Dataram Reports Fiscal 2007 Second Quarter Financial Results.Revenues and Order Rate Continue To Improve Net Earnings Total $0.16 per Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. Share Board of Directors Declares Regular Quarterly $0.06 Per Share Dividend PRINCETON, N.J. -- 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 second quarter and six months ended October 31, 2006. Revenues for second quarter increased to $10.9 million from $9.3 million in the first quarter and $8.8 million in the fourth quarter of fiscal year 2006 and compares to $9.9 million for the second quarter of the prior fiscal year. Revenues for the first six months of the current fiscal year were $20.2 million versus $23.8 million for the comparable prior year period. Net earnings for the second quarter totaled $1.4 million, or $0.16 per diluted share, which compares to net earnings of $352,000, or $0.04 per diluted share for the second quarter of the prior fiscal year. Net earnings for the first six months of the current fiscal year were $1.4 million, or $0.16 per diluted share, versus $1.3 million, or $0.15 per diluted share, for the comparable prior year period. Net earnings for the second quarter and six months of the current fiscal year included a payment of $2.3 million from a DRAM manufacturer related to a settlement agreement that the Company entered into in the quarter. The payment is recorded as other income in the Company's financial statements for the second fiscal quarter and six months ended October 31, 2006. Second quarter highlights: * Revenues increase 17 percent on a sequential quarterly basis * Order rate improves to $10.5 million, or 8 percent, on a sequential quarterly basis * Board of Directors declares regular quarterly dividend of $0.06 per share Robert V. Tarantino, Dataram's chairman 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. commented, "We continue to make progress with our strategy to expand our customer base of large corporate end-users and value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. . Our revenue growth was led by growth in the compatible memory market, which this strategy addresses and grew by 30 percent on a sequential quarterly basis. Also, importantly, our overall order rate in the second quarter continued to improve and this marks the third consecutive increase in our level of incoming orders." Gross margin during the second quarter averaged 24 percent, which compares to the first quarter level of 26 percent and compares to 30 percent in the second quarter of last fiscal year. Gross margin in both quarters of the current fiscal year is within what the Company considers its normal range. Second quarter and six month expenses of the current fiscal year include $117,000 and $251,000, respectively, of stock option expense compared to zero in the prior year comparable periods. The Company was required to commence expensing stock options at the beginning of the current fiscal year. Excluding stock option expense, selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. for the second quarter were $2.3 million compared to $2.3 million in the first quarter and $2.5 million for the second quarter of last fiscal year. The Company's backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. at the end of the second quarter was $961,000. Mr. Tarantino concluded, "Our financial condition is strong and we are highly liquid. Today, the Company's Board of Directors declared a quarterly dividend of $0.06 per common share. The dividend will be payable on December 13, 2006, to shareholders of record as of November 29, 2006." As announced in a previously issued press release, Dataram will conduct a conference call today at 4:30 p.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) to present its second quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800-732-6094, providing the following reservation number: 21309633. 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 is a worldwide leader in the design and manufacture of high capacity, reliable and innovative memory solutions. With over 39 years of experience, Dataram provides customized memory solutions for OEMs and compatible memory for leading brands including HP, Dell, 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) , 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 Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. and Intel. For more information about Dataram, visit www.dataram.com 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, 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 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. [TABLE OMITTED] [TABLE OMITTED] |
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