PLX Technology Posts 3Q Financial Results

PLX Technology, a provider of semiconductor based connectivity solutions, announced financial results for the third quarter ended September 30.

"As projected last quarter, our enterprise customers led the way in driving the majority of our revenue growth," said Ralph Schmitt, PLX chief executive officer. "Our PCI Express business continues to diversify with faster growth in the networking, storage and embedded applications. The consumer storage business was first to recover and we continued to see robust revenue trends during Q3."

In a release dated October 27, the company stated:

- For the third quarter ended September 30, PLX reported net revenues of $21.6 million, a 19 percent increase from the $18.2 million reported in the second quarter ended June 30, and a four percent increase from the $20.8 million reported in the third quarter ended September 30, 2008.

- The net loss for the third quarter ended September 30 was $1.9 million, or a loss of $0.05 per share (diluted). This compares with a net loss of $9.1 million, or a loss of $0.26 per share (diluted), in the second quarter ended June 30, and a net income of $798,000, or $0.03 per share (diluted), in the third quarter ended September 30, 2008.

- The company's gross margin for the third quarter ended September 30 was 56.3 percent, as compared with 55.6 percent for the second quarter ended June 30, and 58.5 percent for the third quarter ended September 30, 2008.

- Operating expenses were $14.2 million for the third quarter ended September 30 as compared with $16.6 million in the second quarter ended June 30, and $11.6 million in the third quarter ended September 30, 2008. Third quarter 2009 operating expenses included stock-based compensation expense of $164,000, amortization of acquired intangibles of $854,000 and restructuring costs of $171,000 associated with the downsizing of PLX's Singapore office. The company continues to reduce its recurring expenses.

- Cash and investments decreased by $229,000 in the quarter ended September 30. The company's $1.9 million quarterly loss includes non-cash items totaling $1.8 million. At September 30, cash and investments were $38.5 million, a decrease of $8.6 million from $47.1 million at December 31, 2008.

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