Attached files
file | filename |
---|---|
8-K - FORM 8-K - RAMTRON INTERNATIONAL CORP | d245588d8k.htm |
Exhibit 99.1
NEWS FOR RELEASE: 10/20/2011, 4pm ET | CONTACT: | Lee Brown | ||
(719) 481-7213 | ||||
lee.brown@ramtron.com |
RAMTRON REPORTS THIRD-QUARTER 2011
FINANCIAL RESULTS
Ramtron posts $0.04 per share profit on quarterly revenue of $22.0 Million
Total revenue up 31% from 2Q2011
COLORADO SPRINGS, COOctober 20, 2011 Ramtron International Corporation (Nasdaq: RMTR), a leading developer and supplier of low power nonvolatile ferroelectric random access memory (F-RAM) and integrated semiconductor products, today reported its financial results for the third quarter of 2011.
2011 Third-Quarter Financial Highlights
| Total revenue grew 31% sequentially to $22.0 million, compared to $16.8 million in the second quarter of 2011 |
| Sequential revenue growth was driven by increased product shipments to customers as the company executed its capacity expansion plan |
| Net income was $1.2 million, or $0.04 per share, compared with a net loss of $683,000, or ($0.02) per share, for the second quarter of 2011 |
| Product gross margin increased to 51%, compared to a margin of 47% in the second quarter of 2011 |
| Product gross margin expanded due to a combination of a more favorable mix of products, higher yields, and lower test costs |
2011 Third-Quarter Corporate and Product Highlights
| Completed an offering of 5.5 million shares of common stock resulting in net proceeds of approximately $9.8 million. As a result, the weighted average common shares outstanding increased from approximately 28 million shares for the second quarter of 2011, to 32.1 million shares for the third quarter of 2011. |
| Appointed Pete Zimmer as vice president of sales. Mr. Zimmer brings 29 years of semiconductor sales management, engineering, marketing and quality assurance experience to his position at Ramtron. |
| Announced pre-qualification sampling of a 64-Kilobit F-RAM product built on the companys new manufacturing line in Burlington, VT |
Our supply chain team executed exceptionally well during the quarter, which allowed us to work through a significant portion of our backlog and further improve our customer deliveries, said Eric Balzer, Ramtrons chief executive officer. As a result of our recent progress, we remain on track to completely resolve our supply constraints during the fourth quarter.
With the recent hiring of highly experienced sales and marketing executives, we are positioning Ramtron to be more agile, market-driven, and customer centric, which is aimed at improving our time to market and revenue, Balzer continued. We believe the alignment of our improved supply chain with the strengthening of our marketing and sales organization will invigorate the rollout of our wireless memory products and support the pending introduction of the worlds most energy efficient nonvolatile memory products.
-more-
RAMTRON REPORTS THIRD-QUARTER 2011 FINANCIAL RESULTS
The Company reported total revenue of $22.0 million for the third quarter of 2011, compared with $19.9 million for the same quarter last year. Product gross margin for the third quarter of 2011 was 51%, compared with 52% for the third quarter of 2010.
The Company reported net income of $1.2 million, or $0.04 per share, for the third quarter of 2011, compared with net income of $342,000, or $0.01 per share, for the third quarter of 2010. Third-quarter 2011 results included stock-based compensation expense of $558,000 and an income tax provision of $529,000. At September 30, 2011, the Companys cash and cash equivalents totaled $8.2 million.
2011 Full-Year Outlook
Given the considerable progress we have made in product deliveries, building capacity at our Texas wafer source, and our year-to-date revenue of $49.4 million, we are confident that full-year revenue of between $65 million and $70 million is achievable, said Eric Balzer, Ramtrons CEO. Although we expect continued improvement in yields and lower product testing costs in the fourth quarter, we will begin to depreciate equipment on our new manufacturing line, which we expect to add approximately $400,000 to our expenses in the fourth quarter. Further, indications of weakening demand in the overall semiconductor industry have caused us to slow down the pace of investments in engineering resources. Taking these factors into account along with our current outlook for gross margin and operating expenses in the fourth quarter, we are revising our EPS forecast and now anticipate net income of $0.02 to $0.05 per share for the second half of 2011.
With our supply constraints rapidly moving behind us, we are intensifying our focus on creating new and innovative products that leverage our F-RAM technology advantage, Balzer continued. We build our products on the most advanced F-RAM manufacturing process in the world and this advantage provides an exciting opportunity for us to develop highly differentiated products that add significant value to our customers products.
Conference Call
Ramtron managements teleconference today will be webcast live on the corporate website. Management plans to webcast slides to support its prepared remarks on quarterly results and business outlook, and then host a live question-and-answer session with institutional investors and research analysts.
