PRESS RELEASE
Dataram Corporation:
Mark Maddocks
Vice President-Finance, CFO
609-799-0071
info@dataram.com
DATARAM REPORTS FISCAL 2010 THIRD QUARTER FINANCIAL RESULTS
PRINCETON, N.J. February 25, 2010- Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its fiscal third quarter ended January
31, 2010. Revenues for the third quarter were $12.3 million, which compares
to $5.6 million for the comparable prior year period. Revenues for the first
nine months of the current fiscal year were $32.1 million, which compares to
$20.3 million for the comparable prior year period. The Company's recently
acquired Micro Memory Bank business unit generated approximately $3.6
million and $10.1 million in revenues, respectively, in the third quarter
and first nine months of the current fiscal year versus nil in the prior
fiscal year.
John H. Freeman, Dataram's president and CEO commented, "We continued to
grow our memory solutions business in our fiscal third quarter. This was
accomplished in what has typically been a seasonally weak quarter in our
industry. The implementation of our sales and marketing strategy is having
a positive effect on demand for our products and our memory business has
returned to being cash profitable. We have more work to do in this area and
I am confident that as we continue the implementation of our strategy, we
will drive further profitable growth in our memory business. Over the last
nine months, the price of memory has been volatile and we have seen
significant price increases. The upward pricing was driven by consolidation
of manufacturers and reduced production by manufacturers coupled with
increased demand. In our fiscal third quarter, memory pricing was more
stable. During the period of rising prices, the Company made several
purchases of inventory at favorable pricing. We expect that memory pricing
will be stable or increase slightly in our fiscal fourth quarter. Our
current inventory level is sufficient to support further growth and we
expect our memory inventory level to stabilize or decline somewhat from
current levels in the fourth quarter."
Mr. Freeman continued, "As we have previously reported, the Company has
announced a unique intelligent Storage Area Network (SAN) optimization
solution, XcelaSAN. XcelaSAN is the industry's first solution to deliver
substantive application performance improvement to applications such as
Oracle, SQL 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 business-
critical applications without the costly hardware upgrades or over-
provisioning of storage typically found in current solutions for increased
performance. Over the past 24 months, the Company has made significant
investments in research and development, primarily associated with the
development of this product. XcelaSAN performance in customer environments
continues to be excellent and customer interest remains very strong. We have
begun shipping units to selected clients and single unit systems are
currently available for sale. High Availability systems are expected to be
available for sale later this year. We are continuing our investments in
XcelaSAN by developing operational enhancements with our clients based on
their feedback during early XcelaSAN installations. As we continue the
development of our XcelaSAN product, we understand that we will require
additional financial resources. Subsequent to the conclusion of our third
quarter, we are entering into other financing agreements which should
provide us with sufficient liquidity to meet our operating needs as XcelaSAN
sales grow."
The Company incurred a net loss for the third quarter of the current fiscal
year of $769,000, or $0.09 per diluted share, which compares to a net loss
of $1,024,000, or $0.12 per diluted share for the comparable prior year
period. Current fiscal year nine months net loss totaled approximately $3.4
million, or $0.38 per diluted share, which compares to an approximate net
loss of $2.0 million or $0.23 per diluted share in the same prior year
period.
Mr. Freeman concluded, "The turnaround of our memory solutions business is
on track. It is profitable and has been growing for each of the last three
quarters. Our storage product has been introduced, is available for sale and
planned enhancements are underway. 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)
Third Quarter Ended Nine Months Ended
January 31, January 31,
___________________ _________________
2010 2009 2010 2009
Rvenues $ 12,284 $ 5,635 $ 32,147 $ 20,258
Costs and expenses:
Cost of sales 8,899 3,896 23,490 13,492
Engineering and development 220 298 732 932
Research and development 892 574 3,388 1,041
Selling, general and
administrative 3,009 2,501 8,851 7,928
Stock-based compensation
expense* 346 138 726 394
Intangible asset amortization 164 - 492 -
________ ________ ________ ________
13,530 7,407 37,679 23,787
________ ________ ________ ________
Loss from operations (1,246) (1,772) (5,532) (3,312)
Other income (expenses) (11) 91 11 217
________ ________ ________ ________
Loss before income taxes (1,257) (1,681) (5,521) (3,312)
Income tax benefit (488) (657) (2,158) (1,290)
________ ________ ________ ________
Net loss $ (769) $ (1,024) $ (3,363) $ (2,022)
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Net loss per share:
Basic $ (0.09) $ (0.12) $ (0.38) $ (0.23)
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Diluted $ (0.09) $ (0.12) $ (0.38) $ (0.23)
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Weighted average number of
shares outstanding:
Basic 8,908 8,869 8,882 8,869
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Diluted 8,908 8,869 8,882 8,869
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*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)
January 31, 2010 April 30, 2009
ASSETS
Current assets
Cash and case equivalents $ 2,373 $ 12,525
Accounts receivable, net 5,974 3,381
Inventories 5,973 2,201
Deferred income taxes 324 300
Other current assets 189 126
______________________________________
Total current assets 14,833 18,533
Deferred income taxes 5,445 3,282
Property and equipment, net 1,250 1,100
Intangible assets, net 1,012 1,504
Other assets 112 136
_______________________________________
Total assets $ 22,652 $ 24,555
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 2,781 $ 1,386
Accrued liabilities 1,297 1,689
_______________________________________
Total current liabilities 4,078 3,075
Accrued liabilities - 381
Stockholders' equity 18,574 21,099
_______________________________________
Total liabilities and
stockholders' equity $ 22,652 $ 24,555
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