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Dataram Contact: Investor Contact:
Mark Maddocks, Tim Curtiss, Wall Street Investor
Chief Financial Officer Relations Corp.
609-799-0071 216-831-6532
info@dataram.com tcurtiss@WallStreetIR.com
DATARAM REPORTS 60% EARNINGS INCREASE,
43% SALES GROWTH IN FOURTH QUARTER
. Company Reports 39% Increase in Annual Earnings over Previous Year
. Major Expansion Commenced, New European Center Opened
PRINCETON, NJ, May 24, 2000 -- Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its fiscal fourth quarter ended April 30,
2000. The Company reported net earnings of $2,409,000, or $0.24 per diluted
share, compared to $1,506,000, or $0.16 per diluted share, for the same
period of the previous year. Revenues for the quarter were $32.9 million,
an increase of 43% over the prior year's fourth quarter level of $22.9
million. Volume, measured in gigabytes shipped, increased 70% in the fourth
quarter, compared to the prior year period. Net earnings for the year ended
April 30, 2000 were $7,846,000, or $0.81 per diluted share, an increase of
39% over prior year earnings of $5,635,000, or $0.60 per diluted share.
Revenues for the year were $109.2 million, up 44% compared to $75.9 million
in the previous fiscal year.
In thousands, except Three Months ended Twelve Months ended
per share amounts April 30, April 30,
% %
2000 1999 Gain 2000 1999 Gain
____ ____ ____ ____ ____ ____
Revenues $32,874 $22,919 43% $109,152 $75,853 44%
Earnings from Operations $3,748 $2,325 61% $12,183 $8,558 42%
Net Earnings $2,409 $1,506 60% $7,846 $5,635 39%
Diluted EPS $0.24 $0.16 50% $0.81 $0.60 35%
Shares Outstanding
(diluted) 9,864 9,272 9,727 9,349
- more -
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"We have continued to grow rapidly," said Robert Tarantino, chairman and CEO
of Dataram. "This is our tenth consecutive quarter of delivering increased
year-over-year bottom line results. We are experiencing a surge in volume,
which reflects potent fundamental trends and the success of our strategy.
Internet infrastructure development and increasing corporate network
capacity are driving significant demand increases for servers. The growing
availability of broadband communications services requires carriers and
customers to increase memory capacity in these servers. These trends show
no signs of slowing. Our advanced memory enables customers to maximize the
performance of their systems."
At the end of the fourth quarter, Dataram commenced production on a new
assembly line at its manufacturing facility. This expansion will ensure
that the Company can continue to meet the requirements of its high-growth
customers. Also, in March, a new sales and marketing center in London was
established. This office will support increased coverage of European
customers.
"Our business experienced a strong quarter, with record revenues, earnings,
shipments and cash flow," noted Mark Maddocks, CFO. "Operating margins were
solid, during a period of significant memory chip price volatility. As we
enter our fiscal 2001 first quarter, we are encouraged by the strong demand
we see for our products."
Dataram will conduct a conference call at 11:00 AM, EDT on Wednesday, May 24
to provide further insights regarding its financial results and to respond
to investor questions. Interested shareholders may participate in the call
by dialing 888-869-0374 approximately 10 minutes before the call is
scheduled to begin and asking to be connected to the Dataram conference
call. A recorded replay of the call will be available from 1:00 PM on May 24
to 9:00 PM on May 25. Listeners may dial 800-252-6030 (402-220-2491 for
international callers) and use the code 6202506 for the replay. The call
will also be available on Vcall at www.vcall.com.
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.
Financial Tables to Follo
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DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
4/30/2000 4/30/1999 4/30/2000 4/30/1999
_________ _________ _________ _________
Revenues $ 32,874 $ 22,919 $ 109,152 $ 75,853
Costs and expenses:
Cost of sales 25,065 17,579 81,877 54,814
Engineering, selling,
general and admin. 4,061 3,015 15,092 12,481
_________ _________ _________ _________
29,126 20,594 96,969 67,295
Earnings from operations 3,748 2,325 12,183 8,558
Interest income, net 143 74 491 436
_________ _________ _________ _________
Earnings before income
taxes 3,891 2,399 12,674 8,994
Income taxes 1,482 893 4,828 3,359
_________ _________ _________ _________
Net earnings 2,409 1506 7,846 5,635
========= ========= ========= =========
Net earnings per common share:
Basic $ .29 $ .19 $ .99 $ .69
========= ========= ========= =========
Diluted $ .24 $ .16 $ .81 $ .60
========= ========= ========= =========
Weighted average number of
common shares outstanding:
Basic 8,218 7,953 7,953 8,182
========= ========= ========= =========
Diluted 9,864 9,272 9,727 9,349
========= ========= ========= =========
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DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(in thousands)
April 30, 2000 April 30, 1999
______________ ______________
ASSETS
Current assets:
Cash and cash equivalents $ 13,650 $ 8,093
Trade receivables, net 16,241 12,016
Inventories 4,651 3,290
Other current assets 585 475
______________ ______________
Total current assets 35,127 23,874
Property and equipment, net 5,007 3,491
Other assets 17 9
______________ ______________
$ 40,151 $ 27,374
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,538 $ 4,344
Accrued liabilities 2,878 2,092
______________ ______________
Total current liabilities 12,416 6,436
Deferred income taxes 841 919
Stockholders' equity 26,894 20,019
______________ ______________
$ 40,151 $ 27,374
============== ==============
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
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