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DATARAM 1ST QUARTER '96
DATARAM DOUBLES FIRST QUARTER PROFITS
PRINCETON, NJ, August 10, 1995--Dataram Corporation (AMEX:DTM), doubled its
profits on strong revenues for the first quarter of fiscal 1996, Robert V.
Tarantino, president and chief executive officer, announced today.
For the first quarter ended July 31, 1995, net earnings doubled to $537,000 or
$.14 per share, compared to $268,000, or $.07 per share, for the year-earlier
period. Revenues improved 12.3 percent to $24.9 million versus $22.2 million
reported for the comparable prior-year period. Excluding revenues from a
discontinued product line, revenues from memory products increased 17 percent
over first quarter of fiscal 1995.
Tarantino attributed Dataram's strong performance to continuing brisk demand
for the Company's computer memory products, combined with sharply reduced
operating expenses.
"Recent restructurings have made us a lean, cost-efficient organization which
can compete profitably and enhance a leading position in a rapidly expanding,
extremely competitive industry," Tarantino declared. "We are achieving in
excess of $1.5 million in revenues per employee, representing an almost
five-fold increase since 1992."
Tarantino said Dataram's dedicated and highly automated manufacturing facility,
which is producing and shipping customer orders within 24 hours or less, has
improved Dataram's response to customer needs for memory expansion products. As
a result, Dataram's asset management has greatly improved by substantially
reducing inventory levels.
Capitalizing on the growing popularity of more powerful personal computers,
Dataram broadened its product line late in the first quarter, Tarantino stated,
introducing memory products tailored to Hewlett-Packard, Compaq and IBM
high-end personal computers and servers.
Strong product demand was evident in both domestic and foreign markets. "We
were especially pleased with sales in Western Europe, which is recovering from
a recession," Tarantino said.
While DRAM chips remain in tight supply and are more costly, Dataram has
obtained sufficient quantities to satisfy production requirements and has been
able to pass on increased raw material costs to customers, according to
Tarantino.
The Company has sustained its solid financial condition. With no debt and an
unsecured $11 million line of credit, Tarantino said Dataram is well positioned
to finance its long term growth objectives without the need for additional
funding sources.
"We are very pleased with first quarter results and expect profitable
performance to continue," Tarantino declared. "Our efficient infrastructure is
keeping indirect expenses below 10 percent of gross revenues, which will
maximize Dataram's profitable participation in the vibrant computer memory
industry."
Dataram develops, manufactures and markets quality computer memory products for
workstations, servers and personal computers.
[DATARAM THE MEMORY SPECIALISTS LOGO]
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DATARAM 1ST QUARTER '96
DATARAM CORPORATION AND SUBSIDIARY
FIRST QUARTER FISCAL YEAR 1996
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CONSOLIDATED SUMMARY OF EARNINGS (Unaudited)
(In thousands, except per share amounts)
THREE MONTHS ENDED JULY 31, 1995 THREE MONTHS ENDED JULY 31, 1994
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Revenues $ 24,885 $ 22,163
Cost and expenses:
Cost of sales 21,854 18,487
Engineering and development 435 629
Selling, general and administrative 1,691 2,597
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23,980 21,713
Earnings from operations 905 450
Other income (expense), net 0 33
Interest expense (19) (36)
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Total other income and expenses (19) (3)
Earnings before income taxes 886 447
Income taxes 349 179
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Net Earnings $ 537 $ 268
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Net Earnings per share $ 0.14 $ 0.07
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Average number of shares outstanding 3,822 3,819
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CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
JULY 31, 1995 (Unaudited) APRIL 30, 1995 (Unaudited)
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ASSETS
Current assets:
Cash and cash equivalents $ 516 $ 722
Trade receivables, net 13,797 15,096
Inventories 7,647 8,061
Other current assets 852 1,130
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Total current assets 22,812 25,009
Property and equipment, net 2,556 2,630
Other assets 6 15
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$ 25,374 $ 27,654
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,285 $ 8,780
Accrued liabilities 920 2,244
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Total current liabilities 8,205 11,024
Deferred income taxes 240 240
Stockholders' equity:
Common stock 3,792 3,792
Additional paid-in capital 3,219 3,219
Retained earnings 9,918 9,379
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Total stockholders' equity 16,929 16,390
$ 25,374 $ 27,654
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