Dataram Corporation (NASDAQ: DRAM) today reported its financial results for its fiscal first quarter ended July 31, 2011. Revenues for the first quarter were $10.3 million, which compares to $12.7 million for the comparable prior year period. The Company’s net loss for the first quarter totaled $854,000, or $0.08 per share which compares to net loss of $1,239,000, or $0.14 per share for the comparable prior year period.
John H. Freeman, Dataram’s president and CEO commented, “Memory pricing declined by approximately 15% in the first quarter of the current fiscal year from the prior sequential quarter, which impacted our revenues. Our gross margins remained strong, averaging approximately 28% and contributed to our memory solutions business operating profitably in the fiscal first quarter. The implementation of our manufacturing facilities consolidation coupled with other cost containment initiatives is having a positive effect on our memory business, which is increasingly cash profitable.”
Mr. Freeman continued, “In the first quarter, we continued to invest in XcelaSAN development, quality assurance and testing. Our development team has successfully designed and developed new functions and capabilities over the past fifteen months. These functions are part of a robust multi-year roadmap which will insure XcelaSAN a place in the storage hierarchy. Our recent development of enhancements and functions position us well for the next twelve months and we anticipate a declining requirement for development infrastructure over the next few quarters. We are presently taking actions to reduce our infrastructure costs by approximately $650,000 per quarter. The product is currently installed and being evaluated for purchase at selected customer sites. These tests continue to affirm that XcelaSAN provides significant performance improvements over traditional solutions at dramatically less cost.
On May 17, 2011, the Company and certain investors closed a securities purchase agreement pursuant to which the Company agreed to sell an aggregate of 1,775,000 shares of its common stock and warrants to purchase a total of 1,331,250 shares of its common stock to such investors. The aggregate net proceeds of such offering and sale, after deducting fees to the Placement Agent and other estimated offering expenses payable by the Company, was approximately $3.0 million.