October 19, 2009 / 9:53 PM / 10 years ago

UPDATE 2-Volterra Q3 meets market, gives weak Q4 profit view

* Q3 adj EPS $0.19 vs est. $0.19

* Rev falls 3 pct to $29.7 mln

* Sees Q4 adj EPS $0.18 vs $0.22 vs $0.23

* Shares down 11 pct

(Adds analyst comments, conference call details)

By Manasi Phadke

BANGALORE, Oct 19 (Reuters) - Volterra Semiconductor Corp VLTR.O posted third-quarter results in line with market expectations, helped by demand for its power-management chips, but forecast fourth-quarter earnings below estimates.

Shares of the company fell as much as 11 percent after the bell, with investors expecting stronger results after bellwether Intel Corp (INTC.O) raised the bar with strong results and outlook last week.

For the fourth quarter, Volterra, which makes low-voltage power supply chips, expects earnings of 18 cents to 22 cents a share, excluding items, on revenue of $31 million to $33 million.

The company forecast adjusted gross margins of 58 percent to 59 percent.

Analysts were expecting earnings of 23 cents a share, excluding items, on revenue of $31.25 million, according to Thomson Reuters I/B/E/S.

Brigantine Advisors analyst Ramesh Misra said Volterra’s results were a little lighter than he expected.

“Management has tended to sandbag guidance in recent quarters, and therefore expectations were likely at the high end of guidance, or even above guidance,” Misra said.

However, Volterra is still outperforming the broader semiconductor industry, as the company reported just a 3 percent drop in revenue while the industry is still down double digits, the analyst added.

For the third quarter, the company earned $3.4 million, or 14 cents a share, compared with $5.4 million, or 21 cents a share, a year ago.

Excluding items, the company earned 19 cents a share. Analysts expected 19 cents a share.

Revenue dipped 3 percent to $29.7 million, in line with analysts’ expectations. The company’s revenue grew 30 percent sequentially.

Shares of Volterra were down at $16.30 in trading after the bell. They closed at $18.40 Monday on Nasdaq.

Reporting by Manasi Phadke in Bangalore; Editing by Unnikrishnan Nair

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