FREMONT, Calif., Oct. 20, 2008 (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, 2008.
Net revenue for the third quarter of 2008 was $30.6 million, a 62% increase over net revenue of $18.9 million for the third quarter of 2007 and a 7% increase over net revenue of $28.7 million for the second quarter of 2008. GAAP net income was $5.4 million, or $0.21 per share (diluted), for the third quarter of 2008, a 985% increase over GAAP net income of $0.5 million, or $0.02 per share (diluted) for the third quarter of 2007.
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 $6.5 million, or $0.25 per share (diluted), for the third quarter of 2008, a 215% increase over non-GAAP net income of $2.1 million, or $0.08 per share (diluted), for the third quarter of 2007.
"I am very pleased with our performance and results in the third quarter," said Volterra President and Chief Executive Officer Jeff Staszak. "We were again able to execute to our financial model in an otherwise challenging market, achieving record revenue for the third straight quarter and matching last quarter's record earnings per share results."
Volterra also announced that its Board of Directors increased the size of the Company's current stock buyback program announced in January 2008, from $10 million to $15 million.
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 (800) 240-5318 approximately ten minutes prior to the initiation of the teleconference. International and local participants can dial (303) 205-0030. Investors should reference Volterra. A digital replay of the conference call will be available until midnight on Monday, October 27, 2008. To access the replay, investors should dial (800) 405-2236 or (303) 590-3000 and enter reservation number 11120859 #. 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 17, 2008.
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 the cumulative effect of accounting changes and 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, 2008 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 5, 2008 and the Form 10-Q filed on August 1, 2008. 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 Nine Months
Ended Ended
September 30, September 30,
------------------- -------------------
2008 2007 2008 2007
-------- -------- -------- --------
Net revenue $ 30,576 $ 18,875 $ 82,290 $ 54,908
Cost of revenue * 12,906 8,618 35,600 29,076
-------- -------- -------- --------
Gross margin 17,670 10,257 46,690 25,832
-------- -------- -------- --------
Operating expenses:
Research and
development * 7,144 5,821 19,784 17,240
Selling, general and
administrative * 5,076 4,058 13,997 11,540
-------- -------- -------- --------
Total operating
expenses 12,220 9,879 33,781 28,780
-------- -------- -------- --------
Income (loss) from
operations 5,450 378 12,909 (2,948)
Interest and other
income 235 645 961 1,898
Interest and other
expense (53) (14) (171) (84)
-------- -------- -------- --------
Income (loss)
before income
taxes 5,632 1,009 13,699 (1,134)
Income tax expense
(benefit) 241 512 535 294
-------- -------- -------- --------
Income (loss)
before
cumulative effect
of accounting
change 5,391 497 13,164 (1,428)
Cumulative effect of
accounting change,
net -- -- -- 255
-------- -------- -------- --------
Net income (loss) $ 5,391 $ 497 $ 13,164 $ (1,683)
======== ======== ======== ========
Net income (loss)
per share:
Basic:
Net income (loss)
per share before
cumulative effect
of accounting
change $ 0.23 $ 0.02 $ 0.55 $ (0.06)
Cumulative effect
of accounting
change -- -- -- (0.01)
-------- -------- -------- --------
Net income (loss)
per share $ 0.23 $ 0.02 $ 0.55 $ (0.07)
======== ======== ======== ========
Diluted:
Net income (loss)
per share before
cumulative effect
of accounting
change $ 0.21 $ 0.02 $ 0.52 $ (0.06)
Cumulative effect
of accounting
change -- -- -- (0.01)
-------- -------- -------- --------
Net income (loss)
per share $ 0.21 $ 0.02 $ 0.52 $ (0.07)
======== ======== ======== ========
Weighted average
shares outstanding:
Basic 23,914 24,584 23,827 24,525
======== ======== ======== ========
Diluted 25,637 26,424 25,411 24,525
======== ======== ======== ========
* Includes stock-based
compensation expense
as follows:
Cost of revenue $ 73 $ 95 $ 177 $ 240
Research and development 564 617 1,410 1,786
Selling, general, and
administrative 495 456 1,450 1,362
-------- -------- -------- --------
Total stock-based
compensation
expense $ 1,132 $ 1,168 $ 3,037 $ 3,388
======== ======== ======== ========
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, 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
Three Months Ended September 30, 2007
---------------------------------------
Effect of
Stock-based
GAAP Compensation Non-GAAP
------------ ------------ ------------
Gross margin $ 10,257 $ (95) $ 10,352
Gross margin % 54.3% -0.5% 54.8%
Operating expenses:
Research and development $ 5,821 $ 617 $ 5,204
Selling, general and
administrative 4,058 456 3,602
------------ ------------ ------------
Total operating expenses $ 9,879 $ 1,073 $ 8,806
Income from operations $ 378 $ (1,168) $ 1,546
Operating margin % 2.0% -6.2% 8.2%
Annual effective tax rate -25.9% -30.5% 4.6%
Income tax expense $ 512 $ (411) $ 101
Net income $ 497 $ (1,579) $ 2,076
Diluted net income per share $ 0.02 $ (0.06) $ 0.08
VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, June 30, December 31,
2008 2008 2007
------------ ------------ ------------
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $ 58,007 $ 50,884 $ 47,414
Short-term investments 5,955 984 --
Accounts receivable, net 12,541 15,435 12,318
Inventory 11,124 10,822 6,185
Prepaid expenses and other
current assets 2,041 1,780 1,764
------------ ------------ ------------
Total current assets 89,668 79,905 67,681
Property and equipment, net 5,773 6,291 5,647
Other assets 506 645 767
------------ ------------ ------------
Total assets $ 95,947 $ 86,841 $ 74,095
============ ============ ============
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable $ 5,621 $ 5,627 $ 5,127
Accrued liabilities 9,059 6,799 4,680
------------ ------------ ------------
Total current liabilities 14,680 12,426 9,807
Lease incentives 748 809 930
Stockholders' equity:
Common stock 24 24 24
Additional paid-in capital 100,848 99,326 94,410
Accumulated deficit (17,912) (23,303) (31,076)
Treasury Stock (2,441) (2,441) --
------------ ------------ ------------
Total stockholders'
equity 80,519 73,606 63,358
------------ ------------ ------------
Total liabilities and
stockholders' equity $ 95,947 $ 86,841 $ 74,095
------------ ------------ ------------