Dataram: Fiscal 4Q13 Financial Results

Dataram Corporation reported its financial results for its fourth quarter and year ended April 30, 2013.

Revenues for the fourth quarter and year ended April 30, 2013 were $6.2 million and $27.6 million, respectively, which compares to $7.0 million and $36.1 million for the comparable prior year periods.

The company reported a net loss of $1.6 million for the fourth quarter which included $0.4 million impairment of goodwill charge, which compares to net income of $3.0 million in the comparable prior year period. Net income for the 2012 fourth quarter included $4.1 million of other income resulting from the sale of patents. The net loss in fiscal year ended April 30, 2013 totaled $4.6 million versus $3.3 million in the comparable prior year period. Loss in fiscal year ended April 30, 2012 was offset by the aforementioned sale of patents.

John H. Freeman, Dataram’s president and CEO, commented: "The primary factor impacting our financial results was a 33% industry wide decline in material cost per gigabyte. Despite these industry wide challenges, we continue to see signs of revenue growth through our new partnerships, new distribution channels and further development of our RAMDisk software."

RAMDisk software continues to generate increasing interest and presence in the personal and commercial marketplace. The firm introduced new Dataram versions into the market as well as versions designed for Advanced Micro Devices, Inc. and branded Radeon RAMDisk under a branding and licensing agreement. It is a price performance leader in the virtual RAM drive software market and is being used in a number of applications and commercial uses. The relationship with AMD for the RAMDisk product has enabled to develop a consumer memory product line also branded under the AMD brand Radeon. Dataram have recently begun producing and selling server memory under the Radeon brand name.

Freeman concluded: "We have eliminated approximately $900,000 of costs on an annual basis since our year end and continue to look for ways to reduce our operating cost. These cost reductions, combined with the AMD branding agreements, provide us with new opportunities and a path to revenue growth in fiscal year 2014. To support our growth we intend to seek additional financing to help us execute our fiscal 2014 plan."