Dataram Contact: Investor Contact:
Mark Maddocks Joe Zappulla
Vice President-Finance, CFO Wall Street Investor Relations Corp.
609-799-0071 212-973-0883 or 301-907-4090
info@datram.com JZappulla@WallStreetIR.com
DATARAM'S FISCAL YEAR EARNINGS
REACH RECORD $8.6 MILLION
Fiscal Year Revenue Grows 20 Percent
PRINCETON, N.J. June 6, 2001 - Dataram Corporation (NASDAQ: DRAM) today
reported financial results for its fiscal fourth quarter and full year ended
April 30, 2001. The Company reported revenue for the fourth quarter of $25.9
million compared to $32.9 million for the same period of the previous fiscal
year. Net earnings excluding amortization of intangible assets, net of tax
("Cash Earnings") were $839,000 or $0.09 per diluted share compared to $2.4
million or $0.24 per diluted share for the fourth quarter of the previous
fiscal year. Net earnings for the fourth quarter were $635,000 or $0.07 per
diluted share.
Fiscal periods ended April 30 Fourth Quarter Fiscal Year
_____________________________ ________________________ _________________________
(In 000's, except per share amounts) 2001 2000 % B/(W) 2001 2000 % B/(W)
____________________________________ ____ ____ _______ ____ ____ _______
Revenues $25,886 $32,874 (21)% $130,577 $109,152 20%
Earnings from Operations $1,485 $3,748 (60)% $13,416 $12,183 10%
Net Earnings $635 $2,409 (74)% $8,595 $7,846 10%
EPS (diluted) $0.07 $0.24 (71)% $0.88 $0.81 9%
Cash Earnings* $839 $2,409 (65)% $8,799 $7,846 12%
Cash Earnings per share (diluted) $0.09 $0.24 (63)% $0.90 $0.81 11%
Shares Outstanding (diluted) 9,585 9,864 -- 9,807 9,727 --
* Net earnings excluding amortization of intangible assets, net of tax.
During its fiscal fourth quarter, Dataram completed the acquisition of certain
assets of Memory Card Technology A/S. ("MCT"), a leading European designer and
manufacturer of memory upgrades, headquartered in Denmark with sales offices
worldwide. Consequently, the Company has entered into a new line of credit
agreement with its bank. The agreement provides for a $10 million term loan,
which was used to complete the acquisition, and a $15 million revolving line
of credit, which is unused. The fourth quarter financial results include
approximately six weeks of the acquired MCT operations, which generated a net
loss of approximately $971,000 or $0.10 per diluted share.
Mark Maddocks, Dataram's vice president of finance and CFO stated, "MCT had
been in suspension of payments for approximately two months prior to the
acquisition. While we were reestablishing relationships with customers and
vendors we continued to incur normal operating costs. This process was largely
completed early in the first quarter of fiscal 2002."
For the fiscal year, Dataram reported revenue of $131 million, a 20 percent
increase over the previous fiscal year level. Cash earnings increased 12
percent to $8.8 million or $0.90 per diluted share, compared to $7.8 million
or $0.81 cents per diluted share in the previous fiscal year. Net earnings
were $8.6 million or $0.88 cents per diluted share.
"We have accomplished the initial phase of our integration process and are on
schedule to achieve a positive contribution from the Company's international
operations during the current fiscal year," stated Robert Tarantino, Dataram's
chairman, president and CEO. "We plan to solidify a global presence, under
one brand, by capitalizing on our many years of experience and reputation in
memory products and on our expanded geographic reach."
In addition to expanding its market presence to 14 countries and significantly
diversifying its already broad server memory product-line with the addition of
PC memory products, Dataram also introduced four new server memory products
into the market during the fourth quarter. The expansion of the Company's
international sales effort supports its business model of leveraging its
leading-edge product design and just-in-time delivery with proactive customer
support that can be best achieved through a direct regional presence.
Mr. Tarantino continued, "Over the past few months, we have developed a
management team comprised of both US and international senior managers to
supervise the integration of our overseas assets and coordinate the cross-
training of our worldwide sales force. This team has worked diligently to
establish the discipline that has provided the foundation for Dataram's
success, while preparing our sales and marketing professionals to effectively
represent our expanded product-line."
