SUNNYVALE, CA--(Marketwired - July 21, 2014) - PLX Technology, Inc. (NASDAQ: PLXT), the global leader in PCI Express
On June 23, 2014, PLX
Non-GAAP Financial
Comparison
(in millions, except per
share amounts)
Quarterly Results Year to Date
Q2 2014 Q1 2014 Q2 2013 2014 2013
--------- --------- --------- --------- ---------
Net revenues $ 28.5 $ 24.8 $ 26.9 $ 53.4 $ 53.1
Gross Margin $ 17.0 $ 15.0 $ 15.1 $ 32.0 $ 30.6
Operating expense $ 14.7 $ 11.9 $ 11.8 $ 26.6 $ 23.4
Operating income from
continuing operations $ 2.2 $ 3.1 $ 3.3 $ 5.4 $ 7.2
Income from continuing
operations, net of tax $ 2.2 $ 3.0 $ 3.1 $ 5.3 $ 6.9
Income per share
(diluted) from
continuing operations,
net of tax $ 0.05 $ 0.07 $ 0.07 $ 0.11 $ 0.15
The above non-GAAP financial information (other than net revenues, which are presented on a GAAP basis) excludes share-based compensation, royalty accruals associated with the Internet Machines litigation, acquisition and restructuring costs, and discontinued operations. See "Use of Non-GAAP Financial Information" below.
GAAP Financial Comparison
(in millions, except per
share amounts)
Quarterly Results Year to Date
Q2 2014 Q1 2014 Q2 2013 2014 2013
--------- --------- --------- --------- ---------
Net revenues
$ 28.5 $ 24.8 $ 26.9 $ 53.4 $ 53.1
Gross Margin $ 16.7 $ 14.8 $ 15.1 $ 31.5 $ 30.6
Operating expense $ 17.0 $ 12.5 $ 13.3 $ 29.5 $ 26.0
Operating income (loss)
from continuing
operations $ (0.3) $ 2.3 $ 1.8 $ 2.0 $ 4.6
Income (loss) from
continuing operations,
net of tax $ (0.3) $ 2.2 $ 1.7 $ 1.9 $ 4.4
Income (loss) per share
(diluted) from
continuing operations,
net of tax $ (0.01) $ 0.05 $ 0.04 $ 0.04 $ 0.09
About PLX:
PLX Technology, Inc. (NASDAQ: PLXT), based in Sunnyvale, Calif., USA, is the industry-leading global provider of semiconductor-based PCI Express connectivity solutions primarily targeting enterprise data center markets. The company develops innovative software-enriched silicon that enables product differentiation, reliable interoperability and superior performance. Visit PLX on plxtech.com, LinkedIn and YouTube.
Use of Non-GAAP Financial Information:
To supplement PLX's financial statements presented on a GAAP basis, PLX has provided non-GAAP financial information, including non-GAAP income (loss), non-GAAP earnings (loss) per share (diluted), non-GAAP operating income (loss) and non-GAAP operating expenses. These non-GAAP results exclude share-based compensation, including ESOP expenses, royalty accruals associated with the Internet Machines litigation, acquisition and restructuring costs, and discontinued operations. A reconciliation of the adjustments to GAAP results is included in the tables below. Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to PLX investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. The non-GAAP financial information used by PLX may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not a substitute for, the results prepared in accordance with GAAP.
Safe Harbor Statement:
This press 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 expectation and timing of the closing of the transaction by which Avago will acquire PLX. 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, but are not limited to: the risk that the PLX/Avago transaction will not close because of a failure to satisfy one or more of the closing conditions (including regulatory approvals); litigation relating to the merger; unexpected costs, charges or expenses resulting from the merger; and adverse legislative, regulatory and economic developments. 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, 2013 and PLX's quarterly report on Form 10-Q, which identifies 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.
Additional Information
This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offer will only be made through a Tender Offer Statement on Schedule TO (collectively, the "Offer Materials"), initially filed with the U.S. Securities and Exchange Commission (the "SEC") by Avago Technologies Limited ("Avago") on July 8, 2014. In addition, PLX filed with the SEC on July 8, 2014, a solicitation/recommendation statement on Schedule 14D-9 (as amended and supplemented from time to time, the "Schedule 14D-9") with respect to the exchange offer. Investors and security holders are urged to carefully read these documents and the other documents relating to the transactions contemplated by the Merger Agreement because these documents contain important information relating to the Offer and related transactions. Investors and security holders may obtain a free copy of these documents, as filed with the SEC, and other annual, quarterly and special reports and other information filed with the SEC by Avago or PLX, at the SEC's website at www.sec.gov. In addition, such materials may be obtained from PLX or Avago by contacting PLX Investor Relations at (408) 774-9060 or investor-relations@plxtech.com or Avago Limited Investor Relations at (408)435-7400 or investor.relations@avagotech.com.
