began sampling the fourth chip in our PCI Express family -- a four
lane PCI Express-to-PCI-X bridge. This chip is in addition to the
three chips we began sampling in late 2004. Since we started sampling
our PCI Express family in September of 2004, we have shipped samples
or development boards to more than 75 customers, many of whom are
designing the products into multiple applications. We're pleased that
our first-quarter PCI Express revenues comprised in excess of two
percent of PLX's total revenues, more than doubling over the prior
quarter. The number of customers and broad variety of applications
confirms our belief that PCI Express will be a growth vehicle for PLX.
"During the first quarter, we also announced two new USB 2.0
products focused on cell phone, TV tuner, video capture, wireless LAN,
and other PC peripheral applications. Demand for increased data
transfer capability in these applications is creating new growth
opportunities for our USB business."
Business Outlook
The following statements are based on current expectations. The
Company does not intend to update, confirm or change this guidance
until its second-quarter earnings conference call, although it may
provide additional detail regarding its guidance on today's scheduled
call.
-- Revenue for the second quarter of 2005 is expected to be
between $13.2 million and $14.2 million, with approximately 13
percent to 16 percent of total revenues attributable to USB
products and approximately three percent to five percent of
total revenues attributable to PCI Express products.
-- Gross margins are expected to be in the range of 62 percent to
66 percent.
-- Operating expenses on a GAAP basis are expected to be between
$9.6 million and $9.9 million. On a pro forma basis, which
excludes acquisition-related costs of approximately $0.5
million, expenses are expected to be between $9.1 million and
$9.4 million. Engineering expenses related to 0.13-micron chip
development comprise a significant portion of total
anticipated second-quarter expenses. The timing of the
development expenses will depend on when the actual mask and
prototype fabrication work is performed.
PLX management plans to conduct a conference call today at 2:00
p.m. PDT 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 http://www.plxtech.com/investors until April
26, 2005. The Webcast can also be accessed through www.ccbn.com.
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 and earnings (loss) per share exclude
acquisition-related charges, such as amortization of deferred
compensation and other intangibles. PLX's management believes these
pro forma measures are useful to investors because they provide
supplemental information that facilitates comparisons to 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 is 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, embedded-control, and
consumer industries. The PLX solution provides a competitive edge to
customers through an integrated combination of high-performance
silicon, hardware and software design tools. These innovative
solutions enable customers to develop products with industry-leading
performance and functionality. Furthermore, the combination of PLX
product features, supporting development tools and partnerships allows
customers to bring their designs to market faster. PLX PCI, PCI
Express and USB interconnect chips are designed into a wide variety of
communications, server, storage, embedded-control, and consumer
products.
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, and estimated gross margins for the second quarter
of 2005, which are set forth under the caption "Business Outlook,"
statements regarding the PCI Express product line and that it will be
a growth vehicle for the Company, and statements regarding new growth
for our USB 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, 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, 2004, 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
2005 2004 2004
----------- ----------- -----------
Net revenues $13,222 $11,642 $13,334
Cost of revenues 4,857 3,229 4,946
----------- ----------- -----------
Gross margin 8,365 8,413 8,388
Operating expenses:
Research and development 4,112 4,057 4,470
Selling, general and
administrative 4,426 3,678 4,359
Amortization of purchased
intangible assets 512 297 512
----------- ----------- -----------
Total operating expenses 9,050 8,032 9,341
Income (loss) from operations (685) 381 (953)
Interest income and other, net 155 68 146
----------- ----------- -----------
Income (loss) before provision for
income taxes (530) 449 (807)
Provision (benefit) for income
taxes 11 172 (98)
----------- ----------- -----------
Net income (loss) $(541) $277 $(709)
=========== =========== ===========
Basic net income (loss) per share $(0.02) $0.01 $(0.03)
=========== =========== ===========
Shares used to compute basic per
share amounts 26,786 23,876 26,593
=========== =========== ===========
Diluted net income (loss) per
share $(0.02) $0.01 $(0.03)
=========== =========== ===========
Shares used to compute diluted per
share amounts 26,786 25,181 26,593
=========== =========== ===========
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
2005 2004 2004
----------- ----------- -----------
Net revenues $13,222 $11,642 $13,334
Cost of revenues 4,857 3,229 4,946
----------- ----------- -----------
Gross margin 8,365 8,413 8,388
Operating expenses:
Research and development 4,034 4,048 4,456
Selling, general and
administrative 4,405 3,669 4,343
----------- ----------- -----------
Total operating expenses 8,439 7,717 8,799
Income (loss) from operations (74) 696 (411)
Interest income and other, net 155 68 146
----------- ----------- -----------
Income (loss) before provision for
income taxes 81 764 (265)
Provision (benefit) for income
taxes 11 172 (98)
----------- ----------- -----------
Net income (loss) $70 $592 $(167)
=========== =========== ===========
Basic net income (loss) per share $0.00 $0.02 $(0.01)
=========== =========== ===========
Shares used to compute basic per
share amounts 26,786 23,876 26,593
=========== =========== ===========
Diluted net income (loss) per
share $0.00 $0.02 $(0.01)
=========== =========== ===========
Shares used to compute diluted per
share amounts 27,592 25,181 26,593
=========== =========== ===========
A reconciliation between net income (loss) on a GAAP basis and pro
forma net income (loss) is as follows:
GAAP net income (loss) $(541) $277 $(709)
Amortization of deferred stock-
based compensation 99 18 30
Amortization of purchased
intangible assets 512 297 512
----------- ----------- -----------
Pro forma net income (loss) $70 $592 $(167)
=========== =========== ===========
PLX TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31 December 31
2005 2004(1)
-------------- -------------
(unaudited)
ASSETS
Cash, cash equivalents and total
investments $30,322 $30,276
Accounts receivable, net 6,329 5,084
Inventories 3,158 4,159
Property and equipment, net 30,533 30,860
Goodwill 30,965 30,965
Other intangible assets 6,480 6,991
Other assets 2,126 2,138
-------------- -------------
Total assets $109,913 $110,473
============== =============
LIABILITIES
Accounts payable $3,364 $3,627
Accrued compensation and benefits 1,778 1,813
Deferred revenues 1,234 1,310
Accrued commissions 265 300
Other accrued expenses 964 1,264
-------------- -------------
Total liabilities 7,605 8,314
-------------- -------------
STOCKHOLDERS' EQUITY
Common stock, par value 27 27
Additional paid-in capital 112,356 111,739
Deferred compensation (306) (406)
Accumulated other comprehensive income (238) (211)
Accumulated deficit (9,531) (8,990)
-------------- -------------
Total stockholders' equity 102,308 102,159
-------------- -------------
Total liabilities and stockholders'
equity $109,913 $110,473
============== =============
(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 (Editorial)
jsteach@plxtech.com