DATARAM Dataram Contact: Investor Contact:
Mark Maddocks Joe Zappulla
Vice President-Finance, CFO Wall Street Consultants Corp.
PRESS RELEASE 609-799-0071 212-681-4100
info@dataram.com JZappulla@WallStreetIR.com
DATARAM REPORTS FISCAL 2007 FIRST QUARTER
FINANCIAL RESULTS
Company's Order Rate Continues To Improve
Board of Directors Declares Regular Quarterly $0.06 Per Share Dividend
PRINCETON, N.J. August 23, 2006 Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its fiscal first quarter ended July 31,
2006. Revenues for the quarter increased to $9.3 million from $8.8 million in
the fourth quarter of fiscal year 2006 and compares to $13.9 million for the
first quarter of the prior fiscal year. The company reported a net loss for
the first quarter of $70,000, which includes stock option expenses of
$134,000. Excluding stock option expenses, the Company generated net earnings
of approximately $17,000 compared to net earnings of $83,000 or $0.01 per
diluted share in the prior quarter and net earnings of $931,000 or $0.11 per
diluted share for the first quarter of the previous fiscal year.
Dataram's first quarter highlights:
First quarter revenue increases 6 percent sequentially
First quarter order rate improves to $9.7 million
Backlog increases to $1.4 million
Board of Directors approve regular quarterly dividend of $0.06 per share
Robert V. Tarantino, Dataram's chairman and CEO commented, "We are making
progress with our strategy to expand our customer base of large corporate end-
users and value-added resellers. Revenues from both the compatible memory and
OEM business increased over the prior three month period. More importantly,
our order rate in the first quarter increased by approximately 6% from the
prior quarter and by approximately 7% from the preceding two quarters. As we
enter the second quarter, we are continuing to experience sequential
improvement in our order rate. The Company's backlog increased $418,000 to
$1.4 million at the end of the first quarter from $964,000 at the end of the
prior period."
Gross margin during the first quarter averaged 26 percent, down from the prior
quarter level of 28 percent. The current quarter gross margin is within what
the Company considers its normal range of 22 to 28 percent. Selling, general
and administrative costs and engineering and development costs for the first
quarter were $2.6 million, slightly higher than the prior quarter level of
$2.5 million and lower by $145,000 than the fiscal 2006 first quarter costs of
$2.8 million.
Mr. Tarantino concluded, "Our financial condition is strong and we are highly
liquid. Today, the Company's Board of Directors declared a quarterly dividend
of $0.06 per common share. The dividend will be payable on September 20,
2006, to shareholders of record as of September 6, 2006."
As announced in a previously issued press release, 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 877-690-6787, providing
the following reservation number: 21301937. 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 39 years of 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,
pricing and availability of raw materials 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)
First Quarter Ended
July 31,
2006 2005
Revenues $ 9,305 $ 13,944
Costs and expenses:
Cost of sales 6,900 9,746
Engineering and development 307 266
Selling, general and administrative 2,307 2,493
Stock option expense 134 -
_________ _________
9,648 12,505
_________ _________
Earnings (loss) from operations (343) 1,439
Other income 236 50
Earnings (loss) before income taxes (107) 1,489
Income tax provision (benefit) (37) 558
_________ _________
Net earnings (loss) $ (70) $ 931
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Net earnings (loss) per share
Basic $ (0.01) $ 0.11
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Diluted $ (0.01) $ 0.11
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Average number of shares outstanding:
Basic 8,490 8,381
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Diluted 8,805 8,755
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DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31, 2006 April 30, 2006
ASSETS
Current assets
Cash and cash equivalents $ 12,880 $ 14,044
Trade receivables, net 4,670 4,893
Inventories 3,537 2,189
Deferred income taxes 1,441 1,365
Note receivable 1,537 1,537
Other current assets 371 80
_____________ ____________
Total current assets 24,436 24,108
Deferred income taxes 1,126 1,176
Property and equipment, net 860 847
Other assets 105 105
_____________ ___________
Total assets $ 26,527 $ 26,236
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 2,814 $ 2,057
Accrued liabilities 618 653
_____________ ____________
Total current liabilities 3,432 2,710
Stockholders' equity 23,095 23,526
_____________ ____________
Total liabilities and stockholders' equity $ 26,527 $ 26,236
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