Dataram Corp. (DRAM, Financial) filed Quarterly Report for the period ended 2008-10-31.
Dataram Corp. is a worldwide leader in the design and manufacture of high capacity reliable and innovative memory solutions. With over thirty nine years of experience Dataram provides customized memory solutions for OEMs and compatible memory for leading brands including HP Dell IBM SGI Sun Microsystems and Intel. Dataram provides a full line of compatible memory products for leading manufacturers including HP memory upgrades IBM server memory SGI memory upgrades Sun memory upgrades Dell server memory Intel and AMD Opteron memory . Dataram engineers many groundbreaking memory upgrades that double capacity and are not available from the manufacturers. Dataram Corp. has a market cap of $10.29 million; its shares were traded at around $1.21 with and P/S ratio of 0.33.
activities totaled approximately $1,281,000. Net loss in the six month period
was approximately $999,000. Deferred income taxes increased by $532,000 and
accounts payable decreased by $504,000. Other current assets increased by
$274,000 primarily due to the prepayment of annual insurance premiums. Cash
used in operating activities was partially offset by a decrease in accounts
receivable of $380,000 and by depreciation expense recorded in the quarter
of $167,000. Non-cash stock-based expense of approximately $377,000 was also
recorded in the quarter.
Three months ended Six months ended
October 31, 2007 October 31, 2007
________________ ________________
United States $ 5,850,000 $ 12,239,000
Europe 1,970,000 3,492,000
Other (principally Asia Pacific Region) 736,000 1,442,000
________________ ________________
Consolidated $ 8,556,000 $ 17,173,000
= =
Selling, general and administrative (S,G&A) expense in fiscal 2009's second
quarter and six months increased by $214,000 and $1,083,000 respectively,
from the comparable prior year periods. The current fiscal year's six months
expense includes a charge of approximately $716,000 related to a retirement
agreement entered into with the Company's former chief executive officer. Of
this amount, approximately $660,000 relates to payments defined in the
agreement and the balance consists primarily of legal fees incurred by the
Company associated with this matter. Current fiscal year S,G&A expense
includes a $138,000 charge as a result of one of the Company's foreign
customers entering receivership. Additionally, the Company has charged S,G&A
expense and increased its reserve for doubtful accounts by $50,000 in the
second quarter of the current fiscal year. Management concluded that the
increase in the reserve was warranted given the inherent increase in risk
level of carrying accounts receivable, generally due to the recent, well
publicized increase in economic uncertainty. Stock-based compensation
expense is recorded as a component of S,G&A expense and totaled $130,000
and $256,000, respectively, in the second quarter and six months, compared
to $73,000 and $166,000 in the comparable prior year periods.
Other income, net for the second quarter and six months totaled $16,000 and
$125,000, respectively, for fiscal 2009 and $229,000 and $448,000, for the
same respective periods in fiscal 2008. Other income in fiscal 2009's second
quarter consisted primarily of $79,000 of net interest income received.
Additionally, other income included $63,000 of foreign currency loss,
primarily as a result of the EURO weakening relative to the US dollar.
Fiscal 2009's six months other income consisted primarily of $188,000 of
net interest income received and $63,000 of foreign currency loss, primarily
as a result of the EURO weakening relative to the US dollar. Other income in
fiscal 2008's second quarter consisted primarily of $201,000 of net interest
income. Additionally, there was $28,000 of foreign currency gain, primarily
as a result of the EURO strengthening relative to the US dollar. Other
income in fiscal 2008's six months consisted primarily of $402,000 of net
interest income. Additionally, there was $45,000 of foreign currency gain,
primarily as a result of the EURO strengthening relative to the US dollar.
Income tax expense (benefit) for the second quarter and six months of fiscal
2009 was a benefit of $248,000 and $633,000 respectively, verses expense of
$331,000 and $566,000 for the same prior year periods. The Company's
effective tax rate for financial reporting purposes in fiscal 2009 is
approximately 38.8%. However, the Company has federal NOL carry-forwards
totaling approximately $1.5 million and therefore will continue to make cash
payments for income taxes at an approximate rate of 8.0% of pretax earnings
until it utilizes all of its NOL carry-forwards.
