PLX TEch Cuts Q4 Revs to $25.7-25.9M from $28-30M Prior vs $29.9M Est

PLX Technology, Inc. PLXT today announced revised earnings guidance for Q4 2011. PLX now forecasts the revenue range for Q4 2011 to be $25.7 to $25.9 million compared to previous guidance of $28.0 to $32.0 million. Gross margin is expected to improve to approximately 59 percent and the cash position will increase due to significant inventory reduction. Operating expenses are expected to be lower than previous guidance. "The quarter has not shaped up as we had anticipated due to the December distribution business being significantly lower than prior months, this was primarily driven by very weak demand for our connectivity products," said Ralph Schmitt, PLX president and CEO. "The flooding in Thailand also negatively impacted our storage controller business, further contributing to the shortfall." "Our PCI Express and Ethernet segments were relatively robust versus our other products in Q4. We have built a good backlog of our PCI Express Gen3 product due to the anticipated ramp in early 2012 of the launch of Intel's Romley platform," added Schmitt.