"While our overall unit shipment volume increased more than 20% and international (non-US) revenue also increased on a comparable period basis, we continue to face challenging market conditions and further declining average selling prices (ASP) which have reduced our margins from 19% to 15%," said Dataram Chairman and CEO Dave Moylan. "To address current challenges and strengthen our position, we took actions in August to reduce costs and further increase efficiencies. We are also encouraged by indications that show stabilization in memory prices and an expectation of rising prices through the remaining of this calendar year."
"In addition to focusing on the core memory business, and subject to the approval of our shareholders, we anticipate completing the acquisition of U.S. Gold Corp. ('USGC') later this fiscal year. This acquisition will help us diversify beyond the memory business while notably strengthening the Company's balance sheet and working capital. It will also improve the memory business margins through sharing of public company costs across business and reduction of duplicate costs," continued Moylan. In June 2016, Dataram announced the intent to acquire USGC and its subsidiaries in an all equity transaction. USGC is a U.S.-focused gold exploration and development company that is advancing two projects in mining friendly Nevada and Wyoming. Closing of the acquisition is subject to usual and customary conditions, including the approval of our shareholders.
Mr. Moylan concluded, "We will continue to focus on improving the memory business and closing the USGC acquisition. We will also continue to evaluate acquisitions to diversify the Company's business, reduce costs, and increase our portfolio of assets across sectors. We look forward to providing our shareholders updates with respect to the closing of the USGC acquisition and believe this will significantly benefit our shareholders and future investors."
DATARAM CORPORATION and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | |||
|
| ||
|
First Quarter Ended July 31, | ||
|
2016 |
|
2015 |
|
|
|
|
Revenues |
$ 4,915 |
|
$ 7,338 |
|
|
|
|
Costs and expenses: |
|
|
|
Cost of sales |
4,189 |
|
5,935 |
Engineering and development |
56 |
|
54 |
Selling, general and administrative |
1,127 |
|
1,191 |
Stock-based compensation expense* |
429 |
|
213 |
|
5,801 |
|
7,393 |
|
|
|
|
Loss from operations |
(886) |
|
(55) |
|
|
|
|
Other income (expense) |
(41) |
|
(62) |
|
|
|
|
Net loss |
$ (927) |
|
$ (117) |
|
|
|
|
Less preferred stock dividends |
- |
|
63 |
Net loss allocated to common shareholders |
$ (927) |
|
$ (180) |
|
|
|
|
Net loss per share: |
|
|
|
Basic |
$ (0.43) |
|
$ (0.19) |
Diluted |
$ (0.43) |
|
$ (0.19) |
Weighted average number of shares |
|
|
|
outstanding: |
|
|
|
Basic |
2,175 |
|
934 |
Diluted |
2,175 |
|
934 |
|
|
|
|
* Items are recorded as a component of operating costs and expenses in the Company's financial statements filed with the Securities and Exchange Commission on Form 10-Q. |