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Dataram Contact: Investor Contact:
Mark Maddocks, Chief Financial Officer Tim Curtiss, Wall Street Investor
Relations Corp.
609-799-0071 216/831-6532
info@dataram.com tcurtiss@WallStreetIR.com
DATARAM REPORTS 36 PERCENT REVENUE INCREASE IN THIRD QUARTER
. Company Reports 28% Increase in Earnings over Previous Year
. European Sales and Marketing Center to Open in Fourth Quarter
PRINCETON, NJ, February 9, 2000 - Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its fiscal third quarter ended January 31,
2000. The Company reported net earnings of $1,825,000, or $0.19 per diluted
share, compared to $1,422,000, or $0.15 per diluted share, for the same period
of the previous year. Revenues for the quarter were $25.7 million, an
increase of 36% over the prior year's third quarter level of $18.9 million.
Volume, measured in gigabytes shipped, increased 53% in the third quarter,
compared to the prior year period. Net earnings for the nine month period
ended January 31, 2000 were $5,438,000, or $0.56 per diluted share, an
increase of 32% over the same period of the prior year of $4,130,000, or $0.44
per diluted share. Revenues were $76.3 million, up 44% compared to $52.9
million in the comparable period of the previous fiscal year.
In thousands, except Three Months ended Nine Months ended
per share amounts January 31 January 31
____________________ _________________________ ________________________
% %
2000 1999 B/(W) 2000 1999 B/(W)
_______ _______ ____ _______ _______ ____
Revenues $25,728 $18,922 36% $76,278 $52,934 44%
Earnings from Operations $ 2,823 $ 2,037 39% $ 8,436 $ 6,234 35%
Net Earnings $ 1,825 $ 1,422 28% $ 5,438 $ 4,130 32%
Diluted EPS $ 0.19 $ 0.15 27% $ 0.56 $ 0.44 27%
Shares Outstanding
(diluted) 9,781 9,593 9,658 9,403
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"This is our ninth consecutive quarter of delivering increased year-over-year
bottom line results. We were pleased with the strong development of our
business," said Robert Tarantino, chairman and CEO of Dataram. "Despite
concerns about customer inventory levels and purchasing patterns during the
Y2K changeover, our business showed real strength during this period."
Tarantino added, "The important trends driving our expansion remain the
explosive rate of investment in Internet infrastructure and the needs of our
customers to increase the capacity of their computing systems. Availability of
broadband communications services will require carriers and users to increase
server capacity. The evolution of multimedia image transmission will drive
continuing investment in advanced memory solutions."
During the third quarter, the Company implemented two initiatives designed to
enhance shareholder value. Dataram completed a three-for-two stock split on
December 15, 1999. In late January, the company applied for and received
permission to transfer its shares to NASDAQ, which became effective on
February 1.
"Dataram's new sales and marketing center in Europe is on schedule to become
fully operational this quarter. The European community is poised for
significant growth in its Internet infrastructure," noted Tarantino. "We are
excited about the opportunity to increase our market coverage and service
levels in this large, dynamic region of the memory marketplace"
"An important contributor to our strong sales increase in the third quarter
was growth in the OEM business segment," added Mark Maddocks, CFO.
"Negligible one year ago, this rapidly expanding segment of our business added
significantly to sales growth in the quarter. As a by-product of this avenue
of revenue growth, gross profit margins have declined slightly, as we
anticipated." Maddocks continued, "As we enter our fiscal fourth quarter, we
are encouraged by the strong demand we have observed in both our compatibles
and OEM business."
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Dataram will conduct a conference call at 11:00 AM, EST on Wednesday, February
9 to provide further insights regarding its financial results and to respond
to investor questions. Interested shareholders may participate in the call by
dialing 800/670-3540 approximately 10 minutes before the call is scheduled to
begin and asking to be connected to the Dataram conference call. A recording
of the call will be available from 1:00 PM to 9:00 PM on February 9.
Listeners may dial 800/633-8284 and use the code 14384882 for the replay.
Participants may also use V-Call.
Dataram Corporation is a leading provider of gigabyte memory upgrades for
workstations and network servers. The Company specializes in the manufacture
of large-capacity memory boards for Compaq/Digital, Dell, Hewlett-Packard,
IBM, Intel, Silicon Graphics and Sun Microsystems computers.
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
workstations and 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
- Financial Tables to follow -
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DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
1/31/2000 1/31/1999 1/31/2000 1/31/1999
_________ _________ _________ _________
(Unaudited) (Unaudited)
Revenues $ 25,728 $ 18,922 $ 76,278 $ 52,934
Costs and expenses:
Cost of sales 19,457 13,869 56,811 37,234
Engineering and development 372 355 1,048 1,058
Selling, general and
administrative 3,076 2,661 9,983 8,408
______ ______ ______ ______
22,905 16,885 67,842 46,700
Earnings from operations 2,823 2,037 8,436 6,234
Interest income, net 123 110 348 362
______ ______ ______ ______
Earnings before income taxes 2,946 2,147 8,784 6,596
Income taxes 1,121 725 3,346 2,466
______ ______ ______ ______
Net earnings $ 1,825 $ 1,422 $ 5,438 $ 4,130
====== ====== ====== ======
Net earnings per share:
Basic $ 0.23 $ 0.18 $ 0.69 $ 0.50
====== ====== ====== ======
Diluted $ 0.19 $ 0.15 $ 0.56 $ 0.44
====== ====== ====== ======
Average number of shares
outstanding:
Basic 7,983 8,108 7,867 8,256
====== ====== ====== ======
Diluted 9,781 9,593 9,658 9,403
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DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(in thousands)
January 31, 2000 April 30, 1999
________________ ______________
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 12,406 $ 8,093
Trade receivables, net 11,098 12,016
Inventories 3,970 3,290
Other current assets 1,050 475
__________ __________
Total current assets 28,524 23,874
Property and equipment, net 3,812 3,491
Other assets 9 9
__________ __________
$ 32,345 $ 27,374
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,748 $ 4,344
Accrued liabilities 1,972 2,092
__________ __________
Total current liabilities 7,720 6,436
Deferred income taxes 919 919
Stockholders' equity 23,706 20,019
__________ __________
$ 32,345 $ 27,374
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