Ramtron Reports Second-Quarter 2006 Financial Results; Company Reports EPS of $0.01 on Revenue of $10.3 Million

Semiconductor maker Ramtron International Corporation (Nasdaq:RMTR), a leading supplier of nonvolatile ferroelectric random access memory (FRAM) and integrated semiconductor products, today reported its financial results for the second quarter ended June 30, 2006.

Revenue for the second quarter increased 18% to $10.3 million, compared with $8.7 million for the same quarter of 2005. Product sales grew 21% to $9.9 million, up from $8.2 million for the same quarter a year earlier. Second-quarter income from continuing operation under generally accepted accounting principles (GAAP) was $198,000, or $0.01 per share (basic and diluted), compared with income from continuing operation of $348,000, or $0.02 per share (basic and diluted), for the same quarter a year earlier. The decrease in income from continuing operation for the second quarter of 2006 was due primarily to non-cash stock-option expense and amortization of purchased IP related to Ramtron's August 2005 acquisition of Goal Semiconductor, Inc. (now called Ramtron Canada).

Non-GAAP income from continuing operation, which excludes stock-option expense and amortization of purchased IP, for the second quarter of 2006 was $584,000, or $0.02 per share (basic). Reconciliation between GAAP income from continuing operation and non-GAAP income from continuing operation is provided in a table following the Non-GAAP Consolidated Statements of Operations. Effective January 1, 2006, Ramtron adopted SFAS 123R, "Share-Based Payment." For the second-quarter 2006, the company recorded a non-cash, stock-based compensation charge of $305,000 that is recorded directly in cost of product sales, research and development, sales and marketing, and general and administrative expenses.

"Ramtron's improved financial results were driven by increased product sales and our on-going effort to control expenses," commented Bill Staunton, Ramtron's CEO. "Our second-quarter results demonstrate that we are positioned for profitable growth, having successfully navigated through the wind down of product sales to ENEL and having absorbed the operating overhead of our Goal Semiconductor acquisition.

"Our cash balance grew $1.3 million and inventories declined $2.1 million from the first quarter of 2006 due to our operational progress and our initiatives to lower inventories," Staunton added. "We have cut cycle times in half, which will help us better respond to customer demand and convert excess inventory into additional working capital.

"Sales into the computing and metering markets were strong during the quarter, and all major regions grew on a sequential basis," Staunton continued. "Integrated product sales broke the $1-million mark for the first time and comprised 12% of total product revenue for the quarter. For the first six months of 2006, total product revenue has grown 22%, which puts us on track to meet or beat our product revenue outlook of 15% to 20% growth for the year."

Second-Quarter Product Highlights:

-- Total product sales were $9.9 million, up 21% from the year-ago comparable quarter.

-- Product gross margin was 51%, compared with 50% for the year-ago comparable quarter.

-- Core FRAM product sales, which exclude sales to ENEL, increased 44% to $9.6 million, compared with $6.6 million for the year-ago quarter. Sales to ENEL in the second quarter of 2006 were $344,000.

Second-Quarter Integrated Semiconductor Product Highlights:

-- Integrated product revenue, which includes FRAM Processor Companion, HVDAC and microcontroller sales, increased 271% to $1.2 million, or 12% of product revenue, compared with $324,000, or 4% of product revenue, for the year-ago quarter.

-- Ramtron announced the VRS51L3074, its first microcontroller product with integrated FRAM memory. FRAM enhances the microcontroller by eliminating the code overhead accompanying Flash data storage, and the limited endurance and extended write cycles of Flash or electrically erasable programmable read-only memory (EEPROM).

Business Outlook

The following statements are based on Ramtron's current expectations of results for continuing operation in the third quarter of 2006. 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.

-- Product revenue for the third quarter ending September 30, 2006, is currently anticipated to be between $10.3 million and $11.2 million, representing increases over second-quarter 2006 of 4% and 13%, respectively.

-- Other revenue for the third quarter, including license and development fees and royalties, is expected to be approximately $300,000.

