Dataram: Fiscal 1Q14 Financial Results

Dataram Corporation reported its financial results for its fiscal first quarter ended July 31, 2013.

Revenues for the first quarter were $7.4 million, which compares to $6.2 million in the previous quarter and $8.0 million for the comparable prior year period.

The company’s net loss for the first quarter totaled $882,000, or $0.50 per share which compares to net loss of $976,000, or $0.55 per share for the comparable prior year period. In the first quarter of fiscal 2014 the company recorded an expense of approximately $110,000 for severance costs incurred in connection with a reduction in workforce.

In addition, the company recorded a nonrecurring expense of $275,000 to fully reserve for the Shoreline Memory, Inc. promissory note which was due on July 31, 2013. The loss adjusted for the nonrecurring item would have been $607,000, compared to a loss of $976,000 in the prior year or approximately a 38% reduction.

John H. Freeman, Dataram’s president and CEO, commented: "We have made progress in the first quarter with increased sales and the reduction of operating expense of approximately 23%, without the effects of the nonrecurring expense. Despite industry wide challenges, we continue to see signs of growth through our new partnerships, new distribution channels and further development of our RAMDisk software."

AMD and Newegg both bundled and ran special offers for Radeon RAMDisk which resulted in increased sales. Inclusion in AMD’s Never Settle Forever campaign, other campaigns, expansion of distribution through major r/e-tailors and continued growth in commercial licenses which include annual renewal fees create a strong foundation for RAMDisk growth and profitability.

Dataram continues to work closely with AMD in delivering technically superior memory products for both consumer and commercial applications. We have also identified and are jointly working with system builders and integrators which can benefit from our memory products.

Freeman concluded: "The industry challenges remain but our cost containment initiatives, experiences with our new partnerships and renewed large company orders are making a positive contribution to Dataram and our bottom line."