EX-99 2 pr1qtr.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 FIRST QUARTER FINANCIAL RESULTS o Company Earns $.13 Per Diluted Share o Backlog Grows to $5.1 Million PRINCETON, N.J. August 17, 2004 -- Dataram Corporation (NASDAQ: DRAM) today reported its financial results for its first fiscal quarter ended July 31, 2004. Revenue for the quarter was $15.8 million, compared to $12.3 million for the first quarter of the previous fiscal year, an increase of 29%. Revenues for the prior sequential quarter were $19.9 million. Net earnings for the quarter were $1.2 million or $0.13 per diluted share compared to net earnings of $171,000 or $0.02 per diluted share for the comparable prior year period and $1.5 million or $0.17 per diluted share for the fourth quarter of last fiscal year. Fourth (In 000's, except per share amounts) First Quarter Quarter FY 2005 FY 2004 FY 2004 Revenues $ 15,791 $ 12,267 $ 19,948 Earnings from operations $ 1,183 $ 136 $ 1,742 Net earnings $ 1,167 $ 171 $ 1,530 Diluted earnings per share $ 0.13 $ 0.02 $ 0.17 "This quarter represents our third consecutive quarter of year-over-year revenue growth," commented Robert V. Tarantino, Dataram's chairman and CEO. "It is not unusual for our first quarter to be less robust than the fourth quarter as the fourth quarter is typically our strongest. Our order rate was good and exceeded our revenues. The backlog increased to $5.1 million. We regard the year-over-year growth as a strong indicator that demand for our products continues to strengthen." Mark Maddocks, Dataram's vice president of finance and CFO, added, "Our gross margins are in line with our historical norm of approximately 25% and are expected to remain at that level in the upcoming quarter. Engineering and S, G&A expenses totaled approximately $2.9 million in the quarter. Second quarter expenses are expected to be in this same range. The Company's balance sheet remains strong. Our current ratio is 4.9-to-1 and we have no long-term debt." Mr. Tarantino concluded, "Our OEM business during the first quarter continued to be strong and represented approximately 53% of our revenue. Additionally, we received our first order from a major new customer, a computer manufacturer. We remain confident that we will achieve our fiscal 2005 business plan." Dataram will conduct a conference call today at 4:30 p.m. (EDT) to present its first quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800-837-5479 and providing the following reservation number: 21205403. 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 37 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 EARNINGS (In thousands, except per share amounts) (Unaudited) Quarter Ended July 31, 2004 2003 Revenues $ 15,791 $ 12,267 Costs and expenses: Cost of sales 11,741 8,818 Engineering and development 319 333 Selling, general and administrative 2,548 2,980 ____________ ______________ 14,608 12,131 Earnings from operations 1,183 136 Other income (expense), net 65 50 ____________ ______________ Earnings before income tax expense 1,248 186 Income tax expense 81 15 ____________ ______________ Net earnings $ 1,167 $ 171 ============ ============== Net earnings per share: Basic $ 0.14 $ 0.02 ============ ============== Diluted $ 0.13 $ 0.02 ============ ============== Average number of shares outstanding: Basic 8,562 8,497 ============ ============== Diluted 9,303 8,617 ============ ============== DATARAM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) July 31, 2004 April 30, 2004 ASSETS Current assets Cash and cash equivalents $ 5,601 $ 6,806 Trade receivables, net 7,828 8,846 Inventories 4,512 2,537 Deferred income taxes 723 723 Other current assets 306 92 ______________________________ Total current assets 18,970 19,004 Property and equipment, net 2,680 2,858 Other assets 54 50 ______________________________ Total assets $ 21,704 $ 21,912 ============================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 3,096 $ 3,862 Accrued liabilities 765 1,646 ______________________________ Total current liabilities 3,861 5,508 Stockholders' equity 17,843 16,404 ______________________________ Total liabilities and stockholders' equity $ 21,704 $ 21,912 ==============================