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PLX Technology, Inc. Provides Updated Earnings Guidance for Fourth Quarter 2011(January 09, 2012)
SUNNYVALE, CA -- (Marketwire) -- 01/09/12 -- PLX Technology, Inc. (NASDAQ: PLXT), a leader in high-speed connectivity solutions for the enterprise data center, today announced revised earnings guidance for Q4 2011.
PLX now forecasts the revenue range for Q4 2011 to be $25.7 to $25.9 million compared to previous guidance of $28.0 to $32.0 million. Gross margin is expected to improve to approximately 59 percent and the cash position will increase due to significant inventory reduction. Operating expenses are expected to be lower than previous guidance.
"The quarter has not shaped up as we had anticipated due to the December distribution business being significantly lower than prior months, this was primarily driven by very weak demand for our connectivity products," said Ralph Schmitt, PLX president and CEO. "The flooding in Thailand also negatively impacted our storage controller business, further contributing to the shortfall."
"Our PCI Express and Ethernet segments were relatively robust versus our other products in Q4. We have built a good backlog of our PCI Express Gen3 product due to the anticipated ramp in early 2012 of the launch of Intel's Romley platform," added Schmitt.
PLX management plans to conduct a conference call and webcast later this month to discuss its fourth quarter and fiscal 2011 financial results, as well as its first quarter 2012 outlook.
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 estimated net revenues, estimated operating expenses, estimated gross margins, anticipated cash position, and inventory reduction. 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 that use 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, 2010, and PLX's quarterly reports on Forms 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011, 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.
About PLX Technology, Inc.
PLX Technology, Inc. (NASDAQ: PLXT), based in Sunnyvale, Calif., USA, is an industry-leading global provider of semiconductor-based connectivity solutions primarily targeting the enterprise and consumer markets. The company provides manufacturers worldwide with innovative software-enriched silicon through feature differentiation, high-quality interoperability and superior performance. www.plxtech.com.
PLX and the PLX logo are trademarks 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 companies.
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