Welcome to a Laptop Battery specialist of the Fujitsu Laptop Battery
Thanks Mike. Good afternoon and thanks for joining us today. First I’ll provide a short recap of the Q4 ‘09 financials. I’ll then give an update on our four focused markets, and following this I’ll talk about Q1 2010 and provide guidance for the quarter. Finally I’ll hand it over to Mike to review the details of our financial performance for the quarter and 2009, and then we will open it up for any additional questions you may have.
In Q4 ‘09, revenue came in above the high end of our guidance at $34.2 million, versus $21.9 million in Q4 ‘08, and $29.7 million in Q3 ‘09. 2009 annual revenue came in at a record $104.9 million, exceeding 2008 with battery like Fujitsu LifeBook N6210 Battery , Fujitsu LifeBook N6220 Battery , Fujitsu LifeBook N6410 Battery , Fujitsu LifeBook N6420 Battery , Fujitsu LifeBook N6460 Battery , Fujitsu LifeBook N7010 Battery , Fujitsu Lifebook P1030 Battery , Fujitsu LIFEBOOK P1032 Battery , Fujitsu LIFEBOOK P1035 Battery , Fujitsu Lifebook P1110 Battery , Fujitsu LIFEBOOK P2110 Battery , Fujitsu LIFEBOOK P2120 Battery annual revenue of $104.2 million. As a result, Volterra had its ninth consecutive year of revenue growth and sixth consecutive year of profitability, of which everyone at Volterra is very proud of.
Non-GAAP EPS was $0.34, versus $0.09 in Q4 ‘08 and $0.19 in Q3 ‘09. Non-GAAP gross margins were up from 59.7% in Q3, to 63.4% in Q4. Margins continued to improve due to product mix, heavy emphasis on companywide yield improvement activities, low scrap rates and cost reductions with all suppliers.
I would like to thank our margin improvement team that we formed about 18 months ago which consists of members from our finance, operations, and manufacturing engineering groups for doing a truly outstanding job of exceeding our target goal of 60 points in a shorter timeframe than we expected.
As I mentioned on our last call, we expected fourth quarter growth with new product cycles and customer launches continuing in our server and storage market. Growth was even stronger than we expected, mainly due to the demand from our two largest server customers, IBM and HP.
In addition to our server and storage business, we also had unexpected upside from Cisco and Juniper Networks in our fourth quarter as their business recovered. Our communications business surprised us to the upside as it came in stronger than original forecasts.
Overall, 2009 turned out to be a phenomenal year with this record setting quarter for Volterra. The current macroeconomic situation continues to improve, and is having a positive impact on our business while our long term growth and profitability prospects remain very strong.
We continue to stick to our proven strategy of gaining market share by adding new customers and further penetrating our existing base of customers as new products and platforms are launched within our four target markets. Now we would like to elaborate and add some color on these four focused markets by reviewing with you both our current and future business opportunities.
Server and storage revenue was up 33% from Q3 ‘09 mainly due to the continuation of the Intel Thurley server platform ramp as well as new AMD Opteron refresh ramp using a six core CPU at HP, referred to as Gen 6, which was announced at our last earnings call. These new Intel servers at our top server customers IBM and HP and the AMD servers at HP have been very well received based on the demand they are seeing.
Both new Intel and AMD server platforms have increased total system efficiency and provide higher density over previous models. As a result, their customers are upgrading datacenters to take advantage of the performance and energy cost savings which provides a quick payback which in some cases is less than one year.