PRESS RELEASE
Dataram Contact:
Mark Maddocks
Vice President-Finance, CFO
609-799-0071
info@dataram.com
DATARAM REPORTS FISCAL 2010 FOURTH QUARTER FINANCIAL RESULTS
PRINCETON, N.J. July 29, 2010 - Dataram Corporation (NASDAQ: DRAM)
today reported its financial results for its fiscal fourth quarter and
year ended April 30, 2010. Revenues for the fourth quarter were $11.9
million, which compares to $5.6 million for the comparable prior year
period. Revenues for the fiscal year totaled $44.0 million, which
compares to $25.9 million for the comparable prior fiscal year. The
Company's Micro Memory Bank business unit, which was acquired in the
fourth quarter of the prior fiscal year, generated approximately $3.9
million and $14.0 million in revenues, respectively, in the fourth
quarter and current fiscal year versus $0.9 million in the comparable
prior year periods.
John H. Freeman, Dataram's president and CEO commented, "Our memory
solutions business continued to perform well in our fiscal fourth
quarter. The implementation of our sales and marketing strategy coupled
with the gradual economic recovery is having a positive effect on
demand for our products and our memory business continues to be cash
profitable. One of the growth initiatives I previously announced is to
strengthen and increase business and relationships with our channel
partners. I am pleased to report we more than doubled our business with
strategic partners in fiscal 2010. I am confident this initiative and
others we have implemented will further drive profitable growth in our
memory business."
Mr. Freeman continued, "The development of our XcelaSAN product line
continues to progress. XcelaSAN is a unique intelligent Storage Area
Network (SAN) optimization solution that delivers 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 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. In August, we plan to release enhanced features
and functionality which are currently in development to support sales
initiatives. These changes increase the products ease of use, ease of
installation and interoperability. High Availability systems are
expected to be available for sale in December. We anticipate that our
enhancements and the shipment of high availability systems will
accelerate product sales and broaden market adoption. We have made and
are continuing to make significant investments in research and
development in XcelaSAN. In part, this investment is being used to
develop and implement client recommendations based on their actual test
experiences. We will require additional financial resources to complete
development of these enhancements. To that end, we have entered into
an agreement with a financial institution for secured debt financing of
up to $5.0 million. We have also entered into an agreement with a
vendor to consign up $3.0 million of certain inventory into our
manufacturing facilities. This will allow us to substantially reduce
our inventory carrying requirements while still maintaining our ability
to service our customers. We expect that these two agreements will
generate sufficient additional liquidity for us to meet our operating
plans for fiscal 2011."
The Company incurred a net loss for the fourth quarter and fiscal year
of $1,611,000, or $0.18 per share and $10,743,000, or $1.21 per share,
respectively. This compares to net loss of $1,112,000, or $0.13 per
share and $3,135,000, or $0.35 per share for the comparable prior year
periods. The current fiscal year's net loss includes a valuation
allowance placed on the Company's deferred tax assets totaling
$3,611,000, or $0.41 per share.
Mr. Freeman concluded, "Our acquisition of MMB one year ago has
exceeded our expectations and the turnaround of our memory solutions
business is on track. Our memory solutions business is generating
positive cash flow and growing. Our outlook for XcelaSAN is very
robust, particularly as we move into High Availability systems later
this year. We expect that the enhancements under development will
further strengthen our value proposition and sales."
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 AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Fourth Quarter Ended Fiscal Year Ended
April 30 April 30
2010 2009 2010 2009
____________________ __________________
Revenues $ 11,873 $ 5,639 $ 44,020 $ 25,897
Costs and expenses:
Cost of sales 8,918 3,952 32,408 17,443
Engineering and development 265 287 997 1,219
Research and development 877 490 4,265 1,531
Selling, general and
administrative 2,959 2,548 11,810 10,477
Stock-based compensation
expense* 192 138 918 532
Intangible asset
amortization expense 145 55 637 55
__________ ________ _________ _________
13,356 7,470 51,035 31,257
__________ ________ _________ _________
Loss from operations (1,483) (1,831) (7,015) (5,360)
Other income (expense) (128) 7 (117) 223
__________ ________ _________ _________
Loss before income taxes (1,611) (1,824) (7,132) (5,137)
Income tax provision (benefit) 0 (712) 3,611 (2,002)
__________ ________ _________ _________
Net loss $ (1,611) $ (1,112) $ (10,743) $ (3,135)
========== ======== ========= =========
Net loss per share:
Basic $ (0.18) $ (0.13) $ (1.21) $ (0.35)
========== ======== ========= =========
Diluted $ (0.18) $ (0.13) $ (1.21) $ (0.35)
========== ======== ========= =========
Weighted average number
of shares outstanding:
Basic 8,918 8,869 8,891 8,869
========== ======== ========= =========
Diluted 8,918 8,869 8,891 8,869
========== ======== ========= =========
*Items are 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, 2010 April 30, 2009
ASSETS
Current assets
Cash and cash equivalents $ 2,507 $ 12,525
Accounts receivable, net 5,344 3,381
Inventories 6,872 2,201
Deferred income taxes 0 300
Other current assets 87 126
_____________________________________
Total current assets 14,810 18,533
Deferred income taxes 0 3,282
Property and equipment, net 1,117 1,100
Other assets 105 136
Intangible assets, net 867 1,504
Goodwill 754 0
_____________________________________
Total assets $ 17,653 $ 24,555
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LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable $ 3,523 $ 1,386
Accrued liabilities 1,738 2,070
Short term debt 1,000 0
_____________________________________
Total current liabilities 6,261 3,456
Stockholders' equity 11,392 21,099
_____________________________________
Total liabilities and
stockholders' equity $ 17,653 $ 24,555
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