Welcome!

Weblogic Authors: Yeshim Deniz, Elizabeth White, Michael Meiner, Michael Bushong, Avi Rosenthal

Related Topics: @CloudExpo

@CloudExpo: News Item

Voltaire Announces 32% Revenue Growth in Q4

Company provides next generation, virtualized data centers and the rapidly expanding cloud computing opportunity

Voltaire Ltd. (NASDAQ: VOLT), a provider of scale-out data center fabrics, on Monday announced financial results for the three- and twelve-month periods ended December 31, 2009.

Main Fourth Quarter Highlights

  • Operating loss on a GAAP basis, narrowed to $0.4 million; operating profit on a non-GAAP basis of $0.3 million;
  • Net loss on a GAAP basis, narrowed to $0.5 million; net income on a non-GAAP basis, of $0.3 million;
  • Cash, cash equivalents and marketable securities as of December 31, 2009 totaled $47.5 million; and
  • Introduced 2010 annual revenue guidance range of $66-69 million, an increase of 31-37% year over year;

Fourth Quarter Results
Revenues for the fourth quarter of 2009 totaled $17.4 million, an increase of 32% compared with $13.2 million reported in the fourth quarter of 2008.

Gross profit for the fourth quarter of 2009 totaled $8.7 million, an increase of 18% compared to $7.3 million in the fourth quarter of 2008. Gross margin for the fourth quarter of 2009 totaled 50.0%, compared to 55.5% gross margin for the fourth quarter of 2008. The comparatively lower gross margin was primarily due to the product mix sold in the quarter.

Operating loss for the fourth quarter of 2009 totaled $0.4 million, a substantial improvement compared to the $2.4 million operating loss in the fourth quarter of 2008. On a non-GAAP basis, the Company reported operating income of $0.3 million compared with an operating loss of $1.7 million in the fourth quarter of 2008.

Net loss for the fourth quarter of 2009 totaled $0.5 million, or $0.02 loss per share. This represents a continued improvement from the $2.4 million net loss, or $0.12 loss per share, in the fourth quarter of 2008.

Net income, on a non-GAAP basis, for the fourth quarter of 2009 totaled $0.3 million, or $0.01 per diluted share, compared to a net loss, on a non-GAAP basis, of $1.7 million, or $0.08 loss per share, in the fourth quarter of 2008.

Cash, cash equivalents and marketable securities as of December 31, 2009, totaled $47.5 million, compared to $50.4 million as of September 30, 2009.

Full Year 2009 Results
Revenues for the twelve months ended December 31, 2009 totaled $50.4 million, compared to revenues of $61.6 million in 2008.

Gross profit for the year 2009 totaled $26.2 million, compared to $30.6 million in 2008. Gross margin for the year 2009 totaled 51.9%, compared to 49.7% in 2008. Operating loss for the year 2009 totaled $10.6 million, compared to $5.7 million in 2008.

Net loss for the year 2009 totaled $11.0 million, or $0.52 loss per share, compared to a net loss of $5.0 million, or $0.24 loss per share in 2008.

On a non-GAAP basis, net loss for the full year 2009 totaled $8.5 million, or $0.41 loss per share, compared to a non-GAAP net loss of $0.9 million, or $0.05 loss per share, in 2008.

Management Comments

Mr. Ronnie Kenneth, Chairman and CEO of Voltaire commented, “During the fourth quarter of 2009, we continued to present a strong business and financial performance, ending the year with over $50 million in revenues, and a return to non–GAAP profitability in the fourth quarter.”

Mr. Kenneth added, “Throughout 2009, Voltaire focused on the long-term, by strengthening its core business fundamentals to position the Company to capitalize on current data center trends. During the year, we forged new server OEM partnerships, enhancing our presence in existing and new verticals, as well as expanded our geographic presence in Asia, where we are witnessing growing demand for our solutions. Furthermore, we built out our product portfolio, introducing several new products, and we enter 2010 with an end-to-end portfolio of switching products and first-in-kind application acceleration and management software that strongly differentiates Voltaire. As a result, Voltaire presented three consecutive quarters of growth, ending the year with a healthy pipeline.”

