DATARAM Dataram Contact: Investor Contact:
Mark Maddocks, Joe Zappulla
Vice President-Finance, CFO Wall Street Investor
Relations
PRESS RELEASE 609-799-0071 212-681-4100
info@dataram.com JZappulla@WallStreetIR.com
DATARAM REPORTS THIRD QUARTER FINANCIAL RESULTS
PRINCETON, N.J. February 15, 2005 -- Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its fiscal third quarter ended January 31,
2005. Revenues for the quarter were $14.4 million, which compares to $17.1
million for the third quarter of the previous fiscal year and $20.3 million
for the second quarter of the current fiscal year. Net earnings for the
quarter were $147,000 or $0.02 per diluted share compared to $732,000 or $0.08
per diluted share for the same period of the previous year and $1.5 million or
$0.17 per diluted share for the previous quarter.
For the first nine months of the current fiscal year, the Company's revenues
were $50.5 million compared to revenues of $42.0 million for the same prior
year period. Current year nine-month net earnings were $2.8 million or $0.31
per diluted share compared to net earnings of $741,000 or $0.08 for the
comparable prior year period.
Robert V. Tarantino, Dataram's chairman and CEO, commented, "Revenues and
gross margins from sale of the Company's compatible memory products were in
line with our expectations and were similar to average quarterly revenues and
margins achieved in the first half of the fiscal year. The Company normally
competes for and participates in large projects such as the NASA supercomputer
installation. In the second quarter of this fiscal year, revenues from three
large projects totaled approximately $6.2 million. Most of this revenue was
derived from a sale to an OEM customer. We were disappointed in the lack of
large project opportunities in the third quarter, which if they had
materialized, would have led to results more in line with our expectations.
Mark Maddocks, Dataram's vice-president of finance and CFO, added, "The
Company' gross margins for the quarter were 21%. Gross margins for compatible
memory products were approximately 27%, which is within our normal range.
Gross margins for memory sales to OEM customers, which are generally lower
than compatible product margins, were approximately 18%. This percentage was
slightly lower than normal because of lower factory utilization due to reduced
sales volume."
Mr. Maddocks continued, "The Company's fundamentals continue to strengthen.
Our current ratio has increased to 8.5 from the previous quarter ratio of 3.8.
This quarter, cash and equivalents increased to $8.2 million from $6.7 million
while at the same time, total liabilities declined by $3.7 million. Book value
has increased to $2.27 per share."
Mr. Tarantino concluded, "As we state in our 10-K, our third quarter is
sometimes a challenging quarter and this quarter was no exception. We expect
slightly improved results in our fourth quarter."
Dataram will conduct a conference call today at 4:30 p.m. (EST) to present its
third quarter financial results and to respond to investor questions.
Interested shareholders may participate in the call by dialing 800-621-5270
and providing the following reservation number: 21232154. 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, 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 EARNINGSS
(In thousands, except per share amounts)
(Unaudited)
Third Quarter Ended Nine Months Ended
January 31, January 31,
___________________ ____________________
2005 2004 2005 2004
Revenues $ 14,431 $ 17,131 $ 50,544 $ 42,036
Costs and expenses:
Cost of sales 11,420 12,923 38,977 31,373
Engineering and development 317 317 947 963
Selling, general and
administrative 2,636 3,180 7,760 9,038
________ ________ ________ ________
14,373 16,420 47,684 41,374
Earnings from operations 58 711 2,860 662
Other income 99 94 177 152
________ ________ ________ ________
Earnings before income taxes 157 805 3,037 814
Income tax provision 10 73 197 73
________ ________ ________ ________
Net earnings $ 147 $ 732 $ 2,840 $ 741
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Net earnings per share:
Basic $ 0.02 $ 0.09 $ 0.33 $ 0.09
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Diluted $ 0.02 $ 0.08 $ 0.31 $ 0.08
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Average number of shares
outstanding:
Basic 8,621 8,497 8,594 8,497
======== ======== ======== ========
Diluted 9,176 8,882 9,223 8,769
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DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 31, 2005 April 30, 2004
ASSETS
Current assets
Cash and cash equivalents $ 8,222 $ 6,806
Trade receivables, net 7,927 8,846
Inventories 2,579 2,537
Deferred income taxes 723 723
Other current assets 180 92
________ ________
Total current assets 19,631 19,004
Property and equipment, net 2,246 2,858
Other assets 54 50
________ ________
Total assets $ 21,931 $ 21,912
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,699 $ 3,862
Accrued liabilities 606 1,646
________ ________
Total current liabilities 2,305 5,508
Stockholders' equity 19,626 16,404
________ ________
Total liabilities and
stockholders' equity $ 21,931 $ 21,912
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