EX-99 3 pr3rdqtr.txt 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 INCREASED EARNINGS IN THIRD QUARTER o Company Earns $.08 Per Diluted Share in Third Quarter o Sequential Revenue Growth of 36% PRINCETON, N.J. February 18, 2004 - Dataram Corporation (NASDAQ: DRAM) today reported its financial results for its third quarter ended January 31, 2004. Revenues for the third quarter were $17.1 million, an increase of $4.5 million or 36 percent from the prior sequential quarter revenues of $12.6 million, and compares to revenues of $12.8 million for the third quarter of last fiscal year. Net earnings for the third quarter were $732,000 or $0.08 per diluted share compared to a net loss of $163,000 or $0.02 per share in the second quarter of the current fiscal year and a net loss of $793,000 or $0.09 per share in the third quarter of the previous fiscal year. Revenues for the first nine months of the current fiscal year were $42.0 million compared to $41.0 million for the previous fiscal year period. Net earnings for this period were $741,000 or $0.08 per diluted share compared to a net loss of $2.9 million or $0.34 per share for the prior year comparable period. (In 000's, except per Second Third Nine share amounts) Quarter Quarter Months FY 2004 FY 2004 FY 2003 FY 2004 FY 2003(1) Revenues $ 12,638 $ 17,131 $ 12,758 $ 42,036 $ 41,010 Earnings (loss) from operations (186) 711 $ (1,244) 662 (3,830) Net earnings (loss) (163) 732 $ (793) 741 (2,869) Diluted earnings (loss) per share (0.02) $ 0.08 $ (0.09) 0.08 (0.34) (1) Includes a pretax restructuring charge of $740. Robert V. Tarantino, Dataram's chairman and CEO, commented, "The improvement in our order rate which we began to experience in the latter part of the second quarter, has continued through the third quarter, reflecting an improving economic environment for companies in the IT industry. We are experiencing growth in sales of our memory products to our OEM customers as well as to our compatibles customers." Mr. Tarantino concluded, "As we enter our fourth quarter, we are encouraged by the improving business environment and we expect continued improvement in earnings in the fourth quarter." Mark Maddocks, Dataram's vice president of finance and CFO, added, "Our gross margins returned to approximately 25% in the third quarter and are expected to remain at that level or better in the upcoming quarter. Engineering and S,G&A expenses totaled approximately $3.5 million in the third quarter. Fourth quarter expenses are expected to be in this range or slightly lower. The Company's balance sheet remains strong. Our current ratio is 3.6-to-1 and we have no long-term debt." Dataram will conduct a conference call today at 4:30 p.m. (EST) today to present its third quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800-718-6841 and providing the following reservation number: 21185629. 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) Third Quarter Ended Nine Months Ended January 31 January 31, 2004 2003 2004 2003 Revenues $ 17,131 $ 12,758 $ 42,036 $ 41,009 Costs and expenses: Cost of sales 12,923 9,286 31,373 29,796 Engineering and development 317 375 963 1,156 Selling, general and administrative 3,180 4,341 9,038 13,148 Restructuring charges - - - 740 ________ ________ _______ _______ 16,420 14,002 41,374 44,840 Earnings (loss) from operations 711 (1,244) 662 (3,380) Other income (expense), net 94 (2) 152 (56) ________ ________ _______ _______ Earnings (loss) before income taxes 805 (1,246) 814 (3,886) Income tax provision (benefit) 73 (453) 73 (1,017) ________ ________ _______ _______ Net earnings (loss) $ 732 $ (793) $ 741 $ (2,869) ======== ======== ======= ======= Net earnings (loss) per share: Basic $ 0.09 $ (0.09) $ 0.09 $ (0.34) ======== ======== ======= ======= Diluted $ 0.08 $ (0.09) $ 0.08 $ (0.34 ======== ======== ======= ======= Average number of shares outstanding: Basic 8,497 8,510 8,497 8,499 ======== ======== ======= ======= Diluted 8,882 8,510 8,769 8,499 ======== ======== ======= ======= DATARAM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) January 31, 2004 April 30, 2003 ASSETS Current assets: Cash and cash equivalents $ 3,937 $ 2,500 Trade receivables, net 7,369 6,292 Income tax receivable 0 3,138 Inventories 3,562 2,855 Deferred income taxes 822 723 Other current assets 201 111 Total current assets 15,891 15,619 Property and equipment, net 3,235 4,564 Other assets 50 24 Total assets $ 19,176 $ 20,207 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 3,530 $ 3,208 Accrued liabilities 884 2,978 Total current liabilities 4,414 6,186 Stockholders' equity 14,762 14,021 Total liabilities and stockholders' equity $ 19,176 $ 20,207