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 SECOND QUARTER FINANCIAL RESULTS
Company Pays Off Long-Term Debt and Continues
Open Market Share Repurchases
PRINCETON, N.J. November 20, 2002 - Dataram Corporation (NASDAQ:
DRAM) today reported its financial results for its second
quarter of fiscal 2003 ended October 31, 2002. Revenues for the
second quarter were $14.0 million compared to $14.3 million for
the previous sequential quarter and $19.2 million for the same
period of the prior year. The Company reported a net loss of
$253,000 or $0.03 per share for the second quarter compared to a
loss of $1.8 million, or $0.21 per share in the prior
sequential quarter, which includes restructuring charges of
$740,000, and net earnings of $160,000 or $0.02 per share in the
second quarter of last fiscal year.
(In 000's, except First Second Six
per share amounts) Quarter Quarter Months
___________________ _______ _______________ _______________
FY 2003 FY2003 FY2002 FY2003 FY2002
_______ _______________ _______________
Revenues $ 14,282 $ 13,970 $ 19,173 $ 28,252 $ 41,744
Net earnings (loss) (1,823) (253) 160 (2,076) (1,601)
Net earnings (loss) per share (0.21) (0.03) 0.02 (0.24) (0.19)
Diluted shares outstanding 8,483 8,504 9,291 8,494 8,502
Mark Maddocks, Dataram's CFO stated, "Our free cash flow
significantly exceeds our earnings. Non-cash depreciation and
amortization charges for the second quarter and first six months
of this fiscal year totaled approximately $1.0 million and $2.0
million, respectively, versus capital expenditures of
approximately $125,000 and $250,000, respectively, for the same
periods. These levels of non-cash charges and capital
expenditures and their impact on free cash flow are
representative of expected future levels for the remainder of
this fiscal year."
Robert Tarantino, Dataram's president and CEO, added, "During
the quarter, we improved our financial condition by paying down
$1.0 million in long-term debt. Shortly after the end of the
quarter, we paid off an additional $500,000 and we are now debt
free. Also, the Company has continued to participate in the
market for its shares, purchasing 84,900 shares of its common
stock in the quarter at a total price of $256,000 as part of its
open market repurchase program. The company will continue to
repurchase its shares during its fiscal third quarter."
Mr. Tarantino concluded, "During the last two years, we have
successfully weathered a terrible market, especially for
companies in the technology space. During that time, we have
taken the steps necessary to align our cost structure with the
realities of the market environment, while still preserving our
key capabilities. In spite of the difficult environment, we have
been cash flow positive throughout that period. We feel that the
worst of the market downturn is behind us and that the changes
we have made will allow us to grow profitably from here. We
expect our earnings to be approximately break even in the
current quarter and to return to profitability no later than the
fourth quarter of this fiscal year."
Dataram will conduct a conference call at 11:00 a.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 888-214-7566 and providing the following
reservation number: 21041357. 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 Six Months Ended
10/31/2002 10/31/2001 10/31/2002 10/31/2001
Revenues $ 13,970 $ 19,173 $ 28,252 $ 41,744
Costs and expenses:
Cost of sales 9,770 12,052 20,510 27,677
Engineering and
development 400 413 782 1,008
Selling, general and
administrative 4,269 5,210 8,806 11,266
Intangible asset
amortization 0 296 0 593
Restructuring charges 0 0 740 1,200
________ ________ ________ ________
14,439 17,971 30,838 41,744
Earnings (loss) from operations (469) 1,202 (2,586) 0
Interest income (expense), net (10) (143) (54) (297)
________ ________ ________ ________
Earnings (loss) before
income taxes (479) 1,059 (2,640) (297)
Income tax provision (benefit) (226) 899 (564) 1,304
________ ________ ________ ________
Net earnings (loss) $ (253) $ 160 $ (2,076) $ (1,601)
======== ======== ======== ========
Net earnings (loss) per share:
Basic $ (.03) $ .02 $ (.24) $ (.19)
======== ======== ======== ========
Diluted $ (.03) $ .02 $ (.24) $ (.19)
======== ======== ======== ========
Average number of shares
outstanding:
Basic 8,504 8,480 8,494 8,502
======== ======== ======== ========
Diluted 8,504 9,291 8,494 8,502
======== ======== ======== ========
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
October 31, 2002 April 30, 2002
________________ ______________
ASSETS
Current assets:
Cash and cash equivalents $ 2,591 $ 3,656
Trade receivables, net 6,881 12,177
Inventories 3,400 5,435
Other current assets 1,488 532
_________ _________
Total current assets 14,360 21,800
Property and equipment, net 7,460 9,210
Goodwill 11,144 11,144
Other assets 443 408
_________ _________
$ 33,407 $ 42,562
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,518 6,600
Accrued liabilities 1,599 1,687
_________ _________
Total current liabilities 4,117 8,287
Deferred income taxes 646 647
Long-term debt 500 3,800
Stockholders' equity 28,144 29,828
_________ _________
$ 33,407 $ 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.