Dataram: Fiscal 1Q15 Financial Results

(in $million)	1Q14	1Q15	Growth
Total Revenue	7.4	7.7	5%
Net income (loss)	(0.9)	(0.8)

Dataram Corporation reported its financial results for its fiscal first quarter ended July 31, 2014.

Revenues for the first quarter were $7.7 million, which compares to $8.0 million in the previous quarter and $7.4 million for the comparable prior year period.

The company’s net loss for the first quarter totaled $760,000, or $0.32 per share and included a non cash charge of $133,000 of interest expense for amortization of debt discount, which compares to net loss of $882,000, or $0.50 per share for the comparable prior year period.

The company has been developing computer software for its storage caching product line. On May 1, 2014, the company determined that technological feasibility for the product was established, and development costs subsequent to that date totaling approximately $142,000 have been capitalized in the quarter ended July 31, 2014.

John H. Freeman, Dataram’s president and CEO, commented: “The primary factor impacting our financial results was a 13% industry wide decline in material cost per gigabyte from last quarter and further industry standardization. Despite these industry wide challenges, we continue to see signs of revenue growth through our new partnerships, expanded distributor relationships and further development of our software products. These initiatives will position our products with higher market visibility and easier access for purchasers“.

“We continue to work on raising additional capital and on July 15, 2014 entered into a Subordinated Secured Convertible Bridge Note and Warrant Purchase Agreement for the issuance of $750,000 aggregate principal amount of Subordinated Secured Convertible Bridge Notes and Warrants“, Freeman concluded. “We intend to seek additional financing to help us execute our fiscal 2015 plan“.

The company has executed term sheets with investors for a financing that, if consummated, would be sufficient to bring the company back into compliance with the NASDAQ stockholders’ equity requirement. The financing requires approval by the company’s shareholders.

Accordingly, the company intends to include the financing as a proposal in the proxy statement for its upcoming Annual Meeting which has been scheduled for October 15, 2014.