EX-99 3 pr2ndqtr.txt NOVEMBER 20, 2003 FINANCIAL PRESS RELEASE DATARAM PRESS RELEASE Dataram Contact: Investor Contact: Mark Maddocks, Joe Zappulla Vice President-Finance, CFO Wall Street Investor Relations Corp. 609-799-0071 212-681-4100 info@dataram.com JZappulla@WallStreetIR.com DATARAM REPORTS SECOND QUARTER FINANCIAL RESULTS PRINCETON, N.J. June 18, 2003 - Dataram Corporation (NASDAQ: DRAM) today reported its financial results for its second quarter ended October 31, 2003. Revenues for the second quarter were $12.6 million, an increase of $371,000 or 3 percent from the prior sequential quarter revenues of $12.3 million, and compares to revenues of $14.0 million for the second quarter of last fiscal year. The Company incurred a net loss of $163,000 or $0.02 per share in the second quarter compared to net earnings of $171,000 or $0.02 per share in the first quarter of the current fiscal year and a net loss of $253,000 or $0.03 per share in the second quarter of the previous fiscal year. (In 000's, except First per share amounts) Quarter Second Quarter Six Months __________________ _______ _________________ _________________ FY 2004 FY 2004 FY 2003 FY 2004 FY 2003(1) _______ _______ _______ _______ _______ Revenues $12,267 $12,638 $13,970 $24,905 $28,251 Earnings (loss) from operations 136 (186) (469) (50) (2,640) Net earnings (loss) 171 $ (163) $ (253) 8 (2,075) Earnings (loss) per share 0.02 $ (0.02) $ (0.03) 0.00 (0.24) (1) Includes a pretax restructuring charge of $740,000. Robert V. Tarantino, Dataram's chairman and CEO, commented, "We are encouraged by recent improvements in our level of business. Our order rate improved in the second quarter, particularly in the latter part of the quarter. Total bookings were approximately $15 million. The business we booked in excess of our revenues this quarter is scheduled to ship in the upcoming quarter." Mark Maddocks, Dataram's vice president of finance and CFO, added, "Our margins in the second quarter were impacted by a rapid rise in the price of certain DRAMs. While in the long run, an increase in price levels is good for our industry, the impact of rapidly rising prices reduced our gross margin in the second quarter by approximately 2% from what it would otherwise have been as selling prices for certain orders were locked in before inventory could be obtained. Third quarter gross margins are expected to be at the historically normal level of 25% or better. Our engineering and SG&A costs decreased by approximately $120,000 on a sequential quarterly basis to approximately $3.2 million and we expect third quarter costs to remain at approximately the same level." Mr. Maddocks continued, "Our balance sheet remains sound and we are highly liquid. Our cash and cash equivalents increased to $4.3 million as of October 31, 2003 from $2.1 million at the end of the previous fiscal quarter, primarily due to the receipt of our income tax receivable. Our current ratio has improved to 4.1 at October 31 from 2.5 at the beginning of the fiscal year." Mr. Tarantino concluded, "We continue to see improvement in demand, albeit sporadic. We expect to continue to achieve revenue growth in the third and fourth quarter and margin levels that will support net profitability for the remainder of the fiscal year." Dataram will conduct a conference call today at 4:30 p.m. (EST) today to present its first quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800- 731-1418 and providing the following reservation number: 21166120. It is recommended that participants call 10 minutes before the conference call is scheduled to begin. The conference call can also be accessed over the Internet through Vcall at www.vcall.com. A replay of the call will be available approximately one hour after the completion of the conference call through Vcall and for 24 hours by dialing 800-633-8284 or 402-977-9140 and entering the reservation number listed above. ABOUT DATARAM CORPORATION Dataram is a worldwide leader in the design and manufacture of high capacity, reliable and innovative memory solutions. With over 36 years experience Dataram provides customized memory solutions for OEMs and compatible memory for leading brands including HP/Compaq, Dell, IBM, SGI, Sun Microsystems and Intel. 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, the commencement of production, 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) Second Quarter Ended Six Months Ended October 31, October 31, 2003 2002 2003 2002 Revenues $ 12,638 $ 13,970 $ 24,905 $ 28,252 Costs and expenses: Cost of sales 9,632 9,770 18,450 20,510 Engineering and development 313 400 646 782 Selling, general and administrative 2,879 4,269 5,858 8,806 Restructuring charges - - - 740 ________ ________ ________ ________ 12,824 14,439 24,954 30,838 Loss from operations (186) (469) (49) (2,586) Other income (expense), net 8 (10) 57 (54) ________ ________ ________ ________ Earnings (loss) before income taxes (178) (479) 8 (2,640) Income tax benefit (15) (226) - (564) ________ ________ ________ ________ Net earnings (loss) $ (163) $ (253) $ 8 $ (2,076) ======== ======== ======== ======== Net earnings (loss) per share: Basic $ (0.02) $ (0.03) $ 0.00 $ (0.24) ======== ======== ======== ======== Diluted $ (0.02) $ (0.03) $ 0.00 $ (0.24) ======== ======== ======== ======== Average number of shares outstanding: Basic 8,497 8,504 8,497 8,494 ======== ======== ======== ======== Diluted 8,497 8,504 8,709 8,494 ======== ======== ======== ======== DATARAM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) October 31, 2003 April 30, 2003 ASSETS Current assets: Cash and cash equivalents $ 4,258 $ 2,500 Trade receivables, net 5,611 6,292 Income tax receivable 50 2,855 Inventories 2,407 3,138 Deferred income taxes 822 723 Other current assets 381 111 Total current assets 13,529 15,619 __________ __________ Property and equipment, net 3,745 4,564 Other assets 50 24 __________ __________ Total assets $ 17,324 $ 20,207 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 2,694 $ 3,208 Accrued liabilities 601 2,978 __________ __________ Total current liabilities 3,295 6,186 Stockholders' equity 14,029 14,021 __________ __________ Total liabilities and stockholders' equity $ 17,324 $ 20,207 ========== ==========