Dataram Reports Fiscal 2013 Second Quarter Financial Results

  Dataram Reports Fiscal 2013 Second Quarter Financial Results

Business Wire

PRINCETON, N.J. -- December 21, 2012

Dataram Corporation (NASDAQ: DRAM) today reported its financial results for
the three and six months ended October 31, 2012. Revenues for the three and
six months ended October 31, 2012 were $7.0 million and $15.0 million,
respectively, which compares to $10.4 million and $20.7 million for the
comparable prior year periods. The Company incurred a net loss for the three
months ended October 31, 2012 of $1.2 million, which compares to a net loss of
$1.2 million for the comparable prior year period. For the six months ended
October 31, 2012, the net loss totaled $2.2 million as compared to $2.0
million for the prior comparable period. The Company recorded a charge to cost
of sales of approximately $220,000 in the three months ended October 31, 2012
completing the write down of XcelaSAN product inventory.

John H. Freeman, Dataram’s president and CEO commented, “The economy and
especially the semiconductor industry continued to be soft due to oversupply
of raw materials and reduced customer infrastructure investment. Since the
close of our second quarter on October 31, 2012 we have seen a stabilization
and increase in pricing which can positively impact our memory business in for
the balance of the fiscal year.”

In addition to a healthier semiconductor industry, we expect the two
agreements into which the Company entered last quarter will generate growth
and profits for Dataram in 2013 and beyond. One with Shoreline Memory Inc.
("Shoreline") and the other with Advanced Micro Devices, Inc. ("AMD") for the
purpose of expanding our customer base and product offerings. The Shoreline
Agreement provides for Dataram to fulfill 50% of the orders Shoreline receives
from its primary customers. The second agreement with AMD provides for Dataram
to develop and sell AMD licensed and branded versions of its RAMDisk software.
AMD’s Radeon™ RAMDisk will target the gaming enthusiast community. Management
is unable to determine the extent that such agreements will generate revenues
in the next two (2) quarters. However, the Company believes these agreements
will provide new revenue sources and expanded markets for the Company's
products.

Mr. Freeman concluded, “These recent agreements and other new opportunities we
are currently pursuing should provide new sources of revenue, profit and
growth for Dataram in 2013 and beyond. The experience, knowledge and assets we
have gained from our current RAMDisk product, in the development of caching
software and in solid state products are building a strong foundation for
growth.”

ABOUT DATARAM CORPORATION

Founded in 1967, Dataram is a worldwide leader in the manufacture of
high-quality computer memory, storage 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.


DATARAM CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

                       Second Quarter Ended              Six Months Ended
                                                 
                       October 31,                       October 31,
                       2012          2011             2012          2011
                                                                          
Revenues               $ 6,959          $ 10,406         $ 14,958         $ 20,676
                                                                          
Costs and
expenses:
Cost of sales            5,772            7,885            12,076           15,260
Engineering
and                      190              185              396              354
development
Selling,
general and              2,069            3,213            4,283            6,490
administrative
Stock-based
compensation             79               135              179              283
expense*
Intangible
asset                   41             41             82             82     
amortization*
                        8,151          11,459         17,016         22,469 
                                                                          
Loss from                (1,192 )         (1,053 )         (2,058 )         (1,793 )
operations
                                                                          
Other expense           (56    )        (126   )        (165   )        (240   )
                                                                          
Loss before              (1,248 )         (1,179 )         (2,223 )         (2,033 )
income taxes
                                                                          
Income tax              0              0              0              0      
benefit
                                                                          
Net loss               $ (1,248 )       $ (1,179 )       $ (2,223 )       $ (2,033 )
                                                                          
Net loss per
share:
Basic                  $ (0.12  )       $ (0.11  )       $ (0.21  )       $ (0.19  )
Diluted                $ (0.12  )       $ (0.11  )       $ (0.21  )       $ (0.19  )
                                                                          
Weighted
average number
of shares
outstanding:
Basic                   10,703         10,703         10,703         10,549 
Diluted                 10,703         10,703         10,703         10,549 


* 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.


DATARAM CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

                                    October 31, 2012    April 30, 2012
                                                                
ASSETS
Current assets
Cash and cash equivalents                $     741              $    3,275
Accounts receivable, net                       2,651                 2,605
Inventories                                    3,818                 2,932
Other current assets                          190                  115
Total current assets                           7,400                 8,927
                                                                
Note receivable                                750                   -
                                                                
Property and equipment, net                    566                   698
                                                                
Other assets                                   56                    55
                                                                
Intangible assets, net                         215                   297
                                                                
Goodwill                                      1,456                1,453
                                                                
Total assets                             $     10,443           $    11,430
                                                                
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Note payable-revolving credit            $     1,739            $    121
line
Accounts payable                               829                   1,017
Accrued liabilities                            669                   766
Due to related party                          400                  333
Total current liabilities                      3,637                 2,237
                                                                
Due to related party – long                   1,467                1,667
term
Total liabilities                              5,104                 3,904
                                                                
Stockholders' equity                          5,339                7,526
                                                                
Total liabilities and                    $     10,443           $    11,430
stockholders' equity


Contact:

Dataram:
Marc P. Palker, 609-799-0071
Chief Financial Officer
info@dataram.com
 
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