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8-K - RAMTRON INTERNATIONAL CORPORATION 8-K - RAMTRON INTERNATIONAL CORPa6621571.htm

Exhibit 99.1

Ramtron Reports Fourth-Quarter and Full-Year 2010 Financial Results

COLORADO SPRINGS, Colo.--(BUSINESS WIRE)--February 22, 2011--U.S. semiconductor maker Ramtron International Corporation (Nasdaq: RMTR), a leading developer and supplier of nonvolatile ferroelectric random access memory (F-RAM) and integrated semiconductor products, today reported total revenue of $16.1 million for the fourth quarter of 2010, compared with total revenue of $14.4 million for the same quarter last year. Net income for the fourth quarter of 2010 was $471,000, or $0.02 per share, compared with net income of $755,000, or $0.03 per share, for the fourth quarter of 2009. Fourth-quarter 2010 results included a non-cash stock-based compensation expense of $420,000, and an income tax provision of $230,000.

Fourth-Quarter Revenue and Product Highlights:

  • Product revenue was $15.9 million for the fourth quarter of 2010, compared with $13.3 million reported for the same quarter last year.
  • Product gross margin for the quarter was 52%, compared with 48% last year.
  • Ramtron announced the availability of the MaxArias Wireless Memory kit for evaluating third-generation, data-rich automatic identification applications.
  • Ramtron introduced two new 128-kilobit (Kb) high-performance nonvolatile V-Family serial F-RAM memories that meet stringent AEC-Q100 Grade 3 automotive qualification standards.

For full-year 2010, Ramtron reported total revenue of $70.2 million, compared with total revenue of $47.5 million for full-year 2009. Full-year 2010 net income was $1.6 million, or $0.06 per share, compared with net loss of $5.8 million, or $0.22 per share, for full-year 2009. Full-year 2010 results included non-cash, stock-based compensation expense of $1.7 million and income tax provision of $931,000. Full-year 2009 results included restructuring and impairment charges totaling $6.2 million.

“Strong demand during the fourth quarter combined with a delay in bringing up low-density replacement products at our new foundry exacerbated the supply constraints that materialized in the third quarter,” said Ramtron CEO, Eric Balzer. “As a result, our revenue declined from the third quarter. To ease these supply constraints, we have increased the number of products that we are manufacturing at our established foundry. These products are now shipping in modest volume as we work with our established foundry to increase wafer production to meet demand.”

We anticipate that our wafer capacity will catch up with demand beginning in the second half of the year,” Balzer continued. “For 2011, our production plans and revenue targets are based only on the capabilities of our established foundry as we continue to work to bring up our newest manufacturing line.”


Business Outlook

The following statements are based on Ramtron’s current expectations of results for the first half and full-year 2011. These statements are forward looking, and actual results may differ materially from those set forth in these statements. Ramtron intends to continue its policy of not updating forward-looking statements other than in publicly available documents, even if experience or future changes show that anticipated results or events will not be realized.

For the first six months of 2011, management currently anticipates:

  • Total revenue of approximately $25 million with a gross product margin of 50%
  • Non-recurring expense of $582,000 to be recorded during 1Q2011 in connection with the resignations of Ramtron’s prior CEO and COO
  • GAAP net loss of approximately $0.05 per share for the first six months of 2011

“The first quarter of 2011 will be very challenging in light of the supply constraints we are facing. Throughout 2011, we anticipate a sequential improvement in our product supply and product revenue on a quarterly basis. As we increase our production levels over the next two quarters, we anticipate significantly higher revenue during the second half of the year,” Balzer said.

For full-year 2011, management currently anticipates:

  • Total revenue between $65 and $70 million with a gross product margin of 51%
  • Total operating expenses of 41% of total revenue. By expense line item, sales and marketing to be 13% of total revenue, research and development to be 20% of total revenue, and general and administrative to be 8% of total revenue
  • Full-year operating expense percentages reflect the impact of an $8.5 million reduction in planned spending across the entire organization
  • GAAP net income of approximately $0.10 per share for the full-year 2011

“We regret the strain that our wafer supply issues have placed on our customers. We acknowledge our near-term challenges and are implementing a comprehensive plan to overcome them. Further, we firmly believe that our US-based foundry strategy and the associated cost advantages and product development flexibility establishes the best foundation for Ramtron’s future growth,” Balzer concluded.

Conference Call

Management will conduct a conference call to discuss fourth quarter results today at 5:00 PM Eastern Time/4:00 PM Central Time. The call will be webcast with an accompanying slide presentation, which can be accessed via a link on the Ramtron website home page. To access the webcast, investors should go to the home page of the Ramtron site at www.ramtron.com and click on the teleconference link. From this site, you can access the teleconference webcast, assuming that your computer system is configured properly. A webcast replay will be available for one year, and a telephonic replay will be available from 8:00 PM Eastern time/7:00 PM Central time on February 22 until 11:59 PM Eastern time/10:59PM Central time on March 1. To listen to the replay, please dial 617-801-6888, conference ID #15005726.

