DATARAM PRESS RELEASE Dataram Contact: Investor Contact: Mark Maddocks, Vice President-Finance, CFO Joe Zappulla, Wall Street Investor Relations Corp. 609-799-0071 212-714-2445 info@dataram.com JZappulla@WallStreetIR.com DATARAM REPORTS FOURTH QUARTER FINANCIAL RESULTS PRINCETON, N.J. June 5, 2002 - Dataram Corporation (NASDAQ: DRAM) today reported its financial results for its fiscal fourth quarter ended April 30, 2002. Revenues for the fourth quarter totaled $19.8 million compared to $19.6 million for the previous sequential quarter and $25.9 million for the fourth quarter of the previous fiscal year. The Company incurred a net loss before non-cash items of $442,000 or $0.05 per share, compared to net earnings before non-cash items in the prior comparable quarter of $1.3 million or $0.13 per diluted share. The net loss in this fiscal year's fourth quarter was $1.7 million or $0.20 per share compared to a net loss in the prior quarter of $4.8 million or $0.57 per share and net earnings of $635,000 or $0.07 per share in the fourth quarter of the previous fiscal year. (In 000's, except Third per share amounts) Quarter Fourth Quarter Full Year ___________________________ ________ _______________ ________________ FY2002 FY2002 FY2001 FY2002 FY2001 ______ ______ ______ ______ _______ Revenues $19,646 $19,801 $25,886 $81,190 $130,577 Net earnings (loss) before non-cash items $ 1,565 $ (442) $ 1,264 $ 2,349 $ 10,380 Per share $ 0.17 $ (0.05) $ 0.13 $ 0.25 $ 1.06 Shares outstanding 9,334 8,490 9,585 9,366 9,807 Amortization of intangible assets $ 5,263 -- $ 300 $ 5,856 $ 300 Depreciation $ 1,085 $ 1,275 $ 329 $ 4,594 $ 1,485 Net earnings (loss) $(4,783) $(1,717) $ 635 $(8,101) $ 8,595 Net earnings (loss) per share $ (0.57) $ (0.20) $ 0.07 $ (0.95) $ 0.88 Shares outstanding 8,454 8,490 9,585 8,487 9,807 Robert Tarantino, Dataram's chairman and chief executive officer, commented, "We did not see any evidence that information technology infrastructure spending improved in our fiscal fourth quarter. Corporate IT spending remained soft in light of the general economic uncertainty. While we are disappointed with the results of the fiscal fourth quarter, we achieved certain goals that should have a positive impact on our future performance. During the quarter, the company entered into global purchasing agreements with three major international corporations to provide memory for their varied applications. Additionally, we entered into an agreement with a major contract manufacturer, which allows us to fulfill their program requirements for memory. The integration of our worldwide sales team and the refinement of our product offerings have been successfully accomplished. We are now entering the final phase of our global organizational plans, which requires us to consolidate the company's information systems. As we enter into this phase of the integration, we expect to achieve further efficiencies and cost savings this fiscal year. As the economy rebounds, our expanded capabilities to service the memory needs of new and existing customers will provide us with the impetus to expand our market share and grow profitably." Mr. Tarantino continued, "Dataram's value lies in our ability to utilize our worldwide sales team's capability to market compatible workstation, PC and server memory, as well as in utilizing our manufacturing expertise and assets to service the memory needs of OEM customers worldwide. Our mission is to maximize shareholder value by growing profitability. To that end we have responded to a broad information technology slump by reducing costs, with plans in place to establish further operational efficiencies that will support expansion going forward, while preserving our key resources. Although we cannot control the macro-economic influences that have plagued our market over the last year, we will continue to position Dataram for sustained profitability and, as the market regains its positive momentum, long term growth. Mr. Maddocks added, "Dataram's balance sheet remains strong. The company's decision in the fiscal third quarter to reduce its debt and restructure its credit line to take advantage of the low interest rate environment has further strengthened its financial position. With $3.7 million in cash and a current ratio of 2.6, the company remains highly liquid and well positioned to meet the needs of the upcoming fiscal year." Dataram will conduct a conference call at 11:00 a.m. (EDT) today to present its fourth quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800-621-5170 and providing the following reservation number: 20646840. 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 36th year in the computer industry, is a leading provider of computer memory. The Company offers a specialized line of gigabyte-class memory for entry- to enterprise-level servers, workstations and notebooks from Dell, Fujitsu/Siemens, HP/Compaq, IBM, SGI, Sun, Toshiba and Intel platforms. Additionally, the Company manufactures memory for original equipment manufacturers and channel assemblers. Further information is available on the Internet at www.dataram.com. Financial Tables Follow DATARAM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Quarter Ended Year Ended 4/30/2002 4/30/2001 4/30/2002 4/30/2001 Revenues $ 19,801 $ 25,886 $ 81,190 $ 130,577 Costs and expenses: Cost of sales 16,514 18,134 56,737 97,588 Engineering and development 393 500 1,839 1,673 Selling, general and administrative 4,973 5,467 21,532 17,600 Intangible asset amortization 0 300 5,856 300 Restructuring charges 0 0 1,200 0 _________ _________ _________ _________ 21,880 24,401 87,164 117,161 Earnings (loss) from operations (2,079) 1,485 (5,974) 13,416 Interest income (expense), net (91) 17 (916) 855 _________ _________ _________ _________ Earnings (loss) before income taxes (2,170) 1,502 (6,890) 14,271 Income tax provision (benefit) (453) 867 1,211 5,676 _________ _________ _________ _________ Net earnings (loss) $ (1,717) $ 635 $ (8,101) $ 8,595 ========= ========= ========= ========= Net earnings (loss) per share: Basic $ (0.20) $ .07 $ (.95) $ 1.01 ========= ========= ========= ========= Diluted $ (0.20) $ .07 $ (.95) $ .88 ========= ========= ========= ========= Average number of shares outstanding: Basic 8,490 8,489 8,487 8,498 ========= ========= ========= ========= Diluted 8,490 9,585 8,487 9,807 ========= ========= ========= ========= DATARAM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) April 30, 2002 April 30, 2001 ______________ ______________ ASSETS Current assets: Cash and cash equivalents $ 3,656 $ 10,236 Trade receivables, net 11,478 17,641 Inventories 5,435 5,925 Other current assets 1,231 888 ______________ ______________ Total current assets 21,800 34,690 Property and equipment, net 9,210 13,226 Goodwill 11,144 9,957 Intangible assets, net 0 7,043 Other assets 408 365 ______________ ______________ $ 42,562 $ 65,281 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 0 $ 2,000 Current portion of capital lease obligations 0 978 Accounts payable 6,599 7,219 Accrued liabilities 1,688 3,960 ______________ ______________ Total current liabilities 8,287 14,157 Deferred income taxes 647 948 Long-term debt 3,800 8,000 Long-term capital lease obligations 0 4,133 Stockholders' equity 29,828 38,043 ______________ ______________ $ 42,562 $ 65,281 ============== ============== 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.