FREMONT, Calif., Oct. 19, 2009 (GLOBE NEWSWIRE) -- Volterra Semiconductor Corporation (Nasdaq:VLTR), a leading provider of high-performance analog and mixed-signal power management semiconductors, today reported financial results for its third quarter ended September 30, 2009.
Net revenue for the third quarter of 2009 was $29.7 million, a 30% increase compared with net revenue of $22.8 million for the second quarter of 2009. GAAP net income was $3.4 million, or $0.14 per share (diluted), for the third quarter of 2009, compared with GAAP net income of $1.1 million, or $0.04 per share (diluted), for the second quarter of 2009.
Volterra also reported net income and basic and diluted net income per share on a non-GAAP basis. Non-GAAP net income excludes the effect of stock-based compensation expense, net of tax. Non-GAAP net income was $4.8 million, or $0.19 per share (diluted), for the third quarter of 2009, compared to non-GAAP net income of $2.4 million, or $0.10 per share (diluted), for the second quarter of 2009.
"The third quarter was another strong quarter for Volterra, demonstrating our continuing ability to execute against our plan," said Volterra President and CEO Jeff Staszak. "As expected, our revenues and profitability were within the updated ranges we provided when we raised our earnings guidance last month."
Earnings Conference Call
Volterra will be conducting a conference call today at 5:30 p.m. (EDT). To access the conference call, investors can dial (877) 941-8632 approximately ten minutes prior to the initiation of the teleconference. International participants can dial (480) 629-9821. Investors should reference Volterra. A digital replay of the conference call will be available until midnight on Monday, October 26, 2009. To access the replay, investors should dial (800) 406-7325 or (303) 590-3030 and enter access code 4169900#. A webcast of the conference call also will be available from the Investors section of the Company's website at: http://www.volterra.com until midnight on Monday, November 16, 2009.
About Volterra Semiconductor Corporation
Volterra Semiconductor Corporation, headquartered in Fremont, CA, designs, develops, and markets leading edge silicon solutions for low-voltage power delivery. The Company's product portfolio is focused on advanced switching regulators for the computer, datacom, storage, and portable markets. Volterra operates as a fabless semiconductor company utilizing world-class foundries for silicon supply. The company is focused on creating products with high intellectual property content that match specific customer needs. For more information, please visit http://www.volterra.com.
Non-GAAP Financial Measures
Volterra provides all information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its financial results may be difficult if limited to reviewing only GAAP financial measures. Volterra's management believes the non-GAAP information provided is useful to investors and other users of its financial information and its inclusion with our financial results is warranted for several reasons:
* it can enhance the understanding of Volterra's financial performance by adjusting for special, non-recurring items that may obscure results and trends in our core operating performance, particularly in reconciling differences between reported income and actual cash flows; * it can provide consistency in reviewing Volterra's historical performance between periods, as well as allowing for better comparisons of Volterra's performance with similar companies in Volterra's industry; * it allows users to evaluate the results of the business using the same financial measures that management uses to evaluate and manage Volterra's internal planning, budgeting and operations; and * it provides investors with additional information used by management, its board of directors and committees thereof, to determine management compensation.
Volterra's management reports and uses calculations of (i) non-GAAP gross margin and non-GAAP gross margin as a percent of revenue, which represents gross margin excluding the effect of stock-based compensation; (ii) non-GAAP income from operations (and its components, non-GAAP research and development expense, non-GAAP selling, general, and administrative expense, non-GAAP total operating expenses, and including non-GAAP gross margin as indicated above) as well as non-GAAP operating margin as a percent of revenue which represent income from operations and its components excluding the effect of stock-based compensation and special items such as restructuring charges, net of tax; (iii) non-GAAP annual effective tax rate and the associated non-GAAP income tax expense, which represents the effective tax rate without the effect of stock-based compensation and income tax expense recalculated excluding the effect of stock-based compensation and special items on non-GAAP income before tax; and (iv) non-GAAP net income (and its components listed above), non-GAAP net margin as a percent of revenue, and non-GAAP diluted net income per share, which represents net income and diluted net income per share excluding the effect of stock-based compensation expense and special items such as restructuring charges, net of tax.
Investors should note that the non-GAAP financial measures used by Volterra may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. Whenever Volterra discloses such a non-GAAP financial measure, it provides a reconciliation of non-GAAP financial measures to what it believes to be the most closely applicable GAAP financial measure. A reconciliation of GAAP net income to non-GAAP net income is included in the financial statements portion of this release and at the Investors section of our website at www.volterra.com. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure. Volterra does not provide a non-GAAP reconciliation for non-GAAP estimates on a forward-looking basis, as it believes it is unable to provide a meaningful or accurate calculation or estimation of stock based compensation or income tax expenses or other special items without unreasonable effort.
Forward-Looking Statements:
This press release regarding financial results for the quarter ended September 30, 2009 contains forward-looking statements based on current expectations of Volterra. The words "expect," "will," "should," "would," "anticipate," "project," "outlook," "believe," "intend," and similar phrases as they relate to future events are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Volterra but are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: risks related to our ability to maintain revenue growth or other financial results; risks related to our dependence on a limited number of customers; risks related to the limited markets we operate in and the limited number of products we sell; risks related to the quality of our products or the management of our inventory; risks related to our relationship with our vendors and contractors; intellectual property litigation risk; and other factors detailed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed on March 4, 2009 and our most recent quarterly report on Form 10-Q filed on August 4, 2009. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Volterra undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof, except as required by law.
VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
-------- -------- -------- --------
Net revenue $ 29,687 $ 30,576 $ 70,751 $ 82,290
Cost of revenue* 12,097 12,906 29,616 35,600
-------- -------- -------- --------
Gross margin 17,590 17,670 41,135 46,690
-------- -------- -------- --------
Operating expenses:
Research and development* 6,816 7,144 19,113 19,784
Selling, general and
administrative * 7,090 5,076 17,697 13,997
-------- -------- -------- --------
Total operating expenses 13,906 12,220 36,810 33,781
-------- -------- -------- --------
Income from operations 3,684 5,450 4,325 12,909
Interest and other income 19 235 122 961
Interest and other expense (46) (53) (91) (171)
-------- -------- -------- --------
Income before income taxes 3,657 5,632 4,356 13,699
Income tax expense 230 241 374 535
-------- -------- -------- --------
Net income $ 3,427 $ 5,391 $ 3,982 $ 13,164
======== ======== ======== ========
Net income per share:
Basic $ 0.15 $ 0.23 $ 0.17 $ 0.55
-------- -------- -------- --------
Diluted $ 0.14 $ 0.21 $ 0.16 $ 0.52
-------- -------- -------- --------
Weighted average shares
outstanding:
Basic 22,973 23,914 22,868 23,827
======== ======== ======== ========
Diluted 24,770 25,637 24,185 25,411
======== ======== ======== ========
* Includes stock-based
compensation expense as
follows:
Cost of revenue $ 131 $ 73 $ 299 $ 177
Research and development
669 564 1,929 1,410
Selling, general,
and administrative 584 495 1,683 1,450
-------- -------- -------- --------
Total stock-based
compensation expense $ 1,384 $ 1,132 $ 3,911 $ 3,037
======== ======== ======== ========
VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
September 30, 2009
Effect of
Stock-based
GAAP Compensation Non-GAAP
-------- ------------ --------
Gross margin $ 17,590 $ (131) $ 17,721
Gross margin % 59.3% -0.4% 59.7%
Operating expenses:
Research and development $ 6,816 $ 669 $ 6,147
Selling, general and administrative 7,090 584 6,506
-------- ------------ --------
Total operating expenses $ 13,906 $ 1,253 $ 12,653
Income from operations $ 3,684 $ (1,384) $ 5,068
Operating margin % 12.4% -4.7% 17.1%
Annual effective tax rate 8.6% 3.5% 5.1%
Income tax expense $ 230 $ 21 $ 251
Net income $ 3,427 $ (1,363) $ 4,790
Diluted net income per share $ 0.14 $ (0.05) $ 0.19
Three Months Ended
September 30, 2008
Effect of
Stock-based
GAAP Compensation Non-GAAP
-------- ------------ --------
Gross margin $ 17,670 $ (73) $ 17,743
Gross margin % 57.8% -0.2% 58.0%
Operating expenses:
Research and development $ 7,144 $ 564 $ 6,580
Selling, general and administrative 5,076 495 4,581
-------- ------------ --------
Total operating expenses $ 12,220 $ 1,059 $ 11,161
Income from operations $ 5,450 $ (1,132) $ 6,582
Operating margin % 17.8% -3.7% 21.5%
Annual effective tax rate 3.9% 0.5% 3.4%
Income tax expense $ 241 $ (13) $ 228
Net income $ 5,391 $ (1,145) $ 6,536
Diluted net income per share $ 0.21 $ (0.04) $ 0.25
VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 30, June 30, Dec. 31,
2009 2009 2008
-------- -------- --------
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $ 61,592 $ 54,856 $ 46,893
Short-term investments 10,545 6,244 10,461
Accounts receivable, net 14,153 9,889 12,073
Inventory 8,485 9,708 13,668
Prepaid expenses and other current
assets 1,949 1,894 2,507
-------- -------- --------
Total current assets 96,724 82,591 85,602
Property and equipment, net 4,899 5,073 5,285
Other assets 113 116 405
-------- -------- --------
Total assets $101,736 $ 87,780 $ 91,292
======== ======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 6,663 $ 4,149 $ 5,834
Accrued liabilities 10,078 7,154 8,073
-------- -------- --------
Total current liabilities 16,741 11,303 13,907
Lease incentives 506 566 688
Other long-term liabilities 990 847 784
-------- -------- --------
Total liabilities 18,237 12,716 15,379
Commitments
Stockholders' equity:
Common stock 25 25 24
Additional paid-in capital 111,310 106,302 102,612
Accumulated deficit (12,836) (16,263) (16,818)
Treasury Stock (15,000) (15,000) (9,905)
-------- -------- --------
Total stockholders' equity 83,499 75,064 75,913
-------- -------- --------
Total liabilities and stockholders'
equity $101,736 $ 87,780 $ 91,292
======== ======== ========