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FOR IMMEDIATE RELEASE CONTACT: Mark Maddocks
Vice-President, Finance
Telephone: (609) 799-0071
DATARAM INCREASES EARNINGS
SPLITS STOCK TWO FOR ONE
PRINCETON, NJ, November 11, 1998 - Dataram Corporation (AMEX:
DTM) achieved substantially higher earnings for the second
quarter and six months of fiscal 1999, Robert V. Tarantino,
chairman and chief executive officer, announced today.
For the second quarter ended October 31, 1998, net earnings
rose 37 percent to $1,290,000 or $.42 cents per share, versus
$945,000, or $.30 cents per share for last year's comparable
quarter. Revenues totaled $16.3 million versus $20.1 million in
the prior year's second quarter.
For the six months ended October 31, 1998, net earnings
increased 68 percent to $2,707,000 or $.88 cents per share,
compared to $1,614,000, or $.51 cents per share, reported in
the previous year. Revenues totaled $34.0 million versus $38.2
million and gigabytes shipped have more than doubled this year
compared to the prior six-month period.
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Dataram Earnings Release - Page 2
"A favorable product mix producing higher gross margins,
combined with cost-effective operations, largely contributed to
the Company's strong second quarter and six-month financial
results," Tarantino stated. "Average selling prices continued to
decline in the second quarter as the purchase price of DRAMs
declined. As we enter our third quarter, DRAM prices have begun
to increase and we have adjusted our selling prices accordingly."
"Our sales force is increasing our customer base in the U.S.
and Europe. Demand remains strong for our high-capacity gigabyte
memory products for workstation and network server applications,"
he continued. "Our broad knowledge of the memory market --
derived from over thirty years of experience -- and engineering
expertise enable us to consistently be the first independent
supplier to introduce high-capacity products to the marketplace."
"In the second quarter, Dataram introduced several high-end
products for the Intel(R) network server environment," Tarantino
stated. "The Company is aggressively marketing these products to
channel assemblers and original equipment manufacturers. We are
very excited about the growth potential at the upper end of the
Intel network server marketplace and we expect this business to
contribute significantly to our financial growth."
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Dataram Earnings Release - Page 3
Additionally, Tarantino announced that the Company's Board of
Directors has approved a two-for-one split of its common stock
for shareholders of record at the close of business on November
23, 1998. The stock split will be in the form of a one share
dividend for each share owned. The distribution of the additional
shares will occur on December 3, 1998. The Company's previously
announced share repurchase program of up to 500,000 shares of its
common stock will remain in place. As of November 10, 1998, the
Company has purchased 64,700 of the 500,000 share authorization.
"The Company's strong financial performance makes today's
actions possible," Tarantino said. "The stock split will provide
additional liquidity for our shares and, coupled with the
repurchase program, return value to our shareholders."
Dataram Corporation is a leading provider of gigabyte memory
upgrades for workstations and network servers and specializes in
the manufacture of large-capacity memory boards for Compaq,
Digital, Hewlett-Packard, IBM, Intel, Silicon Graphics and Sun
Microsystems computers.
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Dataram Earnings Release - Page 4
Safe Harbor Statement
The information provided in this press release may include
forward-looking statements relating to future events, such as the
development of new products, the commencement of production 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
for workstations and servers, increased competition in the memory
systems industry, 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.
Continued....
Dataram Earnings Release - Page 5
Dataram Corporation and Subsidiary
Consolidated Summary Information
(In thousands except per share amounts)
Quarter Ended Six Months Ended
October 31 October 31
1998 1997 1998 1997
Revenues $16,262 $20,068 $34,012 $38,215
Net Earnings $1,290 $945 $2,707 $1,614
Earnings Per Share
- -Basic $.47 $.31 $.98 $.53
- -Diluted $.42 $.30 $.88 $.51
Average Shares Outstanding
- -Basic 2,772 3,002 2,776 3,028
- -Diluted 3,073 3,134 3,072 3,162