Needham & Company Maintains a 'Strong Buy' on Volterra (VLTR); Romley Risk Concerns Unwarranted as Notebooks Are to Blame

Needham & Company maintains a 'Strong Buy' on Volterra Semiconductor (NASDAQ: VLTR) price target lowered from $32 to $29.

Needham analyst says, "VLTR reported Q3 revenue just shy of consensus while EPS was just ahead. The Q4 revenue guide, down about 10% Q/Q, will see the largest decline in Notebook (in which VLTR saw orders wane as Q3 progressed). No doubt this will be the focus for investors into year-end, which is in stark contrast to the masterminding around the Romley ramp risk – from which VLTR will recognize revenue in Q4, well ahead of feared. Most of the end segments were relatively in line with our expectations for Q3 proportionally, but all just a touch softer than expected. Management discussed the Chief River designs wrapping up on the Notebook front for the 2012 pipeline (which will use a 0.18μ process to help prop up Notebook GM which is historically lower), and the new design dialog initiated with Shark Bay architecture for Notebook. We adjusted our 2011 revenue/EPS from $167M/$1.20 to $154M/$1.05 and our 2012 revenue/EPS from $212M/$1.95 to $199M/$1.75."

For more ratings news on Volterra Semiconductor click here and for the rating history of Volterra Semiconductor click here.

Shares of Volterra Semiconductor closed at $23.48 yesterday.

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