the 2009 Annual Report (pdf) - PLX Technology

The primary objective of our investment activities is to preserve principal while at the same time maximizing
yields without significantly increasing risk. We invest primarily in high quality, short-term and long-term debt
instruments. A hypothetical 100 basis point increase in interest rates would result in less than a $1,000 decrease (less
than 1%) in the fair value of the Company's available-for-sale securities. At December 31, 2009 and 2008, we had an
unrealized gain on our investments of approximately $28,000 and $0.3 million, respectively.
Foreign Currency Exchange Risk
All of our revenue and a majority of our expense and capital purchasing activities are transacted in U.S. dollars.
However, we have significant operating activities incurred in or exposed to other currencies, primarily the British
Pound. Therefore, significant strengthening or weakening of the U.S. dollar relative to those foreign currencies could
have a material impact on our results of operations. We considered the historical trends in currency exchange rates
and determined that it was reasonably possible that a weighted average adverse change of 20% in currency exchange
rates could be experienced in the near term. Such an adverse change would have resulted in an adverse impact on
income before taxes of $2.2 million as of December 31, 2009.
ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information required by this Item is contained in the financial statements and schedule set forth in Item 15
(a) of this Form 10-K.
ITEM 9: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
None.
ITEM 9A: CONTROLS AND PROCEDURES
Controls and Procedures
(a) Evaluation of disclosure controls and procedures.
Based on their evaluation as of December 31, 2009, our Chief Executive Officer and Chief Financial Officer,
have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) were effective to ensure that the information
required to be disclosed by us in this Annual Report on Form 10-K was recorded, processed, summarized and
reported within the time periods specified in the SEC's rules and instructions for Form 10-K and that such disclosure
controls and procedures were also effective to ensure that information required to be disclosed in the reports we file
or submit under the Exchange Act is accumulated and communicated to our management, including our Chief
Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
(b) Changes in internal controls.
There has been no change in our internal control over financial reporting that occurred during our most recent
fiscal year that has materially affected or is reasonably likely to materially affect our internal control over financial
reporting.
Management's Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting
(as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). Our management assessed the
effectiveness of our internal control over financial reporting as of December 31, 2009. In making this assessment, our
management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission
("COSO") in Internal Control-Integrated Framework. Our management has concluded that, as of December 31, 2009,
our internal control over financial reporting is effective based on these criteria.
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