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 FOURTH QUARTER FINANCIAL RESULTS
PRINCETON, N.J. June 18, 2003 - Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for the fourth quarter and fiscal year ended
April 30, 2003. Revenues for the fourth quarter were $12.5 million compared
to third quarter revenues of $12.8 million and revenues of $19.8 million for
the fourth quarter of the previous fiscal year.
During the fourth quarter, the Company announced a restructuring of its
operations. As part of the restructuring, the Company ceased production of
memory for the PC market and closed its production facility in Aarhus,
Denmark. The Company has consolidated all manufacturing into its facility
located in Bucks County, Pennsylvania. As a result, the Company reduced its
workforce by approximately 28 percent and incurred a consolidated pretax
charge of approximately $3.8 million in the fourth quarter, which consists
primarily of additional depreciation and amortization of fixed assets, a
provision for leasehold impairment, a write down of PC related inventory and
severance payments. Additionally, the Company wrote-off its purchased goodwill
of approximately $11.1 million. Of these amounts, $300,000 has been charged to
cost of sales, with the balance recorded as restructuring charges of $3.1
million and asset impairment charges of $11.5 million, which is net of the
effect of certain foreign exchange translation gains.
The Company's net loss, inclusive of these charges, was $12.7 million or $1.50
per share for the quarter. This compares to a net loss of $793,000 or $0.09
per share in the third quarter of fiscal year 2003 and a net loss of $1.7
million or $0.20 per share in the fourth quarter of last fiscal year. The net
loss for the fiscal year was $15.6 million or $1.84 per share compared to a
net loss of $8.1 million or $0.95 per share in the prior comparable period.
Robert Tarantino, Dataram's chairman and CEO, commented, "Throughout fiscal
2002 and 2003 we have generated positive cash flow from operations and paid
off more than $15 million of debt. The actions we took in the fourth quarter
are expected to reduce our operating costs by approximately $7 million,
annually. Our production capacity in the U.S. is more than sufficient to meet
current levels of demand. Our U.S. operation, coupled with our European
distribution center, can produce and deliver orders anywhere in the world,
usually within 24 hours."
Mark Maddocks, Dataram's vice president of finance and CFO, stated, "Dataram's
financial condition remains strong. We have generated positive cash flow
during a two year period of economic weakness and delivered solid balance
sheet metrics. The Company has no long-term debt, a current ratio of 2.5-to-1
and a quick ratio of 1.4-to-1. Additionally, we carry a tax receivable of
$3.1 million on the balance sheet, which we expect to receive in the next few
months and our undeveloped property, which is carried on our books for
$875,000, is contracted for sale for $3 million."
Mr. Tarantino concluded, "We remain confident in our long-term prospects and
our ability to meet improved demand for our products. Our management team is
focused on growing revenue, managing operating costs and returning to
profitability. The memory market has shown signs of recovery in recent months
and sales are in line with our expectations. Looking forward, we are
encouraged by current business trends and, coupled with the costs savings
associated with our fourth quarter restructuring, we expect to operate
profitably in fiscal 2004."
Dataram will conduct a conference call today at 4:15 p.m. (EDT) today to
present its fourth quarter and full fiscal year financial results and to
respond to investor questions. Interested shareholders may participate in the
call by dialing 800-883-9624 and providing the following reservation number:
21151433. 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 is a worldwide leader in the design and manufacture of high capacity,
reliable and innovative memory solutions. With over 36 years experience
Dataram provides customized memory solutions for OEMs and compatible memory
for leading brands including HP/Compaq, Dell, IBM, SGI, Sun Microsystems and
Intel. For more information about Dataram, visit www.dataram.com
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.
Financial Tables Follow
DATARAM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended Year Ended
4/30/2003 4/30/2002 4/30/2003 4/30/2002
Revenues $ 12,520 $ 19,801 $ 53,529 $ 81,190
Costs and expenses:
Cost of sales 9,734 16,514 39,529 56,737
Engineering and development 383 393 1,539 1,839
Selling, general and
administrative 4,056 4,973 17,204 21,532
Asset impairment charge 11,535 0 11,535 5,856
Restructuring charges 3,065 0 3,805 1,200
________ ________ ________ ________
28,773 21,880 73,612 87,164
Loss from operations (16,253) (2,079) (20,083) (5,974)
Interest expense, net (28) (91) (84) (916)
________ ________ ________ ________
Loss before income taxes (16,281) (2,170) (20,167) (6,890)
Income tax provision (benefit) (3,546) (453) (4,563) 1,211
________ ________ ________ ________
Net loss $ (12,735) $ (1,717) $ (15,604) $ (8,101)
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Net loss per share:
Basic $ (1.50) $ (0.20) $ (1.84) $ (0.95)
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Diluted $ (1.50) $ (0.20) $ (1.84) $ (0.95)
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Average number of shares outstanding:
Basic 8,502 8,490 8,500 8,487
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Diluted 8,502 8,490 8,500 8,487
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DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
April 30, 2003 April 30, 2002
______________ _____________
ASSETS
Current assets:
Cash and cash equivalents $ 2,500 $ 3,656
Trade receivables, net 6,292 11,478
Inventories 2,855 5,435
Income tax receivable 3,138 699
Other current assets 834 532
__________ _________
Total current assets 15,619 21,800
Property and equipment, net 4,564 9,210
Goodwill 0 11,144
Other assets 24 408
__________ _________
$ 20,207 $ 42,562
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LIABILITIES AND STOCKHOLDERS'' EQUITY
Current liabilities:
Accounts payable 3,207 6,600
Accrued liabilities 2,978 1,687
__________ _________
Total current liabilities 6,185 8,287
Deferred income taxes 0 647
Long-term debt 0 3,800
Stockholders'' equity 14,022 29,828
__________ _________
$ 20,207 $ 42,562
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