Dataram Reports Fourth Quarter and Fiscal Year 2016 Financial Results

PRINCETON, N.J., Aug. 2, 2016

"While our efforts in 2016 built on the financial and operational initiatives established in 2015 to turn around and transform the memory business, we continue to face challenging and hypercompetitive conditions in the memory market," said Dataram Chairman and CEO Dave Moylan. "As before, we continue to take actions to address the current environment and strengthen business, and are implementing initiatives that continue to reduce costs and increase operating efficiencies while expanding our footprint and diversifying our business through acquisitions."

Financial Highlights:

• Revenues for the fourth quarter were $5.2 million, down 7.4% compared to $5.6 million for the same period prior year
• Revenues for the fiscal year ended April 30, 2016 were $25.2 million, down 11% compared to $28.3 million for the same period prior year
• Prior-year revenues include revenues of $1.9 million from a discontinued product line
• The Company reported a net loss of $0.7 million for the fourth quarter, which compares to net loss of $0.9 million in the comparable prior-year period
• Net loss for the fiscal year ended April 30, 2016 totaled $1.2 million which compares to $3.8 million in the comparable prior year period. Prior-year net loss included expenses for amortization of debt discount of $750,000 thousand recorded as interest expense
• On July 29, 2016, the Company filed its annual report on Form 10-K for its fiscal year ended April 30, 2016

Mr. Moylan continued, "In 2016, part of growth strategy centered on increasing international sales volume.  International revenue increased approximately 10% and shipments more than 40% during the reporting period.  We continued to strengthen our global footprint and increase brand awareness while expanding our distribution channels and partner network both domestically and internationally."

Even with international growth, Dataram's global revenues decreased slightly even after reflecting the revenue loss associated with the exit of the unprofitable consumer business and the pull back from the non-core brokering business.   The primary driver is that while the Company's overall unit shipments increased more than 35%, the average selling price for these shipments decreased more than 40% during the same period.  

The Company's operational and financial improvements over the last 18 months have helped reduce annual cash operating costs more than $4.5 million.  Of the $1.2 million loss in 2016, approximately $746,000 was due to stock based expenses and $166,000 was due to uncollectable receivables.   In January 2016, the Company eliminated nearly $680,000 in debt and an associated 8% note obligation and exchanged the Series A shares for Series B shares to extinguish the 8% preferred Series A dividend and anti-dilution protection in the Preferred Series A agreements.

On June 14, 2016, Dataram announced an agreement to acquire all of the outstanding shares of U.S. Gold Corp ("USGC") and USGC subsidiaries. USGC is a U.S.-focused gold exploration and development company advancing two high potential projects in mining friendly Nevada and Wyoming. Dataram believes that the acquisition will notably strengthen the balance sheet and working capital as well as improve the memory business margins through sharing of public company costs across business and reduction of duplicate costs. Additionally, the transaction is an all equity transaction and "turn-key" in that USGC has seasoned management team in place to execute. Closing of the acquisition of USGC is subject to usual and customary conditions, including the approval of shareholders.