Dataram Reports Fiscal 2013 Third Quarter Financial Results

  Dataram Reports Fiscal 2013 Third Quarter Financial Results

Business Wire

PRINCETON, N.J. -- March 22, 2013

Dataram Corporation (NASDAQ: DRAM) today reported its financial results for
the three and nine months ended January 31, 2013. Revenues for the three and
nine months ended January 31, 2013 were $6.4 million and $21.4 million,
respectively, which compares to $8.4 million and $29.1 million for the
comparable prior year periods. The Company incurred a net loss for the three
months ended January 31, 2013 of $782,000, which compares to a net loss of
$4.2 million for the comparable prior year period. For the nine months ended
January 31, 2013, the net loss totaled $3.0 million as compared to $6.2
million for the prior comparable period. The Company recorded a charge of
approximately $2.4 million in the third quarter of the prior year for
impairment of capitalized software development cost. Net loss per share for
the three and nine months ended January 31, 2013 was $0.44 and $1.68 as
compared to net lost in the prior comparable periods of $2.34 and $3.52. These
results reflect a 1 for 6 reverse stock split effective March 15, 2013.

John H. Freeman, Dataram’s president and CEO commented, “The economy and
especially the semiconductor industry continued to be soft during most of the
Company’s third quarter, due to oversupply of raw materials and reduced
customer infrastructure investment. Since the close of our third quarter on
January 31, 2013 we have seen an increase in pricing which can positively
impact our memory business for the balance of the fiscal year and beyond.”

Mr. Freeman concluded, “In addition to a healthier semiconductor industry, we
continue to develop and expand our relationship with Advanced Micro Devices,
Inc., which together with our RAMDisk agreement and other new opportunities we
are currently pursuing should provide new sources of revenue, profit and
growth for Dataram in 2013 and beyond. ”

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.

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

  Note – all financial data reflects a 1 for 6 reverse stock split effective
                                March 15, 2013


DATARAM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)


                       Third Quarter Ended              Nine Months Ended
                                                
                       January 31,                      January 31,
                                                        
                       2013         2012             2013          2012
                                                                         
Revenues               $ 6,439         $ 8,420          $ 21,396         $ 29,096
                                                                         
Costs and
expenses:
Cost of sales            4,929           6,750            17,005           22,010
Engineering
and                      152             169              548              523
development
Selling,
general and              2,003           3,025            6,285            9,515
administrative
Impairment of
capitalized              -               2,387            -                2,387
software
Stock-based
compensation             26              95               205              378
expense*
Intangible
asset                   41            41             123            123    
amortization*
                        7,151         12,467         24,166         34,936 
                                                                         
Loss from                (712  )         (4,047 )         (2,770 )         (5,840 )
operations
                                                                         
Other expense           (70   )        (131   )        (235   )        (370   )
                                                                         
Loss before              (782  )         (4,178 )         (3,005 )         (6,210 )
income taxes
                                                                         
Income tax              0             5              0              5      
benefit
                                                                         
Net loss               $ (782  )       $ (4,183 )       $ (3,005 )       $ (6,215 )
                                                                         
Net loss per
share:
Basic                  $ (0.44 )       $ (2.34  )       $ (1.68  )       $ (3.52  )
Diluted                $ (0.44 )       $ (2.34  )       $ (1.68  )       $ (3.52  )
                                                                         
Weighted
average number
of shares
outstanding:
Basic                   1,783         1,784          1,785          1,767  
Diluted                 1,783         1,784          1,785          1,767  


* 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)


                                     January 31, 2013    April 30, 2012
                                                                
ASSETS
Current assets
Cash and cash equivalents                $      759             $    3,275
Accounts receivable, net                        2,308                2,605
Inventories                                     2,913                2,932
Other current assets                           116                 115
Total current assets                            6,096                8,927
                                                                
Note receivable                                 750                  -
                                                                
Property and equipment, net                     499                  698
                                                                
Other assets                                    56                   55
                                                                
Intangible assets, net                          174                  297
                                                                
Goodwill                                       1,521               1,453
                                                                
Total assets                             $      9,096           $    11,430
                                                                
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Note payable-revolving credit            $      1,472           $    121
line
Accounts payable                                631                  1,017
Accrued liabilities                             643                  766
Due to related party                           400                 333
Total current liabilities                       3,146                2,237
                                                                
Due to related party – long term               1,366               1,667
Total liabilities                               4,512                3,904
                                                                
Stockholders' equity                           4,584               7,526
                                                                
Total liabilities and                    $      9,096           $    11,430
stockholders' equity

Contact:

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