Dataram Reports Fiscal 2014 First Quarter Financial Results

PRINCETON, N.J. — (BUSINESS WIRE) — September 16, 2013 — Dataram Corporation (NASDAQ: DRAM) today reported its financial results for its fiscal first quarter ended July 31, 2013. Revenues for the first quarter were $7.4 million, which compares to $6.2 million in the previous quarter and $8.0 million for the comparable prior year period. The Company’s net loss for the first quarter totaled $882,000, or $0.50 per share which compares to net loss of $976,000, or $0.55 per share for the comparable prior year period. In the first quarter of fiscal 2014 the Company recorded an expense of approximately $110,000 for severance costs incurred in connection with a reduction in workforce. In addition, the Company recorded a nonrecurring expense of $275,000 to fully reserve for the Shoreline Memory, Inc. promissory note which was due on July 31, 2013. The loss adjusted for the nonrecurring item would have been $607,000, compared to a loss of $976,000 in the prior year or approximately a 38% reduction.

John H. Freeman, Dataram’s President and CEO commented, “We have made progress in the first quarter with increased sales and the reduction of operating expense of approximately 23%, without the effects of the nonrecurring expense. Despite industry wide challenges, we continue to see signs of growth through our new partnerships, new distribution channels and further development of our RAMDisk software.”

AMD and Newegg both bundled and ran special offers for Radeon RAMDisk which resulted in increased sales. Our inclusion in AMD’s Never Settle Forever campaign, other campaigns, expansion of distribution through major r/e-tailors and continued growth in commercial licenses which include annual renewal fees create a strong foundation for RAMDisk growth and profitability.

Dataram continues to work closely with AMD in delivering technically superior memory products for both consumer and commercial applications. We have also identified and are jointly working with system builders and integrators which can benefit from our memory products.

Mr. Freeman concluded, “The industry challenges remain but our cost containment initiatives, experiences with our new partnerships and renewed large company orders are making a positive contribution to Dataram and our bottom line.”

ABOUT DATARAM CORPORATION

Founded in 1967, Dataram is a worldwide leader in the manufacture of high-quality computer memory, storage and software products. Our products and services deliver IT infrastructure optimization, dramatically increase application performance and deliver substantial cost savings. Dataram solutions are deployed in 70 Fortune 100 companies and in mission-critical government and defense applications around the world. For more information about Dataram, visit www.dataram.com.

The information provided in this press release may include forward-looking statements relating to future events, such as the development of new products, pricing and availability of raw materials 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, increased competition in the memory systems industry, order cancellations, 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 Follow *****

       
 

DATARAM CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

 

(Unaudited)

 

 

First Quarter Ended
July 31,

2013       2012
 
Revenues $ 7,367 $ 7,998
 
Costs and expenses:
Cost of sales 5,805 6,304
Engineering and development 319 206
Selling, general and administrative 1,978 2,214
Stock-based compensation expense* 21 100
Intangible asset amortization expense*   41     41  
  8,164     8,865  
 
Loss from operations (797 ) (867 )
 
Other income (expense)   (85 )   (109 )
 
Loss before income taxes (882 ) (976 )
 
Income tax benefit   0     0  
 
Net loss $ (882 ) $ (976 )
 
Net loss per share:
Basic $ (0.50 ) $ (0.55 )
Diluted $ (0.50 ) $ (0.55 )
 
Weighted average number of shares
outstanding:
Basic   1,755     1,784  
Diluted   1,755     1,784  
 
 
Note- July 2012 amounts shown have been adjusted to reflect the reverse 1-for-6 stock split effective March 18, 2013.
 
* Items are recorded as a component of operating costs and expenses in the Company’s financial statements filed with the Securities and Exchange Commission on Form 10-Q.
 
 
 
 

DATARAM CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

             
July 31, 2013 April 30, 2013
 
ASSETS
Current assets
Cash and cash equivalents $ 108 $ 324
Accounts receivable, net 3,210 2,885
Inventories 2,722 2,903
Note receivable, less allowance of $275 at

July 31, 2013

- 275
Other current assets   141   81
Total current assets 6,181 6,468
 
Property and equipment, net 374 425
 
Other assets 56 56
 
Intangible assets, net 92 133
 
Goodwill   1,083   1,083
 
Total assets $ 7,786 $ 8,165
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Note payable-revolving credit line $ 2,342 $ 1,876
Accounts payable 1,198 948
Accrued liabilities 549 684
Due to related party   400   400
Total current liabilities 4,489 3,908
 
Due to related party – long term   1,167   1,267
Total liabilities 5,656 5,175
 
Stockholders' equity   2,130   2,990
 
Total liabilities and stockholders' equity

$

7,786

$

8,165

 
 



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