PLX is a trademark 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 organizations.
PLX TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
Three
Months
Ended Six Months Ended
June 30 March 31 June 30 June 30
--------------------
2014 2014 2013 2014 2013
--------- --------- --------- --------- ---------
Net revenues $ 28,511 $ 24,839 $ 26,850 $ 53,350 $ 53,068
Cost of revenues 11,808 10,084 11,777 21,892 22,470
--------- --------- --------- --------- ---------
Gross margin 16,703 14,755 15,073 31,458 30,598
--------- --------- --------- --------- ---------
Operating expenses:
Research and
development 9,444 6,390 6,480 15,834 12,441
Selling, general and
administrative 5,844 6,097 6,804 11,941 13,223
Acquisition and
restructuring
related costs 1,711 - - 1,711 291
--------- --------- --------- --------- ---------
Total operating
expenses 16,999 12,487 13,284 29,486 25,955
--------- --------- --------- --------- ---------
Income (loss) from
operations (296) 2,268 1,789 1,972 4,643
Interest income
(expense) and other,
net (24) (29) (55) (53) (126)
--------- --------- --------- --------- ---------
Income (loss) from
continuing
operations before
provision for income
taxes (320) 2,239 1,734 1,919 4,517
Provision (benefit)
for income taxes (6) 52 61 46 145
--------- --------- --------- --------- ---------
Income (loss) from
continuing
operations, net of
tax (314) 2,187 1,673 1,873 4,372
Loss from
discontinued
operations, net of
tax - - - - (57)
--------- --------- --------- --------- ---------
Net income (loss) $ (314) $ 2,187 $ 1,673 $ 1,873 $ 4,315
========= ========= ========= ========= =========
Basic net income
(loss) per share:
Income (loss) from
continuing
operations $ (0.01) $ 0.05 $ 0.04 $ 0.04 $ 0.10
========= ========= ========= ========= =========
Loss from
discontinued
operations $ - $ - $ - $ - $ -
========= ========= ========= ========= =========
Net income (loss) $ (0.01) $ 0.05 $ 0.04 $ 0.04 $ 0.10
========= ========= ========= ========= =========
Diluted net income
(loss) per share:
Income (loss) from
continuing
operations $ (0.01) $ 0.05 $ 0.04 $ 0.04 $ 0.09
========= ========= ========= ========= =========
Loss from
discontinued
operations $ - $ - $ - $ - $ -
========= ========= ========= ========= =========
Net income (loss) $ (0.01) $ 0.05 $ 0.04 $ 0.04 $ 0.09
========= ========= ========= ========= =========
Shares used to
compute per share
amounts:
Basic 45,922 45,841 45,611 45,882 45,487
========= ========= ========= ========= =========
Diluted 45,922 47,149 46,299 47,154 46,195
========= ========= ========= ========= =========
PLX TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
June 30 December 31
2014 2013
----------- -----------
ASSETS
Cash and investments $ 25,670 $ 20,424
Accounts receivable, net 13,042 12,835
Inventories 11,998 10,289
Property and equipment, net 11,229 10,333
Goodwill 20,461 20,461
Other assets 3,098 2,818
----------- -----------
Total assets $ 85,498 $ 77,160
=========== ===========
LIABILITIES
Accounts payable $ 10,443 $ 6,511
Accrued compensation and benefits 3,270 4,050
Accrued commissions 492 480
Other accrued expenses 4,965 3,213
Long term borrowings against line of credit 5,000 5,000
----------- -----------
Total liabilities 24,170 19,254
STOCKHOLDERS' EQUITY
Common stock, par value 46 46
Additional paid-in capital 194,940 193,391
Accumulated other comprehensive loss (277) (277)
Accumulated deficit (133,381) (135,254)
----------- -----------
Total stockholders' equity 61,328 57,906
----------- -----------
Total liabilities and stockholders' equity $ 85,498 $ 77,160
=========== ===========
