Dataram: Fiscal 2Q13 Financial Results

Dataram Corporation reported its financial results for the three and six months ended October 31, 2012.

Revenues for the three and six months ended October 31, 2012 were $7.0 million and $15.0 million, respectively, which compares to $10.4 million and $20.7 million for the comparable prior year periods.

The company incurred a net loss for the three months ended October 31, 2012 of $1.2 million, which compares to a net loss of $1.2 million for the comparable prior year period.

For the six months ended October 31, 2012, the net loss totaled $2.2 million as compared to $2.0 million for the prior comparable period.

The company recorded a charge to cost of sales of approximately $220,000 in the three months ended October 31, 2012 completing the write down of XcelaSAN product inventory.

John H. Freeman, Dataram’s president and CEO commented: "The economy and especially the semiconductor industry continued to be soft due to oversupply of raw materials and reduced customer infrastructure investment. Since the close of our second quarter on October 31, 2012 we have seen a stabilization and increase in pricing which can positively impact our memory business in for the balance of the fiscal year."

In addition to a healthier semiconductor industry, we expect the two agreements into which the company entered last quarter will generate growth and profits for Dataram in 2013 and beyond. One with Shoreline Memory Inc. and the other with Advanced Micro Devices, Inc. for the purpose of expanding our customer base and product offerings. The Shoreline Agreement provides for Dataram to fulfill 50% of the orders Shoreline receives from its primary customers. The second agreement with AMD provides for Dataram to develop and sell AMD licensed and branded versions of its RAMDisk software. AMD’s Radeon RAMDisk will target the gaming enthusiast community. Management is unable to determine the extent that such agreements will generate revenues in the next two quarters. However, the company believes these agreements will provide new revenue sources and expanded markets for the company’s products.

Freeman concluded: "These recent agreements and other new opportunities we are currently pursuing should provide new sources of revenue, profit and growth for Dataram in 2013 and beyond. The experience, knowledge and assets we have gained from our current RAMDisk product, in the development of caching software and in solid state products are building a strong foundation for growth."