PLX Technology (NASDAQ:PLXT) is a fabless semiconductor firm that focused primarily on PCI Express ("PCIe") switching products. Following a blocked merger with Integrated Device Technology (NASDAQ:IDTI) and many years in the red, the company has pursued a lean and focused strategy centered around taking leadership in PCIe switching products, jettisoning its Consumer Storage & Networking teams (10 Gig Ethernet in particular burned quite a bit of cash) to focus entirely on PCIe. It is my belief that the company's increasingly dominant position in leading edge PCIe switching products, coupled with secular tailwinds and an increasingly healthy balance sheet are likely to drive a much richer multiple as the company continues to execute on its turnaround.
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