DATARAM
PRESS RELEASE
Dataram Contact: Investor Contact:
Mark Maddocks, Joe Zappulla
Chief Financial Officer Wall Street Investor Relations
Corp.
609-799-0071 212-714-2445
info@dataram.com JZappulla@WallStreetIR.com
DATARAM REPORTS FIRST QUARTER FINANCIAL RESULTS
Company resumes stock repurchase program, reduces Long-Term Debt
by $2.3 million
PRINCETON, N.J. August 21, 2002 - Dataram Corporation (NASDAQ:
DRAM) today reported its financial results for its fiscal first
quarter ended July 31, 2002. Revenues for the first quarter were
$14.3 million compared to $19.8 million in the prior quarter and
$22.6 million for the same period of the previous year. As
previously announced, the Company incurred restructuring charges,
primarily severance, during the quarter of $740,000. The
restructuring is projected to reduce costs by $2.5 million
annually. Excluding the restructuring charge, the Company
incurred a proforma loss (earnings before depreciation and
amortization charges) of $79,000. This compares to a proforma
loss of $442,000 or $0.05 per share in the prior quarter and
proforma earnings of $745,000 or $0.09 per share in the first
quarter of the prior fiscal year. The Company reported a GAAP net
loss of $1.8 million or $0.21 per share for the first quarter of
fiscal 2003 compared to a loss of $1.7 million or $0.20 per share
in the prior quarter and $1.8 million or $0.21 per share in the
first quarter of last fiscal year.
(In 000's, except per share amounts) Fourth First Quarter
Quarter
FY2002 FY2003 FY2002
Revenues $19,801 $14,281 $22,570
Proforma net earnings (loss)(1) $(442) $(79) $745
Proforma EPS $(0.05) $(0.01) $0.09
Depreciation and amortization $1,275 $1,004 $1,306
Restructuring charges -- 740 1,200
Net loss $(1,717) $(1,823) $(1,761)
EPS $(0.20) $(0.21) $(0.21)
Shares 8,490 8,483 8,524
(1) Excludes non-cash depreciation and amortization and
restructuring charges.
Robert Tarantino, Dataram's president and CEO, stated, "We have
endured a market that presented unprecedented challenges over the
last fifteen months. During that time we reduced our operating
costs by approximately $6.5 million per year, while still
preserving our key sales and manufacturing resources. Although the
extended market slowdown has adversely impacted the Company's
revenue, we believe the worst of this market downturn is behind
us. We are positioned to be successful during a period of slow
economic recovery, while maintaining the operating leverage to
dramatically increase earnings in an improving economy."
Mark Maddocks, Dataram's chief financial officer added, "We have
improved our financial condition. During the quarter, the Company
paid down $2.3 million in long-term debt, while increasing cash
and equivalents by $715,000. Since fiscal 2001 year-end, our bank
debt and capital lease obligations have decreased from $15.1
million to the current level of $1.5 million. Also, in the first
quarter, the Company resumed its open market stock repurchase
activities purchasing 38,600 shares of its common stock in the
quarter. The Company is continuing to repurchase its shares in the
second quarter."
Dataram recently announced the appointment of Lars Marcher to the
position of chief operating officer. Mr. Marcher, who joined the
Company in March 2001 after its acquisition of Memory Card
Technology A/S, is an experienced global sales and marketing
executive. He has held senior marketing management positions with
a number of international firms, most notably of which is Apple
Computer, Australia and has overseen sales and marketing efforts
in Europe and the Pacific Rim. Mr. Tarantino commented on Mr.
Marcher's promotion, "Lars' extensive background in international
sales and marketing strengthens and deepens our management team.
His contribution during this difficult market has been
instrumental in positioning Dataram for long-term growth."
In this year's first quarter, the Company entered into an
agreement to sell its undeveloped land for a price of $3.0
million. While management expects the sale to close no later than
30 months from the date of contract, the agreement is subject to
certain contingencies and as such may be terminated prior to
closing. The land is carried at cost on the Company's balance
sheet at a value of $875,000. The resulting gain on the sale will
be recorded when all contingencies have been satisfied.
Dataram will conduct a conference call at 11:00 a.m. (EDT) today
to present its first quarter financial results and to respond to
investor questions. Interested shareholders may participate in the
call by dialing 800-207-3317 and providing the following
reservation number: 20829809. 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 or 402-977-
9140 and entering the reservation number listed above.
ABOUT DATARAM CORPORATION
Dataram Corporation, celebrating its 35th year in the computer
industry, is a leading provider of computer memory. The Company
offers a specialized line of gigabyte-class memory for entry- to
enterprise-level servers, workstations and notebooks from Compaq,
Dell, Fujitsu/Siemens, HP, IBM, Intel, SGI, Sun and Toshiba.
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
7/31/2002 7/31/2001
Revenues $ 14,281 $ 22,570
Costs and expenses:
Cost of sales 10,740 15,625
Engineering and development 381 594
Selling, general and administrative 4,537 6,056
Intangible asset amortization 0 297
Restructuring charges 740 1,200
___________ __________
16,398 23,772
Loss from operations (2,117) (1,202)
Interest expense, net (44) (154)
___________ __________
Loss before income taxes (2,161) (1,356)
Income tax provision (benefit) (338) 405
___________ __________
Net loss $ (1,823) $ (1,761)
=========== ==========
Net loss per share:
Basic $ (0.21) $ (0.21)
=========== ==========
Diluted $ (0.21) $ (0.21)
=========== ==========
Average number of shares outstanding:
Basic 8,483 8,524
=========== ==========
Diluted 8,483 8,524
=========== ==========
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
July 31, 2002 April 30, 2002
_____________ ______________
ASSETS
Current assets:
Cash and cash equivalents $ 4,371 $ 3,656
Trade receivables, net 6,279 12,177
Inventories 4,466 5,435
Other current assets 1,148 532
_____________ ______________
Total current assets 16,264 21,800
Property and equipment, net 8,329 9,210
Goodwill 11,144 11,144
Other assets 439 408
_____________ ______________
$ 36,176 $ 42,562
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,507 $ 6,600
Accrued liabilities 2,249 1,687
_____________ ______________
Total current liabilities 5,756 8,287
Deferred income taxes 646 647
Long-term debt 1,500 3,800
Stockholders' equity 28,274 29,828
_____________ ______________
$ 36,176 $ 42,562
============= ==============
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.