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FOR: Dataram Corporation
APPROVED BY: Mark E. Maddocks
Chief Financial Officer
Dataram Corporation
(609) 799-0071
FOR IMMEDIATE RELEASE
CONTACT: Investor Relations:
Cheryl Schneider/John Blackwell
Press: Michael McMullan, David Nugent
Morgen-Walke Associates, Inc.
(212) 850-5600
DATARAM REPORTS 61% EARNINGS INCREASE
DECLARES THREE FOR TWO STOCK SPLIT
PRINCETON, NJ, November 10, 1999 - Dataram Corporation (AMEX:
DTM) today reported record earnings for its second quarter ended
October 31, 1999.
For the fiscal 2000 second quarter, net earnings were $2,081,000,
up 61% compared with the second quarter of fiscal 1999. On a diluted
basis, earnings per share increased 57% to a record $0.33 in the
quarter, compared with $0.21 in the second quarter of fiscal 1999.
Revenues of $29.4 million were up 81% versus $16.3 million in the
prior year's second quarter. Volume, measured in gigabytes shipped,
increased 104% in the second quarter compared to the prior year
period. On a sequential basis, quarterly revenues increased 39% to
$29.4 million from $21.2 million and net earnings rose 36% to
$2,081,000 from $1,531,000.
For the fiscal 2000 six-month period, net earnings rose 33% to
$3,612,000, or $0.58 per diluted share, versus $2,707,000, or $0.44
per diluted share. Revenues of $50.6 million were up 49% compared to
$34.0 million in the comparable period of fiscal 1999.
Robert V. Tarantino, Dataram's president and chief executive
officer, commented, "It is a pleasure to report yet another quarter of
record earnings. This is our eighth consecutive quarter of delivering
increased year-over-year bottom line results. These results reflect
continued strong growth in volume and more stable average selling
prices. The market for our high capacity memory products is
benefiting not only from the growing need for more powerful memory
products to manage the expanding Internet infrastructures, but by our
growing presence in the OEM and channel assembly businesses."
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DATARAM REPORTS 61% EARNINGS INCREASE Page 2
DECLARES THREE FOR TWO STOCK SPLIT
Mr. Tarantino continued, "In an important development this
quarter, we entered into an agreement with Compaq Computer Corporation
whereby AlphaServer network and workstation users can add Dataram
memory to their Compaq service agreements. This action improves our
competitiveness by increasing the value of Dataram memory to our
existing and potential customers."
Mr. Tarantino added, "In addition to actively expanding our core
business, we continued to foster new relationships with channel
assemblers and original equipment manufacturers (OEMs). Our OEM
business, which we entered in the fourth quarter of our 1999 fiscal
year, contributed revenue of over $3 million in the second quarter, an
improvement of nearly 150% from the first quarter. We are confident
that this segment will provide us with numerous growth opportunities
and will improve the efficiency of our manufacturing assets as we
build volume."
The Company continued its previously announced 1,000,000 share
repurchase program. During the second quarter the Company bought back
210,200 shares at an average price of $13.14, bringing the total
number of shares purchased year-to-date to 279,900 shares. As of
November 9, 1999, the Company has purchased 617,900 shares under the
current authorization.
Additionally, the Company announced that its Board of Directors
has approved a three-for-two split of its common stock for
shareholders of record at the close of business on November 24, 1999.
The stock split will be in the form of a one share dividend for each
two shares owned. The distribution of the additional shares will occur
on December 15, 1999. The Company's share repurchase program will
remain in place. "The Company's strong financial performance makes
today's actions possible," Mr. Tarantino said. "The stock split will
provide additional liquidity for our shares and, coupled with the
repurchase program, return value to our shareholders."
Mr. Tarantino concluded, "A more stable price environment coupled
with increasing demand for high capacity memory products and expanding
OEM relationships point to a promising future and solid results in the
upcoming quarters. We anticipate these conditions persisting in the
coming months and into next year. As such, we are confident that we
will be able to maintain our momentum and continue to grow through the
remainder of the year and into the new millenium."
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.
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DATARAM REPORTS 61% EARNINGS INCREASE Page 3
DECLARES THREE FOR TWO STOCK SPLIT
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)
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DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
10/31/99 10/31/98 10/31/99 10/31/98
________ ________ ________ ________
(Unaudited) (Unaudited)
Revenues $ 29,385 $ 16,262 $ 50,550 $ 34,012
Costs and expenses:
Cost of sales 21,940 11,095 37,355 23,365
Engineering and
development 343 372 676 704
Selling, general and
administrative 3,857 2,810 6,907 5,747
_______ _______ _______ _______
26,140 14,277 44,938 29,816
Earnings from operations 3,245 1,985 5,612 4,196
Interest income, net 117 135 225 252
_______ _______ _______ _______
Earnings before income taxes 3,362 2,120 5,837 4,448
Income taxes 1,281 830 2,225 1,741
_______ _______ _______ _______
Net earnings $ 2,081 $ 1,290 $ 3,612 $ 2,707
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Net earnings per share:
Basic $ 0.40 $ 0.23 $ 0.69 $ 0.49
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Diluted $ 0.33 $ 0.21 $ 0.58 $ 0.44
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Average number of shares outstanding:
Basic 5,194 5,543 5,206 5,553
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Diluted 6,307 6,145 6,280 6,143
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DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(in thousands)
October 31, 1999 April 30, 1999
________________ ______________
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 8,389 $ 8,093
Trade receivables, net 16,956 12,016
Inventories 4,450 3,290
Other current assets 653 475
________________ ______________
Total current assets 30,448 23,874
Property and equipment, net 3,631 3,491
Other assets 9 9
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$ 34,088 $ 27,374
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,062 $ 4,344
Accrued liabilities 2,285 2,092
________________ ______________
Total current liabilities 12,347 6,436
Deferred income taxes 919 919
Stockholders' equity 20,822 20,019
________________ ______________
$ 34,088 $ 27,374
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