Dataram Reports Fiscal 2013 Fourth Quarter and Annual Financial Results

  Dataram Reports Fiscal 2013 Fourth Quarter and Annual Financial Results

Business Wire

PRINCETON, N.J. -- July 29, 2013

Dataram Corporation (NASDAQ: 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      Twelve Months Ended

                             April 30,                 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                167          168          715          691
development
Selling, general and           2,019        2,244        8,305        11,758
administrative
Impairment of goodwill         438          -            438          -
Impairment of capitalized      -            -            -            2,387
software
Stock-based compensation       26           72           231          451
expense*
Intangible asset              41         41         164        164    
amortization*
                              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           (1,615 )     2,957        (4,620 )     (3,254 )
income taxes
                                                                    
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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