DATARAM
PRESS RELEASE
Dataram Contact: Investor Contact:
Mark Maddocks, Joe Zappulla
Vice President-Finance, CFO Wall Street Investor Relations Corp.
609-799-0071 212-681-4100
info@dataram.com JZappulla@WallStreetIR.com
DATARAM REPORTS SECOND QUARTER FINANCIAL RESULTS
PRINCETON, N.J. June 18, 2003 - Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its second quarter ended October 31, 2003.
Revenues for the second quarter were $12.6 million, an increase of $371,000 or
3 percent from the prior sequential quarter revenues of $12.3 million, and
compares to revenues of $14.0 million for the second quarter of last fiscal
year. The Company incurred a net loss of $163,000 or $0.02 per share in the
second quarter compared to net earnings of $171,000 or $0.02 per share in the
first quarter of the current fiscal year and a net loss of $253,000 or $0.03
per share in the second quarter of the previous fiscal year.
(In 000's, except First
per share amounts) Quarter Second Quarter Six Months
__________________ _______ _________________ _________________
FY 2004 FY 2004 FY 2003 FY 2004 FY 2003(1)
_______ _______ _______ _______ _______
Revenues $12,267 $12,638 $13,970 $24,905 $28,251
Earnings (loss)
from operations 136 (186) (469) (50) (2,640)
Net earnings (loss) 171 $ (163) $ (253) 8 (2,075)
Earnings (loss) per share 0.02 $ (0.02) $ (0.03) 0.00 (0.24)
(1) Includes a pretax restructuring charge of $740,000.
Robert V. Tarantino, Dataram's chairman and CEO, commented, "We are encouraged
by recent improvements in our level of business. Our order rate improved in
the second quarter, particularly in the latter part of the quarter. Total
bookings were approximately $15 million. The business we booked in excess of
our revenues this quarter is scheduled to ship in the upcoming quarter."
Mark Maddocks, Dataram's vice president of finance and CFO, added, "Our
margins in the second quarter were impacted by a rapid rise in the price of
certain DRAMs. While in the long run, an increase in price levels is good for
our industry, the impact of rapidly rising prices reduced our gross margin in
the second quarter by approximately 2% from what it would otherwise have been
as selling prices for certain orders were locked in before inventory could be
obtained. Third quarter gross margins are expected to be at the historically
normal level of 25% or better. Our engineering and SG&A costs decreased by
approximately $120,000 on a sequential quarterly basis to approximately $3.2
million and we expect third quarter costs to remain at approximately the same
level."
Mr. Maddocks continued, "Our balance sheet remains sound and we are highly
liquid. Our cash and cash equivalents increased to $4.3 million as of October
31, 2003 from $2.1 million at the end of the previous fiscal quarter,
primarily due to the receipt of our income tax receivable. Our current ratio
has improved to 4.1 at October 31 from 2.5 at the beginning of the fiscal
year."
Mr. Tarantino concluded, "We continue to see improvement in demand, albeit
sporadic. We expect to continue to achieve revenue growth in the third and
fourth quarter and margin levels that will support net profitability for the
remainder of the fiscal year."
Dataram will conduct a conference call today at 4:30 p.m. (EST) today to
present its first quarter financial results and to respond to investor
questions. Interested shareholders may participate in the call by dialing 800-
731-1418 and providing the following reservation number: 21166120. 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, order cancellations, 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)
Second Quarter Ended Six Months Ended
October 31, October 31,
2003 2002 2003 2002
Revenues $ 12,638 $ 13,970 $ 24,905 $ 28,252
Costs and expenses:
Cost of sales 9,632 9,770 18,450 20,510
Engineering and development 313 400 646 782
Selling, general and
administrative 2,879 4,269 5,858 8,806
Restructuring charges - - - 740
________ ________ ________ ________
12,824 14,439 24,954 30,838
Loss from operations (186) (469) (49) (2,586)
Other income (expense), net 8 (10) 57 (54)
________ ________ ________ ________
Earnings (loss) before
income taxes (178) (479) 8 (2,640)
Income tax benefit (15) (226) - (564)
________ ________ ________ ________
Net earnings (loss) $ (163) $ (253) $ 8 $ (2,076)
======== ======== ======== ========
Net earnings (loss)
per share:
Basic $ (0.02) $ (0.03) $ 0.00 $ (0.24)
======== ======== ======== ========
Diluted $ (0.02) $ (0.03) $ 0.00 $ (0.24)
======== ======== ======== ========
Average number of
shares outstanding:
Basic 8,497 8,504 8,497 8,494
======== ======== ======== ========
Diluted 8,497 8,504 8,709 8,494
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DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 31, 2003 April 30, 2003
ASSETS
Current assets:
Cash and cash equivalents $ 4,258 $ 2,500
Trade receivables, net 5,611 6,292
Income tax receivable 50 2,855
Inventories 2,407 3,138
Deferred income taxes 822 723
Other current assets 381 111
Total current assets 13,529 15,619
__________ __________
Property and equipment, net 3,745 4,564
Other assets 50 24
__________ __________
Total assets $ 17,324 $ 20,207
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 2,694 $ 3,208
Accrued liabilities 601 2,978
__________ __________
Total current liabilities 3,295 6,186
Stockholders' equity 14,029 14,021
__________ __________
Total liabilities and
stockholders' equity $ 17,324 $ 20,207
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