Dataram management expects to complete the integration of its newly acquired
overseas assets by the end of this fiscal year. Mr. Tarantino commented
further, "While the present environment continues to impact industry growth,
we are taking the opportunity to develop our team to effectively represent
Dataram's expanded product-line and geographic reach. During this process, we
are committed to remaining highly cost efficient to preserve profitability as
we position our Company for further growth as economic conditions improve."
Concerning the business outlook, Mr. Tarantino stated, "The continuing
economic uncertainty and chip pricing environment limits our insight to
revenue levels. When the volatility inherent in the economic environment
dissipates, we will expand our guidance. Presently, for the first quarter
ending July 31, 2001 we anticipate that Dataram will generate consolidated net
earnings in the range of $0.12 to $0.14 per diluted share, with cash earnings
in the range of $0.16 to $0.18 per diluted share."
Dataram will conduct a conference call at 11:00 a.m. (EDT) today to present
its fiscal fourth quarter and full year financial results and to respond to
investor questions. Interested shareholders may participate in the call by
dialing 888-343-1842 and providing the following reservation number:19019037.
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 and entering the
reservation number listed above.
ABOUT DATARAM CORPORATION
Dataram Corporation, celebrating its 34th year in the computer industry, is a
leading provider of server, workstation and PC memory. The Company offers a
specialized line of gigabyte-class memory for entry- to enterprise-level
servers and workstations from Compaq, HP, IBM, Intel, SGI and Sun as well as
PC desktop, notebook and Flash memory for Acer, Apple, IBM, Dell, Compaq,
Fujitsu/Siemens, and Toshiba products. Additional information is available on
the Internet at www.dataram.com.
Financial Tables Follow
DATARAM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
Three Months ended Fiscal Year ended
4/30/2001 4/30/2000 4/30/2001 4/30/2000
_________ _________ _________ _________
Revenues $ 25,886 $ 32,874 $ 130,577 $ 109,152
Costs and expenses:
Cost of sales 18,134 25,065 97,588 81,877
Engineering and development 500 343 1,673 1,391
Selling, general and administrative 5,467 3,718 17,600 13,701
Intangible asset amortization 300 0 300 0
________ ________ _________ _________
24,401 29,126 117,161 96,969
Earnings from operations 1,485 3,748 13,416 12,183
Interest income (expense), net 17 143 855 491
________ ________ _________ _________
Earnings before income taxes 1,502 3,891 14,271 12,674
Income taxes 867 1,482 5,676 4,828
________ ________ _________ _________
Net earnings $ 635 $ 2,409 $ 8,595 $ 7,846
======== ======== ========= =========
Net earnings per share:
Basic $ 0.07 $ 0.29 $ 1.01 $ 0.99
======== ======== ========= =========
Diluted $ 0.07 $ 0.24 $ 0.88 $ 0.81
======== ======== ========= =========
Average number of shares outstanding:
Basic 8,489 8,218 8,498 7,953
======== ======== ========= =========
Diluted 9,585 9,864 9,807 9,727
======== ======== ========= =========
-more-
DATARAM CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
April 30, 2001 April 30, 2000
______________ ______________
ASSETS
Current assets:
Cash and cash equivalents $ 10,236 $ 13,650
Trade receivables, net 17,641 16,241
Inventories 5,925 4,651
Other current assets 888 585
____________ ____________
Total current assets 34,690 35,127
Property and equipment, net 13,226 5,007
Intangible assets 17,000 0
Other assets 365 17
____________ ____________
$ 65,281 $ 40,151
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 2,000 $ 0
Current portion of capital lease obligations 978 0
Accounts payable 7,219 9,538
Accrued liabilities 3,960 2,878
____________ ____________
Total current liabilities 14,157 12,416
Deferred income taxes 948 841
Long-term debt 8,000 0
Long-term capital lease obligations 4,133 0
Stockholders' equity 38,043 26,894
____________ ____________
$ 65,281 $ 40,151
============ ============
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, 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.