PLX: Fiscal 4Q13 Financial Results
PCIe growth in 2013 was 13%.
This is a Press Release edited by StorageNewsletter.com on March 10, 2014 at 3:01 pm| (in $ million) | 4Q12 | 4Q13 | FY12 | FY13 |
| Revenue | 23.4 | 25.7 | 100.2 | 104.5 |
| Growth | 10% | 4% | ||
| Net income (loss) | (0.6) | 1.0 | (32.6) | 7.3 |
PLX Technology, Inc. announced fourth quarter revenues of $25.7 million and GAAP income of $1.0 million, or $0.03 per share (diluted).
For 2013, PLX reported revenue of $104.5 million and GAAP income of $7.3 million, or $0.15 per share (diluted).
“Our ongoing commitment to controlling costs and focusing on our market-leading PCIe products resulted in our most profitable year in company history,” said David Raun, PLX president and CEO. “PCIe revenues were up 2% over Q3 and 13% annually. We are pleased to see a number of Gen3 designs ramping to volume production and expect many more of our customers to launch their Gen3-enabled products in 2014. Design activity remains strong for both our Gen2 and Gen3 products, underscoring our market leadership and ongoing growth opportunity.”
“Our balance sheet in the quarter continued to improve as we paid down our bank debt and increased our cash and investments to $20.4 million, while increasing shareholder equity 24% over the course of the year,” said Raun. “As we look to 2014, we anticipate growth in revenues and profits, driven by a robust design win pipeline and a strong focus on improving gross margins and controlling costs.”
Product Update:
PLX offers a 18 PCIe Gen3 switches now in production and expects to release next generation PCIe Gen3 in the coming quarters to enable its ExpressFabric initiative. ExpressFabric was demonstrated live at the Intel Developers Forum (IDF) and SuperComputing (SC13) conferences in 2013. PLX is working with companies who are planning to deploy ExpressFabric technology in data centers to replace box-to-box connectivity currently using Ethernet and IB within individual racks. ExpressFabric eliminates power hungry and costly protocol translation adapter cards and retains native PCIe within the rack while connecting to Ethernet for rack-to-rack connectivity.
Business Outlook:
- Net revenues for the first quarter ending March 31, 2014, are expected to be between $24 million and $27 million
- Non-GAAP gross margins are expected to be approximately 56% with GAAP margins at approximately 55%. The GAAP number includes an accrual for royalties associated with the Internet Machines litigation and share-based compensation.
- Operating expenses are expected to be approximately $14.0 million. Included in operating expenses are share-based compensation charges of approximately $0.6 million. The first quarter also includes a 40nm tape-out and beginning of the year higher payroll taxes. For the year, operating expenses net of share-based compensation are expected to be about $52 million.
Comments
Abstracts the earnings call transcript:
Dave, president and CEO:
"We went from heavy losses in 2012 and decreasing revenues to four consecutive quarters of profitability in 2013, setting a new profitability record as well as growing the top line revenue for the first time in several years.
"PCIe growth in 2013 was 13%. The first half grew 17% year-over-year slowing to 9% in the second half as we experienced end-market softness, primarily in the enterprise storage space, as well as delays of Gen 3 production ramps in several market segments."
Art Whipple, CFO:
"Net revenues for the fourth quarter were $25.7 million, unchanged from $25.7 million last quarter. PCI Express revenues increased 2.1% to $18.6 million, and represented 72% of revenues. Connectivity revenues declined by 5.5% to $7.1 million.
"On the balance sheet, cash and investments increased by $2.4 million in the fourth quarter to $20.4 million."
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