Volterra Semiconductor Corp. (VLTR) filed Quarterly Report for the period ended 2009-09-30.
Volterra Semiconductor Corporation designs develops and markets proprietary high-performance analog and mixed-signal power management semiconductors for the computing storage networking and consumer markets. Its core products are integrated voltage regulator semiconductors and scalable voltage regulator semiconductor chipsets that transform regulate deliver and monitor the power consumed by digital semiconductors. Volterra Semiconductor Corp. has a market cap of $342.2 million; its shares were traded at around $13.61 with a P/E ratio of 68.1 and P/S ratio of 3.3.
Highlight of Business Operations:
Cost of Revenue and Gross Margin. Cost of revenue was $12.1 million for the three months ended September 30, 2009 and $12.9 million for the three months ended September 30, 2008, a decrease of 6%. Included in cost of revenue for the third quarter of 2009 is approximately a $0.5 million benefit due to shipments of previously written down inventory that had previously been considered to have been excess inventory during 2008 and approximately a $0.2 million benefit from release of inventory reserves previously recorded in 2009. Gross margin remained relatively flat at $17.6 million for the three months ended September 30, 2009 compared to $17.7 million for the three months ended September 30, 2008. Gross margin as a percent of net revenue was 59.3% for the three months ended September 30, 2009 and 57.8% for the three months ended September 30, 2008. The increase in gross margin percentage was primarily due to the $0.5 million benefit related to the sale of previously written down inventory, the $0.2 million benefit from release of inventory reserves, cost reduction activities and operational improvements.
Net Revenue. Net revenue was $70.8 million in the nine months ended September 30, 2009 and $82.3 million in the nine months ended September 30, 2008, a decrease of 14%. The decrease in net revenue was primarily due to decreases of $6.7 million, $4.8 million, and $0.4 million in the desktop and workstation, server and storage and networking and communications markets, respectively, partially offset by an increase of $0.4 million in the consumer and portable market.
Cost of Revenue and Gross Margin. Cost of revenue was $29.6 million for the nine months ended September 30, 2009 and $35.6 million for the nine months ended September 30, 2008, a decrease of 17%. Included in cost of revenue for the first nine months of 2009 is approximately a $1.6 million benefit due to shipments of previously written down inventory that had previously been considered to have been excess inventory during 2008, partially offset by $0.4 million of charges to reduce the carrying value of inventory to its net realizable value. Gross margin was $41.1 million for the nine months ended September 30, 2009 and $46.7 million for the nine months ended September 30, 2008, a decrease of 12%. Gross margin as a percent of net revenue was 58.1% for the nine months ended September 30, 2009 and 56.7% for the nine months ended September 30, 2008. The increase in gross margin percentage was primarily due to the $1.6 million benefit related to the sale of previously written down inventory, cost reduction activities and operational improvements partially offset by lower volumes.
Our operating activities provided net cash of $16.0 million for the nine months ended September 30, 2009 compared to net cash provided of $17.7 million for the nine months ended September 30, 2008. The increase in cash provided from operating activities was primarily due to net income of $4.0 million, a decrease in inventory of $5.2 million and an increase in accrued liabilities of $2.2 million. The decrease in inventory was mainly due to increased sales during the third quarter of 2009. The increase in accrued liabilities is primarily due to legal accruals of $1.5 million. Partially offsetting the above increases in cash was an increase in accounts receivable of $1.9 million due to an increase in revenue. The primary sources of cash from operations for the nine months ended September 30, 2008 were primarily due to net income of $13.2 million, adjustments for depreciation and amortization of $1.8 million, stock-based compensation of $3.0 million, and an increase in accrued liabilities of $4.4 million. The increases were partially offset by an increase in inventory of $4.9 million.
Our investing activities used net cash of $1.0 million for the nine months ended September 30, 2009 for the purchase of short-term investments of $15.0 million and purchase of property and equipment of $1.0 million, partially offset by the maturity of short-term investments of $15.0 million. Our investing activities used net cash of $8.0 million for the nine months ended September 30, 2008 from the purchase of $2.1 million in property and equipment and $6.9 million in short-term investments, partially offset by the maturity of short-term investments of $1.0 million.
Our financing activities used net cash of $0.3 million for the nine months ended September 30, 2009 for common stock repurchases of $5.1 million, partially offset by proceeds of $4.8 million from the exercise of employee stock options and proceeds from our employee stock purchase plan. Our financing activities provided net cash of $0.9 million for the nine months ended September 30, 2008 from $3.4 million from the exercise of employee stock options and proceeds from our employee stock purchase plan, partially offset by the use of $2.4 million to repurchase shares of our common stock.
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