Dataram Corporation (NASDAQ: DRAM) today reported its financial results for its fiscal third quarter and nine months ended January 31, 2012. Revenues for the third quarter and first nine months of fiscal 2012 were $8.4 million and $29.1 million, respectively, which compares to $11.9 million and $35.6 million for the comparable prior year periods. The Company incurred a tax net loss for the second quarter of the current fiscal year of $4.2 million which compares to a net loss of $0.8 million for the comparable prior year period. Nine month net loss totaled $6.2 million versus $3.8 million for the prior comparable period.
John H. Freeman, Dataram’s President and CEO commented, “In the third quarter, our revenues and gross margin continued to come under downward pricing pressure. Declining prices, worldwide industry softness along with one time charges related to XcelaSAN ® were the primary contributors to our third quarter loss. SSD supply shortages and the delay in the availability of the Sandy Bridge technology impacted industry server sales which also impacts one of Dataram’s larger sales opportunities. We expect sales opportunities to improve during the next 90 days.”
Mr. Freeman continued, “In the third quarter, we established that the features and functions currently available in XcelaSAN ® are robust and able to meet the needs of the marketplace. Based on this foundation we have further reduced our XcelaSAN ® development costs to focus on client installations and our new Dell platform. The product is currently installed at selected customer sites and new customers are evaluating for purchase. Tests continue to affirm that XcelaSAN ® provides significant performance improvements over traditional solutions at dramatically less cost. In addition to pursuing a traditional sales strategy for XcelaSAN ®, management is also pursuing alternative means to monetize the Company’s investment in the XcelaSAN ® product line.”
On March 9, 2012, Dataram received an offer to sell patents which were issued to Dataram over the past few years. The offer preserves the right for Dataram to use the patents. Dataram also retains the right to sell a transferable license to another company. The ability to use the patents and also have a transferable license satisfies our needs while providing a path to recoup a portion of our investment and increase value to our shareholders. This is the first time in Dataram’s 44 year history we have invested time and money to formally create, write and apply for patents. The patents protect XcelaSAN ® and other storage architectures. Management expects to monetize the investment in patents.Mr. Freeman concluded, “We are taking the necessary actions to ensure that our business rebounds to generate positive cash flow and growth. We have secured financing and instituted expense containment actions that we believe are necessary to sustain the Company.”
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