Dataram Continues to Trim Losses as It Reports Fiscal 2014 Second Quarter Financial Results

  Dataram Continues to Trim Losses as It Reports Fiscal 2014 Second Quarter
  Financial Results

Business Wire

PRINCETON, N.J. -- December 16, 2013

Dataram Corporation (NASDAQ:DRAM) today reported its financial results for its
three and six months ended October 31, 2013. Revenues for the second quarter
and first six months of fiscal 2014 were $7.4 million and $14.8 million,
respectively, which compares to $7.0 million and $15.0 million for the
comparable prior year periods. The Company incurred a net loss for the three
months ended October 31, 2013 of $338,192 which compares to a net loss of
$1,247,757 for the comparable prior year period. The loss for the six months
ended October 31, 2013 totaled $1,219,822 versus $2,223,474 for the prior
comparable period. The Company recorded a gain on a sale leaseback transaction
of approximately $103,000 and a recovery of bad debt of $162,500 during the
quarter ended October 31, 2013.

John H. Freeman, Dataram’s president and CEO commented, “The Company continues
to execute its plan of cost reduction and sales expansion. The six percent
sales increase over the same quarter of last year and slight increase over the
previous quarter of this year is a result of our product expansion, increased
sales of Advanced Micro Devices ('AMD') Radeon Memory products and growth in
our AMD relationship. We continue to work to expand the number of outlets for
our AMD Radeon branded consumer and server memory in addition to exposing more
gamers to our AMD Radeon RAMDisk.”

Mr. Freeman concluded, “We have completed a sale leaseback transaction on our
manufacturing equipment and soon after the end of the second quarter, we
refinanced our revolving credit line. We continue to look for transactions
that will further improve our working capital position.”

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 *****

DATARAM CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)
                                                  
                            Second Quarter Ended       Six Months Ended

                            October 31,                October 31,
                              2013       2012           2013        2012
                                                                    
Revenues                    $ 7,410     $ 6,959        $ 14,777     $ 14,958
                                                                    
Costs and expenses:
Cost of sales                 5,841       5,772          11,646       12,076
Engineering and               300         190            619          396
development
Selling, general and          1,571       2,069          3,549        4,283
administrative
Stock-based                   18          79             39           179
compensation expense*
Intangible asset              41          41             82           82
amortization*
Gain on asset disposal       (103  )    -            (103   )    -      
                             7,668     8,151        15,832     17,016 
                                                                    
Loss from operations          (258  )     (1,192 )       (1,055 )     (2,058 )
                                                                    
Other expense                (80   )    (56    )      (165   )    (165   )
                                                                    
Loss before income            (338  )     (1,248 )       (1,220 )     (2,223 )
taxes
                                                                    
Income tax benefit           -         -            -          -      
                                                                    
Net loss                    $ (338  )   $ (1,248 )     $ (1,220 )   $ (2,223 )
                                                                    
Net loss per share:
Basic                       $ (0.18 )   $ (0.70  )     $ (0.67  )   $ (1.25  )
Diluted                     $ (0.18 )   $ (0.70  )     $ (0.67  )   $ (1.25  )
                                                                    
Weighted average number
of shares outstanding:
Basic                        1,899     1,784        1,827      1,784  
Diluted                      1,899     1,784        1,827      1,784  

Note- 2012 amounts shown have been adjusted to reflect the reverse 1-for-6
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-Q.


DATARAM CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)
                                                           
                                           October 31, 2013     April 30, 2013
                                                                
ASSETS
Current assets
Cash and cash equivalents                  $      603           $     324
Accounts receivable, net                          3,014               2,885
Inventories                                       2,182               2,903
Note receivable                                   -                   275
Other current assets                             198                81
Total current assets                              5,997               6,468
                                                                
                                                                
Property and equipment, net                       284                 425
                                                                
Other assets                                      49                  56
                                                                
Intangible assets, net                            52                  133
                                                                
Goodwill                                         1,083              1.083
                                                                
Total assets                               $      7,465         $     8,165
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Note payable-revolving credit line         $      1,706         $     1,876
Accounts payable                                  1,306               948
Accrued liabilities                               982                 684
Due to related party                             400                400
Total current liabilities                         4,394               3,908
                                                                
Due to related party – long term                 567                1,267
Total liabilities                                 4,961               5,175
                                                                
Stockholders' equity                             2,504              2,990
                                                                
Total liabilities and stockholders'        $      7,465         $     8,165
equity

Contact:

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