Volterra Reports Second Quarter 2005 Financial Results

Fremont, CA. - July 25, 2005 - PRNewswire-FirstCall via COMTEX/ -- Volterra Semiconductor Corporation (Nasdaq: VLTR), a leading provider of high-performance analog and mixed-signal power management semiconductors, today reported financial results for its second quarter ended June 30, 2005.

Net revenue for the second quarter of 2005 was $13.2 million, an increase of 44% over net revenue of $9.1 million for the second quarter of 2004 and a 10% sequential decrease from net revenue of $14.6 million for the first quarter of 2005. Operating Margin improved to 8.7% up from 6.0% year ago. Net income was $1.1 million, or $0.04 per share (diluted), for the second quarter of 2005, compared with net income of $0.6 million, or $0.03 per share (diluted), for the second 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 excludes the effect of stock- based compensation expense and special items such as restructuring charges, net of tax, where applicable. Non-GAAP net income was $1.2 million, or $0.05 per share (diluted), for the second quarter of 2005, compared to non-GAAP net income of $0.7 million, or $0.03 per share (diluted), for the second quarter of 2004.

Financial highlights for the second quarter include:

• Net revenue increased 44% year-over-year to $13.2 million;
• Gross margins were 59.5%, up from 53.6% a year ago;
• Non-GAAP operating margin improved to 9.8%, up from 8.0% a year ago; and
• Non-GAAP EPS increased 67% year-over-year to $0.05.