Dataram Reports First Quarter Financial Results
biz.yahoo.com
PRINCETON, N.J.--(BUSINESS WIRE)--August 22, 2001-- Dataram Corporation (NASDAQ:DRAM)
Company reports pro forma loss of $0.06 per share
Restructuring charges account for $0.11 per share of $0.21 net loss per share
Dataram Corporation (NASDAQ:DRAM - news) today reported its financial results for its fiscal first quarter ended July 31, 2001.
Revenues for the first quarter were $22.6 million compared to $38.0 million for the first quarter of the previous fiscal year and $25.9 million for the previous sequential quarter. The Company's pro forma net loss, which excludes restructuring charges of $1.2 million and intangible asset amortization of $297,000, was $511,000 or $0.06 per share.
This compares to net earnings of $2.9 million or $0.29 per diluted share for the first quarter of the previous fiscal year and pro forma net earnings of $801,000 or $0.08 per diluted share in the prior quarter. The net loss for the first quarter, inclusive of restructuring charges and intangible asset amortization, was $1.8 million or $0.21 per share.
Robert Tarantino, Dataram's chairman and CEO, commented, ``The economic slow down, coupled with lower selling prices resulting from a more than 50 percent decline in DRAM prices has impacted our revenues and earnings. The key to adapting to this current environment is to implement decisions that ensure profitability while continuing to support long term growth.'' Mr. Tarantino continued, ``The changes we instituted during the first quarter not only provide a basis for long term growth, but position Dataram to market our products throughout the world without compromising our reputation for outstanding customer service and product quality.''
The Company issued a pre-announcement of its first quarter results on August 3 in which it projected a net loss in the range of $0.22-$0.25 per shares and revenues of approximately $22 million. The actual results came in slightly better than expected at a $0.21 per share loss on revenues of $22.6 million.
Mark Maddocks, Dataram's chief financial officer, commented on forward guidance, ``The continued unpredictability of the economic environment and especially capital spending on information technology infrastructure, make it difficult to provide guidance at this time. We are confident that our recent actions will protect our profitability, strengthen our business and our ability to grow. We will revisit company guidance when economic developments and visibility provide a sounder base for projections.''
Mr. Maddocks continued, ``On July 23, 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard No. 142 (SFAS 142), Accounting for Goodwill and Other Intangible Assets. Dataram adopted SFAS 142 in this year's first fiscal quarter as allowed by the statement. Adoption of SFAS 142 requires the company to assess the carrying value of goodwill and intangible assets on its balance sheet, in accordance with the new standard, within twelve months of adoption of the standard. It also eliminates the requirement to amortize goodwill, which would amount to approximately $1.4 million, annually, for Dataram. We expect to report, in a future period, a change in the carrying value of goodwill and intangible assets as a result of SFAS 142.''
Dataram will conduct a conference call at 11:00 a.m. (EDT) today to present its first quarter financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800/701-4762 and providing the following reservation number: 19553830. 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. |
