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3Q07 Financial Results October 25, 2007 Slide #1

3Q07 Financial Results October 25, 2007 Slide #1

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Page 1: 3Q07 Financial Results October 25, 2007 Slide #1

3Q07 Financial Results

October 25, 2007

Slide #1

Page 2: 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

Page 3: 3Q07 Financial Results October 25, 2007 Slide #1

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

Page 4: 3Q07 Financial Results October 25, 2007 Slide #1

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%

Page 5: 3Q07 Financial Results October 25, 2007 Slide #1

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

Page 6: 3Q07 Financial Results October 25, 2007 Slide #1

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

Page 7: 3Q07 Financial Results October 25, 2007 Slide #1

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

Page 8: 3Q07 Financial Results October 25, 2007 Slide #1

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

Page 9: 3Q07 Financial Results October 25, 2007 Slide #1

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

Page 10: 3Q07 Financial Results October 25, 2007 Slide #1

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%

Page 11: 3Q07 Financial Results October 25, 2007 Slide #1

Conclusion and Q&A

Slide #11