Dataram Ends Year With Strong Fourth Quarter
PRINCETON, N.J., May 20/PRNewswire/-- Dataram Corporation (Amex:
DTM) continued its earnings momentum, achieving solid gains in
revenues, net earnings and earnings per share for the fourth quarter
of fiscal 1998, Robert V. Tarantino, president and chief executive
officer, announced today.
For the fourth quarter ended April 30, 1998, revenues increased
14% to $19.2 million compared to $16.9 million in the year earlier
period. Net earnings rose 22% to $1,075,000, or $.35 per share,
versus $879,000, or $.27 per share, for last year's comparable
quarter.
For the fiscal year ended April 30, 1998, revenues increased 12%
to $77.3 million compared to the $69.0 million reported in fiscal
1997. Net earnings were $3,722,000 in fiscal 1998 versus $3,769,000
in fiscal 1997. Dataram reported improved earnings per share of
$1.19 in 1998 versus $1.10 earnings per share in 1997. During the
fourth quarter, Dataram completed the Open Market Repurchase Plan
announced on July 11, 1997 which provided for the repurchase of up to
300,000 shares of the Company's common stock. The Company purchased
the full 300,000 shares at a total cost of $2,989,000.
Dataram achieved its third consecutive quarter of strong
earnings growth. "In the first quarter, we revamped out product line
to focus exclusively on high capacity memory products, which
significantly contributed to improved margins and earnings growth,"
Tarantino stated. "We have been consistently 'first to market' with
new product introductions which also improved margins. Additionally,
we invested heavily during the year to expand our domestic and
international sales force resulting in a broadened customer base.
Paced by increased demand in Dataram's key markets - for high
performance workstations and servers - volume remained strong. "For
the fourth quarter and fiscal year, we increased revenues. Volume
increases have more than offset reduced product selling prices,"
Tarantino said. "Our continuing commitment to invest in our
manufacturing facility has enabled us to profitably achieve this
growth. Additionally, our new distribution center in the United
Kingdom is allowing us to profitably serve a rapidly expanding
European Union customer base."
Tarantino noted another significant event in the fourth quarter,
a licensing agreement enabling Dataram to use Sun Microsystems, Inc.
patented memory module technology, which should enhance sales to the
Sun market. The agreement resolved litigation between Sun and
Dataram that began in August 1996, in which the Company has incurred
considerable legal expense.
Earlier in the year, the Company entered into a licensing
agreement with Silicon Graphics, Inc. which resulted in increased
favorable customer acceptance of the Company's product offerings in
that market.
"Looking ahead, we see continued strong volume growth, a
broadened product line in our markets and an expanding customer
base," Tarantino said. "We are confident of revenue and earnings
growth in fiscal 1999."
Dataram develops, manufactures and markets gigabyte memory
boards for the UNIX and Windows NT workstations and server markets.
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Dataram Corporation and Subsidiary
Consolidated Summary Information
(In thousands except per share amounts)
Quarter Ended Year Ended
April 30 April 30
1998 1997 1998 1997
Revenues $19,227 $16,850 $77,286 $68,980
Net Earnings $ 1,075 $ 879 $ 3,722 $ 3,769
Earnings Per Share
- - Basic $.38 $.28 $1.26 $1.12
- - Diluted $.35 $.27 $1.19 $1.10
Average Shares Outstanding
- - Basic 2,836 3,137 2,958 3,361
- - Diluted 3,072 3,299 3,118 3,432
DATARAM CORPORATION AND SUBSIDIARY
Fourth Quarter and Fiscal Year 1998 and 1997
CONSOLIDATED SUMMARY OF EARNINGS
(In thousands, except per share amounts)
Three Three Twelve Twelve
Months Months Months Months
Ended Ended Ended Ended
April 30 April 30 April 30 April 30
Revenues $19,227 $16,850 $77,286 $68,980
Costs and expenses:
Cost of sales 13,879 13,245 58,608 54,409
Engineering and
Development 305 297 1,113 1,030
Selling, general and
Administrative 3,321 1,885 11,766 7,674
17,505 15,427 71,487 63,113
Earnings from Operations 1,722 1,423 5,799 5,867
Other income, net 43 8 268 227
Earnings before income taxes 1,765 1,431 6,067 6,094
Income taxes 690 552 2,345 2,325
Net earnings $1,075 $879 $3,722 $3,769
Net earnings per share
Basic $0.38 $0.28 $1.26 $1.12
Diluted $0.35 $0.27 $1.19 $1.10
Average number of shares Outstanding
Basic 2,836 3,137 2,958 3,361
Diluted 3,072 3,299 3,118 3,432
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CONSOLIDATED BALANCE SHEETS
(in thousands)
April 30 April 30
1998 1997
Assets
Current assets:
Cash and cash equivalents $ 7,530 $ 6,836
Trade receivables, net 10,076 8,473
Inventories 2,923 4,396
Other current assets 493 572
Total current assets 21,022 20,277
Property and equipment, net 3,435 2,254
Other assets 7 6
$24,464 $22,537
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 4,699 $ 4,145
Accrued liabilities 1,548 1,093
Income taxes payable 236 0
Total current liabilities 6,483 5,238
Deferred income taxes 1,013 1,013
Stockholders' equity:
Common stock 2,781 3,078
Additional paid-in capital 2,126 2,453
Retained earnings 12,061 10,755
Total stockholders' equity 16,968 16,286
$24,464 $22,537
SOURCE Dataram Corporation
-0- 05/20/98
/CONTACT: Mark Maddocks, Vice-President, Finance of Dataram, 609-
799-0071/
(DTM)