the 2009 Annual Report (pdf) - PLX Technology

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3. Net Income (Loss) Per Share The Company uses the treasury stock method to calculate the weighted-average shares used in the diluted earnings per. The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data): Years Ended December 31, 2009 2008 2007 Net income (loss)…………………………………………………… $ (18,802) $ (56,530) $ 1,174 Weighted average shares of common stock outstanding……………… 35,653 28,203 28,724 Net income (loss) per share - basic…………………………………… $ (0.53) $ (2.00) $ 0.04 Shares used in computing basic net income (loss) per share………… 35,653 28,203 28,724 Dilutive effect of stock options……………………………………… - - 432 Shares used in computing diluted net income (loss) per share……… 35,653 28,203 29,156 Net income (loss) per share - diluted………………………………… $ (0.53) $ (2.00) $ 0.04 As the Company incurred a loss for the years ended December 31, 2009 and 2008, the effect of dilutive securities, totaling 2.8 million and 4.8 million shares, respectively, has been excluded from the computation of diluted loss per share, as their impact would be anti-dilutive. Dilutive securities are comprised of options to purchase common stock. Weighted average employee stock options to purchase approximately 2.3 million shares for the year ended December 31, 2007, were outstanding, but were not included in the computation of diluted earnings per share because the exercise price of the stock options, including unamortized share-based compensation, was greater than the average share price of the common shares and, therefore, the effect would have been anti-dilutive. 4. Financial Instruments Fair Value Measurements The accounting guidance for fair value measurements provided a framework for measuring fair value and expands related disclosures. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The guidance also established a hierarchy which requires an entity to maximize the use of observable inputs, when available. The guidance requires fair value measurement be classified and disclosed in one of the following three categories: Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. The fair value of available-for-sale securities included in the level 1 category is based on quoted prices that are readily and regularly available in an active market. Level 2: Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. The fair value of available-for-sale securities included in the Level 2 category is based upon quoted prices in markets that are not active and incorporate available trade, bid and other market information. Level 3: Valuations based on inputs that are unobservable and involve management judgment and the reporting entity’s own assumptions about market participants and pricing. 52
The fair value of financial assets and liabilities measured on a recurring basis is as follows (in thousands): Fair Value Measurement as Reporting Date Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets or Liabilities Observable Inputs Unobservable Inputs December 31, 2009 (Level 1) (Level 2) (Level 3) Assets: Money market funds……………… $ 3,611 $ 3,611 $ - $ - Marketable securities……………… 28,716 - 28,716 - Total $ 32,327 $ 3,611 $ 28,716 $ - Fair Value Measurement as Reporting Date Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets or Liabilities Observable Inputs Unobservable Inputs December 31, 2008 (Level 1) (Level 2) (Level 3) Assets: Money market funds……………… $ 73 $ 73 $ - $ - Marketable securities……………… 40,262 - 40,262 - Total $ 40,335 $ 73 $ 40,262 $ - Investments As of December 31, 2009, the Company’s securities consisted of debt securities and were designated as availablefor-sale. Available-for-sale securities are carried at fair value, based on quoted market prices or prices quoted in markets that are not active, with unrealized gains and losses reported in a separate component of stockholders’ equity. The amortized cost of debt securities is adjusted for the amortization of premiums and the accretion of discounts to maturity, both of which are included in interest income. Realized gains and losses are recorded on the specific identification method. The fair value of available-for-sale investments is as follows (in thousands): December 31, 2009 Amortized Unrealized Unrealized Estimated Cost Gain Loss Fair Value Certificate of deposit………………………………………………… $ 1,726 $ - $ - $ 1,726 Corporate bonds and notes………………………………………… 1,937 8 (3) 1,942 Municipal bonds……………………………………………………… 106 - - 106 US treasury and government agencies securities………………… 24,919 35 (12) 24,942 Total short and long-term available-for-sale investments…… $ 28,688 $ 43 $ (15) $ 28,716 Contractual maturity dates for investments: Less than one year………………………………………………… 27,060 One to two years…………………………………………………… 1,656 $ 28,716 53
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To PLX Stakeholders: PLX is positio
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UNITED STATES SECURITIES AND EXCHAN
Page 6 and 7: PART I ITEM 1: BUSINESS Overview PL
Page 8 and 9: The disks themselves have made the
Page 10 and 11: ehaviors often exist. PLX has a ded
Page 12 and 13: tools are more comprehensive than c
Page 14 and 15: Manufacturing We have adopted a "fa
Page 16 and 17: investment portfolio could be negat
Page 18 and 19: alternative technologies, capital s
Page 20 and 21: We record as expenses the costs rel
Page 22 and 23: that may be considered a change in
Page 24 and 25: Performance Graph COMPARISON OF 5 Y
Page 26 and 27: of I/O connectivity solutions for h
Page 28 and 29: Results of Operations Comparison of
Page 30 and 31: Years Ended December 31, 2009 2008
Page 32 and 33: Interest Income, Interest Expense a
Page 34 and 35: As of December 31, 2009, we had the
Page 36 and 37: management’s assessment that real
Page 38 and 39: Our independent registered public a
Page 40 and 41: PART IV ITEM 15: EXHIBITS AND FINAN
Page 42 and 43: The Board of Directors and Stockhol
Page 44 and 45: PLX TECHNOLOGY, INC. CONSOLIDATED B
Page 46 and 47: PLX TECHNOLOGY, INC. CONSOLIDATED S
Page 48 and 49: PLX TECHNOLOGY, INC. NOTES TO CONSO
Page 50 and 51: Long-lived Asset Impairment Long-li
Page 52 and 53: Comprehensive Income (Loss) The com
Page 54 and 55: These factors could change in the f
Page 58 and 59: December 31, 2008 Amortized Unreali
Page 60 and 61: an amount equal to that excess. The
Page 62 and 63: Pro Forma Year Ended December 31 20
Page 64 and 65: 12. Income Taxes The provision (ben
Page 66 and 67: A reconciliation of the beginning a
Page 68 and 69: Revenues by product type were as fo
Page 70 and 71: SIGNATURES Pursuant to the requirem
Page 72 and 73: EXHIBIT INDEX Exh i bi t Number Des
Page 74 and 75: EXHIBIT 23.1 PLX Technology, Inc. S
Page 76: EXHIBIT 31.2 CERTIFICATION PURSUANT
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Page 81: PLX Technology, Inc. 870 W. Maude A
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