Dataram Reports Fiscal 2013 Fourth Quarter and Annual Financial Results

Business Wire

PRINCETON, N.J.--(BUSINESS WIRE)--

Dataram Corporation (DRAM) today reported its financial results for its fourth quarter and year ended April 30, 2013. Revenues for the fourth quarter and year ended April 30, 2013 were $6.2 million and $27.6 million, respectively, which compares to $7.0 million and $36.1 million for the comparable prior year periods. The Company reported a net loss of $1.6 million for the fourth quarter which included $0.4 million impairment of goodwill charge, which compares to net income of $3.0 million in the comparable prior year period. Net income for the 2012 fourth quarter included $4.1 million of other income resulting from the sale of patents. The net loss in fiscal year ended April 30, 2013 totaled $4.6 million versus $3.3 million in the comparable prior year period. Loss in fiscal year ended April 30, 2012 was offset by the aforementioned sale of patents.

John H. Freeman, Dataram’s President and CEO commented, “The primary factor impacting our financial results was a 33% industry wide decline in material cost per gigabyte. Despite these industry wide challenges, we continue to see signs of revenue growth through our new partnerships, new distribution channels and further development of our RAMDisk software”.

Our RAMDisk software continues to generate increasing interest and presence in the personal and commercial marketplace. We introduced new Dataram versions into the market as well as versions specifically designed for Advanced Micro Devices, Inc. (“AMD”) and branded Radeon RAMDisk under a branding and licensing agreement. It is a price performance leader in the virtual RAM drive software market and is being used in a number of applications and commercial uses. The relationship with AMD for the RAMDisk product has enabled us to develop a consumer memory product line also branded under the AMD brand Radeon. We have recently begun producing and selling server memory under the Radeon brand name.

Mr. Freeman concluded, “We have eliminated approximately $900,000 of costs on an annual basis since our year end and continue to look for ways to reduce our operating cost. These cost reductions, combined with the AMD branding agreements, provide us with new opportunities and a path to revenue growth in fiscal year 2014. To support our growth we intend to seek additional financing to help us execute our fiscal 2014 plan”.

ABOUT DATARAM CORPORATION

Founded in 1967, Dataram is a worldwide leader in the manufacture of high-quality computer memory and software products. Our products and services deliver IT infrastructure optimization, dramatically increase application performance and deliver substantial cost savings. Dataram solutions are deployed in 70 Fortune 100 companies and in mission-critical government and defense applications around the world. 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.

***** Financial Tables Follow *****

 

DATARAM CORPORATION and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

   

Fourth Quarter Ended

April 30,

Twelve Months Ended

April 30,

2013   2012 2013   2012
 
Revenues $ 6,219 $ 6,983 $ 27,616 $ 36,079
 
Costs and expenses:
Cost of sales 5,037 5,499 22,042 27,509
Engineering and development 167 168 715 691
Selling, general and administrative 2,019 2,244 8,305 11,758
Impairment of goodwill 438 - 438 -
Impairment of capitalized software - - - 2,387
Stock-based compensation expense* 26 72 231 451
Intangible asset amortization*   41     41     164     164  
  7,728     8,024   $ 31,895   $ 42,960  
 
Loss from operations (1,509 ) (1,041 ) (4,279 ) (6,881 )
 
Other income (expense)   (106 )   3,998     (341 )   3,627  
 
Income (loss) before income taxes (1,615 ) 2,957 (4,620 ) (3,254 )
 
Income tax expense   5     -     5     5  
 
Net income (loss) $ (1,620 ) $ 2,957   $ (4,625 ) $ (3,259 )
 
Net income (loss) per share:
Basic $ (0.92 ) $ 1.66   $ (2.60 ) $ (1.84 )
Diluted $ (0.92 ) $ 1.66   $ (2.60 ) $ (1.84 )
 
Weighted average number of shares
outstanding:
Basic   1,755     1,784     1,777     1,771  
Diluted   1,755     1,784     1,777     1,771  
 
Note- All amounts shown have been adjusted to reflect the reverse 6-for-1 stock split effective March 18, 2013.
 
* 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-K.
 
 

DATARAM CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

   
April 30, 2013 April 30, 2012
 
ASSETS
Current assets
Cash and cash equivalents $ 324 $ 3,275
Accounts receivable, net 2,885 2,605
Inventories 2,903 2,932
Note receivable 275 -
Other current assets   81   116
Total current assets 6,468 8,928
 
Property and equipment, net 425 698
 
Other assets 56 54
 
Intangible assets, net 133 297
 
Goodwill   1,083   1,453
 
Total assets $ 8,165 $ 11,430
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Note payable-revolving credit line $ 1 ,876 $ 121
Accounts payable 948 1,017
Accrued liabilities 684 766
Due to related party – current portion   400   333
Total current liabilities 3,908 2,237
 
Due to related party – long term   1,267   1,667
Total liabilities 5,175 3,904
 
Stockholders' equity   2,990   7,526
 
Total liabilities and stockholders' equity $ 8,165 $ 11,430

Contact:
Dataram
Marc P. Palker, 609-799-0071 ext. 2207
CFO
info@dataram.com

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