SUNNYVALE, CA — (Marketwired) — 10/21/13 — PLX Technology, Inc. (PLX®) (NASDAQ: PLXT), the global leader in PCI Express® (PCIe®) silicon and software connectivity solutions enabling emerging data center architectures, today announced third quarter revenues of $25.7 million and net income of $2.0 million, or $0.04 per share (diluted).

“Our focus on key cost control measures has resulted in three consecutive profitable quarters and record profits year-to-date allowing us to build our cash position and pay down debt,” said David Raun, PLX president and CEO. “Record PCI Express design wins dominated by higher ASP Gen3 products signal a healthy pipeline. Market share gains in PCI Express, no significant design win losses over the past two quarters, and production of new higher lane count parts in Q4 highlights additional opportunities for the company.”

The above non-GAAP financial information (other than net revenues, which are presented on a GAAP basis) excludes lawsuit verdict contingency accrual expense, share-based compensation, acquisition, restructuring and impairment charges, amortization of acquired intangibles and discontinued operations. See “Use of Non-GAAP Financial Information” below.

“Enterprise storage and networking markets continue to dominate design win activity, and our market-leading technology backed by strong customer relationships position us for continued design win success,” said Raun. “We also garnered significant industry interest in the quarter with the company-s first public demonstration of PLX-s ExpressFabric® technology housed in a data center rack at the Intel Developer Forum (IDF).

“Our overall design activity pipe which measures the potential annual revenue for each program is in the hundreds of millions of dollars and is greater than three times the size that it was four years ago when our main focus was Gen2. All five of our PCI Express end market segments produced greater design wins than last quarter, and we are confident about our growth potential for years to come.”

PCIe is well-established as a standard that is already native on nearly all mainstream data center appliances. Facilitated by PLX-s next generation PCIe Gen3 fabric-enabling switch devices, ExpressFabric eliminates a large number of expensive “bridging” devices like adapter cards that translate PCIe to InfiniBand, Ethernet or Fibre Channel. This subsequently provides a high-performance, low-latency solution, while offering significantly lower cost and power, with a reduced bill of materials.

ExpressFabric technology is focused on small to medium (20-1000 nodes) high performance clusters that are cost and power sensitive, and the fabric seamlessly works with Ethernet and InfiniBand for larger scale out. PLX developed a market-seeding PCIe-based top-of-rack (ToR) switch box to demonstrate rack-level consolidation and convergence into a single interconnect technology. To help prime this market, PLX has been selling internally developed PCI Express-based server cards that appear to the software like Ethernet Network Interface Cards, and in Q3 we began shipping our PCI Express top of rack switch boxes to early customers.

The following statements are based on current expectations. The company does not intend to update, confirm or change this guidance until its fourth quarter 2013 earnings release, although it may provide additional details regarding its guidance during today-s scheduled conference call.

Net revenues for the fourth quarter ending Dec. 31, 2013 are expected to be between $25.0 million and $27.0 million;

Non-GAAP gross margins are expected to be approximately 56 percent with GAAP margins at approximately 55 percent;

Operating expenses are expected to be approximately $13.8 million. Included in operating expenses are share-based compensation related charges of approximately $0.8 million

PLX management plans to conduct a conference call and webcast today at 2:00 p.m. (PT) to discuss its third quarter results, as well as its fourth quarter 2013 outlook. A live webcast of the conference call will be available through the Investor Relations section of the PLX Website at , which also can be heard live via telephone at (877) 474-9506, using access code 30249077. International callers may dial +1 (857) 244-7559. A recorded replay of this webcast will be available on the PLX Website beginning 6:00 p.m. (PT) on Oct. 21, 2013, through 11:59 p.m. (PT) on Oct. 28, 2013. To listen to the replay via telephone, call (888) 286-8010 and use access code 34140578. International callers may dial +1 (617) 801-6888.

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 lawsuit verdict contingency accrual expense, share-based compensation, including ESOP expenses, acquisition, restructuring and impairment related charges, amortization of acquired intangibles 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.

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 and estimated gross margins, which are set forth under the caption “Business Outlook,” and statements regarding PLX-s growth potential, design wins, and expected revenue related to design wins. 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, 2012, and PLX-s quarterly report on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013, 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.

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 , , , and .

PLX, the PLX logo, ExpressLane, and ExpressFabric 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 organizations.

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