The revenues for first nine months of fiscal year 2009 were $20.3 million, which compares to $23.8 million for the comparable prior year period.
John H. Freeman, Dataram’s president and chief executive officer said, Our operating results in the third quarter were severely impacted by current economic conditions. Many of our customers have curtailed or temporarily suspended their capital spending while they adapt their business plans to the current environment. While challenging, this environment also presents us with opportunities, which we are aggressively pursuing. Our memory products offer clients significant savings which support budget tightening initiatives and also extend the life of their current systems. We are also seeing increased interest from government clients where we have recently invested as one of our strategic initiatives. Nevertheless, we cannot predict how long current conditions will continue and we are reviewing our business model to make improvements to meet today’s business challenges.
Freeman added, The development of our new storage product line continues to progress. In our fiscal third quarter and nine months, we incurred about $574,000 and $1,041,000 respectively of total expense in that area. One of our products is now in beta test at clients and offers high performance storage improvements as well as cost savings. We are continuing to make investments in this product line and anticipate a formal product launch late this year.
The company incurred a net loss for the first nine months of fiscal year 2009 of $2,022,000, or $0.23 per diluted share. This compares to net earnings of $1,208,000, or $0.14 per diluted share for the comparable prior year periods. In addition to the expenses discussed above, the net loss for the nine months ended January 31, 2009 includes a charge to selling, general and administrative expense in the fiscal first quarter of about $716,000 related to a retirement agreement entered into with the company’s former chief executive officer. Management expects no further costs will be incurred for this matter.
Freeman concluded, Our financial condition remains strong. Our current ratio is 14.4 and our tangible book value is $2.49 per share, of which cash and equivalents total $1.71 per share. I look forward to reporting on our progress next quarter.
