Dataram Reports Fiscal 2014 Fourth Quarter and Annual Financial Results

  Dataram Reports Fiscal 2014 Fourth Quarter and Annual Financial Results  Business Wire  PRINCETON, N.J. -- July 29, 2014  Dataram Corporation (NASDAQ: DRAM) today reported its financial results for its fourth quarter and year ended April 30, 2014. Revenues for the fourth quarter and year ended April 30, 2014 were $8.0 million and $30.4 million, respectively, which compares to $6.2 million and $27.6 million for the comparable prior year periods. The Company reported a net loss of $0.5 million for the fourth quarter, which compares to net loss of $1.6 million in the comparable prior year period. Fourth quarter April 30, 2013 results included a $0.4 million charge for impairment of goodwill. The net loss in fiscal year ended April 30, 2014 totaled $2.6 million versus $4.6 million in the comparable prior year period.  John H. Freeman, Dataram’s President and CEO commented, “The primary factor impacting our financial results was a 13% industry wide decline in material cost per gigabyte and further industry standardization. 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 software products.”  We continue to work on raising additional capital and on July 15, 2014 entered into a Subordinated Secured Convertible Bridge Note and Warrant Purchase Agreement for the issuance of up to $750,000 aggregate principal amount of Subordinated Secured Convertible Bridge Notes and Warrants. The Bridge Notes and Warrants were issued on July 15, 2014. The Company issued $600,000 aggregate principal amount of the Bridge Notes to certain institutional investors and $150,000 aggregate principal amount of the Bridge Notes to certain members of management, officers and directors of the Company.  Mr. Freeman concluded, “The sale of subordinated secured convertible notes will be used to fund further sales growth and software development. We intend to seek additional financing to help us execute our fiscal 2015 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.  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,                                 2014       2013         2014        2013                                                                      Revenues                      $ 7,981     $ 6,219      $ 30,399     $ 27,616                                                                      Costs and expenses: Cost of sales                   6,484       5,037        24,353       22,042 Engineering and development     264         167          1,187        715 Selling, general and            1,711       2,019        7,004        8,305 administrative Impairment of goodwill          -           438          -            438 Stock-based compensation        -           26           43           231 expense* Intangible asset               10        41         133        164     amortization*                                8,469     7,728     $ 32,720    $ 31,895                                                                       Loss from operations            (488  )     (1,509 )     (2,321 )     (4,279 )                                                                      Other income (expense)         (55   )    (106   )    (288   )    (341   )                                                                      Income (loss) before income     (543  )     (1,615 )     (2,609 )     (4,620 ) taxes                                                                      Income tax expense             -         5          -          5                                                                            Net income (loss)             $ (543  )   $ (1,620 )   $ (2,609 )   $ (4,625 )                                                                      Net income (loss) per share: Basic                         $ (0.24 )   $ (0.92  )   $ (1.30  )   $ (2.60  ) Diluted                       $ (0.24 )   $ (0.92  )   $ (1.30  )   $ (2.60  )                                                                      Weighted average number of shares outstanding: Basic                          2,249     1,755      2,000      1,777   Diluted                        2,249     1,755      2,000      1,777    Note- All amounts shown have been adjusted to reflect the reverse 1-for-6 stock split effective March 15, 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, 2014   April 30, 2013                                                                ASSETS Current assets Cash and cash equivalents                    $     258        $     324 Accounts receivable, net                           3,663            2,885 Inventories                                        2,291            2,903 Note receivable                                    -                275 Other current assets                              7               81 Total current assets                               6,219            6,468                                                                Property and equipment, net                        219              425                                                                Other assets                                       51               56                                                                Intangible assets, net                             -                133                                                                Goodwill                                          1,083           1,083                                                                Total assets                                 $     7,572      $     8,165                                                                                                                               LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Note payable-revolving credit line           $     2,970      $     1,876 Accounts payable                                   1,438            948 Accrued liabilities                                929              684 Due to related party – current portion            -               400 Total current liabilities                          5,337            3,908                                                                Due to related party – long term                   -                1,267 Other liabilities                                 250             - Total liabilities                                  5,587            5,175                                                                Stockholders' equity                              1,985           2,990                                                                Total liabilities and stockholders' equity   $     7,572      $     8,165  Contact:  Dataram: Marc P. Palker, CFO, 609-799-0071 ext.2207 info@dataram.com  
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