Dataram Contact: 609-799-0071 info@dataram.com info@dataram.com info@dataram.com | Investor Contact: Tcurtiss@WallStreetIR.com Tcurtiss@WallStreetIR.com |
DATARAM REPORTS 47 PERCENT EARNINGS INCREASEGROWTH
IN SECOND QUARTER ON 36 PERECENT REVENUE GROWTH
Twelfth Consecutive Quarter of Year-Over-Year Earnings Increases
PRINCETON, N.J. November 8, 2000 - Dataram Corporation (NASDAQ:DRAM ) today reported financial results for its fiscal second quarter ended October 31, 2000. The Company reported a 47 percent increase in net earnings toof $3.1 million or $0.31 per diluted share. Earnings per share increased 41 percent compared to $2.1 million or $0.22 per diluted share$2.1 million or $0.22 per diluted share for the same period of the previous year. Revenues for the second quarter increased 36 percent to increased 36 percent to $39.9 million over the prior year's second quarter level of $29.4 million. Net earnings for the six month period ended October 31, 2000 were $5.9 million or $0.60 per diluted share, an increase of 64 percent over the same period of the previousior year of $3.6 million or $0.38 per diluted share. Revenues were $77.9 million, up 54 percent compared to $50.6 million in the comparable period of the previous fiscal year.
In thousands, except per share amounts | Three MonthsSecond Quarter ended | Six Months ended | ||||
2000 | 1999 | % Gain | 2000 | 1999 | % Gain | |
Revenues | $39,866 | $29,386 | 36% | $77,862 | $50,550 | 54% |
Earnings from Operations | $4,636 | $3,245 | 43% | $9,054 | $5,612 | 61% |
Net Earnings | $3,051 | $2,081 | 47% | $5,931 | $3,612 | 64% |
Diluted EPS | $0.31 | $0.22 | 41% | $0.60 | $0.38 | 58% |
Shares Outstanding (diluted) | 9,944 | 9,460 | 9,916 | 9,419 | ||
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"Dataram's performance during the second quarter surpassed our expectations," commented Robert Tarantino, Dataram's chairman and CEO. "Our products for Intel processor based servers, introduced last year, contributed significantly to our second quarter's results, and the prospects for this part of our business are strong. Sales of our compatible products continued to exceed plan."
Mr. Tarantino continuedadded, "This marks Dataram's twelfth consecutive quarter of increased year-over-year earnings. The market for our products, driven by Iincreasing demands on information technology infrastructure, presentoffers a high growth opportunity for our products, .which Our products offer a compelling solution to the needs of memory-intensive customers, including ISPs, ASPs and corporate users."
"Our operating and net margins continue to expand," added Mark Maddocks, Dataram's CFO. "As we enter our fiscal third quarter, we are encouraged by the strong demand we are seeing for server memory."
Dataram will conduct a conference call at 11:00 am AM (EST) on November 8 to present its second quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800-497-7708 approximately and askinging to be connected to the Dataram conference call. It is recommended that participants call 10 minutes before the conference call is scheduled to begin. The conference call can also be accessed over the Internet through Vcall at www.vcall.com. atwww.vcall.comwww.vcall.com. A replay of the call will be available approximately one hour after the completion of the conference call through Vcall. A replay can also be accessed via the telephone until 9:00 PM PM on November 9 by dialing 800-252-6030 (402-220-2491 for international callers) and entering the following code: 7274924.
About Dataram Corporation
Dataram Corporation is a leading provider of gigabyte memory upgrades for network servers. The Company specializes in the manufacture of large capacity memory for Compaq, Hewlett-Packard, IBM, Intel, Silicon Graphics and Sun Microsystems computers. Dataram, headquartered in Princeton, New Jersey, is celebrating its 34th year in the computer industry. Additional information is available on the Internet at www.dataram.com.atwww.dataram.com.
Financial Tables to Follow
DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
Three Months Ended | Six Months Ended | |||||
10/31/2000 | 10/31/1999 | 10/31/2000 | 10/31/1999 | |||
(Unaudited) | (Unaudited) | |||||
Revenues | $ 39,866 | $ 29,386 | $ 77,862 | $ 50,550 | ||
Costs and expenses: | ||||||
Cost of sales | 30,755 | 21,940 | 59,616 | 37,355 | ||
Engineering and development | 415 | 343 | 786 | 676 | ||
Selling, general and administrative | 4,060 | 3,858 | 8,406 | 6,907 | ||
35,230 | 26,141 | 68,808 | 44,938 | |||
Earnings from operations | 4,636 | 3,245 | 9,054 | 5,612 | ||
Interest income, net | 292 | 117 | 522 | 225 | ||
Earnings before income taxes | 4,928 | 3,362 | 9,576 | 5,837 | ||
Income taxes Net earnings | 1,877 $ 3,051 | 1,281 $ 2,081 | 3,645 $ 5,931 | 2,225 $ 3,612 | ||
Net earnings per share: Basic Diluted | $ 0.36 $ 0.31 | $ 0.27 $ 0.22 | $ 0.70 $ 0.60 | $ 0.46 $ 0.38 | ||
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Average number of shares outstanding: Basic Diluted | 8,559 9,944 | 7,791 9,460 | 8,493 9,916 | 7,809 9,419 | ||
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DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(in thousands)
July October 31, 2000 | April 30, 2000 | |||
(Unaudited) | ||||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 17,915 | $ | 13,650 |
Trade receivables, net | 17,660 | 16,241 | ||
Inventories | 6,775 | 4,651 | ||
Other current assets | 912 | 585 | ||
Total current assets | 43,262 | 35,127 | ||
Property and equipment, net | 6,183 | 5,007 | ||
Other assets | 18 | 17 | ||
$ | 49,463 | $ | 40,151 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $ | 10,471 | $ | 9,538 |
Accrued liabilities | 2,749 | 2,878 | ||
Total current liabilities | 13,220 | 12,416 | ||
Deferred income taxes | 841 | 841 | ||
Stockholders' equity | 35,402 | 26,894 | ||
$ | 49,463 | $ | 40,151 |
The information provided in this press release may include forward-looking statements relating to future events, such as the development of new products, the commencement of production, or the future financial performance of the Company. Actual results may differ from such projections and are subject to certain risks including, without limitation, risks arising from: changes in the price of memory chips, changes in the demand for memory systems for servers, increased competition in the memory systems industry, delays in developing and commercializing new products and other factors described in the Company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission, which can be reviewed at http://www.sec.gov.
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