Ramtron International Corp. Reports Operating Results (10-Q)
Buzz up!
Nov. 04, 2009 | Filed Under: RMTR
10qk
Ramtron International Corp. (RMTR) filed Quarterly Report for the period ended 2009-09-30.
Ramtron International Corporation and its subsidiaries are engaged primarily in the design development manufacture and sale of specialty high performance semiconductor memory devices. Ramtron was the first company to introduce ferroelectric technology in commercial memory products beginning with a 4 kilobit parallel interface product. This product established volume production and demonstrated the benefits of FRAM in a commercial application. Ramtron International Corp. has a market cap of $48 million; its shares were traded at around $1.73 with a P/E ratio of 173 and P/S ratio of 0.8.
Highlight of Business Operations:
On August 18, 2009, the Company executed an Amended and Restated Loan and Security Agreement ("Amended Loan Agreement") with Silicon Valley Bank ("SVB"). The Amended Loan Agreement provides for a $6 million working capital line of credit with a $1.75 million sublimit for EXIM advances and a sublimit of $3 million for letters of credit and foreign exchange exposure and cash management services. The Amended Loan Agreement replaces the Company's Amended and Restated Loan and Security Agreement dated September 15, 2005. The Amended Loan Agreement provides for interest at a floating rate equal to the SVB prime lending rate plus 1.75% to 2.25% per annum depending upon cash balances and loan availability maintained at SVB. The term is two years expiring on August 18, 2011, with a commitment fee of $40,000 paid at signing and $40,000 on the first anniversary. There is also a .375% unused line fee, payable monthly in arrears. Security for the Amended Loan Agreement includes all of the Company's assets except for real estate and leased equipment. The related borrowing base is comprised of the Company's trade receivables. The Company plans to draw upon loan facility for working capital purposes as required.
Net income was $131,000, or $0.01 per share, for the three months ended September 30, 2009, compared with net income of $1.4 million, or $0.05 per share, for the three months ended September 30, 2008. Results for the three months ended September 30, 2009 included a restructuring charge of $40,000; no such charges were booked in 2008.
Net loss was $6.6 million, or $(0.24) per share, for the nine months ended September 30, 2009, compared with net income of $2.3 million, or $0.10 per share, for the nine months ended September 30, 2008. Results for the nine months ended September 30, 2009 included restructuring and impairment charges of $6.2 million; no such charges were recorded in 2008.
Research and development expense, including customer-sponsored research and development expense, was $3 million, which was a decrease of $200,000 from 2008. This decrease was due primarily to a $500,000 reduction in intellectual property amortization, depreciation, rent and compensation expenses as a result of the closure of our Montreal design center during the first quarter of 2009. The Company also reduced headcount at our corporate headquarters in the first quarter coupled with an overall salary reduction initiative, which lowered expenses approximately $100,000 compared to the prior quarter. These amounts were offset by processing expenses of $400,000 relating to our IBM foundry project.
Other income for the three months ended September 30, 2009 was $51,000 compared to $55,000 of other expense for the same period in 2008. This change of $106,000 was due primarily gains on Japanese currency of $42,000 compared to a $109,000 loss in the prior year period due to timing of our Yen purchases and related payments during the quarter.
For the nine months ended September 30, 2009, the Company recorded a $547,000 income tax benefit. This benefit was primarily a non-cash transaction and our effective tax rate was approximately 8%. This lower effective rate is due to the write-off of approximately $5.4 million in goodwill and other intangible assets in which the Company did not have a tax basis. During the nine months ended September 30, 2008, the Company recorded a $1.6 million non-cash tax provision as the Company generated pre-tax income of $4.3 million compared to a pre-tax loss of $7.1 million for the nine months ended September 30, 2009.
Read the The complete Report |
