The Company’s net loss for the third quarter was $0.8 million, or $0.09 per share which compares to a net loss of $6.5 million, or $0.73 per share for the comparable prior year period. Nine month net loss totaled $3.8 million versus $9.1 million for the prior comparable period. In the third quarter of the current fiscal year the Company’s XcelaSAN development project met the accounting requirements of having established technological feasibility, and accordingly, the Company capitalized approximately $0.8 million of XcelaSAN development costs. The net loss for the prior year three and nine months comparable periods includes income tax expense of $5.3 million and $3.6 million , respectively, and is comprised of a valuation allowance the Company placed on its deferred income tax assets.
Mr. Freeman concluded, “We have taken the necessary actions to ensure that our memory solutions business is profitable and growing. Our outlook for XcelaSAN is strong, particularly as High Availability functionality is now a reality.”
ABOUT DATARAM CORPORATION
Founded in 1967, Dataram is a worldwide leader in the manufacture of high-quality computer memory, storage and software products. Our products and services deliver IT infrastructure optimization, dramatically increase application performance and deliver substantial cost savings. Dataram solutions are deployed in 70 Fortune 100 companies and in mission-critical government and defense applications around the world. For more information about Dataram, visit www.dataram.com.The information provided in this press release may include forward-looking statements relating to future events, such as the development of new products, pricing and availability of raw materials or the future financial performance of the Company. Actual results may differ from such projections and are subject to certain risks including, without limitation, risks arising from: changes in the price of memory chips, changes in the demand for memory systems, increased competition in the memory systems industry, order cancellations, delays in developing and commercializing new products and other factors described in the Company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission, which can be reviewed at http://www.sec.gov .
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Third Quarter Ended
Nine Months Ended
|Costs and expenses:|
|Cost of sales||8,970||8,899||27,127||23,490|
|Engineering and development||237||220||723||732|
|Research and development||112||892||1,825||3,388|
|Selling, general and administrative||2,954||3,009||8,556||8,851|
|Stock-based compensation expense*||148||346||461||726|
|Intangible asset amortization*||107||164||322||492|
|Loss from operations||(655||)||(1,246||)||(3,448||)||(5,532||)|
|Other income (expense)||(179||)||(11||)||(339||)||11|
|Loss before income taxes||(834||)||(1,257||)||(3,787||)||(5,521||)|
|Income tax expense||5||5,281||5||3,611|
|Net loss per share:|
|Weighted average number of shares|
* Items are recorded as a component of operating costs and expenses in the Company’s financialstatements filed with the Securities and Exchange Commission on Form 10-Q.
DATARAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
|January 31, 2011||April 30, 2010|
|Cash and cash equivalents||$||466||$||2,507|
|Accounts receivable, net||3,573||5,344|
|Other current assets||328||87|
|Total current assets||9,475||14,810|
|Property and equipment, net||787||1,117|
|Intangible assets, net||1,313||867|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Total current liabilities||4,770||6,261|
|Total liabilities and stockholders' equity||
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