Stock Option Expense - In December 2004, SFAS No. 123 (revised 2004),
"Share-Based Payment"("SFAS 123(R)") was issued. SFAS 123(R) revises
SFAS 123 and supersedes APB No. 25, "Accounting for Stock Issued to
Employees" ("APB 25"). SFAS 123, as originally issued in 1995, established
as preferable a fair value-based method of accounting for share-based
payment transactions with employees. However, SFAS 123 as amended permitted
entities the option of continuing to apply the intrinsic value method under
APB 25 that the Company had been using, as long as the footnotes to the
financial statements disclosed what net income would have been had the
preferable fair value-based method been used. SFAS 123(R) requires that the
compensation cost relating to all share-based payment transactions,
including employee stock options, be recognized in the historical financial
statements. That cost is measured based on the fair value of the equity or
liability instrument issued and amortized over the related service period.
The Company adopted the guidance in SFAS 123(R) effective May 1, 2006. As
such, the accompanying consolidated statement of operations for fiscal
2009's second quarter and six months ended October 31, 2008 includes
approximately $130,000 and $256,000, of compensation expense, respectively,
in the selling, general and administrative expense line item related to the
fair value of options granted to employees and directors under the
Company's stock-based employee compensation plans which is being amortized
over the service period in the financial statements, as required by
SFAS 123(R). These awards have been classified as equity instruments, and
as such, a corresponding increase of approximately, $256,000 has been
reflected in additional paid-in capital in the accompanying consolidated
balance sheet as of October 31, 2008. Fiscal 2008's second quarter and six
months ended October 31, 2007 includes approximately $73,000 and $166,000 of
compensation expense, respectively in the selling, general and
administrative expense line and as such, a corresponding increase of
approximately, $166,000 has been reflected in additional paid-in capital in
the accompanying consolidated balance sheet as of October 31, 2007. The fair
value of each stock option granted is estimated on the date of grant using
the Black-Scholes option pricing model with the following assumptions:
Expected life is based on the Company's historical experience of option
exercises relative to option contractual lives; Expected volatility is based
on the historical volatility of the Company's share price; Expected dividend
yield assumes the current dividend rate remains unchanged; Risk free interest
rate approximates United States government debt rates at the time of option
grants.
Read the The complete Report
More on DRAM:
Gurus buys and sells of DRAM
10-year financial history of DRAM.
Insider buys/sells of DRAM.
Dataram Corp. is a worldwide leader in the design and manufacture of high capacity reliable and innovative memory solutions. With over thirty nine years of experience Dataram provides customized memory solutions for OEMs and compatible memory for leading brands including HP Dell IBM SGI Sun Microsystems and Intel. Dataram provides a full line of compatible memory products for leading manufacturers including HP memory upgrades IBM server memory SGI memory upgrades Sun memory upgrades Dell server memory Intel and AMD Opteron memory . Dataram engineers many groundbreaking memory upgrades that double capacity and are not available from the manufacturers. Dataram Corp. has a market cap of $10.29 million; its shares were traded at around $1.21 with and P/S ratio of 0.33.
Highlight of Business Operations:
During the first six months of fiscal year 2009, net cash used in operatingactivities totaled approximately $1,281,000. Net loss in the six month period
was approximately $999,000. Deferred income taxes increased by $532,000 and
accounts payable decreased by $504,000. Other current assets increased by
$274,000 primarily due to the prepayment of annual insurance premiums. Cash
used in operating activities was partially offset by a decrease in accounts
receivable of $380,000 and by depreciation expense recorded in the quarter
of $167,000. Non-cash stock-based expense of approximately $377,000 was also
recorded in the quarter.
Three months ended Six months ended
October 31, 2007 October 31, 2007
________________ ________________
United States $ 5,850,000 $ 12,239,000
Europe 1,970,000 3,492,000
Other (principally Asia Pacific Region) 736,000 1,442,000
________________ ________________
Consolidated $ 8,556,000 $ 17,173,000
= =
Selling, general and administrative (S,G&A) expense in fiscal 2009's second
quarter and six months increased by $214,000 and $1,083,000 respectively,
from the comparable prior year periods. The current fiscal year's six months
expense includes a charge of approximately $716,000 related to a retirement
agreement entered into with the Company's former chief executive officer. Of
this amount, approximately $660,000 relates to payments defined in the
agreement and the balance consists primarily of legal fees incurred by the
Company associated with this matter. Current fiscal year S,G&A expense
includes a $138,000 charge as a result of one of the Company's foreign
customers entering receivership. Additionally, the Company has charged S,G&A
expense and increased its reserve for doubtful accounts by $50,000 in the
second quarter of the current fiscal year. Management concluded that the
increase in the reserve was warranted given the inherent increase in risk
level of carrying accounts receivable, generally due to the recent, well
publicized increase in economic uncertainty. Stock-based compensation
expense is recorded as a component of S,G&A expense and totaled $130,000
and $256,000, respectively, in the second quarter and six months, compared
to $73,000 and $166,000 in the comparable prior year periods.
