Dataram Reports Increased Earnings in Third Quarter.Business Editors PRINCETON, N.J--(BUSINESS WIRE)--Feb. 9, 2001 -- Thirteenth Consecutive Quarter of Year-Over-Year Earnings Increases -- Company Resumed Share Repurchases 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 financial results for its fiscal third quarter ended January 31, 2001. The Company reported revenues of $26.8 million compared to $25.7 million for the same prior year period. Net earnings increased 11 percent to $2.0 million or $0.21 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 from $1.8 million or $0.19 per diluted share for the third quarter of last fiscal year. Revenues for the first nine months of the current fiscal year were $104.7 million, an increase of 37 percent compared to $76.3 million for the previous fiscal year period. Net earnings increased 46 percent to $8.0 million during the first nine months from $5.4 million during the first nine months of last fiscal year.
In thousands, Third Quarter ended Nine Months ended
except per share amounts January 31, January 31,
2001 2000 % Gain 2001 2000 % Gain
Revenue $26,829 $25,728 4% $104,691 $76,278 37%
Earnings from Operations $2,877 $2,823 2% $11,931 $8,436 41%
Net Earnings $2,030 $1,825 11% $7,961 $5,438 46%
Diluted EPS $0.21 $0.19 11% $0.81 $0.56 45%
Shares Outstanding
(diluted) 9,745 9,781 9,842 9,658
"While this quarter marks our thirteenth consecutive quarter of year-over-year earnings growth, recent price pressure experienced in the memory chip market has temporarily decelerated our rate of top-line growth," commented Bob Tarantino, Dataram's chairman, 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. . "Additionally, capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. has slowed and our business is not immune. However, our inventories and expenses remain in tight control. We manage our business to respond quickly to changes in the marketplace and to the needs of our customers." During Dataram's fiscal third quarter, the Company introduced four new products into the market to address the growing demand for memory and bandwidth in the Internet. The most recent product introductions included memory for Hewlett Packard's new NetServer LP 1000 and 2000 systems, designed for Web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. and infrastructure and server-based computing Refers to applications that run in a server. Also known as "thin client computing," it may refer to a browser-based environment that uses a Web browser as the client with all applications running on a Web server on the Internet or in an intranet on the LAN. applications, and memory for Compac's new ProLiant DL 320 server for Web hosting, video streaming See streaming video and video stream. and other Internet related applications. Dataram also introduced Double Data Rate SDRAM (Synchronous DRAM) A type of dynamic RAM (DRAM) memory chip that has been widely used since the late 1990s. SDRAM chips eliminated wait states by dividing the chip into two cell blocks and interleaving data between them. DIMM (Dual In-Line Memory Module) A printed circuit board that holds memory chips and plugs into a DIMM socket on the motherboard. See memory module. DIMM - Dual In-Line Memory Module modules and ultra-thin memories for the next generation servers. Mark Maddocks, Dataram's CFO See Chief Financial Officer. added, "During the third quarter gigabytes shipped increased 29 percent year-over-year offset by a 19 percent decline in selling prices driven by a sudden reduction in the price of memory chips used in our products. Our net margins and free cash flow remained strong." As part of a previously announced share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program, the Company purchased 87,400 shares of its common stock in the third quarter at a total price of $1,028,000. Mr. Tarantino stated, "Softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. economic conditions have prompted industry concern over the pace of growth expected over the next six months, potentially leading to a cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. shift in demand. Dataram's business and pricing models are designed to take advantage of these cycles by providing reliable, quality alternatives at a significant cost advantage. While current economic conditions create near term uncertainty, we expect our fourth quarter earnings to exceed last year's fourth quarter and we are currently projecting 25 percent earnings growth in fiscal 2002." Dataram will conduct a conference call at 11:00 a.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) today to present its second quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800-354-6885 and providing the following reservation number: 17880724. 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 and entering the reservation number listed above. ABOUT DATARAM CORPORATION Dataram Corporation is a leading provider of gigabyte One billion bytes. Also GB, Gbyte and G-byte. See giga and space/time. (unit) gigabyte - 2^30 = 1,073,741,824 bytes = 1024 megabytes. Roughly the amount of data required to encode a human gene sequence (including all the redundant codons). See prefix. memory upgrades for network servers. The Company specializes in the manufacture of large capacity memory for Compaq, Hewlett-Packard, 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, Silicon Graphics and 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. computers. Dataram, headquartered in Princeton, New Jersey
Princeton, New Jersey is located in Mercer County, New Jersey, United States. Princeton University has been sited in the town since 1756. , is celebrating its 34th year in the computer industry. Additional information is available on the Internet at www.dataram.com.
DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
1/31/2001 1/31/2000 1/31/2001 1/31/2000
(Unaudited) (Unaudited)
Revenues $ 26,829 $ 25,728 $ 104,691 $ 76,278
Costs and
expenses:
Cost of sales 19,838 19,457 79,454 56,811
Engineering
and
development 386 372 1,172 1,048
Selling,
general and
administrative 3,728 3,076 12,134 9,983
------ ------- ------- -------
23,952 22,905 92,760 67,842
Earnings from
operations 2,877 2,823 11,931 8,436
Interest income,
net 317 123 839 348
------ ------- ------- -------
Earnings before
income taxes 3,194 2,946 12,770 8,784
Income taxes 1,164 1,121 4,809 3,346
------ ------- ------- -------
Net earnings $ 2,030 $ 1,825 $ 7,961 $ 5,438
====== ======= ======= =======
Net earnings
per share:
Basic $ 0.24 $ 0.23 $ 0.94 $ 0.69
====== ======= ======= =======
Diluted $ 0.21 $ 0.19 $ 0.81 $ 0.56
====== ======= ======= =======
Average number
of shares
outstanding:
Basic 8,515 7,983 8,500 7,867
===== ===== ===== =====
Diluted 9,745 9,781 9,842 9,658
===== ===== ===== =====
DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(in thousands)
January 31, 2001 April 30, 2000
---------------- --------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 20,823 $ 13,650
Trade receivables, net 12,248 16,241
Inventories 4,366 4,651
Other current assets 1,381 585
-------- --------
Total current assets 38,818 35,127
Property and equipment, net 6,438 5,007
Other assets 18 17
-------- --------
$ 45,274 $ 40,151
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,690 $ 9,538
Accrued liabilities 2,482 2,878
-------- --------
Total current liabilities 7,172 12,416
Deferred income taxes 841 841
Stockholders' equity 37,261 26,894
-------- --------
$ 45,274 $ 40,151
======== ========
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 for servers, 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion