PRESS RELEASE
Dataram Contact:
Mark Maddocks
Vice President-Finance, CFO
609-799-0071
info@dataram.com
DATARAM REPORTS FISCAL 2009 SECOND QUARTER FINANCIAL
RESULTS
PRINCETON, N.J. November 25, 2008 - Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its fiscal second quarter and six months
ended October 31, 2008. Revenues for the second quarter were $7,059,000,
which compares to $7,563,000 in the first quarter of the current fiscal year
and $8,556,000 in the comparable prior year period. Revenues for the first
six months of the current fiscal year were $14.6 million, which compares to
$17.2 million for the comparable prior year period.
John H. Freeman, Dataram's president and CEO commented, "We are continuing
to implement the business improvement and growth strategy investments I
mentioned in our first quarter financial results press release. This quarter
we continued to make investments in our memory solutions business, which I
believe will have a significant positive impact for this area of our
business. We have expanded our sales team by adding professionals with
extensive selling and business experience in target market segments. We
expect to continue investing in our sales team this fiscal year. While this
strategy will have a negative impact on our short-term operating results,
particularly in the present economic climate, they are nevertheless
necessary investments to reestablish ourselves as a growth company."
Mr. Freeman continued, "We are also implementing a strategy to introduce new
and complementary products into our offerings portfolio. We are currently
focusing on the development of certain high performance storage products. In
our fiscal second quarter and six months, we incurred approximately $254,000
and $466,000, respectively, of total expense in that area. We expect to make
growing investments in this area."
The Company incurred a net loss for the second quarter and first six months
of the current fiscal year of $393,000, or $0.04 per diluted share and
$999,000, or $0.11 per diluted share, respectively. This compares to net
earnings of $569,000, or $0.06 per diluted share and $975,000, or $0.11 per
diluted share for the comparable prior year periods. In addition to the
expenses discussed above, the net loss for the six months ended October 31,
2008 includes a charge to selling, general and administrative expense in the
fiscal first quarter of approximately $716,000 related to a retirement
agreement entered into with the Company's former chief executive officer.
Management expects no further costs will be incurred for this matter.
Mr. Freeman concluded, "Our financial condition remains strong. Our current
ratio is 11.1 and our tangible book value is $2.59 per share, of which cash
and equivalents total $1.81 per share. I look forward to reporting on our
progress next quarter."
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, Sun
Microsystems and Intel. For more information about Dataram, visit
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)
Second Quarter Ended Six Months Ended
October 31, October 31,
____________________ ________________
2008 2007 2008 2007
Revenues $ 7,059 $ 8,556 $ 14,662 $ 17,173
Costs and expenses:
Cost of sales 4,660 5,314 9,595 10,893
Engineering and development 302 285 634 587
Research and development 254 0 466 0
Selling, general and
administrative 2,370 2,213 5,428 4,434
Stock-based compensation
expense* 130 73 256 166
________ ________ _________ ________
7,716 7,885 16,379 16,080
________ ________ _________ ________
Earnings (loss)
from operations (657) 671 (1,757) 1,093
Other income 16 229 125 448
________ ________ _________ ________
Earnings (loss)
before income taxes (641) 900 (1,632) 1,541
Income tax provision (benefit) (248) 331 (633) 566
________ ________ _________ ________
Net earnings (loss) $ (393) $ 569 $ (999)$ 975
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Net earnings (loss) per share:
Basic $ (0.04) $ 0.06 $ (0.11) $ 0.11
======== ======== ========= =======
Diluted $ (0.04) $ 0.06 $ (0.11) $ 0.11
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Weighted average number of
shares outstanding:
Basic 8,869 8,825 8,869 8,781
======== ======== ========= ========
Diluted 8,869 8,865 8,869 8,850
======== ======== ========= ========
*Stock-based compensation 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)
October 31, 2008 April 30, 2008
ASSETS
Current assets
Cash and cash equivalents $ 16,021 $ 17,642
Accounts receivable, net 3,510 4,047
Inventories 1,970 1,977
Deferred income taxes 204 1,101
Other current assets 372 98
________________________________________
Total current assets 22,077 24,865
Deferred income taxes 1,910 480
Property and equipment, net 857 686
Other assets 135 79
________________________________________
Total assets $ 24,979 $ 26,110
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,285 $ 1,789
Accrued liabilities 696 702
________________________________________
Total current liabilities 1,981 2,491
Stockholders' equity 22,998 23,619
________________________________________
Total liabilities and
stockholders' equity $ 24,979 $ 26,110
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