PLX TECHNOLOGY, INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION 1
(unaudited, in thousands, except for per share data)
(not prepared in accordance with GAAP)
Three
Months
Ended Six Months Ended
June 30 March 31 June 30 June 30
-----------------
2014 2014 2013 2014 2013
-------- --------- --------- -------- --------
Income (Loss) From
Continuing Operations
Reconciliation
GAAP Income (Loss), Net
of Tax $ (314) $ 2,187 $ 1,673 $ 1,873 $ 4,372
Acquisition and
restructuring related
costs 1,711 - - 1,711 291
Share-based
compensation 535 586 567 1,121 1,332
Lawsuit verdict
contingency accrual 272 275 903 547 903
-------- --------- --------- -------- --------
Non-GAAP Income, Net of
Tax $ 2,204 $ 3,048 $ 3,143 $ 5,252 $ 6,898
======== ========= ========= ======== ========
Income (Loss) Per Share
From Continuing
Operations Reconciliation
GAAP Diluted Income
(Loss) Per Share, Net
of Tax $ (0.01) $ 0.05 $ 0.04 $ 0.04 $ 0.09
Effect of acquisition
and restructuring
related costs 0.04 - - 0.04 0.01
Effect of share-based
compensation 0.01 0.01 0.01 0.02 0.03
Effect of lawsuit
verdict contingency
accrual 0.01 0.01 0.02 0.01 0.02
-------- --------- --------- -------- --------
Non-GAAP Diluted Income
Per Share, Net of Tax $ 0.05 $ 0.07 $ 0.07 $ 0.11 $ 0.15
======== ========= ========= ======== ========
Operating Income (Loss)
From Continuing
Operations Reconciliation
GAAP Operating Income
(Loss) $ (296) $ 2,268 $ 1,789 $ 1,972 $ 4,643
Share-based
compensation - Cost of
revenues 14 13 14 27 (9)
Share-based
compensation - R&D 219 221 191 440 416
Share-based
compensation - SG&A 302 352 362 654 925
Lawsuit verdict
contingency accrual 272 275 903 547 903
Acquisition and
restructuring related
costs 1,711 - - 1,711 291
-------- --------- --------- -------- --------
Non-GAAP Operating
Income $ 2,222 $ 3,129 $ 3,259 $ 5,351 $ 7,169
======== ========= ========= ======== ========
Gross Margin From
Continuing Operations
Reconciliation
GAAP Gross Margin $ 16,703 $ 14,755 $ 15,073 $ 31,458 $ 30,598
Share-based
compensation - Cost of
revenues 14 13 14 27 (9)
Lawsuit verdict
contingency accrual 250 254 - 504 -
-------- --------- --------- -------- --------
Non-GAAP Gross Margin $ 16,967 $ 15,022 $ 15,087 $ 31,989 $ 30,589
======== ========= ========= ======== ========
Operating Expense From
Continuing Operations
Reconciliation
GAAP Operating Expenses$ 16,999 $ 12,487 $ 13,284 $ 29,486 $ 25,955
Share-based
compensation - R&D (219) (221) (191) (440) (416)
Share-based
compensation - SG&A (302) (352) (362) (654) (925)
Lawsuit verdict
contingency accrual (22) (21) (903) (43) (903)
Acquisition and
restructuring related
costs (1,711) - - (1,711) (291)
-------- --------- --------- -------- --------
Non-GAAP Operating
Expenses $ 14,745 $ 11,893 $ 11,828 $ 26,638 $ 23,420
======== ========= ========= ======== ========
1 Refer to " Use of Non-GAAP Financial Information" in the press release for
a discussion of management's use of non-GAAP financial measures.
PLX TECHNOLOGY, INC.
SUPPLEMENTAL DATA (Unaudited)
Three Months Ended Six Months Ended
June 30 March 31 June 30 June 30
------------------
2014 2014 2013 2014 2013
-------- -------- -------- -------- --------
Net Revenues by Geography
Americas 18% 20% 19% 19% 21%
Asia Pacific 72% 67% 71% 70% 69%
Europe 10% 13% 10% 11% 10%
Three Months Ended Six Months Ended
June 30 March 31 June 30 June 30
------------------
2014 2014 2013 2014 2013
-------- -------- -------- -------- --------
Net Revenues by Type
PCI Express Revenue 69% 70% 75% 70% 73%
Connectivity Revenue 31% 30% 25% 30% 27%
Contact Information:
David Hurd
PLX Technology, Inc.
Sr. Director, Corporate Communication
(408) 328-3594
dhurd@plxtech.com
