Dataram Reports Fiscal 2014 Third Quarter Financial Results

  Dataram Reports Fiscal 2014 Third Quarter Financial Results

                  4^th Consecutive Quarter of Revenue Growth

                       22% Third Quarter Revenue Growth

Business Wire

PRINCETON, N.J. -- March 21, 2014

Dataram Corporation (NASDAQ:DRAM) today reported its financial results for the
three and nine months ended January 31, 2014. Revenues for the three and nine
months ended January 31, 2014 were $7.6 million and $22.4 million,
respectively, which compares to $6.4 million and $21.4 million for the
comparable prior year periods. The Company incurred a net loss for the three
months ended January 31, 2014 of $847,000, which includes a charge of $150,000
in the third quarter of the current year for a legal settlement provision. The
current quarter loss compares to a net loss of $782,000 for the comparable
prior year period. For the nine months ended January 31, 2014, the net loss
totaled $2.1 million as compared to $3.0 million for the prior comparable
period. The Company recorded a net loss per share for the three and nine
months ended January 31, 2013 was $0.40 and $1.08 as compared to net lost in
the prior comparable periods of $0.44 and $1.68.

John H. Freeman, Dataram’s president and CEO commented, “The Company continues
to execute its plan of cost reduction and sales expansion. The twenty two
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.”

Mr. Freeman concluded, “On March 20, 2014 we completed the sale of 219,750
shares of common stock for net proceeds of approximately $583,000 to an
institutional investor in a registered direct offering. In addition, certain
institutional holders of warrants exercised their warrants for 86,100 shares
of common stock for net proceeds of approximately $301,350. The net proceeds
from these transactions will be used for general corporate purposes,
development of new software products and continued expansion of our AMD
business and relationship. These monies are providing a foundation for
increased growth in sales and software.”

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)

                               Third Quarter Ended     Nine Months Ended
                                                  
                               January 31,             January 31,
                               2014       2013        2014        2013
                                                                    
Revenues                       $ 7,641     $ 6,439     $ 22,418     $ 21,396
                                                                    
Costs and expenses:
Cost of sales                    6,223       4,929       17,870       17,005
Engineering and                  304         152         923          548
development
Selling, general and             1,864       2,003       5,415        6,285
administrative
Stock-based compensation         5           26          43           205
expense*
Intangible asset                 41          41          122          123
amortization*
Gain on asset disposal          (18   )   -            (121   )   -
                                8,419     7,151     24,252     24,166 
                                                                    
Loss from operations             (778  )     (712  )     (1,834 )     (2,770 )
                                                                    
Other expense                   (69   )    (70   )    (233   )    (235   )
                                                                    
Loss before income taxes         (847  )     (782  )     (2,067 )     (3,005 )
                                                                    
Income tax benefit             -           -           -            -
                                                                    
Net loss                       $ (847  )   $ (782  )   $ (2,067 )   $ (3,005 )
                                                                    
Net loss per share:
Basic                          $ (0.40 )   $ (0.44 )   $ (1.08  )   $ (1.68  )
Diluted                        $ (0.40 )   $ (0.44 )   $ (1.08  )   $ (1.68  )
                                                                    
Weighted average number
of shares
outstanding:
Basic                           2,105     1,783     1,920      1,785  
Diluted                         2,105     1,783     1,920      1,785  


Note- 2013 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)

                                          January 31, 2014  April 30, 2013
                                                                
ASSETS
Current assets
Cash and cash equivalents                    $      -           $     324
Accounts receivable, net                            2,659             2,885
Inventories                                         2,272             2,903
Note receivable                                     -                 275
Other current assets                               66               81
Total current assets                                4,997             6,468
                                                                
                                                                
Property and equipment, net                         242               425
                                                                
Other assets                                        49                56
                                                                
Intangible assets, net                              11                133
                                                                
Goodwill                                           1,083            1,083
                                                                
Total assets                                 $      6,382       $     8,165
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Note payable-revolving credit line           $      1,742       $     1,876
Accounts payable                                    1,098             948
Accrued liabilities                                 1,013             684
Due to related party                               400              400
Total current liabilities                           4,253             3,908
                                                                
Due to related party – long term                   467              1,267
Total liabilities                                   4,720             5,175
                                                                
Stockholders' equity                               1,662            2,990
                                                                
Total liabilities and stockholders'          $      6,382       $     8,165
equity


Contact:

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