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Wednesday January 26, 04:15 PM Eastern time
Company Press Release
PLX Technology Reports Fourth Quarter and Fiscal
Year Financial Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 26, 2000--PLX Technology, Inc.
(Nasdaq: PLXT) today reported its financial results for the fourth quarter and fiscal year
ended December 31, 1999.
Net revenues for the fourth quarter of 1999 were a record 11.8 million, an increase of 50
over the 7.9 million reported in the fourth quarter of 1998 and an increase of 11 over the
10.6 million reported in the third quarter of 1999. Net revenues for the fiscal year ended
December 31, 1999 were a record 40.7 million, an increase of 55 over the 26.3 million
reported for the fiscal year ended December 31, 1998.
Income from operations for the fourth quarter of 1999 was 3.6 million, an increase of 170
over the 1.3 million reported in the fourth quarter of 1998 and an increase of 30 over the 2.8
million reported in the third quarter of 1999. Income from operations for the fiscal year ended
December 31, 1999 was 10.0 million, an increase of 195 over the 3.4 million reported for
the fiscal year ended December 31, 1998.
Net income for the fourth quarter of 1999 was 2.4 million, or 0.11 per share on a diluted
basis, compared with 1.1 million, or 0.06 per share, in the fourth quarter of 1998 and 2.1
million, or 0.09 per share, in the third quarter of 1999. Net income for the fiscal year ended
December 31, 1999 was 7.2 million, or 0.33 per share on a diluted basis, compared with 2.8
million, or 0.15 per share, in the fiscal year ended December 31, 1998.
"The quality of our financial results reflects the continued strength in world demand for high
performance communications and enterprise storage equipment, the main drivers of our
business," said Michael Salameh, president of PLX. "We are pleased with our ongoing efforts
to achieve design wins at the leading suppliers of this equipment and continue to see strong
momentum towards PCI as the system architecture for the communications infrastructure."
During the fourth quarter 1999, PLX invested 1 million in Sebring Systems, Inc., a
development stage company focused on providing advanced silicon network interconnect
solutions to the communications marketplace.
"The Sebring investment is the first investment in an ongoing PLX program which puts our
cash resources to work in new technology areas," said Michael Salameh. "Sebring has
developed exciting new technology for improving I/O bandwidth and their technology is
complimentary to our current products."
PLX reduced its cost basis in the 1 million investment in Sebring Systems, Inc. by 340,000 in
the fourth quarter of 1999 and expects the investment will be reduced to zero by the end of
the second quarter of 2000. This will result in a reduction in PLX net earnings of
approximately 0.01 per share in each of the next two quarters.
Weighted average shares outstanding for the fourth quarter of 1999 were 22.8 million, an
increase of 24 over the 18.4 million for the fourth quarter of 1998 and a decrease of 1 over
the 23.1 million for the third quarter of 1999. The increase in outstanding shares during 1999
was primarily due to the addition of 3.8 million new shares from the Company's initial public
offering in April 1999. The net income and earnings per share numbers also reflect an
increase in PLX's effective tax rate from 20 in 1998 to 35 in 1999.
About PLX
PLX Technology Inc., based in Sunnyvale, California, is a worldwide supplier of
high-performance integrated circuits, software and reference design packages for
communication and other applications which incorporate the Peripheral Component
Interconnect (PCI) bus architecture. PLX's PCI I/O accelerator and I/O processor chips are
designed into a wide range of equipment supplied by companies such as Cisco Systems,
Compaq Computers, Hewlett Packard, Intel, IBM, Lucent Technologies, Nortel Networks
and Siemens.
Statements made in this release are forward-looking, including statements regarding beliefs,
plans, expectations or intentions regarding the future. Forward-looking statements in this
release include those relating to (a) the continued strength in world demand for high
performance communications and enterprise storage equipment, (b) strong momentum
towards PCI as the system architecture for the communications infrastructure, and (c)
Sebring Systems, and are made pursuant to the safe harbor provisions of the Securities
Litigation Reform Act of 1995. 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 our products due
to adverse economic conditions in general or specifically affecting our markets, reduced
significance of the PCI standard for the communications infrastructure and replacement by
other standards, and the potential failure of Sebring Systems to develop commercially viable
technology in a timely fashion or at all. You are referred to the documents filed by PLX with
the SEC, specifically the Registration Statement on Form S-1 and the quarterly statements
filed on Form 10-Q, which identify important risk factors that could cause actual results to
differ from those contained in the forward-looking statements. Company and product
information is available on the PLX web site at www.plxtech.com.
PLX Technology, Inc.
Consolidated Statements of Income
(Thousands except per share data)
Three months Twelve Months
ended December 31, ended December 31,
1999 1998 1999 1998
Net revenues $11,781 $ 7,852 $40,699 $26,276
Cost of revenues 3,388 2,933 12,868 9,671
Gross margin 8,393 4,919 27,831 16,605
Operating expenses:
Research and
development 1,712 1,623 7,268 6,552
Selling, general
and administrative 3,099 1,968 10,569 6,670
Total operating
expenses 4,811 3,591 17,837 13,222
Income from operations 3,582 1,328 9,994 3,383
Interest income
and other, net 503 28 1,473 75
Income before
income taxes and
loss from investee 4,085 1,356 11,467 3,458
Provision for
income taxes 1,309 271 3,896 692
Income before
loss from investee 2,776 1,085 7,571 2,766
Loss from investee 340 340
Net income $ 2,436 $ 1,085 $ 7,231 $ 2,766
======== ======== ======== ========
Weighted average
shares (diluted) 22,794 18,375 21,849 18,405
Earnings per
share (diluted) $ 0.11 $ 0.06 $ 0.33 $ 0.15
Proforma earnings per
share (diluted)
excluding loss
from investee $ 0.12 $ 0.06 $ 0.35 $ 0.15
PLX Technology, Inc.
Consolidated Balance Sheets
(Thousands)
December 31, December 31,
1999 1998
Assets
Cash and cash equivalents $ 8,636 $ 5,638
Shortterm investments 20,075
Accounts receivable 5,439 2,073
Inventories 2,504 1,344
Deferred tax assets 1,379 735
Other current assets 447 332
Total current assets 38,480 10,122
Property and equipment, net 1,537 1,515
Deposits and licenses 159
Long term investments 11,879 129
Total assets $ 52,055 $ 11,766
========= =========
Liabilities and
Stockholders' Equity
Accounts payable $ 1,825 $ 1,601
Accrued compensation
and benefits 1,052 724
Accrued commissions 320 100
Deferred revenues 1,001 592
Other accrued expenses 608 547
Income tax payable 847 442
Total Liabilities 5,653 4,006
Stockholders' equity
Redeemable convertible
preferred stock, par value 5
Common stock, par value 22 5
Additional paid in capital 36,827 5,616
Deferred compensation (192) (283)
Notes receivable for
employee stock purchases (163)
Unrealized gain/loss
on investments (66)
Retained earnings 9,811 2,580
Total stockholders' equity 46,402 7,760
Total liabilities
and stockholders' equity $ 52,055 $ 11,766
Contact:
PLX Technology, Inc.
Scott Gibson, 408/774-9060
sgibson@plxtech.com
or
CommonGround Communications (for PLX)
Jerry Steach, 650/967-3071 |