About Ramtron

Ramtron International Corporation, headquartered in Colorado Springs, Colorado, is a fabless semiconductor company that designs, develops and markets specialized semiconductor memory and integrated semiconductor solutions used in a wide range of product applications and markets.


Cautionary Statements

Except for historical information, this press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as “believe,” “expect,” “anticipate,” “should,” and “potential,” among others. These statements include statements about Ramtron’s expected revenue, gross margin, operating expenses, and net income for 2011. These forward-looking statements are inherently difficult to predict and involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to: general and regional economic conditions and conditions specific to the semiconductor industry; demand for Ramtron’s products; order cancellations or reduced order placements; product sales mix; the timely development of new technologies; competitive factors such as pricing pressures on existing products and the timing and market acceptance of new product introductions; Ramtron’s ability to maintain an appropriate amount of low-cost foundry production capacity from its foundry sources in a timely manner; our foundry partners’ timely ability to successfully manufacture products for Ramtron; our foundry partners’ ability to supply increased orders for F-RAM products in a timely manner using Ramtron’s proprietary technology; any disruptions of Ramtron’s foundry or test and assembly contractor relationships; currency fluctuations; unexpected design and manufacturing difficulties; defects in products that could result in product liability claims; and the risk factors listed from time to time in Ramtron’s SEC reports, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2009 and Quarterly Reports filed during 2010. SEC-filed documents are available at no charge at the SEC’s website (www.sec.gov) or from the company.

All forward-looking statements included in this release are based upon information available to Ramtron as of the date of this release, which may change.

The financial information in this press release and the attached financial statements have been prepared from the books and records of the company with the omission of certain information and disclosures normally included in financial statements.


RAMTRON INTERNATIONAL CORPORATION

FOURTH-QUARTER AND FULL-YEAR 2010 AND 2009 FINANCIAL HIGHLIGHTS

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per-share amounts) (unaudited)

   

Three Months Ended

Year Ended

 

Dec. 31,

 

Dec. 31,

Dec. 31,

 

Dec. 31,

2010

2009

2010

2009

Revenue:

Product sales $ 15,930 $ 13,272 $ 69,399 $ 45,182
License and development fees 179 179 717 717
Royalties 21 101 88 672
Customer-sponsored research and development -- -- -- 100
Other revenue   --   846   --   846
  16,130   14,398   70,204   47,517
Costs and expenses:
Cost of product sales 7,709 6,931 33,896 23,277
Research and development 4,261 3,252 16,965 11,207
Customer-sponsored research and development -- -- -- 113
Sales and Marketing 2,389 2,025 9,159 7,458
General and administrative 862 1,337 6,475 5,518
Restructuring -- 17 -- 844
Impairment   --   --   --   5,372
  15,221   13,562   66,495   53,789
 
Operating income (loss) 909 836 3,709 (6,272)
 
Interest expense (232) (126) (810) (384)
Other income (expense), net   24   (29)   (383)   208
 
Income (loss) before income tax benefit (provision) 701 681 2,516 (6,448)
Income tax benefit (provision)   (230)   74   (931)   621
Net income (loss) $ 471 $ 755 $ 1,585 $ (5,827)
 
Net income (loss) per common share:
Basic $ 0.02 $ 0.03 $ 0.06 $ (0.22)
Diluted $ 0.02 $ 0.03 $ 0.06 $ (0.22)
Weighted average common shares outstanding:
Basic   27,189   26,861   27,077   26,845
Diluted   28,830   27,086   28,157   26,845

RAMTRON INTERNATIONAL CORPORATION

YEAR-END 2010 AND 2009 FINANCIAL HIGHLIGHTS

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands) (unaudited)

   

 

December 31,

December 31,

2010

2009

ASSETS
Current assets:
Cash and cash equivalents $ 9,945 $ 7,541
Accounts receivable, net 9,910 7,979
Inventories 5,412 6,838
Deferred income taxes, net 368 294
Other current assets   2,332   1,360
 
Total current assets 27,967 24,012
 
Property, plant and equipment, net 21,170 15,341
Intangible assets, net 2,746 2,800
Long-term deferred income taxes, net 4,551 5,499
Other assets   398   263
 
Total assets $ 56,832 $ 47,915
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 5,995 $ 5,275
Accrued liabilities 1,843 1,549
Deferred revenue 564 645
Current portion of long-term debt   3,284   1,341
 
Total current liabilities 11,686 8,810
 
Other long term liabilities 218 210
Long-term deferred revenue

 

6

564
Long-term debt   8,924   5,873
 
Total liabilities 20,834 15,457
 
Stockholders’ equity   35,998   32,458
 
Total liabilities and stockholders’ equity $ 56,832 $ 47,915

CONTACT:
Ramtron International Corporation
Lee Brown, 719-481-7213
lee.brown@ramtron.com