FOR IMMEDIATE RELEASE CONTACT: Mark Maddocks
Vice-President, Finance
Telephone: (609) 799-0071
IMPROVED VOLUME BOOSTS DATARAM INCOME, REVENUES
FOR FISCAL 1998 THIRD QUARTER
PRINCETON, NJ, February 6, 1998 Dataram Corporation
(AMEX:DTM) achieved higher revenues and earnings for the third
quarter of fiscal 1998, reflecting brisk demand for both
established computer memory products and new offerings, Robert V.
Tarantino, president and chief executive officer, announced
today.
For the third quarter ended January 31, 1998, Dataram
reported revenues of $19.8 million compared to $17.5 million for
the year earlier period. Net earnings were $1,032,000, or $.34
per share versus $912,000, or $.27 per share for last year's
comparable quarter.
For the nine months ended January 31, 1998, revenues were
$58.1 million compared to $52.1 million for the year earlier
period. Net earnings totaled $2,646,000, or $.85 per share
compared to $2,891,000, or $.80 per share for the prior year.
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Dataram Earnings Release - Page 2
The Company's gross margin percentages this fiscal quarter
and nine months have increased compared to the prior year. This
is attributable to the introduction and favorable market
acceptance of new higher capacity memory products which command
higher margins. "Remaining focused on the workstation and high-
end server market has allowed us to maintain our first-to-market
advantage," Tarantino declared. "Our objective is to achieve both
earnings and revenue growth and we remain confident that we can
accomplish this goal," Tarantino said.
Demand for the Company's products remained strong.
Tarantino reported that gigabytes of memory shipped have
increased 63% on a comparable quarterly basis. During the
quarter, we continued our program of expanding our sales force.
"This team is obtaining many new customers and increasing
business with existing customers in U.S. and international
markets," Tarantino declared. "Investments to expand
manufacturing capacity and establish a distribution center in
the United Kingdom are enabling us to maintain our high service
level while we grow."
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Dataram Earnings Release - Page 3
"We're participating in an industry that continues to
exhibit dynamic growth which shows no signs of abating,"
Tarantino declared. "Business remains strong both here and
abroad, including the Pacific Rim, where we have not experienced
any fallout from the 'Asian crisis.' I fully expect that Dataram
will sustain its solid financial performance throughout fiscal
1998."
During the quarter, the Company continued its stock
repurchase program and, as of the end of the quarter, has
purchased 142,600 shares of the current 300,000 share
authorization.
Dataram develops, manufactures and markets gigabyte memory
boards for the UNIX and windows NT workstation and server memory
markets.
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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
1998 1997 1998 1997
Revenues $19,844 $17,514 $58,059 $52,130
Net Earnings $1,032 $912 $2,646 $2,891
Earnings Per Share
- -Basic $.35 $.28 $.88 $.84
- -Diluted $.34 $.27 $.85 $.80
Average Shares Outstanding
- -Basic 2,936 3,234 2,997 3,433
- -Diluted 3,075 3,441 3,129 3,610