“Looking ahead, I believe 2010 will be an inflection point for Voltaire and our markets. The principles used in high performance computing of scale-out, low latency and application acceleration is becoming the foundation for next generation, virtualized data centers and the rapidly expanding cloud computing opportunity. We believe that we are well-positioned at the forefront of a coming widespread infrastructure refresh in the data center. We aim to capitalize on this potential and I am excited about the opportunities that lie ahead for Voltaire in the coming months and years.”

“I would like to take this opportunity to thank Kevin Kilroy, a director of Voltaire’s Board since January 2002, who resigned from the Board for personal reasons effective January 1, 2010, for his significant contribution to the Company over the years,” added Mr. Kenneth.

Outlook

Management introduces guidance for the full year of 2010.

Management expects that revenues for the full year of 2010 to be in range of $66 - $69 million, reflecting year over year revenue growth of 31 – 37% with the second half of the year, as usual, being seasonally stronger than the first.

Full year gross margin is expected to be in the range of 51-53%, similar to 2009. Gross margin in the second half of the year is expected to be higher than the first half of the year.

Non-GAAP operating expenses are expected to increase by up to 15% to between $38-39.5 million in 2010. In 2009, the Company embarked on deep cost cutting in order to weather the global economic crisis. The increase in operating expenses in 2010 is in order to enable the Company to fully capitalize on the current and emerging market opportunities, as well as support the accelerated forecasted growth of both the InfiniBand and Ethernet-based product lines. The Company targets a sustainable non-GAAP operating profit by Q4 2010.

Conference Call Details

The Company will be hosting a conference call later today, February 8th, 2010, at 10:00 am ET. On the call, management will review and discuss the results of the three- and twelve-month periods ended December 31, 2009 and will be available to answer questions. To participate, please either call one of the following teleconferencing numbers, or access the live webcast on the Company’s website. Please begin placing your calls at least 10 minutes before the conference call is due to commence. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

US Dial-in Number:

 

1-888-668-9141

     

UK Dial-in Number:

 

0-800-917-5108

Israel Dial-in Number:

03-918-0609

International Dial-in Number:

+972-3-918-0609

The call will be at 10:00 am Eastern Time; 7:00 am Pacific Time; 3:00 pm UK Time; 5:00 pm Israel Time. The conference call will be broadcast live on the Company’s website. To participate, please access the link on the investor relations page of Voltaire’s website – www.voltaire.com, a few minutes before the conference call is due to commence. A replay of the call will be available following the call under the Investor Relations section of the website at: www.voltaire.com.

Use of Non-GAAP Financial Measure

Voltaire reports its results of operations in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP operating income (loss) and non-GAAP net income (loss) are calculated based on the operating income (loss) or net income (loss) in Voltaire’s financial statements excluding (i) non-cash equity-based compensation charges recorded in accordance with SFAS 123R, and (ii) the $2.1 million expense recorded in the first quarter of 2008 under cost of revenues for the one-time repayment of grants to the Office of the Israeli Chief Scientist. Reconciliation of this non-GAAP measure to operating income (loss) and net income (loss), the most comparable GAAP measures, is provided in the schedules attached to this release. Voltaire provides these non-GAAP financial measures because its management believes that they are useful in enhancing investors’ understanding of Voltaire’s ongoing performance. Voltaire uses internally the Non-GAAP information to evaluate the Company’s ongoing performance. Voltaire is providing this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results.

About Voltaire

Voltaire (NASDAQ: VOLT) is a leading provider of scale-out computing fabrics for data centers, high performance computing and cloud environments. Voltaire’s family of server and storage fabric switches and advanced management software improve performance of mission-critical applications, increase efficiency and reduce costs through infrastructure consolidation and lower power consumption. Used by more than 30 percent of the Fortune 100 and other premier organizations across many industries, including many of the TOP500 supercomputers, Voltaire products are included in server and blade offerings from Bull, HP, IBM, NEC, SGI and Sun. Founded in 1997, Voltaire is headquartered in Ra’anana, Israel and Chelmsford, Massachusetts. More information is available at www.voltaire.com or by calling 1-800-865-8247.

More Stories By Salvatore Genovese

Salvatore Genovese is a Cloud Computing consultant and an i-technology blogger based in Rome, Italy. He occasionally blogs about SOA, start-ups, mergers and acquisitions, open source and bleeding-edge technologies, companies, and personalities. Sal can be reached at hamilton(at)sys-con.com.

@ThingsExpo Stories
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...