Feeds

OCZ buys PLX PCIe design smarts operation

Snaps up UK R&D centre, IP licences and a 40-person research team

Top 5 reasons to deploy VMware with Tegile

Consumer and business solid state drive supplier OCZ is buying a UK development centre, IP licences, and a 40-person team from PLX Technology, possibly for a song.

OCZ gets to strengthen its research and development (R&D) capabilities, with additional resources for controller design. It reckons it can bring new SSD products to market faster, with reduced storage protocol licensing costs, and at an overall lower cost as a result.

OCZ has probably picked up the UK facility – in Abingdon, Oxfordshire – and its people for a quite reasonable price, as PLX is in trouble.

PLX is a Sunnyvale-based company that designs and builds semiconductor-based connectivity products both for consumers and enterprises, which include PCIe switches and 10Gbit Ethernet transceivers. Its products are aimed at cloud-based network infrastructures such as high-performance clustering, solid state drives, remote optical PCI express distribution and Ethernet home-networking architectures.

The company recorded revenues of $30.7m in its second 2011 quarter, making a net loss of $6.0m. The first quarter saw revenues of $28.1m and a $9.1m net loss. The second 2010 quarter saw revenues of $29.7m and a $1.7m profit.

So revenues are flattish and profits have turned to losses. Times are hard. President and CEO Ralph Schmitt says PLX has a "plan to bring the company back to profitability".

The selling of its UK development centre and team to OCZ is part of that effort, and the deal is expected to close by the end of this month.

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

Schmitt said: "Although OCZ is acquiring one of our premier engineering groups, our core concentration on the data centre can now be unleashed.”

PLX’s other R&D centres in Sunnyvale and Bangalore, India, will remain focused on switching and networking products for the data centre and cloud services.

OCZ, which has been introducing new SSDs at quite a lick, will now be able to bring them out faster still. ®

Beginner's guide to SSL certificates

More from The Register

next story
Ellison: Sparc M7 is Oracle's most important silicon EVER
'Acceleration engines' key to performance, security, Larry says
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Lenovo to finish $2.1bn IBM x86 server gobble in October
A lighter snack than expected – but what's a few $100m between friends, eh?
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Troll hunter Rackspace turns Rotatable's bizarro patent to stone
News of the Weird: Screen-rotating technology declared unpatentable
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.