Business, Enterprise, Hardware

Volterra scores highly as server and graphics sales take off


Volterra Semiconductor Corporation is one of those industry players that sit in the back, designing advanced components that get implemented on motherboards for servers, notebooks, high-end desktops and other boards such as audio accelerator cards from UAC or high-end graphics cards from ATI and nVidia.

A company that can be described as the ZF gearbox of the semiconductor world that got hammered hard during the recession, as high-end sales wound down. But after reading through first quarter results, one cannot but wonder is the recession over or are we going through the peak in a "W-shaped market recovery"?

Volterra reported 1Q2009 revenues in the tune of $18.3M [-16% from 1Q2008], up from consensus of $17.4M. The company also scored a moderate profit. When it comes to looking into the future, Volterra sees growth to $21M, or 14.3% more than in 2008 – pre-market meltdown.
If the recession is really ending, Volterra will continue to go up in sales and that should be expected: Intel will launch Thurley server platform [Nehalem-EX], Gainestown [Nehalem-EP] should sell in volumes, AMD will launch sexa-core Istanbul and both AMD GPG and nVidia are on track to launch their DirectX 11 GPUs this coming summer.

If we see a small drop – it will mean that the IT world could go on a roller-coaster ride once more and that a W-shaped recession recovery thesis was true.