PRINCETON, N.J., Sept. 15, 2016 /PRNewswire/ -- Dataram
Corporation (NASDAQ: DRAM) announced results of operations for its
first quarter of fiscal 2017, which ended July 31, 2016. Revenues for the first
quarter were $4.9 million and were
slightly lower compared to the fourth quarter of fiscal 2016.
Revenue for the comparable prior year period, which included
$1.1 million in discontinued
brokerage operations, was $7.3
million. On a GAAP basis, the net loss attributable to
Dataram shareholders for the first quarter of fiscal 2017 was
$927,000 or ($0.43) per share and included a non-cash charge
of $429,000 for stock based
compensation expense and approximately $200,000 in one-time charges, compared to a net
loss of $180,000 or ($0.19) per share for the comparable prior year
period.
"While our overall unit shipment volume increased more than 20%
and international (non-US) revenue also increased on a comparable
period basis, we continue to face challenging market conditions and
further declining average selling prices (ASP) which have reduced
our margins from 19% to 15%," said
Dataram Chairman and CEO Dave
Moylan. "To address current challenges and strengthen our
position, we took actions in August to reduce costs and further
increase efficiencies. We are also encouraged by indications
that show stabilization in memory prices and an expectation of
rising prices through the remaining of this calendar year."
"In addition to focusing on the core memory business, and
subject to the approval of our shareholders, we anticipate
completing the acquisition of U.S. Gold Corp. ('USGC') later this fiscal year. This
acquisition will help us diversify beyond the memory business while
notably strengthening the Company's balance sheet and working
capital. It will also improve the memory business margins
through sharing of public company costs across business and
reduction of duplicate costs,"
continued Moylan. In June 2016,
Dataram announced the intent to acquire USGC and its subsidiaries
in an all equity transaction. USGC is a U.S.-focused gold
exploration and development company that is advancing two projects
in mining friendly Nevada and
Wyoming. Closing of the acquisition is subject to usual and
customary conditions, including the approval of our
shareholders.
Mr. Moylan concluded, "We will continue to focus on improving
the memory business and closing the USGC acquisition. We will
also continue to evaluate acquisitions to diversify the Company's
business, reduce costs, and increase our portfolio of assets across
sectors. We look forward to providing our shareholders
updates with respect to the closing of the USGC acquisition and
believe this will significantly benefit our shareholders and future
investors."
DATARAM
CORPORATION and Subsidiaries
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
|
First Quarter
Ended
July
31,
|
|
2016
|
|
2015
|
|
|
|
|
Revenues
|
$
4,915
|
|
$
7,338
|
|
|
|
|
Costs and
expenses:
|
|
|
|
Cost of
sales
|
4,189
|
|
5,935
|
Engineering and
development
|
56
|
|
54
|
Selling, general and
administrative
|
1,127
|
|
1,191
|
Stock-based
compensation expense*
|
429
|
|
213
|
|
5,801
|
|
7,393
|
|
|
|
|
Loss from
operations
|
(886)
|
|
(55)
|
|
|
|
|
Other income
(expense)
|
(41)
|
|
(62)
|
|
|
|
|
Net
loss
|
$
(927)
|
|
$
(117)
|
|
|
|
|
Less preferred
stock dividends
|
-
|
|
63
|
Net loss allocated
to common shareholders
|
$
(927)
|
|
$
(180)
|
|
|
|
|
Net loss per
share:
|
|
|
|
Basic
|
$
(0.43)
|
|
$
(0.19)
|
Diluted
|
$
(0.43)
|
|
$
(0.19)
|
Weighted average
number of shares
|
|
|
|
outstanding:
|
|
|
|
Basic
|
2,175
|
|
934
|
Diluted
|
2,175
|
|
934
|
|
|
|
|
* 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
(In
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
July 31,
2016
|
|
April 30,
2016
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and
cash equivalents
|
|
$
149
|
|
$
56
|
Accounts
receivable, net
|
|
1,617
|
|
2,746
|
Inventories
|
|
1,269
|
|
1,336
|
Other
current assets
|
|
216
|
|
123
|
Total current
assets
|
|
3,251
|
|
4,261
|
|
|
|
|
|
Property and
equipment, net
|
|
40
|
|
51
|
|
|
|
|
|
Other
assets
|
|
34
|
|
30
|
|
|
|
|
|
Capitalized
software development cost
|
|
314
|
|
326
|
|
|
|
|
|
Goodwill
|
|
1,083
|
|
1,083
|
|
|
|
|
|
Total
assets
|
|
$
4,722
|
|
$
5,751
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Note
payable-revolving credit line
|
|
$
1,049
|
|
$
1,776
|
Accounts
payable
|
|
971
|
|
737
|
Accrued
liabilities
|
|
132
|
|
159
|
Convertible notes payable related
parties
|
|
80
|
|
80
|
Total current
liabilities
|
|
2,232
|
|
2,752
|
|
|
|
|
|
Other
liabilities-related party
|
|
96
|
|
107
|
Total
liabilities
|
|
2,328
|
|
2,859
|
|
|
|
|
|
Stockholders'
equity
|
|
2,394
|
|
2,892
|
|
|
|
|
|
Total liabilities
and stockholders' equity
|
|
$
4,722
|
|
$
5,751
|
About Dataram Corporation
Dataram is an independent manufacturer of memory products and
provider of performance solutions that increase the performance and
extend the useful life of servers, workstations, desktops and
laptops sold by leading manufacturers such as Dell, Cisco, Fujitsu,
HP, IBM, Lenovo and Oracle. Dataram's memory products and solutions
are sold worldwide to OEMs, distributors, value-added resellers and
end users. Additionally, Dataram manufactures and markets a line of
Intel Approved memory products for sale to manufacturers and
assemblers of embedded and original equipment. 70 Fortune 100
companies are powered by Dataram. Founded in 1967, the Company is a
US based manufacturer, with presence in the United States, Europe and Asia. For more information about Dataram,
visit www.dataram.com.
Safe Harbor
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, and
the pending acquisition of US Gold Corp, and any anticipated
benefits of the merger, and the success of US Gold with respect to
any of its exploration activities. 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, risks with
respect to US Gold faced by junior exploration companies generally
engaged in pre-production activities, and other factors described
in the Company's most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, filed with
the Securities and Exchange Commission, which can be reviewed
at www.sec.gov. The Company has based
these forward-looking statements on its current expectations and
assumptions about future events. While management considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory, and other risks, contingencies, and uncertainties, most
of which are difficult to predict and many of which are beyond the
Company's control. The Company does not assume any
obligations to update any of these forward-looking
statements.
For additional information, please contact:
Jeffrey Goldenbaum
Director, Marketing
609-799-0071
info@dataram.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dataram-reports-results-for-first-quarter-fiscal-2017-300328783.html
SOURCE Dataram Corporation