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 FIRST QUARTER
FINANCIAL RESULTS
o Company Earns $.13 Per Diluted Share
o Backlog Grows to $5.1 Million
PRINCETON, N.J. August 17, 2004 -- Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its first fiscal quarter ended July 31,
2004. Revenue for the quarter was $15.8 million, compared to $12.3 million for
the first quarter of the previous fiscal year, an increase of 29%. Revenues
for the prior sequential quarter were $19.9 million. Net earnings for the
quarter were $1.2 million or $0.13 per diluted share compared to net earnings
of $171,000 or $0.02 per diluted share for the comparable prior year period
and $1.5 million or $0.17 per diluted share for the fourth quarter of last
fiscal year.
Fourth
(In 000's, except per share amounts) First Quarter Quarter
FY 2005 FY 2004 FY 2004
Revenues $ 15,791 $ 12,267 $ 19,948
Earnings from operations $ 1,183 $ 136 $ 1,742
Net earnings $ 1,167 $ 171 $ 1,530
Diluted earnings per share $ 0.13 $ 0.02 $ 0.17
"This quarter represents our third consecutive quarter of year-over-year
revenue growth," commented Robert V. Tarantino, Dataram's chairman and CEO.
"It is not unusual for our first quarter to be less robust than the fourth
quarter as the fourth quarter is typically our strongest. Our order rate was
good and exceeded our revenues. The backlog increased to $5.1 million. We
regard the year-over-year growth as a strong indicator that demand for our
products continues to strengthen."
Mark Maddocks, Dataram's vice president of finance and CFO, added, "Our gross
margins are in line with our historical norm of approximately 25% and are
expected to remain at that level in the upcoming quarter. Engineering and S,
G&A expenses totaled approximately $2.9 million in the quarter. Second quarter
expenses are expected to be in this same range. The Company's balance sheet
remains strong. Our current ratio is 4.9-to-1 and we have no long-term debt."
Mr. Tarantino concluded, "Our OEM business during the first quarter continued
to be strong and represented approximately 53% of our revenue. Additionally,
we received our first order from a major new customer, a computer
manufacturer. We remain confident that we will achieve our fiscal 2005
business plan."
Dataram will conduct a conference call today at 4:30 p.m. (EDT) to present its
first quarter financial results and to respond to investor questions.
Interested shareholders may participate in the call by dialing 800-837-5479
and providing the following reservation number: 21205403. 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 37 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 EARNINGS
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended
July 31,
2004 2003
Revenues $ 15,791 $ 12,267
Costs and expenses:
Cost of sales 11,741 8,818
Engineering and development 319 333
Selling, general and administrative 2,548 2,980
____________ ______________
14,608 12,131
Earnings from operations 1,183 136
Other income (expense), net 65 50
____________ ______________
Earnings before income tax expense 1,248 186
Income tax expense 81 15
____________ ______________
Net earnings $ 1,167 $ 171
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Net earnings per share:
Basic $ 0.14 $ 0.02
============ ==============
Diluted $ 0.13 $ 0.02
============ ==============
Average number of shares outstanding:
Basic 8,562 8,497
============ ==============
Diluted 9,303 8,617
============ ==============
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31, 2004 April 30, 2004
ASSETS
Current assets
Cash and cash equivalents $ 5,601 $ 6,806
Trade receivables, net 7,828 8,846
Inventories 4,512 2,537
Deferred income taxes 723 723
Other current assets 306 92
______________________________
Total current assets 18,970 19,004
Property and equipment, net 2,680 2,858
Other assets 54 50
______________________________
Total assets $ 21,704 $ 21,912
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 3,096 $ 3,862
Accrued liabilities 765 1,646
______________________________
Total current liabilities 3,861 5,508
Stockholders' equity 17,843 16,404
______________________________
Total liabilities and stockholders' equity
$ 21,704 $ 21,912
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