APPROVED BY: Mark E. Maddocks
Chief Financial Officer
Dataram Corporation
(609) 799-0071
CONTACT: Investor Relations:
Cheryl Schneider/John Blackwell
Press: Michael McMullan
Morgen-Walke Associates, Inc.
(212) 850-5600
DATARAM REPORTS RECORD FIRST QUARTER EARNINGS
PRINCETON, NJ, August 12, 1999 -- Dataram Corporation (AMEX: DTM)
today reported record earnings for its first quarter ended July 31,
1999.
For the fiscal 2000 first quarter, net earnings increased to
$1,531,000, or $0.25 per diluted share, versus $1,417,000, or $0.23
per diluted share for the first quarter of fiscal 1999. Revenues of
$21.2 million were up 19% versus $17.8 million in the prior year's
first quarter.
The Company noted that volume, measured in gigabytes shipped,
increased 60% in the first quarter compared to the prior year period.
The volume increase was mitigated by a 25% reduction in average
selling prices due to lower average DRAM prices.
Robert V. Tarantino, Dataram's president and chief executive
officer, commented, "We are pleased to have once again achieved record
earnings marking our seventh consecutive quarter of year-over-year
earnings improvement. The market for high capacity memory products
remains strong and we continue to play an important role in meeting
the needs of the Internet server and workstation markets."
Mr. Tarantino added, "We are on track to achieve our current year
goal of 20% annual earnings growth as the market for faster more
complex computer memory products continues to expand. DRAM prices have
recently stabilized and we are anticipating continued pricing
stability for the upcoming quarter. We have built a strong brand name
in the computer memory industry by producing quality products and
providing superior service and we will continue to stay focused on
using this strong brand recognition to further penetrate the gigabyte
memory market with high quality memory products."
-more-
DATARAM REPORTS RECORD FIRST QUARTER EARNINGS Page: 2
Mr. Tarantino continued, "We are making progress in expanding our
market presence with existing customers such as Access Graphics,
America Online and Wal-Mart as well as securing important new
customers such as Bell Microproducts, Nortel and Philips
Semiconductors. We have maintained our first to market advantage with
new product introductions, including recently, the highly promising
two gigabyte memory option for Sun Microsystems Inc.'s flagship
Enterprise server line."
"In addition to expanding our core business, we continued to
foster new relationships with channel assemblers and original
equipment manufacturers (OEMs) during the first quarter. This market
segment offers substantial growth opportunities and, as we build
volume, will provide us with significant operating leverage allowing
us to maximize our manufacturing capabilities."
Mr. Tarantino concluded, "In another important development this
quarter, we entered into a licensing agreement with Dense-Pac
Microsystems allowing us to stack DRAMs (which doubles the amount of
memory we can place on a board) in our manufacturing facility versus
subcontracting this process. This action improves our competitiveness
by reducing the cost of these assemblies and increasing our ability to
respond to large OEM opportunities."
During the first quarter of fiscal 1999, the Company increased
its share repurchase program. The Company purchased 69,700 shares of
its common stock in the first quarter bringing the total number of
shares purchased under the current program to 407,700 shares.
Dataram Corporation is a leading provider of gigabyte memory
upgrades for workstations and network servers. The Company
specializes in the manufacture of large-capacity memory boards for
Compaq/Digital, Dell, Hewlett-Packard, IBM, Intel, Silicon Graphics
and Sun Microsystems computers.
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.
(Financial Tables To Follow)
DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
Three Months Ended
7/31/99 7/31/98
_________ _________
(Unaudited)
Revenues $ 21,165 $ 17,750
Costs and expenses:
Cost of sales 15,415 12,270
Engineering and development 333 331
Selling, general and administrative 3,050 2,937
_________ _________
18,798 15,538
Earnings from operations 2,367 2,212
Interest income, net 108 116
Earnings before income taxes 2,475 2,328
Income taxes 944 911
_________ _________
Net earnings $ 1,531 $ 1,417
========= =========
Net earnings per share
Basic $ 0.29 $ 0.25
========= =========
Diluted $ 0.25 $ 0.23
========= =========
Average number of shares outstanding
Basic 5,218 5,563
========= =========
Diluted 6,176 6,126
========= =========
-more-
DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(in thousands)
July 31, 1999 April 30, 1999
_____________ ______________
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 9,508 $ 8,093
Trade receivables, net 9,782 12,016
Inventories 4,303 3,290
Other current assets 646 475
_____________ ______________
Total current assets 24,239 23,874
Property and equipment, net 3,698 3,491
Other assets 9 9
_____________ ______________
$ 27,946 $ 27,374
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,203 $ 4,344
Accrued liabilities 1,477 2,092
_____________ ______________
Total current liabilities 5,680 6,436
Deferred income taxes 919 919
Stockholders' equity 21,347 20,019
_____________ ______________
$ 27,946 $ 27,374
============= ==============
# # #