PRESS RELEASE
Dataram Contact:
Mark Maddocks
Vice President-Finance, CFO
609-799-0071
info@dataram.com
DATARAM REPORTS FISCAL 2010 SECOND QUARTER FINANCIAL RESULTS
PRINCETON, N.J. November 24, 2009 - Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its fiscal second quarter ended October
31, 2009. Revenues for the second quarter were $10.7 million, which
compares to $7.1 million for the comparable prior year period. Revenues for
the first six months of the current fiscal year were $19.9 million, which
compares to $14.6 million for the comparable prior year period. The
Company's recently acquired Micro Memory Bank business unit generated
approximately $3.6 million and $6.5 million in revenues, respectively in the
second quarter and first six months of the current fiscal year versus nil in
the prior fiscal year.
John H. Freeman, Dataram's president and CEO commented, "During our fiscal
second quarter, we have seen demand increase as the economy recovers from
the worldwide financial crises. Our memory solutions business has improved
performance to the point where it is operating at a near cash break even
level. I am confident that our sales and marketing strategy will drive
further profitable growth. The price of memory has been volatile and we are
seeing significant price increases. The upward pricing was based on
consolidation of manufacturers, reduced production by manufacturers and
increased demand. We expect that memory pricing will continue to increase at
a slower pace and in a less volatile manner."
Mr. Freeman continued, "We recently announced at the Storage Networking
World trade show, a unique intelligent SAN optimization solution, XcelaSAN .
XcelaSAN is the industry's first solution to deliver substantive application
performance improvement to existing applications such as Oracle, SQL,
Exchange and VMware. XcelaSAN augments existing storage systems by
transparently applying intelligent caching algorithms that serve the most
active block-level data from high-speed solid state storage, creating an
intelligent, virtual solid state SAN. This breakthrough solution allows
organizations to dramatically increase the performance of their existing
business-critical applications without the costly hardware upgrades or over-
provisioning of storage typically found in current solutions for increased
performance. This product launch supports our corporate strategy to deliver
data center solutions that optimize performance, leverage existing IT
investments, and make measurable reductions in the total cost of ownership
associated with these assets. On a limited basis this product is currently
being shipped in our fiscal third quarter to select early install clients.
We expect the product to be generally available early in 2010. Over the past
18 months, the Company has made significant investments in research and
development, primarily associated with the development of this product. In
the second quarter and first six months of the current fiscal year, we
incurred approximately $1.6 million and $2.5 million, respectively of total
expense in that area which compares to approximately $254,000 and $466,000
in the comparable prior year periods. Current year second quarter
expenditures include approximately $402,000 of non-recurring expense related
to the development of this product. We anticipate our third quarter research
and development costs to be less than $1.0 million.
The Company incurred a net loss for the second quarter of the current fiscal
year of $1.6 million, or $0.18 per diluted share, which compares to a net
loss of $393,000, or $0.04 per diluted share for the comparable prior year
period. Current fiscal year six months net loss totaled approximately $2.6
million, or $0.29 per diluted share, which compares to an approximate net
loss of $999,000, or $0.11 per diluted share in same prior year period.
Last fiscal year's six months net loss included a charge to selling, general
and administrative expense 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 3.8 and our book value is $2.13 per share. I look forward to
reporting on our progress next quarter."
ABOUT DATARAM CORPORATION
Founded in 1967, Dataram is a worldwide leader in the manufacture of high-
quality computer memory, storage and software products. Our products and
services deliver IT infrastructure optimization, dramatically increase
application performance and deliver substantial cost savings. Dataram
solutions are deployed in 70 Fortune 100 companies and in mission-critical
government and defense applications around the world. 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Second Quarter Ended Six Months Ended
October 31, October 31,
____________________ ________________
2009 2008 2009 2008
Revenues $ 10,673 $ 7,059 $ 19,863 $ 14,622
Costs and expenses:
Cost of sales 7,937 4,660 14,592 9,595
Engineering and development 259 302 512 634
Research and development 1,621 254 2,495 466
Selling, general and
administrative 3,113 2,370 5,842 5,428
Stock-based compensation
expense* 225 130 380 256
Intangible asset amortization 164 - 328 -
_________ ________ _________ _________
13,319 7,716 24,149 16,379
_________ ________ _________ _________
Loss from operations (2,646) (657) (4,286) (1,757)
Other income (expense) (12) 16 22 125
_________ ________ _________ _________
Loss before income taxes (2,658) (641) (4,264) (1,632)
Income tax benefit (1,042) (248) (1,670) (633)
_________ ________ _________ _________
Net loss $ (1,616) $ (393) $ (2,594) $ (999)
========= ======== ========= =========
Net loss per share:
Basic $ (0.18) $ (0.04) $ (0.29) $ (0.11)
========= ========= ======== =========
Diluted $ (0.18) $ (0.04) $ (0.29) $ (0.11)
========= ========= ======== =========
Weighted average number of
share outstanding:
Basic 8,869 8,869 8,869 8,869
========= ======== ========= =========
Diluted 8,869 8,869 8,869 8,869
========= ======== ========= =========
*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
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 31, 2009 April 30, 2009
ASSETS
Current assets
Cash and case equivalents $ 4,120 $ 12,525
Accounts receivable, net 5,434 3,381
Inventories 5,587 2,201
Deferred income taxes 511 300
Other current assets 213 126
_______________________________________
Total current assets 15,865 18,533
Deferred income taxes 4,730 3,282
Property and equipment, net 1,305 1,100
Intangible assets, net 1,176 1,504
Other assets 118 136
_______________________________________
Total assets $ 23,194 $ 24,555
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 2,497 $ 1,386
Accrued liabilities 1,624 1,689
_______________________________________
Total current liabilities 4,121 3,075
Accrued liabilities 219 381
Stockholders' equity 18,854 21,099
_______________________________________
Total liabilities and
stockholders' equity $ 23,194 $ 24,555
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