Dataram Contact: Investor Contact:
Mark Maddocks, Tim Curtiss,
Chief Financial Officer Wall Street Investor Relations Corp.
609-799-0071 216-831-6532
[email protected] [email protected]
DATARAM REPORTS 88% EARNINGS INCREASE,
80% SALES GROWTH IN FIRST QUARTER
. Sales, Earnings set new quarterly record
. Gigabyte Volume Increased 76% over Previous Year
PRINCETON, NJ, August 10, 2000 - Dataram Corporation (NASDAQ: DRAM)
today reported its financial results for its fiscal first quarter,
ended July 31, 2000. The Company reported net earnings of
$2,879,000, or $0.29 per diluted share, an increase of 88% over
$1,531,000, or $0.17 per diluted share, for the same period of the
previous year. Revenues for the quarter were $38.0 million, an
increase of 80% over the prior year's first quarter level of $21.2
million. Volume, measured in gigabytes shipped increased 76% in the
quarter, compared to the prior year period.
In thousands, except Three Months ended
per share amounts July 31,
____________________ ____________________________
%
2000 1999 Gain
____ ____ ____
Revenues $37,996 $21,164 80%
Earnings from Operations $ 4,417 $ 2,367 87%
Net Earnings $ 2,879 $ 1,531 88%
Diluted EPS $ 0.29 $ 0.17 71%
Diluted Shares 9,959 9,264
-more-
"Strong forces continue to drive the growth of our business," said
Robert Tarantino, chairman and CEO of Dataram. "Investment in
Internet infrastructure remains dynamic. Internet service
providers, corporate IT managers and application service providers
have a powerful need to optimize their networks. Our memory offers
superior price/performance, which represents a compelling
proposition to network managers and chief information officers. We
see no signs that the pace of Internet investment will slow."
"I am pleased to report that we are moving successfully to
implement our growth strategies," added Mr. Tarantino. "We have
filled all of this calendar year's new slots on the North American
sales team, and we look forward to the contributions of our new
hires as they become productive. Hiring in our new European sales
center is on plan. Our European group achieved solid growth, in
line with our plans."
"During the quarter, our new product introductions included designs
for Compaq, Hewlett-Packard, Silicon Graphics and IBM," Mr.
Tarantino noted. "The Intel-certified line enjoyed strong
acceptance and contributed meaningfully to our gains. The new
production line at our Bucks Co. manufacturing facility is
performing well and in line with our plans."
"This is our eleventh consecutive quarter of delivering increased
year-over-year bottom line results," stated Mark Maddocks, CFO. "We
set new records once again for sales and earnings. Volume growth
and a favorable pricing environment were the highlights. Operating
margins increased and revenue growth was above our expectations,
reflecting higher volume and higher selling prices resulting from
increased memory chip prices."
-more-
Dataram will conduct a conference call at 11:00 AM, EDT on
Thursday, August 10th to provide further insights regarding its
financial results and to respond to investor questions. Interested
shareholders may participate in the call by dialing 800-720-5833
approximately 10 minutes before the call is scheduled to begin and
asking to be connected to the Dataram conference call. A recorded
replay of the call will be available from 1:00 PM on August 10th to
9:00 PM on August 11th. Listeners may dial 800-252-6030 (402-220-
2491 for international callers) and use the code 6677312 for the
replay. The call will also be available on Vcall at www.vcall.com.
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 to Follow
DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
7/31/2000 7/31/1999
_________ _________
Revenues $ 37,996 $ 21,164
Costs and expenses:
Cost of sales 28,861 15,414
Engineering 372 333
Selling, general and administrative 4,346 3,050
_________ _________
33,579 18,797
Earnings from operations 4,417 2,367
Interest income, net 230 108
_________ _________
Earnings before income taxes 4,647 2,475
Income taxes 1,768 944
_________ _________
Net earnings 2,879 1,531
========= =========
Net earnings per common share:
Basic $ .34 $ .20
========= =========
Diluted $ .29 $ .17
========= =========
Weighted average number of common
shares outstanding:
Basic 8,427 7,827
========= =========
Diluted 9,959 9,264
========= =========
DATARAM CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(in thousands)
July 31, 2000 April 30, 2000
_____________ ______________
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 16,253 $ 13,650
Trade receivables, net 18,044 16,241
Inventories 6,244 4,651
Other current assets 698 585
_____________ ______________
Total current assets 41,239 35,127
Property and equipment, net 5,347 5,007
Other assets 17 17
_____________ ______________
$ 46,603 $ 40,151
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,276 $ 9,538
Accrued liabilities 3,120 2,878
_____________ ______________
Total current liabilities 14,396 12,416
Deferred income taxes 841 841
Stockholders' equity 31,366 26,894
_____________ ______________
$ 46,603 $ 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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