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 INCREASED EARNINGS
IN THIRD QUARTER
o Company Earns $.08 Per Diluted Share in Third Quarter
o Sequential Revenue Growth of 36%
PRINCETON, N.J. February 18, 2004 - Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its third quarter ended January 31, 2004.
Revenues for the third quarter were $17.1 million, an increase of $4.5
million or 36 percent from the prior sequential quarter revenues of $12.6
million, and compares to revenues of $12.8 million for the third quarter of
last fiscal year. Net earnings for the third quarter were $732,000 or $0.08
per diluted share compared to a net loss of $163,000 or $0.02 per share in
the second quarter of the current fiscal year and a net loss of $793,000 or
$0.09 per share in the third quarter of the previous fiscal year.
Revenues for the first nine months of the current fiscal year were $42.0
million compared to $41.0 million for the previous fiscal year period. Net
earnings for this period were $741,000 or $0.08 per diluted share compared
to a net loss of $2.9 million or $0.34 per share for the prior year
comparable period.
(In 000's, except per Second Third Nine
share amounts) Quarter Quarter Months
FY 2004 FY 2004 FY 2003 FY 2004 FY
2003(1)
Revenues $ 12,638 $ 17,131 $ 12,758 $ 42,036 $ 41,010
Earnings (loss) from
operations (186) 711 $ (1,244) 662 (3,830)
Net earnings (loss) (163) 732 $ (793) 741 (2,869)
Diluted earnings (loss)
per share (0.02) $ 0.08 $ (0.09) 0.08 (0.34)
(1) Includes a pretax restructuring charge of $740.
Robert V. Tarantino, Dataram's chairman and CEO, commented, "The improvement
in our order rate which we began to experience in the latter part of the
second quarter, has continued through the third quarter, reflecting an
improving economic environment for companies in the IT industry. We are
experiencing growth in sales of our memory products to our OEM customers as
well as to our compatibles customers." Mr. Tarantino concluded, "As we enter
our fourth quarter, we are encouraged by the improving business environment
and we expect continued improvement in earnings in the fourth quarter."
Mark Maddocks, Dataram's vice president of finance and CFO, added, "Our
gross margins returned to approximately 25% in the third quarter and are
expected to remain at that level or better in the upcoming quarter.
Engineering and S,G&A expenses totaled approximately $3.5 million in the
third quarter. Fourth quarter expenses are expected to be in this range or
slightly lower. The Company's balance sheet remains strong. Our current
ratio is 3.6-to-1 and we have no long-term debt."
Dataram will conduct a conference call today at 4:30 p.m. (EST) today to
present its third quarter financial results and to respond to investor
questions. Interested shareholders may participate in the call by dialing
800-718-6841 and providing the following reservation number: 21185629. 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)
Third Quarter Ended Nine Months Ended
January 31 January 31,
2004 2003 2004 2003
Revenues $ 17,131 $ 12,758 $ 42,036 $ 41,009
Costs and expenses:
Cost of sales 12,923 9,286 31,373 29,796
Engineering and development 317 375 963 1,156
Selling, general and
administrative 3,180 4,341 9,038 13,148
Restructuring charges - - - 740
________ ________ _______ _______
16,420 14,002 41,374 44,840
Earnings (loss) from operations 711 (1,244) 662 (3,380)
Other income (expense), net 94 (2) 152 (56)
________ ________ _______ _______
Earnings (loss) before
income taxes 805 (1,246) 814 (3,886)
Income tax provision (benefit) 73 (453) 73 (1,017)
________ ________ _______ _______
Net earnings (loss) $ 732 $ (793) $ 741 $ (2,869)
======== ======== ======= =======
Net earnings (loss) per share:
Basic $ 0.09 $ (0.09) $ 0.09 $ (0.34)
======== ======== ======= =======
Diluted $ 0.08 $ (0.09) $ 0.08 $ (0.34
======== ======== ======= =======
Average number of shares
outstanding:
Basic 8,497 8,510 8,497 8,499
======== ======== ======= =======
Diluted 8,882 8,510 8,769 8,499
======== ======== ======= =======
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 31, 2004 April 30, 2003
ASSETS
Current assets:
Cash and cash equivalents $ 3,937 $ 2,500
Trade receivables, net 7,369 6,292
Income tax receivable 0 3,138
Inventories 3,562 2,855
Deferred income taxes 822 723
Other current assets 201 111
Total current assets 15,891 15,619
Property and equipment, net 3,235 4,564
Other assets 50 24
Total assets $ 19,176 $ 20,207
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 3,530 $ 3,208
Accrued liabilities 884 2,978
Total current liabilities 4,414 6,186
Stockholders' equity 14,762 14,021
Total liabilities and
stockholders' equity $ 19,176 $ 20,207