Dataram Reports Third Quarter Financial Results.Business Editors 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.--(BUSINESS WIRE)--Feb. 19, 2003 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): -- Company Reports Net Loss of $793,000 -- Generates Free Cash Flow of $200,000 Dataram Corporation (NASDAQ: DRAM) today reported its financial results for the third quarter ended January January: see month. 31, 2003. Revenues for the third quarter were $12.8 million. This compares to revenues of $14.0 million for the previous quarter and $19.6 million for the third quarter of the previous fiscal year. The Company reported a net loss of $793,000 or $0.09 per share for the quarter compared to a net loss of $253,000 or $0.03 per share in the second quarter of the current fiscal year and a net loss of $4.8 million or $0.57 per share in the third quarter of last fiscal year. The prior year's net loss included a one-time charge of $5.3 million or $0.62 per share for intangible asset Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. amortization. Free cash flow for the third quarter amounted to approximately $200,000. Nine month revenues were $41.0 million compared to $61.4 million for the same period of the prior fiscal year. Nine month 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 $3.4 million or 21 percent from the comparable prior year period, which is in line with the savings projected from the Company's previously announced 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). efforts. Net loss for the first nine months of the current fiscal year was $2.9 million or $0.34 per share versus a loss of $6.4 million or $0.75 per share for the comparable period of the prior fiscal year, which included the one-time intangible asset amortization charge of $5.3 million. 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. , commented, "Third quarter sales in 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. and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. markets were in line with our expectations. However, sales in the U.S. market were lower than anticipated. We attribute this to lowered levels of corporate spending on IT infrastructure in January as corporate spending authorizations were being deferred. Our efforts at managing costs relative to market demand enabled us to confront these challenges and continue to generate free cash flow." During the quarter, the Company introduced a number of new memory products to the market, some of which were first to market, including memory for industry leading and new generation servers from 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) , and Silicon Graphics. Dataram recently received CMTL's Advanced Memory Qualification for the first "cost effective" one-gigabyte monolithic Single object. Self contained. One unit. low-profile memory module. During this fiscal year's third quarter, the Company announced the approval, by its Board of Directors, of a new 500,000 share open market 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. program. The Company purchased 25,800 shares of its common stock at a total price of approximately $92,000 in the third quarter and will continue to repurchase its shares in the current quarter. Mark Maddocks, Dataram's CFO See Chief Financial Officer. , added, "We continue to generate free cash flow and our balance sheet remains strong. In the third quarter, we paid off $500,000 in long term debt while increasing cash and equivalents by $500,000 to $3.1 million and we are presently debt free. We have increased our inventory and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying turns. With a current ratio of 3.3, we remain highly liquid." Mr. Tarantino concluded, "We feel very confident in the operational areas we can control or influence. Our ability to remain cash flow positive attests to the success of our efforts to manage our business relative to the economic environment. As external factors play themselves out, we remain positioned to grow our business profitability. Demand for server and workstation memory will increase and we remain confident in our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. prospects and in our ability to weather the near-term uncertainty in the marketplace." Dataram will conduct a conference call at 11:00 a.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) today to present its third quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 888-633-8343 and providing the following reservation number: 21124373. 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. ABOUT DATARAM CORPORATION Dataram Corporation, celebrating its 36th 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, 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. 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.
DATARAM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
1/31/2003 1/31/2002 1/31/2003 1/31/2002
Revenues $ 12,758 $ 19,646 $ 41,010 $ 61,389
Costs and expenses:
Cost of sales 9,286 12,547 29,796 40,224
Engineering and
development 375 438 1,156 1,446
Selling, general and
administrative 4,341 5,293 13,148 16,558
Intangible asset
amortization 0 5,263 0 5,856
Restructuring charges 0 0 740 1,200
---------- ---------- ---------- ----------
14,002 23,541 44,840 65,284
Loss from operations (1,244) (3,895) (3,830) (3,895)
Interest expense, net (2) (528) (56) (825)
---------- ---------- ---------- ----------
Loss before income taxes (1,246) (4,423) (3,886) (4,720)
Income tax provision
(benefit) (453) 360 (1,017) 1,664
---------- ---------- ---------- ----------
Net loss $ (793)$ (4,783)$ (2,869)$ (6,384)
========== ========== ========== ==========
Net loss per share:
Basic $ (0.09)$ (0.57)$ (0.34)$ (0.75)
========== ========== ========== ==========
Diluted $ (0.09)$ (0.57)$ (0.34)$ (0.75)
========== ========== ========== ==========
Average number of shares
outstanding:
Basic 8,510 8,454 8,499 8,486
========== ========== ========== ==========
Diluted 8,510 8,454 8,499 8,486
========== ========== ========== ==========
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
January 31, April 30,
2003 2002
---------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 3,097 $ 3,656
Trade receivables, net 5,892 12,177
Inventories 2,913 5,435
Other current assets 1,861 532
---------------- -------------
Total current assets 13,763 21,800
Property and equipment, net 6,842 9,210
Goodwill 11,144 11,144
Other assets 481 408
---------------- -------------
$ 32,230 $ 42,562
================ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,720 6,600
Accrued liabilities 1,398 1,687
---------------- -------------
Total current liabilities 4,118 8,287
Deferred income taxes 646 647
Long-term debt 0 3,800
Stockholders' equity 27,466 29,828
---------------- -------------
$ 32,230 $ 42,562
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