Dataram Reports Third Quarter Fiscal 2006 Financial Results; Board of Directors Approves 20% Increase in Quarterly Dividend.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 (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 third quarter ended January January: see month. 31, 2006. Revenues for the third quarter of the current fiscal year were $9.2 million, which compares to $14.4 million for the third quarter of the prior fiscal year and $9.9 million in this year's second quarter. Revenues for the first nine months of the current fiscal year were $33.0 million versus $50.5 million for the comparable prior year period. Prior fiscal year third quarter and nine month revenues included sales of approximately $4.1 million and $18.2 million, respectively, to one customer compared to $13,000 and $3.1 million for the comparable current year periods. Earnings before income taxes for the third quarter were $2.3 million, which includes a gain of $1.9 million from the sale of the Company's undeveloped land. This compares to earnings before income taxes of $157,000 for the third quarter of the previous fiscal year and $565,000 for the second quarter of the current fiscal year. Net earnings for the third quarter were $1.4 million or $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 compared to net earnings of $147,000 or $0.02 per diluted share for last fiscal year's third quarter and $352,000 or $0.04 per diluted share for the second quarter of this fiscal year. The Company has net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. (NOL NOL - Never Offline ) carryforwards Carryforwards Tax losses allowed to be applied to offset future income in some specified number of future years. totaling approximately $10.9 million. The Company's tax rate for financial reporting purposes in the current fiscal year is approximately 38 percent, although he Company will continue to pay taxes at an approximate rate of 7 percent until it utilizes all of its NOL carryforwards. In fiscal 2005, the Company's effective tax rate for financial reporting purposes had been approximately 7 percent. Fiscal year to date earnings before income taxes were $4.3 million (inclusive of inclusive of prep. Taking into consideration or account; including. the gain from the real estate transaction) compared to $3.0 million for the nine month period in the prior fiscal year. Net earnings for the first nine months of the current fiscal year were $2.7 million or $0.30 per diluted share versus $2.8 million or $0.31 per diluted share for the comparable period in fiscal 2005. Gross margins during the third quarter were approximately 29 percent, which compares to approximately 30 percent in the second quarter and 21 percent for the third quarter of the prior fiscal year. The Company considers 25 percent gross margins with quarterly fluctuations of as much as 3 percent to be normal. Engineering and 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. were $2.5 million in the current quarter, down from $3.0 million during third quarter of the prior 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 third quarter was $635,000 compared to $770,000 at the end of the previous quarter. During the third quarter, the Company closed on its contract of sale for its undeveloped land. The purchase price was $3,075,000 of which half, or $1,537,500, was paid in the form of a one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants mortgage, which accrues interest at 5% per annum Per annum Yearly. . Of the remainder $250,000 had been previously paid as deposits and $1,287,500 was received at closing in cash. Cash and equivalents increased $2.3 million from the previous quarter to approximately $15.0 million or $1.77 per share. This also represents an increase of $5.7 million from the beginning of the fiscal year. The Company's current ratio has grown to 10.7 and the Company's book value is now $2.82 per share. As of January 31, 2006, there were 8,475,396 common shares outstanding. 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 Noun 1. Tarantino - United States filmmaker (born in 1963) Quentin Jerome Tarantino, Quentin 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, "While we experienced our typical seasonal slowness in the third quarter, we generated significant cash flow from operating activities in addition to the cash realized from the sale of the land. Today, the Company's Board of Directors declared a quarterly dividend of $0.06 cents per common share, an increase of 20 percent or $0.01 per share, over the previous quarterly payment. The dividend will be payable on March 22, 2006 to shareholders of record as of March 9, 2006." As announced in a press release dated February 15, 2006, Dataram will conduct a conference call today at 4:30 p.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) to present its third quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800-729-5806 and providing the following reservation number: 21284075. 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 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, 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.
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(In thousands, except per share amounts)
(Unaudited)
Third Quarter Nine Months Ended
Ended January 31, January 31,
------------------ -----------------
2006 2005 2006 2005
Revenues $9,220 $14,431 $33,022 $50,544
Costs and expenses:
Cost of sales 6,520 11,420 23,152 38,977
Engineering and development 287 317 847 947
Selling, general and
administrative 2,175 2,636 6,950 7,760
--------- -------- -------- --------
8,982 14,373 30,949 47,684
--------- -------- -------- --------
Earnings from operations 238 58 2,073 2,860
Other income 2,030 99 2,249 177
--------- -------- -------- --------
Earnings before income taxes 2,268 157 4,322 3,037
Income tax provision 863 10 1,634 197
--------- -------- -------- --------
Net earnings $1,405 $147 $2,688 $2,840
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Net earnings per share:
Basic $0.17 $0.02 $0.32 $0.33
========= ======== ======== ========
Diluted $0.16 $0.02 $0.30 $0.31
========= ======== ======== ========
Weighted average number of shares
outstanding:
Basic 8,472 8,621 8,431 8,594
========= ======== ======== ========
Diluted 8,831 9,176 8,825 9,223
========= ======== ======== ========
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January April
31, 30,
2006 2005
ASSETS
Current assets
Cash and cash equivalents $14,979 $ 9,281
Trade receivables, net 4,171 8,397
Inventories 1,874 2,369
Note receivable 1,537 0
Deferred income taxes 1,462 3,258
Other current assets 148 130
------- -------
Total current assets 24,171 23,435
Deferred income taxes 1,130 630
Property and equipment, net 765 2,028
Other assets 105 54
------- -------
Total assets $26,171 $26,147
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,422 $ 2,528
Accrued liabilities 833 1,438
------- -------
Total current liabilities 2,255 3,966
Stockholders' equity 23,916 22,181
------- -------
Total liabilities and stockholders' equity $26,171 $26,147
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