SOURCE: PLX Technology

PLX Technology

October 05, 2011 16:05 ET

PLX Divests Consumer R&D Team, Reduces Expenses, Focuses on Fast-Growing Data Center, Cloud Services

SUNNYVALE, CA--(Marketwire - Oct 5, 2011) - PLX Technology (NASDAQ: PLXT), the leader in high-speed connectivity solutions for the enterprise data center, today announced steps taken to reduce operational costs by divesting its United Kingdom Research and Development (R&D) Center based in the city of Abingdon. PLX has signed a definitive agreement with OCZ Technology Group, a leading provider of high-performance solid-state drives (SSDs), whereby OCZ will acquire the PLX® UK team to enhance OCZ's design capabilities. The deal is expected to close before the end of October 2011.

PLX will remain in the consumer storage business as it will retain all manufacturing, supply and rights to the products developed by this team. PLX will continue to support customers with current and future designs as it has retained the customer support teams, including software and hardware applications engineers.

While reducing overall expenses, PLX's other R&D centers in Sunnyvale and Bangalore, India, will remain focused on the expanding opportunity for the company serving the needs of the fast-growing data center and cloud services markets with switching and networking solutions.

"We strongly feel that now is the perfect opportunity for PLX to streamline its business and focus on our leadership in PCI Express and 10 Gigabit Ethernet," said Ralph Schmitt, president and CEO of PLX. "Although OCZ is acquiring one of our premier engineering groups, our core concentration on the data center can now be unleashed."

Further details on the terms will be discussed at PLX's third-quarter conference call later this month.

About PLX Technology
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 high performance. www.plxtech.com.

PLX Technology and the PLX Technology logo are registered trademarks of PLX Technology, Inc.