COLORADO SPRINGS, Colo. -- Ramtron International Corp. here has apparently exited the SRAM-based intellectual-property (IP) market in a move to focus on its core ferroelectric random access memory (FRAM) business.
As part of a major re-alignment announced today (April 14, 2003), Ramtron said it has reached an agreement with its customers for its ill-fated Enhanced Memory Systems (ESRAM) business, a supplier of one-transistor SRAM products. The company sells a 72-megabit IP product said to deliver four times the density than other SRAMs.
Under the terms, Ramtron will "significantly" reduce current and future expenditures associated with the development of ESRAM's products. Ramtron expects to take non-cash charges as a result of the realignment, which will be reported on May 1.
ESRAM will also be released from future development and engineering costs, and product delivery requirements. The Colorado Springs-based company will continue to provi de contract engineering and design services to certain ESRAM customers for the foreseeable future.
Ramtron's technology group, under the direction of Greg B. Jones, will assume the responsibility of seeking and developing new partnerships to exploit ESRAM's intellectual property. Limited marketing activities for the unit will be consolidated within Ramtron's FRAM product marketing organization.
"Given continuing trends in the SRAM and DRAM markets and the high costs associated with DRAM product development, we have decided to redirect our resources to focus on one working capital intensive business rather than two," said Bill Staunton, Ramtron's CEO, in a statement.
"As a result, although we will forego future ESRAM product revenues, we expect to avoid not only the engineering costs, but also the potential losses associated with the ESRAM product business," he said. "We believe that this decision is in the best interest of our shareholders and will free up resources to continue growing our profit able FRAM memory product business unit."