PRESS RELEASE
Dataram Contact:
Mark Maddocks
Vice President-Finance, CFO
609-799-0071
info@dataram.com
DATARAM REPORTS FISCAL 2008 FIRST QUARTER FINANCIAL RESULTS
Company's Reports Net Earnings of $0.05 Per Share
Board of Directors Declares Regular Quarterly Dividend
PRINCETON, N.J. August 22, 2007 - Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its fiscal first quarter ended July 31,
2007. Revenues for first quarter were $8.6 million compared to $9.3 million
in the first quarter of the prior fiscal year and $8.8 million in the fourth
quarter of the prior fiscal year. The Company generated net earnings of
$406,000 or $0.05 per diluted share for the first quarter of fiscal 2008.
This compares to a net loss of $70,000 or $0.01 per diluted share for the
comparable prior year period.
Robert V. Tarantino, Dataram's chairman and CEO commented, "Our first quarter
operating earnings and net earnings met our expectations and our operating
earnings have improved over last fiscal year's quarterly levels. However,
our revenues continue to be adversely impacted by reductions in our selling
prices as a result of the well-publicized decline in the price of DRAM chips.
The purchased cost of DRAM chips, which represents approximately 75 percent
of our product cost declined by approximately 22 percent on average in the
first quarter from fourth quarter levels and our selling prices declined by
approximately 16 percent on average as we passed our cost savings on to our
customers. However, our volume increase, measured in gigabytes shipped in
the first quarter, offset most of the impact of the decline in selling prices
when comparing revenues on a sequential quarterly basis. As we enter the
second quarter, we also experienced sequential improvement in our order rate.
The Company's backlog increased to $772,000 at the end of the first quarter
from $579,000 at the end of the prior sequential period."
Gross margin during the first quarter averaged 35 percent, which is above
what the Company considers its normal range of 22 to 28 percent. This was
primarily the result of a shift in sales to larger capacity memory boards,
which typically command higher margins. As the price of the Company's larger
capacity products have come down as a result of lower chip costs, they have
become a more affordable option for customers with memory intensive
applications.
The Company's operating expenses for the first quarter totaled $2,616,000,
lower by $132,000 than fiscal 2007 first quarter costs of $2,748,000. Of
this amount, approximately $91,000 is the result of cost reductions initiated
at the end of the prior fiscal year. The balance is a result of reduced
stock option expense.
The Company accrues federal and state income taxes at a combined rate of
approximately 37 percent. However, since the Company has a federal net
operating loss ("NOL") carryforward of approximately $5.1 million, the
Company actually pays income taxes at a rate of approximately 8 percent as
it utilizes the tax benefits of its NOL carryforward.
Mr. Tarantino concluded, "We are optimistic that we will continue to see
improved financial performance. 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 19, 2007, to shareholders of record as of September 5, 2007."
ABOUT DATARAM CORPORATION
Dataram is a worldwide leader in the design and manufacture of high capacity,
reliable and innovative memory solutions. With over 40 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,
2007 2006
Revenues $ 8,617 $ 9,305
Costs and expenses:
Cost of sales 5,579 6,900
Engineering and development 302 307
Selling, general and administrative 2,221 2,307
Stock option expense* 93 134
__________ __________
8,195 9,648
__________ __________
Earnings (loss) from operations 422 (343)
Other income 219 236
Earnings (loss) before income taxes 641 (107)
Income tax provision (benefit) 235 (37)
__________ __________
Net earnings (loss) $ 406 $ (70)
========== ==========
Net earnings (loss) per share
Basic $ 0.05 $ (0.01)
========== ==========
Diluted $ 0.05 $ (0.01)
========== ==========
Average number of shares outstanding:
Basic 8,738 8,490
========== ==========
Diluted 8,878 8,490
========== ==========
*Stock option expense is recorded as a component of selling, general and
administrative expenses in the Company's financial statements filed with the
Securities and Exchange Commission on Form 10-Q.
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31, 2007 April 30 2007
ASSETS
Current assets
Cash and cash equivalents $ 15,661 $ 14,138
Trade receivables, net 4,567 4,717
Inventories 2,292 2,121
Deferred income taxes 1,149 1,149
Note receivable 0 1,537
Other current assets 428 80
___________________________________
Total current assets 24,097 24,108
Deferred income taxes 958 1,123
Property and equipment, net 666 784
Other assets 82 105
___________________________________
Total assets $ 25,803 $ 25,905
===================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,489 $ 1,597
Accrued liabilities 735 976
___________________________________
Total current liabilities 2,224 2,573
Stockholders' equity 23,579 23,332
___________________________________
Total liabilities and stockholders'
equity $ 25,803 $ 25,905
===================================