How to Participate
Ramtron Third-Quarter 2011 Results Teleconference
October 20, 2011 at 2:00 p.m. PT / 5:00 p.m. ET
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 for seven days after the live call at 617-801-6888, code #20805334.
-more-
RAMTRON REPORTS THIRD-QUARTER 2011 FINANCIAL RESULTS
About Ramtron
Ramtron International Corporation, headquartered in Colorado Springs, Colorado, is a fabless semiconductor company that designs, develops and markets specialized semiconductor memory, microcontroller 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 Ramtrons prospects for future growth and expected revenue and net income for full-year 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 Ramtrons 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; Ramtrons 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 Ramtrons proprietary technology; any disruptions of Ramtrons 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 Ramtrons SEC reports, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2010, and quarterly reports on Form 10Q for 2011. SEC-filed documents are available at no charge at the SECs 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.
-XXX-
(financial statements attached)
-more-
RAMTRON REPORTS THIRD-QUARTER 2011 FINANCIAL RESULTS
RAMTRON INTERNATIONAL CORPORATION
THIRD-QUARTER FINANCIAL HIGHLIGHTS
CONSOLIDATED INCOME STATEMENTS
(Amounts in thousands, except per-share amounts)
(Unaudited)
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue: |
||||||||||||||||
Product sales |
$ | 21,736 | $ | 19,678 | $ | 48,712 | $ | 53,469 | ||||||||
License and royalty revenue |
227 | 204 | 655 | 605 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
21,963 | 19,882 | 49,367 | 54,074 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Costs and expenses: |
||||||||||||||||
Cost of product sales |
10,729 | 9,370 | 25,044 | 26,186 | ||||||||||||
Research and development |
4,988 | 4,895 | 13,756 | 12,705 | ||||||||||||
Sales and marketing |
2,648 | 2,478 | 7,313 | 6,770 | ||||||||||||
General and administrative |
1,786 | 1,941 | 5,666 | 5,614 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
20,151 | 18,684 | 51,779 | 51,275 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income (loss) |
1,812 | 1,198 | (2,412 | ) | 2,799 | |||||||||||
Interest expense |
(192 | ) | (250 | ) | (612 | ) | (578 | ) | ||||||||
Other income (expense), net |
81 | (385 | ) | 37 | (406 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before income tax benefit (provision) |
1,701 | 563 | (2,987 | ) | 1,815 | |||||||||||
Income tax benefit (provision) |
(529 | ) | (221 | ) | 1,097 | (701 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ | 1,172 | $ | 342 | $ | (1,890 | ) | $ | 1,114 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per common share: |
||||||||||||||||
Basic and Diluted |
$ | 0.04 | $ | 0.01 | $ | (0.07 | ) | $ | 0.04 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
31,748 | 27,100 | 29,073 | 27,056 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted |
32,102 | 28,364 | 29,073 | 27,932 | ||||||||||||
|
|
|
|
|
|
|
|
-more-
RAMTRON REPORTS THIRD-QUARTER 2011 FINANCIAL RESULTS
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
September 30, | December 31, | |||||||
2011 (unaudited) |
2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 8,173 | $ | 9,945 | ||||
Accounts receivable, net |
11,657 | 9,910 | ||||||
Inventories |
16,690 | 5,412 | ||||||
Deferred income taxes, net |
162 | 368 | ||||||
Other current assets |
1,398 | 2,332 | ||||||
|
|
|
|
|||||
Total current assets |
38,080 | 27,967 | ||||||
Property, plant and equipment, net |
23,433 | 21,170 | ||||||
Intangible assets, net |
2,750 | 2,746 | ||||||
Deferred income taxes, net |
5,910 | 4,551 | ||||||
Other assets |
385 | 398 | ||||||
|
|
|
|
|||||
Total assets |
$ | 70,558 | $ | 56,832 | ||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 10,756 | $ | 5,995 | ||||
Accrued liabilities |
2,590 | 1,843 | ||||||
Deferred revenue |
86 | 564 | ||||||
Current portion of long-term debt |
3,520 | 3,284 | ||||||
|
|
|
|
|||||
Total current liabilities |
16,952 | 11,686 | ||||||
Other long term liabilities |
210 | 224 | ||||||
Long-term debt, less current portion |
6,495 | 8,924 | ||||||
|
|
|
|
|||||
Total liabilities |
23,657 | 20,834 | ||||||
Stockholders equity |
46,901 | 35,998 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders equity |
$ | 70,558 | $ | 56,832 | ||||
|
|
|
|