Volterra Semiconductor (NASDAQ:VLTR) Driven by Huron River, Romley Platforms

Even though Volterra Semiconductor (NASDAQ:VLTR) made their recent downside pre-announcement, Needham reminded clients that their decision on naming the company as a 'Best Picks for 2011' was based on anticipated earnings growth from their Huron River and Romley Platforms.

Needham said, "While VLTR's Q4 downside pre-announcement is a disappointment, we believe investor conviction on the near-term demand was already fairly low. In upgrading the shares to Strong Buy last month, and naming it as one of our 'Best Picks for 2011' we were looking at the earnings growth into mid-2011 with the Huron River platform ramp driving notebook revenue and the Romley platform ramp doing the same for server revenue. We still believe that the 2012 estimates will have upward bias as 2011 progresses, driving up VLTR shares."

Needham & Company maintains a "Strong Buy" rating on Volterra Semiconductor, which closed Friday at $24.25, gaining $0.77, or 3.28 percent. Needham has a price target of $35 on them.