PLX experienced a dramatic operational deterioration with net income swinging from $2.9M profit to -$6.6M loss while operating cash flow collapsed from $8.7M positive to -$12.0M negative.
This represents a fundamental shift from profitability to significant losses despite 400% gross profit growth, indicating severe operational inefficiencies or one-time charges that overwhelmed revenue gains. The company's cash position declined 26% while burning through $12M in operating cash flow, raising concerns about financial sustainability and the need for additional funding.
PLX showed mixed results with gross profit surging 400% to $4.0M and accounts receivable tripling, suggesting strong revenue growth, but this was completely offset by a 51% spike in R&D expenses to $19.6M. The company swung from $2.9M net income and $8.7M positive operating cash flow to -$6.6M losses and -$12.0M cash burn, while cash reserves dropped 26% to $14.7M. Despite revenue momentum, the dramatic deterioration in profitability and cash generation signals serious operational challenges and potential funding needs.
Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.
Net income declined 325.2% — review whether driven by operations, interest costs, or non-recurring items.
Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.
Operating cash flow fell 238.3% — earnings quality concerns; investigate working capital changes and non-cash items.
Receivables surged 203.9% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.
R&D investment increased 50.9% — signals commitment to future product development, though near-term margin impact.
Capex increased 27.8% — ongoing investment in capacity or infrastructure for future growth.
Cash decreased 25.7% — monitor burn rate and upcoming capital needs.
Inventory built 21.1% — monitor whether demand supports this build or if write-downs may follow.
Liabilities increased 12.9% — monitor debt-to-equity ratio and interest coverage.
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