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TMCNet:  Dataram Continues to Trim Losses as It Reports Fiscal 2014 Second Quarter Financial Results

[December 16, 2013]

Dataram Continues to Trim Losses as It Reports Fiscal 2014 Second Quarter Financial Results

PRINCETON, N.J. --(Business Wire)--

Dataram Corporation (NASDAQ:DRAM) today reported its financial results for its three and six months ended October 31, 2013. Revenues for the second quarter and first six months of fiscal 2014 were $7.4 million and $14.8 million, respectively, which compares to $7.0 million and $15.0 million for the comparable prior year periods. The Company incurred a net loss for the three months ended October 31, 2013 of $338,192 which compares to a net loss of $1,247,757 for the comparable prior year period. The loss for the six months ended October 31, 2013 totaled $1,219,822 versus $2,223,474 for the prior comparable period. The Company recorded a gain on a sale leaseback transaction of approximately $103,000 and a recovery of bad debt of $162,500 during the quarter ended October 31, 2013.

John H. Freeman, Dataram's president and CEO commented, "The Company continues to execute its plan of cost reduction and sales expansion. The six percent sales increase over the same quarter of last year and slight increase over the previous quarter of this year is a result of our product expansion, increased sales of Advanced Micro Devices ('AMD' (News - Alert)) Radeon Memory products and growth in our AMD relationship. We continue to work to expand the number of outlets for our AMD Radeon branded consumer and server memory in addition to exposing more gamers to our AMD Radeon RAMDisk."

Mr. Freeman concluded, "We have completed a sale leaseback transaction on our manufacturing equipment and soon after the end of the second quarter, we refinanced our revolving credit line. We continue to look for transactions that will further improve our working capital position."

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

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

       

Second Quarter Ended

October 31,

Six Months Ended

October 31,

2013   2012 2013   2012
 
Revenues $ 7,410 $ 6,959 $ 14,777 $ 14,958
 
Costs and expenses:
Cost of sales 5,841 5,772 11,646 12,076
Engineering and development 300 190 619 396
Selling, general and administrative 1,571 2,069 3,549 4,283
Stock-based compensation expense* 18 79 39 179
Intangible asset amortization* 41 41 82 82
Gain on asset disposal   (103 )  

-

    (103 )  

-

 
  7,668     8,151     15,832     17,016  
 
Loss from operations (258 ) (1,192 ) (1,055 ) (2,058 )
 
Other expense   (80 )   (56 )   (165 )   (165 )
 
Loss before income taxes (338 ) (1,248 ) (1,220 ) (2,223 )
 
Income tax benefit  

-

   

-

   

-

   

-

 
 
Net loss $ (338 ) $ (1,248 ) $ (1,220 ) $ (2,223 )
 
Net loss per share:
Basic $ (0.18 ) $ (0.70 ) $ (0.67 ) $ (1.25 )
Diluted $ (0.18 ) $ (0.70 ) $ (0.67 ) $ (1.25 )
 

Weighted average number of shares outstanding:

Basic   1,899     1,784     1,827     1,784  
Diluted   1,899     1,784     1,827     1,784  

Note- 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)

       
October 31, 2013 April 30, 2013
 
ASSETS
Current assets
Cash and cash equivalents $ 603 $ 324
Accounts receivable, net 3,014 2,885
Inventories 2,182 2,903
Note receivable - 275
Other current assets   198   81
Total current assets 5,997 6,468
 
 
Property and equipment, net 284 425
 
Other assets 49 56
 
Intangible assets, net 52 133
 
Goodwill   1,083   1.083
 
Total assets $ 7,465 $ 8,165
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Note payable-revolving credit line $ 1,706 $ 1,876
Accounts payable 1,306 948
Accrued liabilities 982 684
Due to related party   400   400
Total current liabilities 4,394 3,908
 
Due to related party - long term   567   1,267
Total liabilities 4,961 5,175
 
Stockholders' equity   2,504   2,990
 
Total liabilities and stockholders' equity

$

7,465

$

8,165


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