Dataram: Fiscal 1Q10 Financial Results

Dataram Corporation reported its financial results for its fiscal first quarter ended July 31, 2009. Revenues for the first quarter were $9,190,000, which compares to $7,563,000 for the comparable prior year period.

John H. Freeman, Dataram’s president and CEO commented: “The memory market is beginning to stabilize. There is mild upward pricing for memory which has been absent from this market for several years. The upward pricing is based on consolidation of manufacturers, reduced production by manufacturers and increased demand, primarily generated by the introduction into the market of servers based on Intel’s Nehalem architecture. Additionally, as we have previously reported, the Company acquired certain assets of Micro Memory Bank, Inc. (MMB), a privately-held corporation in the fourth quarter of our last fiscal year. MMB positions Dataram with a more comprehensive product set, new routes to market and an established customer base. Its products, personnel and reach directly support our strategy to grow our memory solutions business. Revenue growth was supported by MMB sales as well as sequential quarterly growth in our traditional server memory solutions business. The MMB business unit generated approximately $2.9 million in revenues in the first quarter of the current fiscal year.”

Mr. Freeman continued: “We recently announced plans to launch a unique storage product line that will deliver application performance improvements as well as cost savings without the need for an expensive storage upgrade or replacement. This product launch supports our corporate strategy to deliver data center solutions that optimize performance, leverage existing IT investments, and make measurable reductions in the total cost of ownership associated with these assets. Over the past 15 months, the Company has made significant investments in research and development, primarily associated with the development of this product line. In the first quarter of the current fiscal year, we incurred approximately $874,000 of total expense in that area which compares to approximately $212,000 in the first quarter of last fiscal year. Early customer evaluations are currently being conducted before the products are shown publicly for the first time in October. Customer feedback has been very positive based on significant improvement in application performance and an immediate, positive return on investment.”

The Company incurred a net loss for the first quarter of the current fiscal year of $978,000, or $0.11 per diluted share, which compares to a net loss of $606,000, or $0.07 per diluted share for the comparable prior year period. Last fiscal year’s first quarter net loss included a charge to selling, general and administrative expense of approximately $716,000 related to a retirement agreement entered into with the Company’s former chief executive officer.

Mr. Freeman concluded: “Our financial condition remains strong. Our current ratio is 5.4 and our tangible book value is $2.13 per share. I look forward to reporting on our progress next quarter.”