Dataram Reports Fourth Quarter and 2005 Fiscal Year Financial Results.PRINCETON Princeton, borough (1990 pop. 12,016) and surrounding township (1990 pop. 13,198), Mercer co., W central N.J.; settled late 1600s, borough inc. 1813, township est. 1838. A leading education center, it is the seat of Princeton Univ. , N.J. -- Dataram Corporation--Annual Revenues Grow 6% and Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern Earnings Grow 63% --Fiscal 2005 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Reaches $0.74 (including one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. tax benefit) --Board of Directors Initiates $0.05 Per Share Quarterly Dividend 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 fourth quarter and full year ended April 30, 2005. Revenues for the quarter were $15.1 million, which compares to $19.9 million for the fourth quarter of fiscal year 2004 and $14.4 million for the third quarter of fiscal 2005. Net earnings for the quarter were $3.9 million or $0.44 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, which includes an income tax benefit of approximately $2.9 million related to a reversal of Company's valuation allowance for its net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. and $460,000 off pretax 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 charges related to staff reductions. Excluding these items, the Company's net earnings were $1.4 million or $0.16 per diluted share. This compares with net earnings of $1.5 million or $0.17 per diluted share for the comparable quarter in the previous fiscal year and $147,000 or $0.02 per diluted share in this year's third quarter. For the fiscal year ended April 30, 2005, the Company's revenues were $65.7 million compared to revenues of $62.0 million for the prior year. Net earnings for fiscal 2005 were $6.7 million or $0.74 per diluted share, which includes the income tax benefit and severance charges noted above. Excluding these items, the Company's net earnings were $4.3 million or $0.47 per diluted share, which compares to net earnings of $2.3 million or $0.25 per diluted share for fiscal year 2004.
(In 000's,
except per Third
share amounts) Fourth Quarter Quarter Full Year
----------------------------------------------------------------------
FY 2005 (1) FY 2004 FY 2005 FY 2005 (1) FY 2004
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Net earnings as
reported $3,875 $1,530 $147 $6,715 $2,271
----------------------------------------------------------------------
Provision for
severances $460 $0 $0 $460 $0
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Tax valuation
allowance
reversal $(2,895) $0 $0 $(2,895) $0
----------------------------------------------------------------------
Comparable net
earnings $1,440 $1,530 $147 $4,280 $2,271
----------------------------------------------------------------------
Diluted EPS as
reported $0.44 $0.17 $0.02 $0.74 $0.25
----------------------------------------------------------------------
Comparable
diluted EPS $0.16 $0.17 $0.02 $0.47 $0.25
----------------------------------------------------------------------
(1) Assumes comparable effective tax rate of 6.5%.
During the fourth quarter, the Company repurchased 311,504 shares of its common stock at a total price of approximately $1.5 million. Nevertheless, the Company's cash increased to $9.3 million from $6.8 million at the end of last year and $8.2 million at the end of the third quarter of this year. At year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , there were 8,361,500 common shares outstanding. "Year-over-year, Dataram's revenues grew 6%, while 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. declined by approximately $1.3 million or 11%," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. 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. . "In fiscal 2006, the company's expenses are expected to continue to decline. In the fourth quarter, we implemented a limited staff reduction. We expect our expenses in fiscal 2006 to be reduced by approximately $1.0 million from fiscal 2005 levels. We believe that our present infrastructure is more than sufficient to support continued profitable growth." Mark Maddocks, Dataram's vice president of finance and CFO See Chief Financial Officer. , added, "Gross margins during the fourth quarter were 28.4% compared to the third quarter level of 21.0% and 25.1% for the fourth quarter of the previous fiscal year. For fiscal 2005, gross margin were 24.2% versus 25.3% in the previous fiscal year. The company considers 25% gross margins with quarterly fluctuations of as much as 3% to be normal. 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 fiscal year was $3.7 million compared to $4.7 million at April 30, 2004 and $1.7 million at the end of this year's third quarter." Mr. Maddocks continued, "After six successive quarters of profitability, management has concluded that it is more likely than not that the company will utilize all of its net operating loss carryforwards and has reversed the valuation allowance previously placed on them. As a result, the company's effective tax rate for financial reporting purposes in fiscal 2006 will be approximately 37%. However, the company will continue to make cash payments for income taxes at an approximate rate of 6.5% of pretax earnings until it utilizes all of its deferred tax assets." Mr. Tarantino concluded, "Today, the company's board of directors approved a $0.05 per share quarterly dividend. As we looked at our cash management choices, and given our confidence in our ability to increase earnings, the company's directors concluded that our priority should be to provide a return to our shareholders in the form of a regular cash payment. The Directors intention is that this is the first in a series of regular quarterly $0.05 per share dividends. The dividend will be payable on June 29, 2005, to shareholders of record as of June 15, 2005." Dataram will conduct a conference call today at 4:30 p.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 ) to present its fourth quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800-732-8470 providing the following reservation number: 21248121. 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 Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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. USE OF NON-GAAP MEASURES Management believes that "comparable" net earnings and "comparable" diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , which are non-GAAP measurements, are meaningful to investors because they provide a view of the Company with respect to ongoing operating results. These results exclude significant charges or credits which are important to an understanding of the Company's overall operating results in the period presented. Such non-GAAP measurements are not recognized in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) and should not be viewed as an alternative to GAAP measures of performance. A reconciliation of GAAP measurements to non- non- word element [L.]not . non- pref. Not: noninvasive. GAAP has been presented in this press release. ABOUT DATARAM CORPORATION Dataram is a worldwide leader in the design and manufacture of high capacity, reliable and innovative memory solutions. With over 38 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, 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, 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.
DATARAM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
(Unaudited)
Fourth Quarter Ended Twelve Months Ended
April 30, April 30,
-------------------- --------------------
2005 2004 2005 2004
Revenues $15,140 $19,948 $65,684 $61,984
Costs and expenses:
Cost of sales 10,839 14,938 49,816 46,311
Engineering and
development 352 321 1,300 1,284
Selling, general and
administrative 2,894 2,947 10,653 11,985
--------- --------- --------- ---------
14,085 18,206 61,769 59,580
Earnings from operations 1,055 1,742 3,915 2,404
Other income (expense) 25 (33) 202 119
--------- --------- --------- ---------
Earnings before income
taxes 1,080 1,709 4,117 2,523
Income tax provision
(benefit) (2,795) 179 (2,598) 252
--------- --------- --------- ---------
Net earnings $3,875 $1,530 $6,715 $2,271
========= ========= ========= =========
Net earnings per share:
Basic $0.46 $0.18 $0.78 $0.27
========= ========= ========= =========
Diluted $0.44 $0.17 $0.74 $0.25
========= ========= ========= =========
Average number of shares
outstanding:
Basic 8,500 8,518 8,571 8,502
========= ========= ========= =========
Diluted 8,877 9,194 9,112 8,907
========= ========= ========= =========
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
April 30, 2005 April 30, 2004
ASSETS
Current assets
Cash and cash equivalents $9,281 $6,806
Trade receivables, net 8,397 8,846
Inventories 2,369 2,537
Deferred income taxes 3,258 723
Other current assets 130 92
-------------- ---------------
Total current assets 23,435 19,004
Deferred income taxes (non-current) 630 0
Property and equipment, net 2,028 2,858
Other assets 54 50
-------------- ---------------
Total assets $26,147 $21,912
============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $2,528 $3,862
Accrued liabilities 1,438 1,646
-------------- ---------------
Total current liabilities 3,966 5,508
Stockholders' equity 22,181 16,404
-------------- ---------------
Total liabilities and stockholders'
equity $26,147 $21,912
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