Dataram Corporation (NASDAQ:DRAM) today reported its financial results for its three and six months ended October 31, 2013. Revenues for the second quarter and first six months of fiscal 2014 were $7.4 million and $14.8 million, respectively, which compares to $7.0 million and $15.0 million for the comparable prior year periods. The Company incurred a net loss for the three months ended October 31, 2013 of $338,192 which compares to a net loss of $1,247,757 for the comparable prior year period. The loss for the six months ended October 31, 2013 totaled $1,219,822 versus $2,223,474 for the prior comparable period. The Company recorded a gain on a sale leaseback transaction of approximately $103,000 and a recovery of bad debt of $162,500 during the quarter ended October 31, 2013.
John H. Freeman, Dataram’s president and CEO commented, “The Company continues to execute its plan of cost reduction and sales expansion. The six percent sales increase over the same quarter of last year and slight increase over the previous quarter of this year is a result of our product expansion, increased sales of Advanced Micro Devices ('AMD') Radeon Memory products and growth in our AMD relationship. We continue to work to expand the number of outlets for our AMD Radeon branded consumer and server memory in addition to exposing more gamers to our AMD Radeon RAMDisk.”
Mr. Freeman concluded, “We have completed a sale leaseback transaction on our manufacturing equipment and soon after the end of the second quarter, we refinanced our revolving credit line. We continue to look for transactions that will further improve our working capital position.”
ABOUT DATARAM CORPORATION
Founded in 1967, Dataram is a worldwide leader in the manufacture of high-quality computer memory, storage and software products. Our products and services deliver IT infrastructure optimization, dramatically increase application performance and deliver substantial cost savings. Dataram solutions are deployed in 70 Fortune 100 companies and in mission-critical government and defense applications around the world. For more information about Dataram, visit www.dataram.com.
The information provided in this press release may include forward-looking statements relating to future events, such as the development of new products, pricing and availability of raw materials 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, order cancellations, 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.
***** Financial Tables Follow *****
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Second Quarter Ended
Six Months Ended
|Costs and expenses:|
|Cost of sales||5,841||5,772||11,646||12,076|
|Engineering and development||300||190||619||396|
|Selling, general and administrative||1,571||2,069||3,549||4,283|
|Stock-based compensation expense*||18||79||39||179|
|Intangible asset amortization*||41||41||82||82|
|Gain on asset disposal||(103||)|
|Loss from operations||(258||)||(1,192||)||(1,055||)||(2,058||)|
|Loss before income taxes||(338||)||(1,248||)||(1,220||)||(2,223||)|
|Income tax benefit|
|Net loss per share:|
Weighted average number of shares outstanding:
Note- 2012 amounts shown have been adjusted to reflect the reverse 1-for-6 stock split effective March 18, 2013.
* Items are recorded as a component of operating costs and expenses in the Company’s financial statements filed with the Securities and Exchange Commission on Form 10-Q.
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
|October 31, 2013||April 30, 2013|
|Cash and cash equivalents||$||603||$||324|
|Accounts receivable, net||3,014||2,885|
|Other current assets||198||81|
|Total current assets||5,997||6,468|
|Property and equipment, net||284||425|
|Intangible assets, net||52||133|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Note payable-revolving credit line||$||1,706||$||1,876|
|Due to related party||400||400|
|Total current liabilities||4,394||3,908|
|Due to related party – long term||567||1,267|
|Total liabilities and stockholders' equity|