FOR IMMEDIATE RELEASE CONTACT: Mark Maddocks
Vice-President, Finance
Telephone: (609) 799-0071
DATARAM REPORTS SECOND QUARTER
FISCAL 1998 OPERATING RESULTS
PRINCETON, NJ, November 12, 1997 -- Dataram Corporation
(AMEX: DTM)
Benefiting from sustained strong volume in the UNIX and
windows NT workstation and server memory market and strong
demand for new product introductions, Dataram Corporation
achieved higher revenues and solid earnings for the second
quarter of fiscal 1998, Robert V. Tarantino, president and
chief executive officer, announced today.
For the second quarter ended October 31, 1997, Dataram
reported revenues of $20.1 million compared to $17.2 million
for the year earlier period. Net earnings were $945,000, or
$.30 per share, versus $1,014,000, or $.30 per share, for
last year's comparable quarter.
For the six months ended October 31, 1997, Dataram
reported revenues of $38.2 million compared to $34.6 million
for the year earlier period. Net earnings were $1,614,000,
or $.51 per share, versus $1,979,000, or $.55 per share for
the comparable prior year period.
Continued....
Dataram Earnings Release - Page 2
Operating results for the current quarter include
approximately $500,000 in legal expense related to the
Company's litigation with Sun Microsystems, Inc. "While the
Company continues to incur legal expenses that it did not
incur in the prior comparable periods, our profitable growth
has enabled us to absorb these costs," Tarantino stated. "We
will continue our strong defense against Sun's patent claims
which we regard as overreaching. At the same time, we will
vigorously pursue our antitrust, product disparagement and
business interference counterclaims under which Dataram is
seeking both compensatory and punitive damages as well as
reimbursement of attorneys fees and other legal costs."
"We increased revenues in spite of reduced product
selling prices resulting from a decline in the price of DRAM
chips," Tarantino said. Average unit selling prices have
declined approximately 20% year over year. "Our market --
high performance workstations and servers -- continues to
offer profitable opportunities for the Company's broadening
array of memory products."
"During the quarter, we continued the expansion of our
sales team" he stated. "In addition, we increased capacity
at our domestic manufacturing facility and establishing a
distribution facility in the United Kingdom to cost
efficiently accommodate increased European Community demand.
These expenditures are an integral part of our strategy to
maximize the many opportunities available to us in our
growing market."
Continued....
Dataram Earnings Release - Page 3
An expanded sales force is rapidly increasing Dataram's
customer base in U.S. and foreign markets, Tarantino
remarked. Higher volume, combined with economies of scale
achieved at the Company's automated manufacturing facility,
has improved margins. Dataram also has benefited from being
"first to market" with several products, he added.
Tarantino announced that, during the quarter, the
Company signed a licensing agreement with Silicon Graphics
(SGI) to manufacture memory upgrades for certain SGI high
performance servers and workstations. "This is an important
step in our continuing efforts to further broaden the
customer base for our high-end computer memory products."
Tarantino said the Company maintained its solid
financial condition, with strong operating cash flow, no
debt and an unsecured $12 million line of credit. In
continuing efforts to enhance shareholder value, the
Company, as of October 31, 1997, has repurchased 84,800 of
the 300,000 shares of Dataram common stock authorized by the
Board of Directors in July, 1997. The purchases were
financed from operating cash flow.
"I'm confident that Dataram will sustain its momentum
and achieve solid operating gains for the remainder of
fiscal 1998," Tarantino concluded.
Dataram develops, manufactures and markets gigabyte
memory boards for high performance workstations and servers.
Continued....
Dataram Earnings Release - Page 4
Dataram Corporation and Subsidiary
Consolidated Summary Information
(In thousands except per share amounts)
Quarter Ended Six Months Ended
October 31 October 31
1997 1996 1997 1996
_______ _______ _______ ______
Revenues $20,068 $17,168 $38,215 $34,616
Net Earnings $945 $1,014 $1,614 $1,979
Net Earnings Per
Share $.30 $.30 $.51 $.55
Average Shares
Outstanding 3,134 3,422 3,162 3,594