Volterra Reports First Quarter Financial Results

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

CONTACT: For investor information contact:
         Heidi Flannery, Investor Relations
         (510) 743-1718
         investor@volterra.com
 
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