Dataram Reports First Quarter Financial Results; Company Resumes Stock Repurchase Program, Reduces Long-Term Debt by $2.3 million.Business & Technology Editors PRINCETON, N.J.--(BUSINESS WIRE)--Aug. 21, 2002 Dataram Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : DRAM) today reported its financial results for its fiscal first quarter ended July 31, 2002. Revenues for the first quarter were $14.3 million compared to $19.8 million in the prior quarter and $22.6 million for the same period of the previous year. As previously announced, the Company incurred restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , primarily severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when , during the quarter of $740,000. The restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). is projected to reduce costs by $2.5 million annually. Excluding the restructuring charge, the Company incurred a proforma loss (earnings before depreciation and amortization charges) of $79,000. This compares to a proforma loss of $442,000 or $0.05 per share in the prior quarter and proforma earnings of $745,000 or $0.09 per share in the first quarter of the prior fiscal year. The Company reported a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss of $1.8 million or $0.21 per share for the first quarter of fiscal 2003 compared to a loss of $1.7 million or $0.20 per share in the prior quarter and $1.8 million or $0.21 per share in the first quarter of last fiscal year.
(In 000's, except per
share amounts) Fourth First Quarter
Quarter
FY2002 FY2003 FY2002
Revenues $19,801 $14,281 $22,570
Proforma net
earnings (loss)(1) $(442) $(79) $745
Proforma EPS $(0.05) $(0.01) $0.09
Depreciation and
amortization $1,275 $1,004 $1,306
Restructuring charges -- 740 1,200
Net loss $(1,717) $(1,823) $(1,761)
EPS $(0.20) $(0.21) $(0.21)
Shares 8,490 8,483 8,524
(1) Excludes non-cash depreciation and amortization and restructuring
charges.
Robert Tarantino, Dataram's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "We have endured a market that presented unprecedented challenges over the last fifteen months. During that time we reduced our operating costs operating costs npl → gastos mpl operacionales by approximately $6.5 million per year, while still preserving our key sales and manufacturing resources. Although the extended market slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. has adversely impacted the Company's revenue, we believe the worst of this market downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. is behind us. We are positioned to be successful during a period of slow economic recovery, while maintaining the operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. to dramatically increase earnings in an improving economy." Mark Maddocks, Dataram's chief financial officer added, "We have improved our financial condition. During the quarter, the Company paid down $2.3 million in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , while increasing cash and equivalents by $715,000. Since fiscal 2001 year-end, our bank debt and capital lease obligations have decreased from $15.1 million to the current level of $1.5 million. Also, in the first quarter, the Company resumed its open market stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. activities purchasing 38,600 shares of its common stock in the quarter. The Company is continuing to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. its shares in the second quarter." Dataram recently announced the appointment of Lars Marcher to the position of chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . Mr. Marcher, who joined the Company in March 2001 after its acquisition of Memory Card Technology A/S, is an experienced global sales and marketing executive. He has held senior marketing management positions with a number of international firms, most notably of which is Apple Computer, Australia and has overseen sales and marketing efforts in Europe and the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. . Mr. Tarantino commented on Mr. Marcher's promotion, "Lars' extensive background in international sales and marketing strengthens and deepens our management team. His contribution during this difficult market has been instrumental in positioning Dataram for long-term growth." In this year's first quarter, the Company entered into an agreement to sell its undeveloped land for a price of $3.0 million. While management expects the sale to close no later than 30 months from the date of contract, the agreement is subject to certain contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. and as such may be terminated prior to closing. The land is carried at cost on the Company's balance sheet at a value of $875,000. The resulting gain on the sale will be recorded when all contingencies have been satisfied. Dataram will conduct a conference call at 11:00 a.m. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) today to present its first quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800-207-3317 and providing the following reservation number: 20829809. It is recommended that participants call 10 minutes before the conference call is scheduled to begin. The conference call can also be accessed over the Internet through Vcall at www.vcall.com. A replay of the call will be available approximately one hour after the completion of the conference call through Vcall and for 24 hours Adv. 1. for 24 hours - without stopping; "she worked around the clock" around the clock, round the clock by dialing 800-633-8284 or 402-977-9140 and entering the reservation number listed above. ABOUT DATARAM CORPORATION Dataram Corporation, celebrating its 35th year in the computer industry, is a leading provider of computer memory. The Company offers a specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. line of gigabyte-class memory for entry- to enterprise-level servers, workstations and notebooks from Compaq, Dell, Fujitsu/Siemens, HP, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Intel, SGI (SGI, Sunnyvale, CA, www.sgi.com) A manufacturer of workstations and servers, founded in 1982 by Jim Clark. The company was founded as Silicon Graphics, Inc., but changed to its acronym in 1999. , Sun and Toshiba. Additional information is available on the Internet at www.dataram.com.
DATARAM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
7/31/2002 7/31/2001
Revenues $ 14,281 $ 22,570
Costs and expenses:
Cost of sales 10,740 15,625
Engineering and
development 381 594
Selling, general
and administrative 4,537 6,056
Intangible asset
amortization 0 297
Restructuring charges 740 1,200
-------------- ---------------
16,398 23,772
Loss from operations (2,117) (1,202)
Interest expense, net (44) (154)
-------------- ---------------
Loss before income taxes (2,161) (1,356)
Income tax provision
(benefit) (338) 405
-------------- ---------------
Net loss $ (1,823) $ (1,761)
============== ===============
Net loss per share:
Basic $ (0.21) $ (0.21)
============== ===============
Diluted $ (0.21) $ (0.21)
============== ===============
Average number of
shares outstanding:
Basic 8,483 8,524
============== ===============
Diluted 8,483 8,524
============== ===============
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
July 31, 2002 April 30, 2002
-------------- ---------------
ASSETS
Current assets:
Cash and cash
equivalents $ 4,371 $ 3,656
Trade receivables, net 6,279 12,177
Inventories 4,466 5,435
Other current assets 1,148 532
-------------- --------------
Total current assets 16,264 21,800
Property and equipment, net 8,329 9,210
Goodwill 11,144 11,144
Other assets 439 408
-------------- --------------
$ 36,176 $ 42,562
============== ==============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 3,507 $ 6,600
Accrued liabilities 2,249 1,687
-------------- --------------
Total current liabilities 5,756 8,287
Deferred income taxes 646 647
Long-term debt 1,500 3,800
Stockholders' equity 28,274 29,828
-------------- --------------
$ 36,176 $ 42,562
============== ==============
The information provided in this press release may include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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, 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , filed with the Securities and Exchange Commission, which can be reviewed at http://www.sec.gov. |
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