FREMONT, Calif., April 20, 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 first quarter ended March 31, 2009.
Net revenue for the first quarter of 2009 was $18.3 million, a 21% decrease from net revenue of $23.0 million for the first quarter of 2008. Volterra recognized a GAAP net loss of $0.5 million, or $(0.02) per share (diluted), for the first quarter of 2009, compared with GAAP net income of $2.5 million, or $0.10 per share (diluted), for the first quarter of 2008.
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 $0.6 million, or $0.03 per share (diluted), for the first quarter of 2009, compared to non-GAAP net income of $3.2 million, or $0.13 per share (diluted), for the first quarter of 2008.
"I am pleased with our financial performance as revenue and non-GAAP earnings were in line with our guidance despite these challenging market conditions," said Volterra President and CEO Jeff Staszak. "We have shown the financial discipline necessary to maintain profitability on a non-GAAP basis in a very difficult business environment."
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 (800) 219-6110 approximately ten minutes prior to the initiation of the teleconference. International and local participants can dial (303) 262-2005. Investors should reference Volterra. A digital replay of the conference call will be available until midnight on Monday, April 27, 2009. To access the replay, investors should dial (800) 405-2236 or (303) 590-3000 and enter reservation number 11129328#. A webcast of the conference call also will be available from the Investor section of the Company's website at: http://www.volterra.com until midnight on Monday, May 18, 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 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 March 31, 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 the annual report on Form 10-K filed on March 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
March 31,
---------------------
2009 2008
-------- --------
Net revenue $ 18,275 $ 23,011
Cost of revenue * 8,103 10,149
-------- --------
Gross margin 10,172 12,862
-------- --------
Operating expenses:
Research and development * 5,952 6,424
Selling, general and administrative * 4,772 4,241
-------- --------
Total operating expenses 10,724 10,665
-------- --------
(Loss) income from operations (552) 2,197
Interest and other income 76 430
Interest and other expense (27) (64)
-------- --------
(Loss) income before income taxes (503) 2,563
Income tax expense 16 77
-------- --------
Net (loss) income (519) 2,486
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Net (loss) income per share:
Basic $ (0.02) $ 0.10
-------- --------
Diluted $ (0.02) $ 0.10
-------- --------
Weighted average shares outstanding:
Basic 22,930 23,786
-------- --------
Diluted 22,930 25,066
-------- --------
* Includes stock-based compensation expense
as follows:
Cost of revenue $ 67 $ 44
Research and development 574 291
Selling, general, and administrative 516 401
-------- --------
Total stock-based compensation expense $ 1,157 $ 736
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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, 2009
------------------------------------------
Effect of
Stock-based
GAAP Compensation Non-GAAP
------------ ------------ ------------
Gross margin $ 10,172 $ (67) $ 10,239
Gross margin % 55.7% -0.3% 56.0%
Operating expenses:
Research and development $ 5,952 $ 574 $ 5,378
Selling, general and
administrative 4,772 516 4,256
------------ ------------ ------------
Total operating expenses $ 10,724 $ 1,090 $ 9,634
(Loss) income from
operations $ (552) $ (1,157) $ 605
Operating margin % -3.0% -6.3% 3.3%
Annual effective tax rate 3.2% -0.7% 3.9%
Income tax expense $ 16 $ 10 $ 26
Net (loss) income $ (519) $ (1,147) $ 628
Diluted net (loss) income
per share $ (0.02) $ (0.05) $ 0.03
Three Months Ended March 31, 2008
------------------------------------------
Effect of
Stock-based
GAAP Compensation Non-GAAP
------------ ------------ ------------
Gross margin $ 12,862 $ (44) $ 12,906
Gross margin % 55.9% -0.2% 56.1%
Operating expenses:
Research and development $ 6,424 $ 291 $ 6,133
Selling, general and
administrative 4,241 401 3,840
------------ ------------ ------------
Total operating expenses $ 10,665 $ 692 $ 9,973
Income from operations $ 2,197 $ (736) $ 2,933
Operating margin % 9.5% -3.2% 12.7%
Annual effective tax rate 3.0% 0.4% 2.6%
Income tax expense $ 77 $ 10 $ 87
Net income $ 2,486 $ (726) $ 3,212
Diluted net income per
share $ 0.10 $ (0.03) $ 0.13
VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, Dec. 31,
2009 2008
(Unaudited) (Audited)
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 47,221 $ 46,893
Short-term investments 5,735 10,461
Accounts receivable, net 10,001 12,073
Inventory 11,111 13,668
Prepaid expenses and other current assets 2,145 2,507
----------- -----------
Total current assets 76,213 85,602
Property and equipment, net 5,168 5,285
Other assets 184 405
----------- -----------
Total assets $ 81,565 $ 91,292
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,481 $ 5,834
Accrued liabilities 5,950 8,073
----------- -----------
Total current liabilities 8,431 13,907
Lease incentives 627 688
Other long-term liabilities 806 784
----------- -----------
Total liabilities 9,864 15,379
Commitments and contingencies
Stockholders' equity:
Common stock 25 24
Additional paid-in capital 104,013 102,612
Accumulated deficit (17,337) (16,818)
Treasury Stock (15,000) (9,905)
----------- -----------
Total stockholders' equity 71,701 75,913
----------- -----------
Total liabilities and stockholders' equity $ 81,565 $ 91,292
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