3q07 financial results october 25, 2007 slide #1
TRANSCRIPT
3Q07 Financial Results
October 25, 2007
Slide #1
Welcome to the Ramtron Investor Teleconference
• Today’s Presenters
• Eric Balzer, Ramtron CFO• Financial Overview
• Bill Staunton, Ramtron CEO• Business Overview and Outlook
Slide #2
3Q2007 Financial Highlights
• Total revenue of 13.4M, up 20% over 3Q2006
• 3Q income $1.1 million, or $0.05 per share
• Product revenue of $13M, up 21%
• Other revenue was $365,000
• Product gross margin 53% compared to 53% a year ago
Slide #3
3Q Performance to Operating Model (*Before stock-based compensation expenses)
Slide #4
2007Projection*
Actual 3Q2007Performance*
Actual YTDPerformance
*
Gross margin 52%-54% 53% 53%
R&D 22% 18% 21%
Sales & marketing 14%-15% 11% 13%
General and admin.
11% 11% 11%
Net income 5.0%-6.5% 13% 8%
Balance Sheet Highlights
• Cash up $1.8 million
• EBITDA was $2.5M
• Inventories up $800K
• Receivables up $1.8M
• DSO was 47 days
• Since the beginning of 2007, total liabilities are down ~ $700,000, while total assets are up over $4 million dollars
Slide #5
Business Highlights
• Margins steady
• Doubled GAAP income
• Earnings leverage showing
• Integrated revenue up 149%
• 16 new products in seven quarters
• 11 new products in 2007 are integrated
Slide #6
End Market Highlights - Metering
• Metering generated 34% of product sales
• Metering revenue 47% of China product sales
• 132 million electronic meters to be installed over next five years
• 50% will go into China and India
• Other energy-related applications emerging
Slide #7
End Market Highlights – Auto and Computing
• Auto generated 12% of product sales
• Hyundai/Kia business will grow with new models
• Other Korean auto makers using F-RAM
• Copiers strong and cartridges hitting prior run rate with support of new custom device
• Two more custom designs complete with a new one starting in November…all for printer cartridges
Slide #8
End Market Highlights – Industrial/Other
• ISM generated 25% of product sales
• Characterized by MANY customers across a wide variety of applications
• Gaming a strong component of ISM
Slide #9
Annual Outlook Update
•Revising annual outlook for revenue growth and net income
Please review risk factors regarding forward-looking statementsoutlined in 3Q07 financial results release and SEC filings
* Before stock-based compensation expenses
Slide #10
Prior Target Current Target
Revenue Growth 20%-25% 23%-27%
Net Income* 5%-6% 7.5%-8.5%
Conclusion and Q&A
Slide #11