SOURCE: PLX Technology

PLX Technology

September 14, 2012 16:05 ET

PLX Divests 10GBase-T Business, Reduces Expenses, Focuses on Enterprise PCI Express

SUNNYVALE, CA--(Marketwire - Sep 14, 2012) - PLX Technology, Inc. (NASDAQ: PLXT), a leading global supplier of high-speed connectivity solutions enabling emerging data center architectures, today announced steps taken to reduce operational costs by divesting its TeraPHY® 10GBase-T team and associated products. PLX has signed a definitive agreement with Aquantia, a leader in high speed Ethernet connectivity solutions, who will take control of the PLX® 10GBase-T products, customer pipeline and support.

While reducing overall expenses, PLX's core research and development center in Sunnyvale will remain focused on the expanding opportunities in the fast-growing data center and cloud services markets with its industry-leading PCI Express portfolio.

"This transaction was a great opportunity for PLX to streamline its business so we can focus on our core PCI Express solutions," said Ralph Schmitt, president and CEO of PLX. "Aquantia offers compelling, complementary 10 Gigabit Ethernet products, which are an ideal match for placing our products, much of our team and customer activity. It was imperative that we found the right place for our customers to be supported, and no one knows this market and technology better than Aquantia.

"This is a significant step in making PLX profitable on a stand-alone basis, as well as set up the company to be effectively integrated through the pending combination with IDT. We will discuss this and further steps to achieve the reported synergies with IDT in the upcoming third-quarter earnings conference call."

About PLX
PLX Technology, Inc. (NASDAQ: PLXT), based in Sunnyvale, Calif., USA, is an industry-leading global provider of semiconductor-based connectivity solutions primarily targeting the enterprise and consumer markets. The company develops innovative software-enriched silicon that enables product differentiation, reliable interoperability and superior performance. Visit PLX on plxtech.com, Facebook, Twitter and YouTube.

PLX and the PLX logo 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 companies.