- Published: 26 January 2010
- Written by Editor
Volterra Reports Record Quarterly Revenue and Income and Ninth Consecutive Year of Growth
Volterra Semiconductor Corporation (Nasdaq: VLTR), a leading provider of high-performance analog and mixed-signal power management semiconductors, today reported financial results for its fourth quarter and fiscal year ended December 31, 2009.
Net revenue for the fourth quarter of 2009 was $34.2 million, a 56% increase over net revenue of $21.9 million for the fourth quarter of 2008, and up 15% from net revenue of $29.7 million for the third quarter of 2009. GAAP net income was $7.0 million, or $0.28 per share (diluted), for the fourth quarter of 2009, up 536% from GAAP net income of $1.1 million, or $0.04 per share (diluted), for the fourth quarter of 2008 and up 103% from GAAP net income $3.4 million, or $0.14 per share (diluted), for the third 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 $8.4 million, or $0.34 per share (diluted), for the fourth quarter of 2009, up 282% from non-GAAP net income of $2.2 million, or $0.09 per share (diluted), for the fourth quarter of 2008 and up 76% from non-GAAP net income of $4.8 million, or $0.19 per share (diluted), for the third quarter of 2009.
For the full year 2009, Volterra reported a record $104.9 million annual net revenue. It was Volterra's ninth consecutive year of revenue growth and its sixth consecutive profitable year. GAAP net income was $10.9 million, or $0.45 per share (diluted), for the fiscal year ended December 31, 2009, compared to GAAP net income of $14.3 million, or $0.57 per share (diluted), for the fiscal year ended December 31, 2008. Non-GAAP net income was $16.3 million, or $0.67 per share (diluted), for the fiscal year ended December 31, 2009, compared to non-GAAP net income of $18.4 million, or $0.73 per share (diluted), for the fiscal year ended December 31, 2008.
"I am pleased to report that we had another strong quarter to finish out what has been a very positive year for Volterra," said Volterra President and CEO Jeff Staszak. "Despite challenging economic times in the earlier part of 2009, our performance in the latter half of the year helped to produce the highest annual revenues in Volterra's history, and our fourth quarter results included record quarterly revenues, margins and profitability."
Earnings Conference Call
Volterra will be conducting a conference call today at 5:30 p.m. (EST). To access the conference call, investors can dial (800) 762-8795 approximately ten minutes prior to the initiation of the teleconference. International and local participants can dial (480) 629-9773. Investors should reference Volterra. A digital replay of the conference call will be available until midnight on Monday, February 1, 2010. To access the replay, investors should dial (800) 406-7325 or (303) 590-3030 and enter access code 4199059#. 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, February 22, 2010.
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 fiscal year and quarter ended December 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 and the Form 10-Q filed on November 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)
Three Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Audited)
----------- ----------- ----------- ---------
Net revenue $34,186 $21,865 $104,937 $104,155
Cost of revenue * 12,634 9,617 42,250 45,217
----------- ----------- ----------- ---------
Gross margin 21,552 12,248 62,687 58,938
Operating expenses:
Research and development * 7,444 6,306 26,557 26,090
Selling, general and
administrative * 5,628 4,564 19,731 18,560
Litigation ** 1,631 332 5,225 332
----------- ----------- ----------- ---------
Total operating expenses 14,703 11,202 51,513 44,982
----------- ----------- ----------- ---------
Income from operations 6,849 1,046 11,174 13,956
Interest and other income 13 112 135 1,073
Interest and other expense (49) (42) (140) (214)
----------- ----------- ----------- ---------
Income before income taxes 6,813 1,116 11,169 14,815
Income tax (benefit) expense (145) 22 229 557
----------- ----------- ----------- ---------
Net income $6,958 $1,094 $10,940 $14,258
=========== =========== =========== =========
Net income per share:
Basic $0.30 $0.05 $0.48 $0.60
----------- ----------- ----------- ---------
Diluted $0.28 $0.04 $0.45 $0.57
----------- ----------- ----------- ---------
Weighted average shares
outstanding:
Basic 23,267 23,519 22,968 23,750
=========== =========== =========== =========
Diluted 24,977 24,574 24,383 25,201
=========== =========== =========== =========
* Includes stock-based compensation expense as follows:
Cost of revenue $126 $54 $425 $232
Research and development 776 555 2,705 1,965
Selling, general, and
administrative 620 475 2,303 1,925
----------- ----------- ----------- ---------
Total stock-based
compensation expense $1,522 $1,084 $5,433 $4,122
=========== =========== =========== =========
** Litigation expenses were previously included in Selling, general and
administrative expenses.
VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
SEPARATE PRESENTATION OF LITIGATION AND SALES, GENERAL AND ADMINISTRATIVE EXPENSE
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
---------------------------------------------------------
December September June March December
31, 30, 30, 31, 31,
2009 2009 2009 2009 2008
-------- --------- ------ ------ --------
GAAP
Selling, general and administrative with litigation $7,259 $7,090 $5,835 $4,772 $4,896
Litigation * 1,631 1,688 1,256 650 332
-------- --------- ------ ------ --------
Selling, general and administrative without litigation $5,628 $5,402 $4,579 $4,122 $4,564
Three Months Ended
---------------------------------------------------------
December September June March December
31, 30, 30, 31, 31,
2009 2009 2009 2009 2008
-------- --------- ------ ------ --------
Non-GAAP (excluding effect of stock-based compensation)
Selling, general and administrative with litigation $6,639 $6,506 $5,252 $4,256 $4,421
Litigation * 1,631 1,688 1,256 650 332
-------- --------- ------ ------ --------
Selling, general and administrative without litigation $5,008 $4,818 $3,996 $3,606 $4,089
Twelve Months Ended
December 31,
----------------------
2009 2008
-------- ---------
GAAP
Selling, general and administrative with litigation $24,956 $18,892
Litigation * 5,225 332
-------- ---------
Selling, general and administrative without litigation $19,731 $ 18,560
Twelve Months Ended
December 31,
----------------------
2009 2008
-------- ---------
Non-GAAP (excluding effect of stock-based compensation)
Selling, general and administrative with litigation $22,653 $16,967
Litigation * 5,225 332
-------- ---------
Selling, general and administrative without litigation $17,428 $16,635
*Litigation expenses were previously included in Selling, general and administrative
expenses.
VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended December 31, 2009
Effect of
Stock-
based
GAAP Compensation Non-GAAP
-------- ------------ --------
Gross margin $21,552 $(126) $21,678
Gross margin % 63.0% -0.4% 63.4%
Operating expenses:
Research and development $7,444 $776 $6,668
Selling, general and
administrative 5,628 620 5,008
Litigation 1,631 -- 1,631
-------- ------------ --------
Total operating expenses $14,703 $1,396 $13,307
Income from operations $6,849 $(1,522) $8,371
Operating margin % 20.0% -4.5% 24.5%
Annual effective tax rate 2.1% 0.2% 1.9%
Income tax (benefit) expense $(145) $41 $(104)
Net income $6,958 $(1,481) $8,439
Diluted net income per share $0.28 $(0.06) $0.34
Three Months Ended December 31, 2008
Effect of
Stock-
based
GAAP Compensation Non-GAAP
-------- ------------ --------
Gross margin $12,248 $(54) $12,302
Gross margin % 56.0% -0.3% 56.3%
Operating expenses:
Research and development $6,306 $555 $5,751
Selling, general and
administrative 4,564 475 4,089
Litigation 332 -- 332
-------- ------------ --------
Total operating expenses $11,202 $1,030 $10,172
Income from operations $1,046 $(1,084) $2,130
Operating margin % 4.8% -4.9% 9.7%
Annual effective tax rate 3.8% 0.9% 2.9%
Income tax (benefit) expense $22 $(30) $(8)
Net income $1,094 $(1,114) $2,208
Diluted net income per share $0.04 $(0.05) $0.09
VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December September December
31, 30, 31,
2009 2009 2008
----------- --------- ---------
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $69,227 $61,592 $46,893
Short-term investments 4,549 10,545 10,461
Accounts receivable, net 15,534 14,153 12,073
Inventory 10,284 8,485 13,668
Prepaid expenses and
other current assets 1,829 1,949 2,507
----------- --------- ---------
Total current assets 101,423 96,724 85,602
Property and equipment,
net 4,656 4,899 5,285
Other assets 363 113 405
----------- --------- ---------
Total assets $106,442 $101,736 $91,292
=========== ========= =========
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable $3,591 $6,663 $5,834
Accrued liabilities 9,506 10,078 8,073
----------- --------- ---------
Total current
liabilities 13,097 16,741 13,907
Lease incentives 445 506 688
Other long-term
liabilities 1,097 990 784
----------- --------- ---------
Total liabilities 14,639 18,237 15,379
----------- --------- ---------
Commitments and
contingencies
Stockholders' equity:
Common stock 26 25 24
Additional paid-in
capital 115,035 111,310 102,612
Accumulated deficit (5,878) (12,836) (16,818)
Treasury Stock (17,380) (15,000) (9,905)
----------- --------- ---------
Total stockholders'
equity 91,803 83,499 75,913
----------- --------- ---------
Total liabilities and
stockholders' equity $106,442 $101,736 $91,292
=========== ========= =========
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SOURCE: Volterra Semiconductor Corporation
CONTACT: Volterra Semiconductor Corporation Investor Relations Heidi Flannery (510) 743-1718 This email address is being protected from spambots. You need JavaScript enabled to view it.
