Dataram Contact:
Mark Maddocks, Chief Financial Officer

609-799-0071

info@dataram.com

info@dataram.com

info@dataram.com

Investor Contact:
Tim Curtiss, Wall Street Investor Relations Corp.
216-831-6532

Tcurtiss@WallStreetIR.com

Tcurtiss@WallStreetIR.com
tcurtiss@WallStreetIR.com

 

DATARAM REPORTS 47 PERCENT EARNINGS INCREASEGROWTH

 

IN SECOND QUARTER ON 36 PERECENT REVENUE GROWTH

Twelfth Consecutive Quarter of Year-Over-Year Earnings Increases

PRINCETON, N.J. November 8, 2000 - Dataram Corporation (NASDAQ: DRAM ) today reported financial results for its fiscal second quarter ended October 31, 2000. The Company reported a 47 percent increase in net earnings toof $3.1 million or $0.31 per diluted share. Earnings per share increased 41 percent compared to $2.1 million or $0.22 per diluted share$2.1 million or $0.22 per diluted share for the same period of the previous year. Revenues for the second quarter increased 36 percent to increased 36 percent to $39.9 million over the prior year's second quarter level of $29.4 million. Net earnings for the six month period ended October 31, 2000 were $5.9 million or $0.60 per diluted share, an increase of 64 percent over the same period of the previousior year of $3.6 million or $0.38 per diluted share. Revenues were $77.9 million, up 54 percent compared to $50.6 million in the comparable period of the previous fiscal year.

 

 

In thousands, except

per share amounts

Three MonthsSecond Quarter ended
October 31,

Six Months ended
October 31,

 

2000

1999

% Gain

2000

1999

% Gain

Revenues

$39,866

$29,386

36%

$77,862

$50,550

54%

Earnings from Operations

$4,636

$3,245

43%

$9,054

$5,612

61%

Net Earnings

$3,051

$2,081

47%

$5,931

$3,612

64%

Diluted EPS

$0.31

$0.22

41%

$0.60

$0.38

58%

Shares Outstanding (diluted)

9,944

9,460

9,916

9,419

 

-more -

 

 

"Dataram's performance during the second quarter surpassed our expectations," commented Robert Tarantino, Dataram's chairman and CEO. "Our products for Intel processor based servers, introduced last year, contributed significantly to our second quarter's results, and the prospects for this part of our business are strong. Sales of our compatible products continued to exceed plan."

Mr. Tarantino continuedadded, "This marks Dataram's twelfth consecutive quarter of increased year-over-year earnings. The market for our products, driven by Iincreasing demands on information technology infrastructure, presentoffers a high growth opportunity for our products, .which Our products offer a compelling solution to the needs of memory-intensive customers, including ISPs, ASPs and corporate users."

"Our operating and net margins continue to expand," added Mark Maddocks, Dataram's CFO. "As we enter our fiscal third quarter, we are encouraged by the strong demand we are seeing for server memory."

Dataram will conduct a conference call at 11:00 am AM (EST) on November 8 to present its second quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800-497-7708 approximately and askinging to be connected to the Dataram conference call. 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. at www.vcall.com www.vcall.com. A replay of the call will be available approximately one hour after the completion of the conference call through Vcall. A replay can also be accessed via the telephone until 9:00 PM PM on November 9 by dialing 800-252-6030 (402-220-2491 for international callers) and entering the following code: 7274924.

About Dataram Corporation

Dataram Corporation is a leading provider of gigabyte memory upgrades for network servers. The Company specializes in the manufacture of large capacity memory for Compaq, Hewlett-Packard, IBM, Intel, Silicon Graphics and Sun Microsystems computers. Dataram, headquartered in Princeton, New Jersey, is celebrating its 34th year in the computer industry. Additional information is available on the Internet at www.dataram.com.at www.dataram.com.

Financial Tables to Follow

 

DATARAM CORPORATION AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share amounts)

 

Three Months Ended

Six Months Ended

10/31/2000

10/31/1999

10/31/2000

10/31/1999

(Unaudited)

(Unaudited)

         

Revenues

$ 39,866

$ 29,386

$ 77,862

$ 50,550

Costs and expenses:

       

Cost of sales

30,755

21,940

59,616

37,355

Engineering and development

415

343

786

676

Selling, general and administrative

4,060

3,858

8,406

6,907

35,230

26,141

68,808

44,938

         

Earnings from operations

4,636

3,245

9,054

5,612

         

Interest income, net

292

117

522

225

Earnings before income taxes

4,928

3,362

9,576

5,837

Income taxes

Net earnings

1,877

$ 3,051

1,281

$ 2,081

3,645

$ 5,931

2,225

$ 3,612

         

Net earnings per share:

Basic

Diluted

$ 0.36

$ 0.31

$ 0.27

$ 0.22

$ 0.70

$ 0.60

$ 0.46

$ 0.38

 

       

Average number of shares outstanding:

Basic

Diluted

8,559

9,944

7,791

9,460

8,493

9,916

7,809

9,419

 

-more-

 

DATARAM CORPORATION AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(in thousands)

         
         
   

July October 31, 2000

 

April 30, 2000

   

(Unaudited)

   

ASSETS

       

Current assets:

       

Cash and cash equivalents

$

17,915

$

13,650

Trade receivables, net

 

17,660

 

16,241

Inventories

 

6,775

 

4,651

Other current assets

 

912

 

585

Total current assets

 

43,262

 

35,127

         

Property and equipment, net

 

6,183

 

5,007

         

Other assets

 

18

 

17

         
 

$

49,463

$

40,151

         

LIABILITIES AND STOCKHOLDERS' EQUITY

       

Current liabilities:

       

Accounts payable

$

10,471

$

9,538

Accrued liabilities

 

2,749

 

2,878

Total current liabilities

 

13,220

 

12,416

         

Deferred income taxes

 

841

 

841

         

Stockholders' equity

 

35,402

 

26,894

 

$

49,463

$

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 for servers, 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.

 

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at http://www.sec.gov.

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