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Dataram Reports Fiscal 2009 Second Quarter Financial Results
November 25, 2008
Dataram Corporation [NASDAQ: DRAM] today reported its financial results for its fiscal second quarter and six months ended October 31, 2008. Revenues for the second quarter were $7,059,000, which compares to $7,563,000 in the first quarter of the current fiscal year and $8,556,000 in the comparable prior year period. Revenues for the first six months of the current fiscal year were $14.6 million, which compares to $17.2 million for the comparable prior year period.
John H. Freeman, Dataram's president and CEO commented, "We are continuing to implement the business improvement and growth strategy investments I mentioned in our first quarter financial results press release. This quarter we continued to make investments in our memory solutions business, which I believe will have a significant positive impact for this area of our business. We have expanded our sales team by adding professionals with extensive selling and business experience in target market segments. We expect to continue investing in our sales team this fiscal year. While this strategy will have a negative impact on our short-term operating results, particularly in the present economic climate, they are nevertheless necessary investments to reestablish ourselves as a growth company."
Mr. Freeman continued, "We are also implementing a strategy to introduce new and complementary products into our offerings portfolio. We are currently focusing on the development of certain high performance storage products. In our fiscal second quarter and six months, we incurred approximately $254,000 and $466,000, respectively, of total expense in that area. We expect to make growing investments in this area."
The Company incurred a net loss for the second quarter and first six months of the current fiscal year of $393,000, or $0.04 per diluted share and $999,000, or $0.11 per diluted share, respectively. This compares to net earnings of $569,000, or $0.06 per diluted share and $975,000, or $0.11 per diluted share for the comparable prior year periods. In addition to the expenses discussed above, the net loss for the six months ended October 31, 2008 includes a charge to selling, general and administrative expense in the fiscal first quarter of approximately $716,000 related to a retirement agreement entered into with the Companys former chief executive officer. Management expects no further costs will be incurred for this matter.
Mr. Freeman concluded, "Our financial condition remains strong. Our current ratio is 11.1 and our tangible book value is $2.59 per share, of which cash and equivalents total $1.81 per share. I look forward to reporting on our progress next quarter."
ABOUT DATARAM CORPORATION
Dataram is a worldwide leader in the design and manufacture of high capacity, reliable and innovative memory solutions. With over 40 years of experience, Dataram provides customized memory solutions for OEMs and compatible memory for leading brands including HP, Dell, IBM, Sun Microsystems and Intel. For more information about Dataram, visit www.dataram.com.
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 http://www.sec.gov.
Contact:
Dataram Corporation
Mark Maddocks, 609-799-0071
Vice President-Finance, CFO
info@dataram.com
