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Volterra Semiconductor Corporation Q2 2008 Earnings Call Transcript

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2008-07-22 14:32:07.0

Tags: Volterra Semiconductor

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Tore Svanbert - Thomas Weisel Partners.

Tore Svanbert - Thomas Weisel Partners

First of all, you talked about your backlog being pretty solid going into Q3. Can you just elaborate a little on that, especially in reference to where it was last quarter?

Jeffrey Staszak

Yes, we typically don’t give out a backlog number. I can tell you on turns – our turns ended up being a little less than 20% last quarter. This quarter, going forward, it’s going to hit the midpoint. It’s going to be at about that 20% range again. A little more turns that we’re building into the guidance this quarter, and mainly that’s due to -- we've got a little bit better position from our inventory to meet the quarter. Last quarter, as you recall, was a pretty steep ramp, so that was factored in. So, we think turns for Q3 will be in the 20% range.

Tore Svanbert - Thomas Weisel Partners

Good, and if we look at your guidance of 29-31, what are some of the variables there? Is it the turns business and the graphics business? I’m just trying to understand what would get you to the high end versus the low end?

Jeffrey Staszak

Yes, that’s one factor, the turns business and graphics. And that’s expected, that’s the business where we get the least amount of order coverage. So, the turns and graphics business is going to be, certainly, one factor for that.

Tore Svanbert - Thomas Weisel Partners

And then, on the notebook business, I understand that it started ramping this quarter and you expect more next quarter. How about Q4 I’m just trying to understand in which inning we are here this year with the ramps of your notebook business.

Jeffrey Staszak

We would still anticipate the ramp to be occurring in Q4 as well as going into Q1 now, since it did start a little later.

Operator

Your next question comes from Vernon Essi - Needham & Company.

Vernon Essi, Jr. - Needham & Company

You said that you would see the ramp in the fourth quarter on notebooks – you’re expecting that?

Jeffrey Staszak

Yes. We said we’ll double revenue from Q2 this quarter, and we would expect also to see revenue growth in Q4 and going into Q1.

Vernon Essi, Jr. - Needham & Company

Your market segments, I want to make sure I had the percentages right. When I add them up I get 101. I don’t know if you want to give out hard numbers there, or if I missed something there. Would you mind going over the market segments again?

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