Volterra Semiconductor Corporation Q3 2009 Earnings Call Transcript

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2009-10-19 19:22:09.0

Tags: Security, Call Transcript, Earnings, Volterra Semiconductor, Litigation, Processors, Business Operations, Semiconductors, Hardware, Components, Seeking Alpha, Volterra Semiconductor Corp.

Question-and-Answer Session

Operator

Thank you sir. (Operator Instructions) Your first question comes from Alex Gauna - JMP Securities.

Alex Gauna - JMP Securities

I was wondering if you could start by giving some color on recent trends. Obviously your guidance is pretty explanatory but we’ve got a pretty big launch here around Windows 7. There’s been a lot of product transitions with the six core Opterons now. Recently what has been the trajectory of business coming into the current quarter, if you can give some color around that?

Jeffrey Staszak

Well it’s pretty much as we estimated and you know we talked about this at our analyst day. We have the Thurley platform that is continuing to launch or I should say ramp. We have the new AMD Opteron Refresh that kicked in in third quarter. You know part of the reason for our uptick in server and storage was due to that. And in Q4, Q1 and Q2 we’ve got the 32 nanometer two way Intel processors coming out and then we have the Stoutland four and eight-way servers coming out in the first half of next year. And in addition to that, you’ve got the I believe it’s a 12 core AMD next generation processor that’s coming out as well. So all those new processors and refresh platforms coming out I mean should be positive I think for the business.

Mike Burns

And just in general in terms of general trends, our outlook now for Q4 is a little bit higher than how it looked to us on September 10 when we did our analyst day when we indicated we’d be up about 5%. So in general since September 10 things are looking a little bit better overall. So things feel pretty good here right now.

Alex Gauna - JMP Securities

And then obviously you’ve had some favorable developments on the litigation front. Can you give some color in terms of maybe the magnitude of business that’s being infringed upon? And if you get this injunction in place, do those customers or those infringing parts, is there a Volterra replacement that can come in? Is there a business opportunity on this, or is it just going to be damages at the end of the tunnel here?

Mike Burns

Well, it’s virtually impossible to say how these things are going to end up. I mean we’re still waiting for the final detailed ruling or report. That takes some time for that to get together. So I can’t say too much in terms of the specifics on that. But you know in terms of the way we’re looking at it right now, I mean we are expecting this case to go to trial next year and we’re planning to you know continue to have significant litigation expense this quarter and into next year as well. And we’re just going to kind of have to take it as it goes. These things always have lots of twists and turns. But it’s a very important case to us. We’re very pleased that the court indicated they were going to issue this injunction and you know we think it’s a very good start to the case for us.

 

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