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Investor Information
 Fiscal
2005 was a year of continued earnings growth for the Company. As a leading
independent provider of advanced memory to OEMs, compatible memory for network
servers and memory for supercomputers, our strategy is to focus on specialized
and high capacity memory and not to try and compete in the ultra price sensitive
commodity sector of the market. The benefits of this are reflected in our
operating results. For fiscal 2005, we achieved:
Financial Highlights
- Revenue growth of 6% to $65.7 million.
- Operating earnings growth of 63% to $3.9 million
- Cash flow generated from operating activities of $3.7 million.
- Open market stock repurchases totaling $1.5 million.
- Working capital growth of 44% to $19.5 million. A current ratio of
5.9 to 1, with cash and equivalents increasing by 37% to $9.3 million.
 Looking to the Future
The outlook for further performance improvements in fiscal 2006 is positive.
Servers are at the center of corporate networks and the Internet, and
our products enhance server performance. The activities of Internet users,
service providers and large corporations are placing increasing demands
on information technology infrastructure. Today’s network expansion supports
rapid growth in data and file transmission, multimedia content and broadband
communications. As a consequence, users will need more servers with more
memory in them.
Year-over year, our selling, general and administrative costs declined
by approximately $1.3 million, or 11%. Additionally, as part of our normal
operational reviews, we implemented a limited staff reduction in the fourth
quarter, which is expected to reduce our expenses in fiscal 2006 by approximately
$1.0 million. This action will further increase our already considerable
operating leverage. We believe that our present infrastructure is more
than sufficient to support continued profitable growth. In the last two
years, we have achieved meaningful year over year performance improvements
and expect the trend to continue.
Our Board of Directors’ goal has always been to build shareholder value.
We have in the past, had significant stock repurchase programs and in
this year’s fourth quarter the Company repurchased $1.5 million worth
of stock. After reviewing our cash management options, the Board of Directors
also decided to initiate a quarterly cash dividend of $0.05 per share,
which was announced on May 31, 2005. It is the intention of the Board
that this be the first in a series of regular quarterly dividends. We
believe this decision is an important step to building long-term value
for our shareholders.
On behalf of the Company’s Board of Directors and management team, I would
like to thank our shareholders for their continued support and our employees
for their hard work and dedication.
In closing, we must mention an event which deeply saddened everyone connected
with the Company, the passing on December 5, 2004 of Richard Holzman.
Dick contributed over 27 years of service to the Company as a valued member
of the Board of Directors. He also served as a member of the Board’s Audit
Committee, Compensation and Stock Option Committee and Nominating Committee.
He always graciously gave his wise counsel and guidance to Dataram’s executives.
Above all, he exhibited a great deal of integrity in everything he did.
Although Dick will never be forgotten, the greatest gift we can bestow
upon his memory is to continue to sustain the vibrancy of our organization
for the benefit of shareholders. We are committed to this goal.
July 22, 2005
Robert V. Tarantino
Chairman of the Board of Directors,
President and Chief Executive Officer
For a complete Dataram Investor Package please send your name and address to:
info@dataram.com.
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