PLX Technology (PLXT) Confirms FTC Moves to Block IDT (IDTI) Merger
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PLX Technology, Inc. (NASDAQ: PLXT) confirmed that the Federal Trade Commission (FTC) has issued an administrative complaint seeking to block the proposed merger between PLX and Integrated Device Technology (NASDAQ: IDTI) announced on April 30, 2012, and is authorized to pursue a preliminary injunction in federal district court or other relief necessary to stop the deal pending a full administrative trial.
"We are truly disappointed and strongly disagree with the complaint issued by the FTC as we believe the merger would accelerate innovation and decrease costs," said David Raun, interim president and CEO, PLX. "We are evaluating this move by the FTC and reviewing our options with IDT.
"During the long process with the FTC, PLX has streamlined the company to re-focus on its PCI Express leadership by divesting its unprofitable product lines, thereby dramatically reducing operating expenses. All significant remaining costs associated with these divested products lines will be eliminated by the end of the current quarter. With a dedicated group of employees, a proven product portfolio and roadmap, and strong customer relationships, PLX is well-positioned to return to profitability and positive cash flow in the coming quarters.
"Our results from continuing operations have been strong. Visit the PLX Website at www.plxtech.com/investors/sec_filings to see our report on Form 8-K filed on November 9, 2012 which reports our historical financial results of continuing operations and classifies the divested product lines as discontinued operations."
"We are truly disappointed and strongly disagree with the complaint issued by the FTC as we believe the merger would accelerate innovation and decrease costs," said David Raun, interim president and CEO, PLX. "We are evaluating this move by the FTC and reviewing our options with IDT.
"During the long process with the FTC, PLX has streamlined the company to re-focus on its PCI Express leadership by divesting its unprofitable product lines, thereby dramatically reducing operating expenses. All significant remaining costs associated with these divested products lines will be eliminated by the end of the current quarter. With a dedicated group of employees, a proven product portfolio and roadmap, and strong customer relationships, PLX is well-positioned to return to profitability and positive cash flow in the coming quarters.
"Our results from continuing operations have been strong. Visit the PLX Website at www.plxtech.com/investors/sec_filings to see our report on Form 8-K filed on November 9, 2012 which reports our historical financial results of continuing operations and classifies the divested product lines as discontinued operations."
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