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PRESS RELEASE
Dataram Contact:
Mark Maddocks
Vice President-Finance, CFO
609-799-0071
info@dataram.com
DATARAM REPORTS FISCAL 2011 THIRD QUARTER FINANCIAL RESULTS
PRINCETON, N.J. March 16, 2011 - Dataram Corporation (NASDAQ: DRAM) today
reported its financial results for its fiscal third quarter and nine months
ended January 31, 2011. Revenues for the third quarter and first nine
months of fiscal 2011 were $11.9 million and $35.6 million, respectively,
which compares to $12.3 million and $32.1 million for the comparable prior
year periods. The Company incurred a pre-tax net loss for the third quarter
of the current fiscal year of $0.8 million which compares to a pre-tax net
loss of $1.3 million for the comparable prior year period. Nine month
pre-tax net loss totaled $3.8 million versus $5.5 million for the comparable
prior year period.
John H. Freeman, Dataram's president and CEO commented, "The release
schedule and development of our XcelaSAN product line is on track. We have
completed our coding and testing of High Availability functionality. Systems
with High Availability functionality are shipping to customers this quarter."
Walker Blount, a respected storage systems analyst at Web-Feet Research, a
memory and storage research firm said, "The subtle beauty of the Dataram
XcelaSAN Model 100 is mid-level enterprise users have the most
cost-effective and true plug-and-play fast storage appliance (450,000 IOPS),
resulting in ease of integration for existing enterprise architectures. It
can be up and running in less than two hours in a Fibre Channel server
system. Users are looking for solutions that are easy to implement and that
provide real cost savings - XcelaSAN delivers on both."
Mr. Freeman continued, "In the third quarter, our revenues and gross margin
recovered from the decline we experienced in our second quarter and were in
line with our expectations. Nonetheless, we are proceeding with our plan to
improve profitability and minimize the impact of periodic downward market
fluctuations. We will complete the consolidation of our manufacturing
facilities by the end of the current fiscal year and have already reduced
our S, G & A expenses in our memory solutions business. We project continued
growth in our memory solutions business. Our actions should position this
business unit to operate more profitably at current revenue levels."
The Company's net loss for the third quarter was $0.8 million, or $0.09 per
share which compares to a net loss of $6.5 million, or $0.73 per share for
the comparable prior year period. Nine month net loss totaled $3.8 million
versus $9.1 million for the prior comparable period. In the third quarter of
the current fiscal year the Company's XcelaSAN development project met the
accounting requirements of having established technological feasibility, and
accordingly, the Company capitalized approximately $0.8 million of XcelaSAN
development costs. The net loss for the prior year three and nine months
comparable periods includes income tax expense of $5.3 million and $3.6
million , respectively, and is comprised of a valuation allowance the
Company placed on its deferred income tax assets.
Mr. Freeman concluded, "We have taken the necessary actions to ensure that
our memory solutions business is profitable and growing. Our outlook for
XcelaSAN is strong, particularly as High Availability functionality is now a
reality."
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)
Third Quarter Ended Nine Months Ended
January 31, January 31,
___________________ _________________
2011 2010 2011 2010
Revenues $ 11,873 $ 12,284 $ 35,566 $ 32,147
Costs and expenses:
Cost of sales 8,970 8,899 27,127 23,490
Engineering and development 237 220 723 732
Research and development 112 892 1,825 3,388
Selling, general and
administrative 2,954 3,009 8,556 8,851
Stock-based compensation
expense* 148 346 461 726
Intangible asset amortization 107 164 322 492
__________ __________ _________ _________
12,528 13,530 39,014 37,679
Loss from operations (655) (1,258) (3,448) (5,532)
Other income (expense) (179) (11) (339) 11
__________ __________ _________ ________
Loss before income taxes (834) (1,257) (3,787) (5,521)
Income tax expense 5 5,281 5 3,611
__________ __________ _________ ________
Net loss $ (839) $ (6,538) $ (3,792) $ (9,132)
========== ========== ========= ========
Net loss per share:
Basic $ (0.09) $ (0.73) $ (0.43) $ (1.03)
========== ========== ========= ========
Diluted $ (0.09) $ (0.73) $ (0.43) $ (1.03)
========== ========== ========= ========
Weighted average number of
shares outstanding:
Basic 8,928 8,869 8,920 8,882
========== ========== ========= ========
Diluted 8,928 8,869 8,920 8,882
========== ========== ========= ========
*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)
January 31, 2011 April 30, 2010
ASSETS
Current assets
Cash and cash equivalents $ 466 $ 2,507
Accounts receivable, net 3,573 5,344
Inventories 5,108 6,872
Other current assets 328 87
__________________________________
Total current assets 9,475 14,810
Property and equipment, net 787 1,117
Other assets 83 105
Intangible assets, net 1,313 867
Goodwill 1,186 754
__________________________________
Total assets $ 12,844 $ 17,653
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 2,199 $ 3,523
Accrued liabilities 704 1,738
Notes payable 1,867 1,000
__________________________________
Total current liabilities 4,770 6,261
Stockholders' equity 8,074 11,392
__________________________________
Total liabilities and
stockholders' equity $ 12,844 $ 17,653
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