DRAM was founded in 1967 and has since become a worldwide leader in the manufacture of high-quality computer memory, storage and software products.
The company's products and services deliver IT infrastructure optimization, dramatically increase application performance and deliver substantial cost savings to our customers.
DRAM provides customized memory solutions for original equipment manufacturers (OEMs) and compatible memory for various brands, including Dell, Hewlett-Packard, Cisco, IBM, Lenovo and Oracle.
The company also manufactures a line of memory products for Intel and AMD motherboard based servers for sale to OEMs and channel assemblers.
DRAM solutions are deployed in 70 'Fortune 100' companies and in mission-critical government and defense applications around the world.
Dataram Reports Fiscal 2016 First Quarter Financial Results
On September 15, 2015, DRAM reported its financial results for its fiscal first quarter ended July 31, 2015. Revenues for the first quarter were $7.3 million, which compares to $5.6 million in the previous quarter and $7.7 million for the comparable prior year period. DRAM's net loss for the first quarter totaled $180,000, or $0.06 per share and included a non-cash charge of $213,000 of stock based compensation expense, which compares to a net loss of $760,000, or $0.32 per share for the comparable prior year period. The results in the first quarter of prior year included $133,000 of interest expense for amortization of debt discount and a $5,000 non-cash charge for stock based compensation expense.
"The second half of fiscal 2015 was a pivotal period in the Company's history in which we refocused our efforts to concentrate on what we do best -- delivering customized memory solutions into complex technical environments for our business customers around the world," said DRAM's Chairman and CEO Dave Moylan. "During this period Dataram implemented a financial and operational transformation which removed more than $3.7 million in annual cash operating costs, with the full effect of these reductions being recognized starting in June 2015. This has contributed to our significantly improved results as compared with previous periods. Prior to accounting for the aforementioned $213,000 in non-cash, stock based compensation expense, the Company posted a profit of $33,000 for the first quarter. The Company also reported an increase of $595,000 in shareholder equity in the quarter of which $500,000 was attributable to the successful completion of the sale by the Company of common stock to accredited investors in July 2015."
"As part of our commitment to align the efforts of our directors, officers and employees with shareholders, the Company issued approximately 167,000 in stock options and 25,000 restricted stock grants in Q1, which resulted in the non-cash stock compensation charge in the period as noted above. The Company issued another in 72,000 stock options and 29,000 restricted stock grants in Q2."
Dave Moylan commented, "In September, the Company was formally informed by the State of New Jersey's Economic Development Authority that it was approved to sell the associated tax benefit of $2.275 million of its Net Operating Losses (NOLs). While Dataram cannot guarantee either the success of the transfer, or the magnitude of the NOL transfer, the Company expects to complete the sale in Q3 FY 2016 which would provide capital to enable sales growth, increase working capital, and ensure we have sufficient equity to maintain our NASDAQ listing."
DRAM also reaffirmed its guidance for FY2016 in which the Company projects gross, operating revenues of between $28.0 to $34.0 million, and operating result between a net loss of $100,000 and net operating profit of $250,000, in each case exclusive of the impact of one-time charges and events to include stock based compensation expenses.
Technical Analysis:
DRAM has a proven record of delivering solid profits for traders.
The company comes equipped with a super low float of just 2.99M.
In January 2015, traders made small fortunes riding DRAM's two month +153% bull run from $1.41 to $3.57 per share.
We see a similar technical setup forming right now, and we want our members to get in on the action before this ticker goes viral.
DRAM's share price has traced back down to $1.52 per share.
With big news rumored to be released this week, we are anticipating that DRAM will move back and above its 52-week high of $3.57 per share!
DRAM has the potential to be another extremely profitable short-term winner for us.
We are urging all members to pull up DRAM on their trading screen now because an exciting and potentially profitable trading session is already underway!
