PRESS RELEASE
Dataram Contact:
Mark Maddocks
Vice President-Finance, CFO
609-799-0071
info@dataram.com
DATARAM REPORTS FISCAL 2009 FOURTH QUARTER FINANCIAL RESULTS
PRINCETON, N.J. June 18, 2009 - Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its fiscal fourth quarter and year ended
April 30, 2009. Revenues for the fourth quarter were $5,639,000, which
compares to $7,045,000 for the comparable prior year period. Revenues for
the fiscal year totaled $25.9 million, which compares to $30.9 million for
the comparable prior fiscal year.
On March 31, 2009, the Company acquired certain assets of Micro Memory Bank,
Inc. ("MMB"), a privately-held corporation. MMB is a manufacturer of legacy
to advanced solutions in laptop, desktop and server memory products which
are produced in its facility in Pennsylvania. The operating results of this
business unit are incorporated in the Company's consolidated fourth quarter
and fiscal year financial results commencing April 1, 2009. Concerning the
acquisition, John H. Freeman, Dataram's president and CEO commented, "This
acquisition was an important part of our strategy to expand and grow our
memory solutions business. MMB positions Dataram with a more comprehensive
product set, new routes to market and an established customer base. Its
products, personnel and reach directly support our strategy to grow our
memory solutions business."
Mr. Freeman continued, "Our operating results in the fourth quarter
continued to be impacted by current economic conditions. As recently
reported by IDC and Gartner, server sales experienced a 25% sequential
decline in the quarter corresponding to our fiscal fourth quarter. Many of
our customers have curtailed or temporarily suspended their capital spending
while they adapt their business plans to the current environment. We have
also seen customers delay their investment in new servers as they wait for
products based on Intel's recently released Nehalem architecture to become
available. These systems are now shipping and we are beginning to see an
increase in demand for our memory. We cannot predict how long current
conditions will continue and we have adapted our business model by reducing
our cost structure as well as making process improvements to meet today's
business climate."
Mr. Freeman further stated, "The development of our new storage product line
continues to progress. In our fiscal fourth quarter and twelve months, we
invested approximately $490,000 and $1,531,000 respectively in R&D to
develop our initial product offering. These products will offer high
performance storage improvements as well as cost savings to our clients.
Certain clients have completed beta testing of our products and other tests
are in process or scheduled. Early client feedback has been very positive.
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 fourth quarter and fiscal year of
$1,112,000, or $0.13 per share and $3,135,000, or $0.35 per share,
respectively. This compares to net earnings of $401,000, or $0.05 per
diluted share and $1,608,000, or $0.18 per diluted share for the comparable
prior year periods. In addition to the expenses discussed above, the net
loss for the fourth quarter and fiscal year ended April 30, 2009 includes
charges of $270,000 and $451,000, respectively related to a reduction in
workforce and also includes a charge in the fiscal first quarter of
approximately $716,000 related to a retirement agreement entered into with
the Company's former chief executive officer.
..
Mr. Freeman concluded, "Our financial condition remains strong. Our current
ratio is 5.4 and our tangible book value is $2.21 per share, of which cash
and equivalents total $1.41 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 SATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Fourth Quarter Ended Fiscal Year Ended
April 30 April 30
2009 2008 2009 2008
_____________________ _________________
Revenues $ 5,639 $ 7,045 $ 25,897 $ 30,893
Costs and expenses:
Costs of sales 3,952 4,091 17,443 19,015
Engineering and development 287 366 1,219 1,267
Research and development 490 0 1,531 0
Selling, general
and administrative 2,548 2,055 10,477 8,541
Stock-based compensation
expense* 138 66 532 297
Intangible asset
amortization expense 55 0 55 0
_________ _________ _________ _________
7,470 6,578 31,257 29,120
_________ _________ _________ _________
Earnings (loss)
from operations (1,831) 467 (5,360) 1,773
Other income 7 187 223 868
_________ _________ _________ _________
Earnings (loss)
before income taxes (1,824) 654 (5,137) 2,641
Income tax provision (benefit) (712) 263 (2,002) 1,033
_________ _________ _________ _________
Net earnings (loss) $ (1,112) $ 401 $ (3,135) $ 1,608
========= ========= ========= =========
Net earnings (loss) per share:
Basic $ (0.13) $ 0.05 $ (0.35) $ 0.18
========= ========= ========= =========
Diluted $ (0.13) $ 0.05 $ (0.35) $ 0.18
========= ========= ========= =========
Weighted average number of
shares outstanding:
Basic 8,869 8,869 8,869 8,825
========= ========= ========= =========
Diluted 8,869 8,873 8,869 8,854
========= ========= ========= =========
*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-K.
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
April 30, 2009 April 30, 2008
ASSETS
Current assets
Cash and cash equivalents $ 12,525 $ 17,642
Accounts receivable, net 3,381 4,047
Inventories 2,201 1,977
Deferred income taxes 300 1,101
Other current assets 126 98
_____________________________________
Total current assets 18,533 24,865
Deferred income taxes 3,283 480
Property and equipment, net 1,099 686
Other assets 136 79
Intangible assets, net 1,504 0
_____________________________________
Total assets $ 24,555 $ 26,110
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LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable $ 1,385 $ 1,789
Accrued liabilities 2,070 702
_____________________________________
Total current liabilities 3,455 2,491
Stockholders' equity 21,100 23,619
_____________________________________
Total liabilities and
stockholders' equity $ 24,555 $ 26,110
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