"But in 2006 on a per share basis, if you back the options expense and taxes out their GAAP eps was 0.02 cents/sh. That made 2007's net income growth 600% higher than the prior year.
350% growth on 2007's GAAP eps of 0.12/sh would give you 0.42/sh... That certainly makes 0.12/sh for Q1 seem within reason to me."
No... no... no... That's not right either.
GAAP includes all the junk adjustments rather than excluding them. This is how last week's year end PR compared 2007 to 2006 results:
For full-year 2007, Ramtron reported total revenue of $51.1 million, 26% higher than total revenue of $40.5 million for full-year 2006. Full-year net income was $9.9 million, or $0.39 per share, compared with net income of $457,000, or $0.02 per share, for full-year 2006. Full-year 2007 results included a non-cash, stock-based compensation expense of $2.3 million and an income tax benefit of $7.6 million. Without these items, full-year net income would have been $4.6 million, or $0.18 per share.
ramtron.com
And the February 2006 PR described that year's non-GAAP results as follows:
Full-year 2006 income from continuing operations was $457,000, or $0.02 per share, compared with a loss from continuing operations of $2.6 million, or a loss of $0.11 per share, for the prior year. Full-year 2006 results included charges of $995,000 for non-cash stock-based compensation expense and $321,000 for amortization of purchased IP. Without these charges, full-year income from continuing operations would have been $1.8 million or a $0.07 per share (basic).
ramtron.com
So the "basic" Non-GAAP growth rate from 0f 2007/2006 was:
$4.6M/1.8M = 0.18/0.07 = 256% higher operating income without considering all the adjustments.
Now growing 2008 non-GAAP net income at 30% (and they "expect" better) from the 0.18/sh in 2007 would give you only $0.234/sh.
But if the top end of their "in excess of 30%" is the same (256%) as they reported from 2006 to 2007... we'd get non-GAAP income per share around $0.46/sh for 2008. Still... 0.12/sh for Q1 isn't very far... "out of line."
But then all that would suggest taxable income in the neighborhood of only $11.776M rather than $20M. Of course who knows how their consolidated "taxable income" differs from the "net operating income, exclusive of all the adjustments."
So there's still some "uncertainty" which the 10K notes may help to resolve. But in any case I think the 0.08/sh (GAAP) that I suggested as their target for Q1 should be a punt. In fact it might be downright disappointing depending on how the tax asset effects the income statement as they right it down and off the balance sheet. (I'm assuming it will kick the eps up like it did in Q4... but who knows.)
<Hoo><Haa> I can't wait to see what YaHoo and nasdaq.com do about reporting the 0.34/sh GAAP for Q4.
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