Knobias Clip Report (01-27-20009) VLTR
Submitted By Knobias ClipReport
VLTR: Shares Surge After Record FY08 Revenues and Management Discussion
By Fain Hughes, fhughes@knobias.com
Shares of Volterra Semiconductor Corporation (VLTR) surged during Tuesday’s session after the Company reported financial results for its fourth quarter and fiscal year ended December 31, 2008.
Net revenue for the fourth quarter of 2008 was $21.9 million, an 11% increase over net revenue of $19.8 million for the fourth quarter of 2007. Net income was $1.1 million, or $0.04 per share, compared with net income of $2.0 million, or $0.08 per share, for the fourth quarter of 2007.
For the full year 2008, Volterra reported a record $104.2 million annual net revenue. Net income was $14.3 million, or $0.57 per share, for the fiscal year ended December 31, 2008, compared to net income of $0.3 million, or $0.01 per share, for the fiscal year ended December 31, 2007.
Jeff Staszak, President and CEO of Volterra, commented in a conference call, “Our FY08 revenue increased 39% despite the current macro economic environment. FY08 was our seventh consecutive year of revenue growth and fifth consecutive year of profitability.”
He continued, “We achieved world class product quality levels, which were based on our customers’ assembly results achieving a very low defect rate. We had another record year of total new products that we started sampling to existing and new customers. These will generate revenue in FY09 and beyond. All four of our markets grew year-over-year. We also continued to diversify our customer base, and we grew the number of customers that generate $1 million or more in revenue from six in 2007 to eighteen in 2008. We also repurchased $9.9 million of our common stock and exited the year with a very healthy cash position and no debt.”
Mr. Staszak discussed the Company’s first quarter outlook and said, “It is difficult to determine the impact of current macro economic conditions on our Q1 business. As a result, we are taking a conservative position on guidance. We are anticipating Q1 revenue to be $16-$19 million, with non-GAAP break-even in the midpoint of that range. We also expect our non-GAAP gross margins to be in the 56% range.”
Mike Burns, CFO of Volterra, added, “Although it is difficult to predict how 2009 will turn out, we have several positive characteristics to our business that should help mitigate economic conditions. We have significant product cycle catalysts throughout the year in our largest revenue segment. Our relatively low overhead model should also allow us to sustain gross margins in the lower end of our target range. Until revenue growth resumes, we have a plan in place to keep overall spending for the year comparable to 2008, while continuing to develop and protect our intellectual property. We are confident that we will emerge from this economic downturn in an even stronger competitive and financial position.”
Mr. Staszak, concluded, “While this current macro economic environment has an impact on our short term business, our long term growth and profitability prospects remain very strong. We plan to stick to our proven strategy of gaining market share, adding new customers and further penetrating our existing customers as new products and platforms are launched.”
Needham upgraded shares of VLTR today to Buy from Hold and set a price target of $9.
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