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FOR IMMEDIATE RELEASE CONTACT: Mark Maddocks
Vice-President, Finance
Telephone: (609) 799-0071
DATARAM RECORDS STRONG EARNINGS
FOR THIRD QUARTER, NINE MONTHS OF FISCAL '97
PRINCETON, NJ, February 7, 1997 Dataram Corporation (AMEX: DTM)
sustained its favorable earnings performance for the third
quarter and nine months of fiscal 1997, Robert V. Tarantino,
president and chief executive officer, announced today.
The Company achieved net earnings of $912,000 or $.27
primary and fully diluted earnings per share, for the third
quarter ended January 31, 1997, compared to a loss of $243,000,
or $.06 per share, for the comparable prior year quarter. The
prior year third quarter operating results included a $1,200,000
pre-tax charge for a write down to market value of inventory.
Third quarter revenues totaled $17.5 million versus $28.4 million
in the year earlier period.
For the nine months ended January 31, 1997, net earnings
were $2,891,000 or $.83 primary and $.80 fully diluted earnings
per share, versus $1,002,000 million, or $.26 per share, for the
prior period. Revenues were $52.1 million compared to $85.6
million recorded in the comparable period.
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Dataram Earnings Release - Page 2
Tarantino attributed the strong earnings to continued high
unit volume demand for the Company's memory products, combined
with economies of scale and production efficiencies achieved at
the Company's state-of-the-art manufacturing facility.
"Third quarter units shipped were 180% greater than last
year's comparable quarter," Tarantino stated. "Revenues continue
to be affected by the dramatic decline in the price of Dynamic
Random Access Memory (DRAM) chips, the major cost component of
computer memory boards. DRAM chips, which were approximately $25
per megabyte last year, are now available at less than $5 per
megabyte."
"While we are pleased with our operating results, the
Company must continue to make the strategic investments which
will result in future profitable growth," Tarantino declared.
"Dataram's established operational efficiency allows us to
broaden our product line at an extremely low incremental cost. We
continue to upgrade our sales, marketing and manufacturing
capabilities to capitalize on future opportunities in the
computer memory marketplace."
Tarantino announced that the Company has entered into an
agreement with IBM whereby IBM will service their computers
containing Dataram memory products. "This agreement attests to
the quality and reliability of our products and underscores our
reputation as a leading supplier of memory in the industry,"
Tarantino stated.
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Dataram Earnings Release - Page 3
Tarantino also announced that Dataram continued its stock
repurchase program during the third quarter, purchasing 115,300
shares of its common stock, bringing the total year to date
purchases to 645,200 shares.
Dataram recently renegotiated its line of credit agreement
with its bank. The new agreement provides for an increase in the
Company's unsecured revolving credit line to $12 million and
extends its maturity. With no debt and strong operating cash
flow, Tarantino said the Company is solidly positioned to pursue
opportunities in the computer memory industry while maintaining
its strong financial condition.
Dataram develops, manufactures and markets quality computer
memory products for workstations, servers and personal computers.
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Dataram Earnings Release - Page 4
Dataram Corporation and Subsidiary
Consolidated Summary Information
(In thousands except per share amounts)
Quarter Ended Nine Months Ended
January 31 January 31
1997 1996 1997 1996
____ ____ ____ ____
Revenues $17,514 $28,385 $52,131 $85,601
Net Earnings (Loss) $912 $ (243) $ 2,891 $ 1,002
Net Earnings (Loss) Per Share
Primary $.27 $(.06) $.83 $.26
Fully Diluted $.27 $(.06) $.80 $.26
Average Shares Outstanding
Primary 3,357 3,824 3,480 3,838
Fully Diluted 3,441 3,824 3,610 3,838