DATARAM Dataram Contact: Investor Contact:
Mark Maddocks, Joe Zappulla
Vice President & CFO Wall Street Investor
Relations
PRESS RELEASE info@dataram.com JZappulla@WallStreetIR.com
609-799-0071 212-681-4100
DATARAM REPORTS SECOND QUARTER
FINANCIAL RESULTS
o Quarterly Revenue increases 29% sequentially,
61% year over year
o Earnings grow to $.17 Per Diluted Share
PRINCETON, N.J. November 16, 2004 -- Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its second fiscal quarter ended October 31,
2004. Revenues for the second quarter increased 29 percent over the first
quarter of the current fiscal year to $20.3 million from $15.8 million, and
increased by 61 percent from the comparable prior year second quarter revenues
of $12.6 million. Net earnings for the quarter were $1.5 million or $0.17 per
diluted share compared to net earnings of $1.2 million or $0.13 per diluted
share for the first quarter of the current fiscal year and a net loss of
$(163,000) or $(0.02) per basic share for the comparable prior year period.
For the first six months of the current fiscal year, the Company's revenues
were $36.1 million, an increase of $11.2 million or 45 percent compared to
the first six months the previous fiscal year. Net earnings totaled $2.7
million or $0.29 per diluted share for the first six months of the current
fiscal year compared to net earnings of $8,000 for the comparable prior year
period.
(In 000s except per share
amounts) Three Months Ended Six Months Ended
10-31-04 7-31-04 10-31-03 10-31-04 10-31-03
Revenue $20,322 $15,791 $12,638 $36,114 $24,905
Earnings (loss)
from operations $ 1,619 $ 1,183 $ (186) $ 2,803 $ (49)
Net earnings (loss) $ 1,526 $ 1,167 $ (163) $ 2,693 $ 8
EPS $ 0.17 $ 0.13 $ (0.02) $ 0.29 $ 0.00
Robert V. Tarantino, Dataram's chairman and CEO, commented, "On a sequential
quarterly basis, sales to our OEM customers increased by 33 percent to $11.2
million and revenues from compatible memory sales increased by 24 percent to
$9.2 million. Our year-over-year revenue growth is very encouraging. The
Company's level of profitability over the past three quarters is significantly
higher than it had previously been and we expect continued improvement.
However, the slow start experienced during the first quarter of our current
fiscal year makes it unclear as to whether or not we will reach our fiscal
year 2005 business plan projections (approximately 15% over fiscal 2004's
annualized fourth quarter earnings)."
Mark Maddocks, Dataram's vice-president of finance and CFO, added, "Our gross
margin was 22 percent during the second quarter, which is within our normal
range, but at the low end. The decline in percentage from the first quarter is
attributable to lower margins realized on strategic sales to certain OEM
customers. The backlog at the end of the second quarter was $3.5 million. The
Company's balance sheet remains strong, as reflected by our 3.8 current ratio
and we continue to have no long-term debt."
Mr. Tarantino concluded, "The environment for achieving a significant increase
in our OEM business is quite favorable and major computer companies are in
discussions with us concerning our serving them as a complementary supplier to
the DRAM manufacturers for their high end server memory requirements. We are
pleased with our second quarter results and remain optimistic about our future
prospects."
Dataram will conduct a conference call today at 4:30 p.m. (EDT) to present its
second quarter financial results and to respond to investor questions.
Interested shareholders may participate in the call by dialing 888-243-1119
and providing the following reservation number: 21213926. 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 OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Second Quarter Ended Six Months Ended
October 31, October 31,
________________________ ______________________
2004 2003 2004 2003
Revenues $20,322 $12,638 $36,114 $24,905
Costs and expenses:
Cost of sales 15,816 9,632 27,557 18,450
Engineering and
development 312 313 631 646
Selling, general and
administrative 2,575 2,879 5,123 5,858
_______ _______ _______ _______
18,703 12,824 33,311 24,954
Earnings (loss)
from operations 1,619 (186) 2,803 (49)
Other income, net 13 8 77 57
_______ _______ _______ _______
Earnings (loss) before
income taxes 1,632 (178) 2,880 8
Income tax provision
(benefit) 106 (15) 187 -
_______ _______ _______ _______
Net earnings (loss) $ 1,526 $ (163) $ 2,693 $ 8
======= ======= ======= =======
Net earnings (loss) per share:
Basic $ 0.18 $ (0.02) $ 0.31 $ 0.00
======= ======= ======= =======
Diluted $ 0.17 $ (0.02) $ 0.29 $ 0.00
======= ======= ======= =======
Average number of shares outstanding:
Basic 8,599 8,497 8,581 8,497
======= ======= ======= =======
Diluted 9,216 8,497 9,265 8,709
======= ======= ======= =======
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 31, 2004 April 30, 2004
ASSETS
Current assets
Cash and cash equivalents $ 6,699 $ 6,806
Trade receivables, net 12,237 8,846
Inventories 3,038 2,537
Deferred income taxes 723 723
Other current assets 225 92
________ ________
Total current assets 22,922 19,004
Property and equipment, net 2,471 2,858
Other assets 54 50
Total assets $ 25,447 $ 21,912
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 5,323 $ 3,862
Accrued liabilities 700 1,646
======== ========
Total current liabilities 6,023 5,508
Stockholders' equity 19,424 16,404
Total liabilities and
stockholders' equity $ 25,447 $ 21,912
======== ========