Volterra Reports Record Revenue on Notebook Share Gains

FREMONT, Calif., July 25, 2011 (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 second quarter ended June 30, 2011.

Net revenue for the second quarter of 2011 was $41.7 million, a 22% increase
from $34.2 million in the first quarter of 2011, and a 4% increase from $40.2
million in the second quarter of 2010. GAAP net income was $5.3 million, or
$0.20 per share (diluted), a 99% increase from $2.7 million, or $0.10 per share
(diluted), in the first quarter of 2011 and compared to $9.0 million, or $0.34
per share (diluted) in the second quarter of 2010.

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, net of tax. Non-GAAP net income was $7.4 million, or $0.28
per share (diluted), for the second quarter of 2011, a 62% increase from $4.6
million, or $0.18 per share (diluted), in the first quarter of 2011 and compared
to $10.5 million, or $0.40 per share (diluted), in the second quarter of 2010.

"Volterra achieved record revenue as our proprietary integrated power technology
gained significant traction in the notebook market," said Volterra President and
CEO Jeff Staszak. "Our server business also resumed sequential growth ahead of
our next major product cycle, which is on track to begin ramping later this
year."

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) 941-0843 approximately ten
minutes prior to the initiation of the teleconference. International and local
participants can dial (480) 629-9722. Investors should reference Volterra. A
digital replay of the conference call will be available until midnight on
Monday, August 1, 2011. To access the replay, investors should dial (800)
406-7325 or (303) 590-3030 and enter access code 4453755#. 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, August
22, 2011.

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, net of tax; (iii) non-GAAP
annual effective tax rate and the associated non-GAAP income tax expense, which
represents the effective tax rate without the effect of stock-based compensation
and income tax expense recalculated excluding the effect of stock-based
compensation and special items on non-GAAP income before tax; and (iv) 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, net of
tax.

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 income tax
expenses or other special items without unreasonable effort.

Forward-Looking Statements:

This press release regarding financial results for the quarter ended June 30,
2011 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 8, 2011 and quarterly
report on Form 10-Q filed on May 3, 2011. 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 Six Months Ended

June 30, June 30,
-------------------- --------------------

2011 2010 2011 2010
--------- --------- --------- ---------

Net revenue $ 41,717 $ 40,242 $ 75,874 $ 76,535

Cost of revenue * 18,048 14,888 32,527 28,870
--------- --------- --------- ---------

Gross margin 23,669 25,354 43,347 47,665
--------- --------- --------- ---------

Operating expenses:
Research and development * 8,969 8,812 18,083 16,149
Selling, general and
administrative * 7,199 6,013 13,763 11,672

Litigation 2,040 1,509 3,313 3,044
--------- --------- --------- ---------

Total operating expenses 18,208 16,334 35,159 30,865
--------- --------- --------- ---------

Income from operations 5,461 9,020 8,188 16,800

Non-operating expense, net 27 23 38 28
--------- --------- --------- ---------

Income before income taxes 5,434 8,997 8,150 16,772

Income tax expense (benefit) 96 (5) 132 106
--------- --------- --------- ---------

Net income $ 5,338 $ 9,002 $ 8,018 $ 16,666
========= ========= ========= =========

Net income per share:

Basic $ 0.22 $ 0.37 $ 0.33 $ 0.69
--------- --------- --------- ---------

Diluted $ 0.20 $ 0.34 $ 0.31 $ 0.64
--------- --------- --------- ---------

Weighted average shares
outstanding:

Basic 24,645 24,411 24,549 24,010
========= ========= ========= =========

Diluted 26,232 26,115 26,153 25,882
========= ========= ========= =========

* Includes stock-based
compensation expense as
follows:
Cost of revenue $ 202 $ 165 $ 367 $ 313
Research and development 841 735 1,604 1,411
Selling, general, and
administrative 1,027 592 2,018 1,182
--------- --------- --------- ---------

Total stock-based
compensation expense $ 2,070 $ 1,492 $ 3,989 $ 2,906
========= ========= ========= =========

VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended June 30, 2011
Effect of
Stock-based

GAAP Compensation Non-GAAP
--------- ------------ ---------

Gross margin $ 23,669 $ (202) $ 23,871
Gross margin % 56.7% -0.5% 57.2%

Operating expenses:
Research and development $ 8,969 $ 841 $ 8,128
Selling, general and
administrative 7,199 1,027 6,172

Litigation 2,040 -- 2,040
--------- ------------ ---------

Total operating
expenses $ 18,208 $ 1,868 $ 16,340

Income from operations $ 5,461 $ (2,070) $ 7,531
Operating margin % 13.1% -5.0% 18.1%

Annual effective tax rate 1.6% 0.5% 1.1%
Income tax expense $ 96 $ (15) $ 81

Net income $ 5,338 $ (2,085) $ 7,423
Diluted net income per
share $ 0.20 $ (0.08) $ 0.28

Three Months Ended June 30, 2010
Effect of
Stock-based

GAAP Compensation Non-GAAP
--------- ------------ ---------

Gross margin $ 25,354 $ (165) $ 25,519
Gross margin % 63.0% -0.4% 63.4%

Operating expenses:
Research and development $ 8,812 $ 735 $ 8,077
Selling, general and
administrative 6,013 592 5,421

Litigation 1,509 -- 1,509
--------- ------------ ---------

Total operating
expenses $ 16,334 $ 1,327 $ 15,007

Income from operations $ 9,020 $ (1,492) $ 10,512
Operating margin % 22.4% -3.7% 26.1%

Annual effective tax rate 0.6% -0.5% 1.1%
Income tax benefit $ (5) $ (53) $ (58)

Net income $ 9,002 $ (1,545) $ 10,547
Diluted net income per
share $ 0.34 $ (0.06) $ 0.40

VOLTERRA SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

December
June 30, March 31, 31,

2011 2011 2010
---------- ---------- ----------
Assets
Current assets:
Cash, cash equivalents
and short-term
investments $ 113,823 $ 105,587 $ 99,827
Accounts receivable, net 22,531 18,237 19,437
Inventories 15,876 14,486 15,391
Prepaid expenses and
other current assets 2,596 2,683 2,693
---------- ---------- ----------

Total current assets 154,826 140,993 137,348
Property and equipment,
net 8,040 7,178 7,125

Other assets 1,459 1,659 1,734
---------- ---------- ----------

Total assets $ 164,325 $ 149,830 $ 146,207
========== ========== ==========

Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable $ 7,285 $ 4,786 $ 4,107

Accrued liabilities 10,091 8,272 11,826
---------- ---------- ----------

Total current
liabilities 17,376 13,058 15,933

Lease incentives 434 481 528
Other long-term
liabilities 1,415 1,370 1,337
---------- ---------- ----------

Total liabilities 19,225 14,909 17,798
---------- ---------- ----------
Stockholders' equity:
Common stock 28 27 27
Additional paid-in
capital 143,328 138,488 134,656
Retained earnings 30,580 25,242 22,562

Treasury stock (28,836) (28,836) (28,836)
---------- ---------- ----------

Total stockholders'
equity 145,100 134,921 128,409
---------- ---------- ----------

Total liabilities and
stockholders' equity $ 164,325 $ 149,830 $ 146,207
========== ========== ==========

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