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Dataram Contact: Investor Contact:
Mark Maddocks Joe Zappulla
Vice President, Finance Wall Street Investor Relations Corp.
609-799-0071 212-973-0883 or 301-907-4090
info@dataram.com JZappulla@WallStreetIR.com
DATARAM REPORTS INCREASED EARNINGS
IN THIRD QUARTER
o Thirteenth Consecutive Quarter of Year-Over-Year Earnings
Increases
o Company Resumed Share Repurchases
PRINCETON, N.J. February 9, 2001 -- Dataram Corporation (NASDAQ:
DRAM) today reported financial results for its fiscal third
quarter ended January 31, 2001. The Company reported revenues of
$26.8 million compared to $25.7 million for the same prior year
period. Net earnings increased 11 percent to $2.0 million or
$0.21 per diluted share from $1.8 million or $0.19 per diluted
share for the third quarter of last fiscal year.
Revenues for the first nine months of the current fiscal year were
$104.7 million, an increase of 37 percent compared to $76.3
million for the previous fiscal year period. Net earnings
increased 46 percent to $8.0 million during the first nine months
from $5.4 million during the first nine months of last fiscal
year.
In thousands, except per Third Quarter ended Nine Months ended
share amounts January 31, January 31,
2001 2000 % Gain 2001 2000 % Gain
Revenues $26,829 $25,728 4% $104,691 $76,278 37%
Earnings from Operations $2,877 $2,823 2% $11,931 $8,436 41%
Net Earnings $2,030 $1,825 11% $7,961 $5,438 46%
Diluted EPS $0.21 $0.19 11% $0.81 $0.56 45%
Shares Outstanding 9,745 9,781 9,842 9,658
(diluted)
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"While this quarter marks our thirteenth consecutive quarter of
year-over-year earnings growth, recent price pressure experienced
in the memory chip market has temporarily decelerated our rate of
top-line growth," commented Bob Tarantino, Dataram's chairman,
president and CEO. "Additionally, capital spending has slowed and
our business is not immune. However, our inventories and expenses
remain in tight control. We manage our business to respond quickly
to changes in the marketplace and to the needs of our customers."
During Dataram's fiscal third quarter, the Company introduced four
new products into the market to address the growing demand for
memory and bandwidth in the Internet. The most recent product
introductions included memory for Hewlett Packard's new NetServer
LP 1000 and 2000 systems, designed for Web hosting and
infrastructure and server-based computing applications, and memory
for Compac's new ProLiant DL 320 server for Web hosting, video
streaming and other Internet related applications. Dataram also
introduced Double Data Rate SDRAM DIMM modules and ultra-thin
memories for the next generation servers.
Mark Maddocks, Dataram's CFO added, "During the third quarter
gigabytes shipped increased 29 percent year-over-year offset by a
19 percent decline in selling prices driven by a sudden reduction
in the price of memory chips used in our products. Our net margins
and free cash flow remained strong."
As part of a previously announced share repurchase program, the
Company purchased 87,400 shares of its common stock in the third
quarter at a total price of $1,028,000.
Mr. Tarantino stated, "Softening economic conditions have prompted
industry concern over the pace of growth expected over the next
six months, potentially leading to a cyclical shift in demand.
Dataram's business and pricing models are designed to take
advantage of these cycles by providing reliable, quality
alternatives at a significant cost advantage. While current
economic conditions
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create near term uncertainty, we expect our fourth quarter
earnings to exceed last year's fourth quarter and we are currently
projecting 25 percent earnings growth in fiscal 2002."
Dataram will conduct a conference call at 11:00 a.m. (EST) today
to present its second quarter financial results and to respond to
investor questions. Interested shareholders may participate in the
call by dialing 800-354-6885 and providing the following
reservation number: 17880724. 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 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.
Financial Tables Follow
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DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
1/31/2001 1/31/2000 1/31/2001 1/31/2000
_________ _________ _________ _________
(Unaudited) (Unaudited)
Revenues $ 26,829 $ 25,728 $ 104,691 $ 76,278
Costs and expenses:
Cost of sales 19,838 19,457 79,454 56,811
Engineering and development 386 372 1,172 1,048
Selling, general and administrative 3,728 3,076 12,134 9,983
__________ __________ __________ __________
23,952 22,905 92,760 67,842
Earnings from operations 2,877 2,823 11,931 8,436
Interest income, net 317 123 839 348
__________ __________ __________ __________
Earnings before income taxes 3,194 2,946 12,770 8,784
Income taxes 1,164 1,121 4,809 3,346
__________ __________ __________ __________
Net earnings $ 2,030 $ 1,825 $ 7,961 $ 5,438
========== ========== ========== ==========
Net earnings per share:
Basic $ 0.24 $ 0.23 $ 0.94 $ 0.69
========== ========== ========== ==========
Diluted $ 0.21 $ 0.19 $ 0.81 $ 0.56
========== ========== ========== ==========
Average number of shares outstanding:
Basic 8,515 7,983 8,500 7,867
========== ========== ========== ==========
Diluted 9,745 9,781 9,842 9,658
========== ========== ========== ==========
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DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(in thousands)
January 31, 2001 April 30, 2000
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 20,823 $ 13,650
Trade receivables, net 12,248 16,241
Inventories 4,366 4,651
Other current assets 1,381 585
__________ __________
Total current assets 38,818 35,127
Property and equipment, net 6,438 5,007
Other assets 18 17
__________ __________
$ 45,274 $ 40,151
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,690 $ 9,538
Accrued liabilities 2,482 2,878
__________ __________
Total current liabilities 7,172 12,416
Deferred income taxes 841 841
Stockholders' equity 37,261 26,894
__________ __________
$ 45,274 $ 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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