-- Gross margin for the third quarter is currently anticipated to be between 50% and 54%; operating expenses are expected to be between $5.0 million and $5.3 million.

-- Stock-option expense for the third quarter is anticipated to be approximately $300,000, and amortization of purchased IP is anticipated to be approximately $80,000.

-- Revenue projections are based on, among other things, assumptions that FRAM product orders, including the rate of shipments to Ramtron's customers, will conform to management's current expectations. Costs and expenses fluctuate over time, primarily due to intermittent, non-recurring engineering charges for the development of new products and SFAS 123R-related stock option expenses.

Conference Call

Ramtron management's 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. The company plans to extend the Q&A session by inviting questions from individual investors, who will enter them from their personal computers or handheld devices. As time permits, management will read selected questions aloud to the teleconference audience and then respond accordingly.

How to Participate

Ramtron Second-Quarter 2006 Results Teleconference

July 27, 2006 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 (706) 645-9291, pass code #2785002.

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.

Non-GAAP Financial Measures

In this release, the presentation of non-GAAP data is not a measure of operating results or cash flows from operations as defined by generally accepted accounting principles (GAAP), and the company's non-GAAP disclosures are not presented in accordance with GAAP and are not intended to be used in lieu of the GAAP presentation of results of operations. Non-GAAP financial measures are presented because management believes they provide additional useful information to investors with respect to the performance of Ramtron's fundamental business activities. Non-GAAP financial measures should not be viewed as an alternative to GAAP measures of performance. Management believes the most directly comparable GAAP financial measure is income from continuing operation and has provided a reconciliation of non-GAAP to GAAP income from continuing operation in this press release.

Cautionary Statements

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, and operating expenses for the third quarter of 2006. Also, statements indicating that the company is positioned for profitable growth and on track to meet or beat its product revenue outlook are forward looking. 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 sole foundry source in a timely manner; the foundry partner's timely ability to successfully manufacture products for Ramtron; the foundry partner's ability to supply increased orders for FRAM products in a timely manner using Ramtron's proprietary technology; any disruptions of Ramtron's test or assembly contractor relationships; currency fluctuations; unexpected design and manufacturing difficulties; 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, 2005 and Quarterly Reports filed during 2006. 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.

           (Amounts in thousands, except per-share amounts)

                                     Three Months       Six Months
                                         Ended             Ended
                                       June 30,          June 30,
                                     2006     2005     2006     2005
                                   -------- -------- -------- --------
   Product sales                   $ 9,936  $ 8,220  $19,161  $15,713
   License and development fees        179      179      393      358
   Royalties                           136      158      312      389
   Customer-sponsored research and
    development                         --      125       --      250
                                   -------- -------- -------- --------
                                    10,251    8,682   19,866   16,710
                                   -------- -------- -------- --------
Costs and expenses:
   Cost of product sales             4,850    4,093    9,113    7,701
   Provision for inventory write-
    off                                 --       --       --      836
   Research and development          2,310    1,537    4,864    3,241
   Customer-sponsored research and
    development                         --      155       --      321
   Sales and marketing               1,481    1,308    2,853    2,476
   General and administrative        1,309    1,009    2,645    1,960
                                   -------- -------- -------- --------
                                     9,950    8,102   19,475   16,535
                                   -------- -------- -------- --------
Operating income from continuing
 operation                             301      580      391      175

Interest expense, related party         --      (81)      --     (162)
Interest expense, other               (147)    (183)    (317)    (393)
Other income, net                       69       32       79       48
                                   -------- -------- -------- --------
Income (loss) from continuing
 operation before income 
 tax provision                         223      348      153     (332)
Income tax provision                   (25)      --      (35)      --
                                   -------- -------- -------- --------
Income (loss) from continuing
 operation                             198      348      118     (332)
Loss from discontinued operations       --   (3,809)      --   (3,851)
                                   -------- -------- -------- --------
Net income (loss)                  $   198  $(3,461) $   118  $(4,183)
                                   ======== ======== ======== ========
Net income (loss) per common

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