Volterra Reports First Quarter Financial Results


FREMONT, Calif., April 22, 2013 (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 first quarter ended March 31, 2013.

Net revenue for the first quarter of 2013 was $39.9 million, a 5% decrease from $42.1 million in the first quarter of 2012, and a 1% decrease from $40.3 million in the fourth quarter of 2012. GAAP net income was $3.0 million, or $0.12 per share (diluted), a 51% decrease from $6.2 million, or $0.23 per share (diluted) in the first quarter of 2012, and a 34% decrease from $4.6 million, or $0.18 per share (diluted), in the fourth quarter of 2012.

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. Non-GAAP net income was $5.8 million, or $0.22 per share (diluted), in the first quarter of 2013, a 32% decrease from $8.6 million, or $0.32 per share (diluted), in the first quarter of 2012, and a 19% decrease from $7.1 million, or $0.28 per share (diluted), in the fourth quarter of 2012.

"Revenue this quarter came in about as expected," said Volterra President and CEO Jeff Staszak. "We believe the strategic decision we made to de-emphasize our notebook activities is the right one as we focus our resources on significant growth opportunities in cloud servers, new communications equipment applications and energy."

Earnings Conference Call

Volterra will be conducting a conference call today at 2:30 p.m. (PDT). To access the conference call, investors can dial (877) 941-8609 approximately ten minutes prior to the initiation of the teleconference. International and local participants can dial (480) 629-9692. Investors should reference Volterra. A digital replay of the conference call will be available until midnight on Monday, April 29, 2013. To access the replay, investors should dial (800) 406-7325 or (303) 590-3030 and enter access code 4610994. 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, May 20, 2013.

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; and (iii) 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.

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 other special items without unreasonable effort.

Volterra is a trademark of Volterra Semiconductor Corporation and is registered in certain jurisdictions. All other names mentioned are the property of their respective owners and are mentioned for identification purposes only.

Forward-Looking Statements:

This press release regarding financial results for the fiscal year and quarter ended December 31, 2012 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 the annual report on Form 10-K filed on March 6, 2013. 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
  March 31,
  2013 2012
     
Net revenue  $ 39,919  $ 42,062
Cost of revenue *  17,223  17,896
     
Gross margin  22,696  24,166
     
Operating expenses:    
Research and development *  11,513  10,398
Selling, general and administrative *  7,207  6,909
Litigation  797  700
     
Total operating expenses  19,517  18,007
     
Income from operations  3,179  6,159
Non-operating expense (income), net  48  (88)
     
Income before income taxes  3,131  6,247
Income tax expense  95  57
     
Net income  $ 3,036  $ 6,190
     
Net income per share:    
Basic  $ 0.12  $ 0.25
     
Diluted  $ 0.12  $ 0.23
     
Weighted average shares outstanding:    
Basic  25,163  25,122
     
Diluted  25,787  26,752
     
     
* Includes stock-based compensation expense as follows:    
Cost of revenue  $ 181  $ 229
Research and development  1,115  970
Selling, general, and administrative  1,463  1,195
     
Total stock-based compensation expense  $ 2,759  $ 2,394
 
 
 
VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
       
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
       
  Three Months Ended March 31, 2013
    Effect of  
    Stock-based   
  GAAP Compensation Non-GAAP
       
Gross margin  $ 22,696  $ (181)  $ 22,877
Gross margin % 56.9% -0.4% 57.3%
       
Operating expenses:      
Research and development  $ 11,513  $ 1,115  $ 10,398
Selling, general and administrative  7,207  1,463  5,744
Litigation  797  --   797
       
Total operating expenses  $ 19,517  $ 2,578  $ 16,939
       
Income from operations  $ 3,179  $ (2,759)  $ 5,938
Operating margin % 8.0% -6.9% 14.9%
       
Net income  $ 3,036  $ (2,759)  $ 5,795
Diluted net income per share  $ 0.12  $ (0.10)  $ 0.22
       
       
  Three Months Ended March 31, 2012
    Effect of  
    Stock-based   
  GAAP Compensation Non-GAAP
       
Gross margin  $ 24,166  $ (229)  $ 24,395
Gross margin % 57.5% -0.5% 58.0%
       
Operating expenses:      
Research and development  $ 10,398  $ 970  $ 9,428
Selling, general and administrative  6,909  1,195  5,714
Litigation  700  --   700
       
Total operating expenses  $ 18,007  $ 2,165  $ 15,842
       
Income from operations  $ 6,159  $ (2,394)  $ 8,553
Operating margin % 14.6% -5.7% 20.3%
       
Net income  $ 6,190  $ (2,394)  $ 8,584
Diluted net income per share  $ 0.23  $ (0.09)  $ 0.32
 
 
 
VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
  March 31, December 31,
  2013 2012
Assets    
Current assets:    
Cash, cash equivalents and short-term investments  $ 152,382  $ 150,364
Accounts receivable, net  21,578  24,487
Inventories  18,055  18,719
Prepaid expenses and other current assets  2,828  3,103
     
Total current assets  194,843  196,673
Property and equipment, net  11,382  11,013
Indefinite-lived intangibles  3,100  3,100
Goodwill  2,486  2,486
Other assets  509  535
     
Total assets  $ 212,320  $ 213,807
     
Liabilities and Stockholders' Equity    
Current liabilities:    
Accounts payable  $ 5,793  $ 7,073
Accrued liabilities  9,266  13,974
     
Total current liabilities  15,059  21,047
     
Lease incentives  103  150
Other long-term liabilities  3,405  3,411
     
Total liabilities  18,567  24,608
Stockholders' equity:    
Common stock  29  29
Additional paid-in capital  177,449  174,056
Retained earnings  69,089  66,053
Treasury stock  (52,814)  (50,939)
     
Total stockholders' equity  193,753  189,199
     
Total liabilities and stockholders' equity  $ 212,320  $ 213,807
 
 
 
VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
 
SUPPLEMENTAL FINANCIAL AND OTHER INFORMATION 
(In thousands)
(Unaudited)
       
       
  Q1 2013 Q4 2012 Q1 2012
Selected Cash Flow Information:      
Depreciation  $ 922  $ 934  $ 757
Capital spending  $ (966)  $ (1,702)  $ (422)
Cash paid for acquisitions  $ (3,861)  $ (639)  $ -- 
Stock repurchase program  $ (1,875)  $ (2,054)  $ (997)
Proceeds from sales of shares to employees  $ 695  $ 1,334  $ 6,680
       
Stock Buyback:      
Shares repurchased  129  94  34
Cumulative shares repurchased  5,002  4,873  4,309

            

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