DATARAM
PRESS RELEASE
Dataram Contact: Investor Contact:
Mark Maddocks, Joe Zappulla
Chief Financial Officer Wall Street Investor Relations Corp.
609-799-0071 212-973-0883
info@dataram.com JZappulla@WallStreetIR.com
DATARAM REPORTS SECOND QUARTER FINANCIAL RESULTS
o Company reports after tax earnings before depreciation and
amortization of $1.5 million or $0.16 per share
o Cash and Equivalents increase $3.1 million or 26 percent
over prior quarter
PRINCETON, N.J. November 20, 2001 - Dataram Corporation (NASDAQ:DRAM) today
reported its financial results for its fiscal second quarter ended October 31,
2001. Revenues for the second quarter were $19.2 million compared to $22.6
million in the prior fiscal quarter and $39.9 million for the second quarter
of the previous fiscal year. The Company's net earnings before depreciation
and amortization for the second quarter were $1.5 million, or $0.16 per
diluted share. Consolidated net earnings increased to $160,000 or $0.02 per
diluted share from a loss of $1.8 million or $0.21 in the prior quarter, which
included restructuring charges of $1.2 million.
(In 000's, except First
per share amounts) Second Quarter Quarter Six Months
FY2002 FY2001 FY2002* FY2002* FY2001
Revenues $19,173 $39,866 $22,570 $41,744 $77,862
Net earnings (loss)
before depreciation and
amortization $1,484 $3,476 $(258) $1,226 $6,780
Net earnings (loss) $160 $3,051 $(1,761) $(1,601) $5,931
Net earnings (loss) per
diluted share $0.02 $0.31 $(0.21) $(0.19) $0.60
Shares outstanding
(diluted) 9,291 9,944 8,524 8,502 9,916
o Includes restructuring charges of $1.2 million
"The action we took to restructure our company has reduced operating costs by
$1.1 million from the previous quarter. This is in line with our projected
annual savings of $4 million," stated Robert Tarantino, Dataram's chairman and
CEO. "Although we continued to experience revenue pressure, as memory prices
continued to decline in the second quarter, our competitive position,
supported by a 34-year reputation for reliability, allowed us to maintain our
gross margin dollars."
Mr. Tarantino continued, "As part of our integration plan, Lars Marcher,
president of Dataram International has also been named a Vice-President of
Dataram Corporation and joins our corporate management team. Despite the
economic slowdown, our management team is successfully integrating our
overseas acquisition and has returned the company to profitability. We are
well along in the process of rolling out our server products to our
international sales team and expect this to positively impact our future
operating results. Our restructuring and integration plans have produced an
effective operation that is well positioned to exploit the inevitable economic
turnaround."
The Company's free cash flow significantly exceeds its net earnings. The
Company's non-cash depreciation and amortization charges through the first six
months of this fiscal year totaled approximately $2.8 million versus capital
expenditures of approximately $0.7 million. These levels of non-cash charges
and capital expenditures and their impact on free cash flow are representative
of expected future levels for at least the remainder of this fiscal year and
next fiscal year.
Dataram's chief financial officer, Mark Maddocks, added, "The continuing
weakness in demand over the last few quarters has triggered changes in both
our operating and competitive strategies. Our new cost structure positions
the company to operate and grow profitably today while providing us with the
operating leverage to significantly increase our profits as market conditions
improve." Mr. Maddocks continued, "Our cash position continues to grow with
cash and cash equivalents increasing to $15.0 million during the second
quarter from $11.9 million at the end of the prior quarter. During the second
quarter, the company purchased 91,250 shares of its common stock at a total
price of $599,000 under its existing open market repurchase authorization. We
anticipate that we will continue to participate in the market for our shares.
While our confidence in Dataram's future is certain, the sustained lack of
market visibility makes providing earnings guidance difficult at this time.
When economic and industry related developments provide us with more reliable
insight, we will provide guidance at that time."
Dataram will conduct a conference call at 4:15 p.m. (EST) today to present its
second quarter financial results and to respond to investor questions.
Interested shareholders may participate in the call by dialing 800-416-4607
and providing the following reservation number: 19996727. 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. A replay of the call will be available approximately
one hour after the completion of the conference call through Vcall and for 24
hours by dialing 800-633-8284 and entering the reservation number listed
above.
ABOUT DATARAM CORPORATION
Dataram Corporation, celebrating its 34th year in the computer industry, is a
leading provider of server, workstation, desktop, notebook and flash memory.
The Company offers a specialized line of gigabyte-class memory for entry- to
enterprise-level servers and workstations from Compaq, HP, IBM, Intel, SGI and
Sun as well as desktop, notebook and flash memory for Acer, Apple, IBM, Dell,
Compaq, Fujitsu/Siemens, and Toshiba products. Additional information is
available on the Internet at www.dataram.com.
Financial Tables Follow
DATARAM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
10/31/2001 10/31/2000 10/31/2001 10/31/2000
Revenues $ 19,173 $ 39,866 $ 41,744 $ 77,862
Costs and expenses:
Cost of sales 12,052 30,755 27,677 59,616
Engineering and development 413 415 1,007 786
Selling, general and
administrative 5,210 4,060 11,266 8,406
Intangible asset amortization 296 0 593 0
Restructuring charges 0 0 1,200 0
_______ _______ _______ ______
17,971 35,230 41,744 68,808
Earnings from operations 1,202 4,636 0 9,054
Interest income (expense),
net (143) 292 (297) 522
_______ _______ _______ ______
Earnings (loss) before
income taxes 1,059 4,928 (297) 9,576
Income taxes 899 1,877 1,304 3,645
_______ _______ _______ ______
Net earnings (loss) $ 160 $ 3,051 $ (1,601) $ 5,931
======= ======= ======= ======
Net earnings (loss) per share:
Basic $ .02 $ .36 $ (.19) $ .70
======= ======= ======= ======
Diluted $ .02 $ .31 $ (.19) $ .60
======= ======= ======= ======
Average number of shares
outstanding:
Basic 8,480 8,559 8,502 8,493
======= ======= ======= ======
Diluted 9,291 9,944 8,502 9,916
======= ======= ======= ======
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
October 31, 2001 April 30, 2001
ASSETS
Current assets:
Cash and cash equivalents $ 15,006 $ 10,236
Trade receivables, net 9,372 17,641
Inventories 3,371 5,925
Other current assets 1,388 888
__________ __________
Total current assets 29,137 34,690
Property and equipment, net 11,425 13,226
Goodwill and intangible assets, net 16,407 17,000
Other assets 409 365
__________ __________
$ 57,378 $ 65,281
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 2,000 $ 2,000
Current portion of capital lease
obligations 1,018 978
Accounts payable 3,678 7,219
Accrued liabilities 2,875 3,960
Income taxes payable 453 0
__________ __________
Total current liabilities 10,024 14,157
Deferred income taxes 948 948
Long-term debt 7,000 8,000
Long-term capital lease obligations 3,687 4,133
Stockholders' equity 35,719 38,043
__________ __________
$ 57,378 $ 65,281
========== ==========
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, 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.