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 firstname.lastname@example.org
Dataram Reports Fiscal 2014 Fourth Quarter and Annual Financial Results
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