Dataram Corp. (NASDAQ:DRAM) filed Quarterly Report for the period ended 2010-07-31.
Dataram Corp. has a market cap of $15.17 million; its shares were traded at around $1.71 with and P/S ratio of 0.34. DRAM is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:As of July 31, 2010, cash and cash equivalents amounted to approximately
$786,000 and working capital amounted to approximately $7,489,000,
reflecting a current ratio of 2.6 to 1, compared to cash and cash
equivalents of approximately $2,507,000, working capital of approximately
$8,550,000 and a current ratio of 2.4 to 1 as of April 30, 2010.
During the first three months of fiscal 2011, net cash used in operating
activities totaled approximately $1,459,000. Net loss in the period was
approximately $1,239,000. Accounts payable decreased by approximately
$1,508,000, mainly the result of decreased inventories of approximately
$1,125,000. Depreciation and amortization of approximately $280,000 was
recorded in fiscal 2011's first quarter. Non-cash stock-based compensation
expense of approximately $158,000 was also recorded. Cash used by the
increase in trade receivables and other current assets amounted to
approximately $160,000 and $123,000 respectively.
Three months ended Three months ended
July 31, 2010 July 31, 2009
United States $ 10,686,000 $ 7,245,000
Europe 1,142,000 1,457,000
Other (principally Asia Pacific Region) 916,000 488,000
Consolidated $ 12,744,000 $ 9,190,000
Research and development expense in fiscal 2011's first quarter were
$894,000 versus $874,000 in the same prior year period. In the first quarter
of the prior fiscal year, the Company implemented a strategy to introduce
new and complementary products into its offerings portfolio. The Company is
currently focusing on the development of a line of high performance storage
caching products ("XcelaSAN"). XcelaSAN is a unique intelligent Storage Area
Network (SAN) optimization solution that delivers substantive application
performance improvement to applications such as Oracle, SQL and VMware.
XcelaSAN augments existing storage systems by transparently applying
intelligent caching algorithms that serve the most active block-level data
from high-speed storage, creating an intelligent, virtual solid state SAN.
As part of that strategy, in January 2009, the Company entered into a
software purchase and license agreement with another company whereby the
Company acquired the exclusive right to purchase specified software for a
price of $900,000 plus a contingent payment of $100,000. The Company owns
the software. The software and the storage products, which incorporate the
software, are currently under development. We expect to make further
investments in this area.
Other income (expense), net for the first quarter of fiscal 2011 totaled
expense of $109,000, versus $34,000 income for the same prior year period.
Other expense in fiscal 2011's first quarter consisted of $96,000 of foreign
currency transaction losses, primarily as a result of the EURO weakening
relative to the US dollar, and $16,000 of interest expense. Other income in
fiscal 2010's first quarter consisted of $10,000 of interest income and
approximately $24,000 of foreign currency transaction gains, primarily as a
result of the EURO strengthening relative to the US dollar.
Income tax benefit for the first quarter of 2011 was nil versus a benefit
of $628,000 for the same prior year period. The Company utilizes the asset
and liability method of accounting for income taxes in accordance with the
provisions of the Expenses - Income Taxes Topic of the Financial Accounting
Standards Board (FASB) Accounting Standards Codification (ASC)
(Codification). Under the asset and liability method, deferred tax assets
and liabilities are recognized for the estimated future tax consequences
attributable to differences between the financial statement carrying amounts
of existing assets and liabilities and their respective tax bases. A
valuation allowance is provided when the Company determines that it is more
likely than not that some portion or all of the deferred tax assets will not
be realized. The Company considers certain tax planning strategies in its
assessment as to the recoverability of its tax assets. In each reporting
period, the Company assesses, based on the weight of all evidence, both
positive and negative, whether a valuation allowance on its deferred tax
assets is warranted. Based on the assessment conducted in the Company's
reporting period ended January 31, 2010, the Company concluded that such an
allowance was warranted, and accordingly recorded a valuation allowance of
approximately $5.8 million in that reporting period. Deferred tax assets
and liabilities are measured using enacted tax rates in effect for the year
in which those temporary differences or tax attributes are expected to be
recovered or settled. The effect on deferred tax assets and liabilities of
a change in tax rates is recognized in earnings in the period that the tax
rate changes. The Company has Federal and State net operating loss (NOL)
carry-forwards of approximately $11.5 million and $9.7 million,
respectively. These can be used to offset future taxable income and expire
between 2023 and 2030 for Federal tax purposes and 2016 and 2030 for state
tax purposes. As a result, the Company does not expect to record any income
tax expense (benefit) in fiscal 2011. The Company's NOL carry-forwards are a
component of its deferred tax assets which are reported net of a full
valuation allowance in the Company's consolidated financial statements at
July 31, 2010.
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