Analysis

Ramtron Reports 2Q2010 Financial Results

4th August 2010
ES Admin
U.S. semiconductor maker Ramtron International Corporation (Nasdaq: RMTR), a leading developer and supplier of ferroelectric-based low-power memory and integrated semiconductor products, today reported that total revenue grew 66% to $18.3 million for the second quarter of 2010, compared with $11.0 million for the same quarter last year. Net income for the second quarter of 2010 was $357,000, or $0.01 per share, compared with a net loss of $302,000, or $(0.01) per share, for the second quarter of 2009. Second-quarter 2010 results included stock-based compensation expense of $409,000, and an income tax provision of $210,000. Product gross margin for the second quarter of 2010 was 49%, compared with 47% for the second quarter of 2009.
“Demand for Ramtron products remains strong across all regions and applications,” said Bill Staunton, Ramtron’s chief executive officer. “Our growth is primarily coming from increased demand for existing products as well as the conversion of recent customer designs into production programs for a broad range of applications. In addition, demand for our V-Family of F-RAM products, which are produced at our Texas Instruments foundry, is at an all time high after 18-months of vigorous design-in activity.”

Second-Quarter 2010 Highlights:

* Product revenue grew 74% to $18.1 million, compared with $10.4 million for the second quarter of 2009.
* Integrated product revenue was $3.7 million, or 20% of F-RAM product revenue, during the second quarter of 2010, compared with $2.7 million, or 26% of F-RAM revenue, for the second quarter of 2009.
* High-density F-RAM sales, which are comprised of 1-megabit products and above, were $1.4 million, or 7% of F-RAM product revenue, for the second quarter of 2010, compared with $555,000, or 5% of F-RAM product revenue for the second quarter of 2009.
* Ramtron announced the availability of a 1-megabit serial F-RAM memory device that has been qualified to AEC-Q100 Grade 3 standards. This rigorous automotive-grade qualification expands Ramtron’s portfolio of AEC-Q100 compliant memory products to 15 devices.

“We are making significant progress within our IBM foundry project,” Staunton continued. “We are in the midst of packaging our first engineering samples, which we are planning to deliver to customers within the next 30 days. On the product development front, MaxArias wireless memory products are now sampling broadly amid much enthusiasm from potential customers. Next up will be our ultra-low power F-RAM memory devices, which we expect to begin sampling early in the fourth quarter.”

“As a result of the continuing strength of our business, we are raising our total revenue outlook for the year to between $69 million and $73 million, up from our prior forecast of revenue between $60 million and $65 million. Due to a shift in some of our IBM foundry expenses and plans to make additional investments in product development during the second half of the year, we expect 2010 GAAP net income to increase modestly to between 2.5% to 3.5% of total revenue,” added Staunton.

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