Volterra Reports First Quarter 2005 Financial Results

Fremont, CA.- April 25, 2005: PRNewswire-FirstCall/ -- 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, 2005.

Net revenue for the first quarter of 2005 was $14.6 million compared to net revenue of $7.6 million for the first quarter of 2004 and level with net revenue of $14.6 million for the fourth quarter of 2004. Operating Margin improved to 16.9% up from 3.2% year ago. Net income was $2.3 million, or $0.09 per share (diluted), for the first quarter of 2005, compared with net income of $0.3 million, or $0.01 per share (diluted), for the first quarter of 2004.

Volterra also reported net income and basic and diluted net income per share on a non-GAAP-basis. Non-GAAP net income, where applicable, excludes the effect of stock-based compensation expense and special items such as restructuring charges, net of tax. Non-GAAP net income was $2.4 million, or $0.09 per share (diluted), for the first quarter of 2005, compared to non-GAAP net income of $0.4 million, or $0.02 per share (diluted), for the first quarter of 2004.

Financial highlights for the first quarter include:

• Net revenue increased 92% year-over-year to $14.6 million;
• Achieved 17th consecutive quarter of sequential revenue growth;
• Gross margins were 56.3%, up from 52.0% year ago;
• Non-GAAP operating margin improved to 17.7%, up from 4.5% year ago; and
• Non-GAAP EPS increased 350% year-over-year to $0.09.