Other income, net for the second quarter and six months totaled $16,000 and
$125,000, respectively, for fiscal 2009 and $229,000 and $448,000, for the
same respective periods in fiscal 2008. Other income in fiscal 2009's second
quarter consisted primarily of $79,000 of net interest income received.
Additionally, other income included $63,000 of foreign currency loss,
primarily as a result of the EURO weakening relative to the US dollar.
Fiscal 2009's six months other income consisted primarily of $188,000 of
net interest income received and $63,000 of foreign currency loss, primarily
as a result of the EURO weakening relative to the US dollar. Other income in
fiscal 2008's second quarter consisted primarily of $201,000 of net interest
income. Additionally, there was $28,000 of foreign currency gain, primarily
as a result of the EURO strengthening relative to the US dollar. Other
income in fiscal 2008's six months consisted primarily of $402,000 of net
interest income. Additionally, there was $45,000 of foreign currency gain,
primarily as a result of the EURO strengthening relative to the US dollar.
Income tax expense (benefit) for the second quarter and six months of fiscal
2009 was a benefit of $248,000 and $633,000 respectively, verses expense of
$331,000 and $566,000 for the same prior year periods. The Company's
effective tax rate for financial reporting purposes in fiscal 2009 is
approximately 38.8%. However, the Company has federal NOL carry-forwards
totaling approximately $1.5 million and therefore will continue to make cash
payments for income taxes at an approximate rate of 8.0% of pretax earnings
until it utilizes all of its NOL carry-forwards.
Stock Option Expense - In December 2004, SFAS No. 123 (revised 2004),
"Share-Based Payment"("SFAS 123(R)") was issued. SFAS 123(R) revises
SFAS 123 and supersedes APB No. 25, "Accounting for Stock Issued to
Employees" ("APB 25"). SFAS 123, as originally issued in 1995, established
as preferable a fair value-based method of accounting for share-based
payment transactions with employees. However, SFAS 123 as amended permitted
entities the option of continuing to apply the intrinsic value method under
APB 25 that the Company had been using, as long as the footnotes to the
financial statements disclosed what net income would have been had the
preferable fair value-based method been used. SFAS 123(R) requires that the
compensation cost relating to all share-based payment transactions,
including employee stock options, be recognized in the historical financial
statements. That cost is measured based on the fair value of the equity or
liability instrument issued and amortized over the related service period.
The Company adopted the guidance in SFAS 123(R) effective May 1, 2006. As
such, the accompanying consolidated statement of operations for fiscal
2009's second quarter and six months ended October 31, 2008 includes
approximately $130,000 and $256,000, of compensation expense, respectively,
in the selling, general and administrative expense line item related to the
fair value of options granted to employees and directors under the
Company's stock-based employee compensation plans which is being amortized
over the service period in the financial statements, as required by
SFAS 123(R). These awards have been classified as equity instruments, and
as such, a corresponding increase of approximately, $256,000 has been
reflected in additional paid-in capital in the accompanying consolidated
balance sheet as of October 31, 2008. Fiscal 2008's second quarter and six
months ended October 31, 2007 includes approximately $73,000 and $166,000 of
compensation expense, respectively in the selling, general and
administrative expense line and as such, a corresponding increase of
approximately, $166,000 has been reflected in additional paid-in capital in
the accompanying consolidated balance sheet as of October 31, 2007. The fair
value of each stock option granted is estimated on the date of grant using
the Black-Scholes option pricing model with the following assumptions:
Expected life is based on the Company's historical experience of option
exercises relative to option contractual lives; Expected volatility is based
on the historical volatility of the Company's share price; Expected dividend
yield assumes the current dividend rate remains unchanged; Risk free interest
rate approximates United States government debt rates at the time of option
grants.
Read the The complete Report
More on DRAM:
Gurus buys and sells of DRAM
10-year financial history of DRAM.
Insider buys/sells of DRAM.
