Dataram: Fiscal 1Q16 Financial Results

Dataram Corporation reported its financial results for its fiscal first quarter ended July 31, 2015. 

Revenues for the first quarter were $7.3 million, which compares to $5.6 million in the previous quarter and $7.7 million for the comparable prior year period.

The company’s net loss for the first quarter totaled $180,000, or $0.06 per share and included a non-cash charge of $213,000 of stock based compensation expense, which compares to a net loss of $760,000, or $0.32 per share for the comparable prior year period. The results in the first quarter of prior year included $133,000 of interest expense for amortization of debt discount and a $5,000 non-cash charge for stock based compensation expense.

“The second half of fiscal 2015 was a pivotal period in the company’s history in which we refocused our efforts to concentrate on what we do best – delivering customized memory solutions into complex technical environments for our business customers around the world,” said chairman and CEO Dave Moylan. “During this period Dataram implemented a financial and operational transformation which removed more than $3.7 million in annual cash operating costs, with the full effect of these reductions being recognized starting in June 2015. This has contributed to our improved results as compared with previous periods. Prior to accounting for the aforementioned $213,000 in non-cash, stock based compensation expense, the company posted a profit of $33,000 for the first quarter. The company also reported an increase of $595,000 in shareholder equity in the quarter of which $500,000 was attributable to the successful completion of the sale by the company of common stock to accredited investors in July 2015.

“As part of our commitment to align the efforts of our directors, officers and employees with shareholders, the company issued approximately 167,000 in stock options and 25,000 restricted stock grants in Q1, which resulted in the non-cash stock compensation charge in the period as noted above. The company issued another in 72,000 stock options and 29,000 restricted stock grants in Q2.”

Moylan commented: “In September, the company was formally informed by the State of New Jersey’s Economic Development Authority that it was approved to sell the associated tax benefit of $2.275 million of its Net Operating Losses. While Dataram cannot guarantee either the success of the transfer, or the magnitude of the NOL transfer, the company expects to complete the sale in Q3 FY 2016 which would  provide capital to enable sales growth, increase working capital, and ensure we have sufficient equity to maintain our NASDAQ listing.”

Dataram also reaffirmed its guidance for FY2016 in which the company projects gross, operating revenues of between $28.0 to $34.0 million, and operating result between a net loss of $100,000 and net operating profit of $250,000, in each case exclusive of the impact of one-time charges and events to include stock based compensation expenses.