Dataram Announces Increase in Revenue for Fiscal Third Quarter 2015
By Business Wire News
By Business Wire News
Dataram Corporation (NASDAQ: DRAM) on Friday, March 20th reported its financial results for the three and nine months ended January 31, 2015. Revenues for the three and nine months ended January 31, 2015 were $8.1 million and $22.7 million, respectively, which compares to $7.6 million and $22.4 million for the comparable prior year periods. The Company incurred a net loss for the three months ended January 31, 2015 of $668,000 which is a decrease of 21% over the same period in the previous year. The Net loss per share for the three and nine months ended January 31, 2015 included non-cash preferred stock dividends of $1.6 million.
“Dataram is continuing to aggressively transform, executing against our strategic priorities of cost reduction and sales expansion. We implemented more than $2.3M in net annual operating cost reductions in the last 90 days” said David A. Moylan, Chairman and Chief Executive Officer of Dataram, “and are also taking bold steps forward across all areas of our business to profitably deliver existing solutions and introduce new solutions to our customers, and extend our leadership in the technology sector.”
“We are disciplined in our approach to using financial and operational excellence to improve performance, and intend to make focused investments that drive meaningful growth for the business while increasing capital return to shareholders,” said Anthony Lougee, Chief Accounting Officer.
“We are seeing a very positive response to our transformation from both existing customers and potential new customers.” said Phil Marino, Dataram’s VP Global Sales. “They recognize the Dataram brand as well as our reputation and are enthusiastic to engage with us to benefit from the unique product and service value we bring to the memory business.”
ABOUT DATARAM CORPORATION
Dataram is a leading independent manufacturer of memory products and provider of performance solutions that increase the performance and extend the useful life of servers, workstation, desktops and laptops sold by leading manufacturers such as Dell, Cisco, Fujitsu, HP, IBM, Lenovo and Oracle. Dataram’s memory products and solutions are sold worldwide to OEMs, distributors, value-added resellers and end users. Additionally, Dataram manufactures and markets a line of Intel Approved memory products for sale to manufacturers and assemblers of embedded and original equipment. 70 Fortune 100 companies are powered by Dataram. Founded in 1967, the Company is a US based manufacturer, with presence in the United States, Europe and Asia. For more information about Dataram, visit www.dataram.com.
All names are trademarks or registered trademarks of their respective owners.
The information provided in this press release may include forward-looking statements relating to 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, filed with the Securities and Exchange Commission, which can be reviewed at www.sec.gov.The Company has based these forward-looking statements on its current expectations and assumptions about future events.While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control.The Company does not assume any obligations to update any of these forward-looking statements.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
|Third Quarter Ended|
|Nine Months Ended |
|Costs and expenses:|
|Cost of sales||6,846||6,223||19,194||17,870|
|Engineering and development||258||304||940||923|
|Selling, general and administrative||1,532||1,864||4,834||5,415|
|Stock-based compensation expense*||5||5||14||43|
|Capitalized software cost||–||–||(365||)||–|
|Intangible asset amortization*||–||41||–||122|
|Gain on asset disposal||–||(18||)||–||(121||)|
|Loss from operations||(590||)||(778||)||(1,962||)||(1,834||)|
|Loss before income taxes||(668||)||(847||)||(2,932||)||(2,067||)|
|Income tax expense||–||–||3||–|
|Less preferred stock dividends||1,628||–||1,628||–|
|Net loss allocated to common shareholders||$||(2,296||)||$||(847||)||$||(4,563||)||$||(2,067||)|
|Net loss per share:|
|Weighted average number of shares|
* Items are recorded as a component of operating costs and expenses in the Company’s financial statements filed with the Securities and Exchange Commission on Form 10-Q.
CONDENSED CONSOLIDATED BALANCE SHEETS
|January 31, 2015||April 30, 2014|
|Cash and cash equivalents||$||446||$||258|
|Accounts receivable, net||2,866||3,663|
|Other current assets||207||7|
|Total current assets||5,787||6,219|
|Property and equipment, net||162||219|
|Capitalized software development cost||365||–|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Note payable-revolving credit line||$||2,461||$||2,970|
|Convertible notes payable, net of discount||600||–|
|Convertible notes payable related parties, net of discount||150||–|
|Total current liabilities||4,737||5,337|
|Other liabilities related party – long term||197||250|
|Total liabilities and stockholders’ equity|
Jeffrey Goldenbaum, 609-799-0071