the 2009 Annual Report (pdf) - PLX Technology

More documents

Recommendations

Info

A reconciliation of the beginning and ending amount of unrecognized tax benefits is a follows (in thousands): Years Ended December 31, 2009 2008 2007 Unrecognized t ax benefits balance, beginning of period………………… $ 2,208 $ 1,895 $ 1,916 Gross increase for t ax positions for prior year…………………………… 876 26 (225) Gross increase for t ax positions for current year………………………… 578 287 319 Reduct ion for lapse of California st at ut e of limitat ions………………… - - (115) Unrecognized t ax benefits balance, end of period……………………… $ 3,662 $ 2,208 $ 1,895 Future changes in the remaining balance of unrecognized tax benefits will have no impact on the effective tax rate as it is subject to a full valuation allowance. The Company does not have any material accrued interest or penalties associated with any unrecognized tax benefits. The Company does not believe it is reasonably possible that its unrecognized tax benefits will significantly change within the next twelve months. The Company is subject to taxation in the US and various state and foreign jurisdictions. The tax years 1997-2008 remain open to examination by the federal and state tax authorities due to certain acquired net operation loss and overall credit carryforward positions. The Company has made no provision for U.S. income taxes on approximately $0.7 million of cumulative undistributed earnings of certain foreign subsidiaries because it is the Company’s intention to permanently reinvest such earnings. If such earnings were distributed, the Company would accrue additional taxes of approximately $0.2 million. Pre-tax income (loss) from foreign operations was ($8.8 million), $81,000 and $86,000 in 2009, 2008 and 2007, respectively. 13. Commitments and Contingencies The Company uses several contract manufacturers and suppliers to provide manufacturing services for its products. As of December 31, 2009, the Company has purchase commitments for inventory with these contract manufacturers and suppliers of approximately $7.7 million. These inventory purchase commitments are placed on a sales order basis with lead times ranging from 4 to 16 weeks to meet estimated customer demand requirements. The Company leases facilities, equipment, software tools and intellectual property (IP) under non-cancelable operating or capital leases and service agreements. Future minimum payments under facility, equipment, software tool and IP leases and agreements at December 31, 2009 are as follows (in thousands): Facility and Equipment Software IP Total 2010……………………… $ 573 $ 2,238 $ 825 $ 3,636 2011……………………… 477 1,955 1,200 3,632 2012……………………… 477 - 150 627 Total……………………… $ 1,527 $ 4,193 $ 2,175 $ 7,895 Rental expense for all facility leases aggregated approximately $1.0 million, $0.2 million and $0.1 million for the years ended December 31, 2009, 2008 and 2007, respectively. As of December 31, 2009, the Company’s capital leases consist of IP. Amortization expense relating to capital leases was approximately $1.0 million in 2009. Included in other assets are capital lease assets of $2.4 million as of December 31, 2009 and is net of accumulated amortization of $1.0 million. There were no capital leases in 2008 and 2007. 62
Warranty and Indemnification Provisions Changes in sales warranty reserve are as follows (in thousands): Years Ended December 31, 2009 2008 2007 Balance, beginning of period…………………………………… $ 73 $ 66 $ 98 Warranty costs incurred…………………………………… (212) (234) (236) Additions related to current period sales…………………… 219 241 204 Balance, end of period………………………………………… $ 80 $ 73 $ 66 Warranty costs, which relate to product quality issues, remained consistent and insignificant during the periods presented. The Company enters into standard indemnification agreements with many of its customers and certain other business partners in the ordinary course of business. These agreements include provisions for indemnifying the customer against any claim brought by a third-party to the extent any such claim alleges that a PLX product infringes a patent, copyright or trademark, or violates any other proprietary rights of that third-party. It is not possible to estimate the maximum potential amount of future payments the Company could be required to make under these indemnification agreements. To date, the Company has not incurred any costs to defend lawsuits or settle claims related to these indemnification agreements. No liability for these indemnification agreements has been recorded at December 31, 2009 or 2008. 14. Segments of an Enterprise and Related Information The Company has one operating segment, the sale of semiconductor devices. The Chief Executive Officer has been identified as the Chief Operating Decision Maker (CODM) because he has final authority over resource allocation decisions and performance assessment. The CODM does not receive discrete financial information about individual components of the Company's business. Substantially all of the Company’s assets are located in the United States. Revenues by geographic region based on customer location were as follows (in thousands): Years Ended December 31, 2009 2008 2007 Revenues: China……………………………….………………… $ 29,131 $ 10,650 $ 12,130 United St at es……………………………….………… 12,971 18,856 21,251 Singapore……………………………….…………… 11,803 14,417 15,047 T aiwan……………………………….………………… 10,654 10,354 10,002 Ot her Asia Pacific……………………………….… 8,331 10,282 11,604 Europe……………………………….………………… 7,994 10,339 8,962 The Americas - excluding United States………… 1,948 6,170 2,738 T ot al……………………………….……………… $ 82,832 $ 81,068 $ 81,734 63
Page 2 and 3:
To PLX Stakeholders: PLX is positio
Page 4 and 5:
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 56 and 57: 3. Net Income (Loss) Per Share The
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 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
Page 79 and 80: THIS PAGE INTENTIONALLY LEFT BLANK
Page 81: PLX Technology, Inc. 870 W. Maude A
show all

the 2009 Annual Report (pdf) - PLX Technology

Create successful ePaper yourself

Delete template?

Save as template?