PRESS RELEASE
Dataram Contact:
Mark Maddocks
Vice President-Finance, CFO
609-799-0071
info@dataram.com
DATARAM REPORTS FISCAL 2009 THIRD QUARTER FINANCIAL RESULTS
PRINCETON, N.J. February 26, 2009 - Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its fiscal third quarter and nine months
ended January 31, 2009. Revenues for the third quarter were $5,635,000,
which compares to $6,676,000 for the comparable prior year period. Revenues
for the first nine months of the current fiscal year were $20.3 million,
which compares to $23.8 million for the comparable prior year period.
John H. Freeman, Dataram's president and CEO commented, "Our operating
results in the third quarter were severely impacted by current economic
conditions. Many of our customers have curtailed or temporarily suspended
their capital spending while they adapt their business plans to the current
environment. While challenging, this environment also presents us with
opportunities, which we are aggressively pursuing. Our memory products
offer clients significant savings which support budget tightening
initiatives and also extend the life of their current systems. We are also
seeing increased interest from government clients where we have recently
invested as one of our strategic initiatives. Nevertheless, we cannot
predict how long current conditions will continue and we are reviewing our
business model to make improvements to meet today's business challenges."
Mr. Freeman continued, "The development of our new storage product line
continues to progress. In our fiscal third quarter and nine months, we
incurred approximately $574,000 and $1,041,000 respectively of total expense
in that area. One of our products is now in beta test at clients and offers
high performance storage improvements as well as cost savings. We are
continuing to make investments in this product line and anticipate a formal
product launch late this year."
The Company incurred a net loss for the third quarter and first nine months
of the current fiscal year of $1,024,000, or $0.12 per diluted share and
$2,022,000, or $0.23 per diluted share, respectively. This compares to net
earnings of $233,000, or $0.03 per diluted share and $1,208,000, or $0.14
per diluted share for the comparable prior year periods. In addition to the
expenses discussed above, the net loss for the nine months ended January 31,
2009 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 14.4 and our tangible book value is $2.49 per share, of which cash
and equivalents total $1.71 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
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)
Third Quarter Ended Nine Months Ended
January 31, January 31,
___________________ _________________
2009 2008 2009 2008
Revenues $ 5,635 $ 6,676 $ 20,258 $ 23,848
Costs and expenses:
Costs of sales 3,896 4,032 13,492 14,925
Engineering and development 298 313 932 900
Research and development 574 0 1,041 0
Selling, general
and administrative 2,501 2,051 7,928 6,485
Stock-based compensation
expense* 138 66 394 231
________ ________ ________ ________
7,407 6,462 23,787 22,541
________ ________ ________ ________
Earnings (loss)
from operations (1,772) 214 (3,529) 1,307
Other income 91 233 217 681
________ ________ ________ ________
Earnings (loss)
before income taxes (1,681) 447 (3,312) 1,988
Income tax provision (benefit) (657) 214 (1,290) 780
Net earnings (loss) $ (1,024) $ 233 $ (2,022) $ 1,208
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Net earnings (loss) per share:
Basic $ (0.12) $ 0.03 $ (0.23) $ 0.14
======== ======== ======== =======
Diluted $ (0.12) $ 0.03 $ (0.23) $ 0.14
======== ======== ======== =======
Weighted average number of
shares outstanding:
Basic 8,869 8,869 8,869 8,811
======== ======== ======== ========
Diluted 8,869 8,875 8,869 8,851
======== ======== ======== ========
*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)
January 31, 2009 April 30, 2008
ASSETS
Current assets
Cash and cash equivalents $ 15,136 $ 17,642
Accounts receivable, net 2,571 4,047
Inventories 1,634 1,977
Deferred income taxes 269 1,101
Other current assets 413 98
________________ ______________
Total current assets 20,023 24,865
Deferred income taxes 2,423 480
Property and equipment, net 928 686
Other assets 127 79
________________ ______________
Total assets $ 23,501 $ 26,110
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LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable $ 649 $ 1,789
Accrued liabilities 740 702
_______________________________________
Total current liabilities 1,389 2,491
Stockholders' equity 22,112 23,619
_______________________________________
Total liabilities and
stockholders' equity $ 23,501 $ 26,110
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