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 RETURNS TO PROFITABILITY
Company generates first quarter net earnings of 2 cents per share
PRINCETON, N.J. June 18, 2003 - Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its first quarter ended July 31, 2003. The
Company reported net earnings of $171,000 or $.02 per share. This compares to
a net loss of $1.8 million or $.21 per share in the first quarter of the prior
fiscal year, which included pretax restructuring charges of $740,000.
Revenues for the first quarter were $12.3 million compared to fiscal 2003
first quarter revenues of $14.3 million.
Robert Tarantino, Dataram's chairman and CEO, commented, "We are pleased with
our return to profitability in fiscal 2004. We are also encouraged by the
sequential growth in revenue we experienced for our network server and
workstation memory. Fiscal 2003's fourth quarter revenues of $12.5 million
included revenue for the PC memory market, which we have exited. Excluding
this PC memory related revenue, our revenues for network server and
workstation memory have grown by approximately $600,000 on a sequential
quarterly basis. Additionally, the restructuring we initiated at the end of
last fiscal year has reduced our costs in line with our projections."
Mark Maddocks, Dataram's vice president of finance and CFO, added, "Throughout
the economic downturn , we succeeded in maintaining positive cash flow from
operating activities in the last two fiscal years. Our return to profitability
is the result of the cost reductions we implemented in fiscal 2003. While we
continue to closely monitor our costs, we believe that business conditions are
improving." Mr. Maddocks continued, "Our balance sheet is sound and we remain
highly liquid. Our current ratio has increased to 3.7 at July 31, 2003 from
2.5 at the end of fiscal 2003. Additionally, at July 31, 2003, we had an
income tax receivable of approximately $3 million, of which approximately $2.5
million has subsequently been received. We expect to receive the balance
shortly."
Mr. Tarantino concluded, "During the last two years, we have endured a very
weak market in the IT industry. 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. Over the past several weeks, we have seen demand improve and
memory prices stabilize and in some instances increase. This and other
positive industry developments are signaling a possible improving trend in
the memory business."
Dataram will conduct a conference call today at 4:30 p.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 888-
706-4263 and providing the following reservation number: 21158106. 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)
First Quarter Ended July 31,
2003 2002
Revenues $ 12,267 $ 14,281
Costs and expenses:
Cost of sales 8,818 10,740
Engineering and development 333 381
Selling, general and administrative 2,980 4,537
Restructuring charges 0 740
__________ __________
12,131 16,398
Earnings (loss) from operations 136 (2,117)
Other income (expense), net 50 (44)
__________ __________
Earnings (loss) before income taxes 186 (2,161)
Income tax provision (benefit) 15 (338)
__________ __________
Net earnings (loss) $ 171 $ (1,823)
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Net earnings (loss) per share:
Basic $ .02 $ (.21)
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Diluted $ .02 $ (.21)
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Average number of shares outstanding:
Basic 8,497 8,524
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Diluted 8,617 8,524
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DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31, 2003 April 30, 2003
_____________ ______________
ASSETS
Current assets:
Cash and cash equivalents $ 2,068 $ 2,500
Trade receivables, net 4,850 6,292
Income tax receivable 3,138 3,138
Inventories 2,631 2,855
Deferred income taxes 723 723
Other current assets 347 111
_________ _________
Total current assets 13,757 15,619
Property and equipment, net 4,131 4,564
Other assets 46 24
_________ _________
$ 17,934 $ 20,207
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 2,678 3,208
Accrued liabilities 1,064 2,978
_________ _________
Total current liabilities 3,742 6,186
Stockholders' equity 14,192 14,021
_________ _________
$ 17,934 $ 20,207
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