Executive Summary

Dataram (now USAU) reported Q1 FY2016 revenue of $7.338M and a net loss of $0.117M ($0.06 loss per share), improving materially year over year on net loss and EPS; revenue rose sequentially versus Q4 FY2015’s $5.603M and was modestly lower year over year versus $7.725M in Q1 FY2015 . . .
Management reaffirmed FY2016 guidance: revenue $28.0–$34.0M and operating result between a $0.1M net loss and $0.25M net operating profit (ex one-time items), signaling confidence in the turnaround and cost actions implemented in 2015 .
The quarter benefited from cost reductions (>$3.7M annual cash operating cost removal recognized starting June 2015) and financing actions (equity raise and anticipated sale of $2.275M of NOLs) that bolstered working capital and NASDAQ listing compliance efforts . . . .
No earnings call transcript was available for Q1 FY2016; key narrative came via the press release, which emphasized continued financial/operational transformation and disciplined cost/sales execution . .

What Went Well and What Went Wrong

What Went Well

Significant operational turnaround momentum: “removed more than $3.7 million in annual cash operating costs” with full effect recognized starting June 2015, supporting improved results versus prior periods .
Balance sheet and liquidity initiatives: reported $595k increase in shareholder equity in the quarter, including $500k raised via common stock sale to accredited investors in July 2015, and approval to sell $2.275M of NOLs expected in Q3 FY2016 to support working capital and NASDAQ listing equity thresholds .
Guidance reaffirmed: FY2016 revenue $28–$34M and operating result between a $0.1M net loss and $0.25M operating profit (ex one-time), maintaining a credible framework for improved performance .

What Went Wrong

Top-line pressure year over year: Q1 FY2016 revenue of $7.338M was down versus $7.725M in Q1 FY2015, reflecting ongoing demand/mix/pricing challenges in memory markets .
Continued quarterly loss, though improved: Q1 FY2016 net loss of $0.117M (vs. $0.760M prior year) and stock-based compensation expense of $0.213M still weighed on GAAP results .
Listing compliance risk remained a focus in the period, with prior NASDAQ deficiency notice (August 2015) and subsequent compliance determination (September 2015) underscoring capital structure and equity base sensitivity for the micro-cap issuer . .

Financial Results

All figures in $USD Millions unless noted. Periods are fiscal.

Metric	Q3 FY2015 (ended Jan 31, 2015)	Q4 FY2015 (ended Apr 30, 2015)	Q1 FY2016 (ended Jul 31, 2015)
Revenue	$8.051	$5.603	$7.338
Net Income (Loss)	($0.668)	($0.894)	($0.117)
EPS (Basic)	($0.40)	($0.97)	($0.06)
Cost of Sales	$6.846	$4.874	$5.935
Gross Margin %	15.0% (calc from rev/cogs)	13.0% (calc from rev/cogs)	19.1% (calc from rev/cogs)

Notes:

Q1 FY2016 revenue compares to $5.6M in the previous quarter per the release; Q4 FY2015 revenue is also disclosed as $5.603M in the FY2016/Q4 2016 comparison table . .
Gross margin % are computed from cited revenues and cost of sales.

No segment breakdown disclosed in these materials (single memory products/performance solutions business focus) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2016	Not disclosed in this release (management stated guidance reaffirmed)	$28.0–$34.0M	Maintained
Operating Result (ex one-time items)	FY2016	Not disclosed in this release (management stated guidance reaffirmed)	Net loss of ~$0.1M to net operating profit of ~$0.25M	Maintained

Earnings Call Themes & Trends

No Q1 FY2016 earnings call transcript was available; themes reflect press releases and related filings.

Topic	Previous Mentions (Q3 FY2015 and Q4 FY2015)	Current Period (Q1 FY2016)	Trend
Cost reductions/operational transformation	>$2.3M annual operating cost reductions in last 90 days cited; focus on financial and operational excellence .	>$3.7M annual cash operating costs removed; full effect recognized starting June 2015	Strengthening execution on cost takeout
Sales expansion/commercial focus	Positive response to transformation from existing/new customers; disciplined investments to drive growth .	“Concentrate on what we do best—delivering customized memory solutions” to business customers worldwide	Continued emphasis on targeted revenue growth
Capital/Equity actions	—	$500k equity raise in July 2015; NOL sale approval of $2.275M expected to aid working capital and equity requirements	Improving liquidity options
NASDAQ listing compliance	Deficiency notice (Aug 20, 2015) regarding stockholders’ equity requirement	NASDAQ compliance determination press release filed Sept. 24, 2015	Compliance regained per 9/24 press release filing
Guidance posture	—	FY2016 guidance reaffirmed (revenue and operating result ranges)	Maintained outlook

Management Commentary

“The second half of fiscal 2015 was a pivotal period... [we] 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.” — Dave Moylan, Chairman & CEO .
“Prior to accounting for the... $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... of common stock... in July 2015.” .
Approval “to sell the associated tax benefit of $2.275 million of its Net Operating Losses (NOLs)... expected to complete the sale in Q3 FY 2016” to support working capital and NASDAQ listing equity .
Q3 context: “We are disciplined in our approach to using financial and operational excellence to improve performance” — Anthony Lougee, CAO .

Q&A Highlights

No Q1 FY2016 earnings call transcript was found in company filings/archives reviewed; therefore, no Q&A themes could be extracted for this quarter. We searched for an “earnings-call-transcript” in the Q1 FY2016 window and found none [ListDocuments 2015-08-01 to 2015-10-31 returned 0].

Estimates Context

We attempted to retrieve S&P Global consensus for Q1 FY2016 (Revenue, EPS). The request failed due to SPGI daily request limit; as such, consensus estimates were unavailable for comparison at this time. Given USAU/DRAM’s micro-cap status and sparse coverage in the period, Street coverage may have been limited [GetEstimates error].

Key Takeaways for Investors

Sequentials improved meaningfully: Q1 FY2016 revenue rebounded to $7.338M from $5.603M in Q4 FY2015, while losses narrowed to ($0.117M), underscoring tangible benefits from cost actions . .
Year-over-year profitability improved significantly (EPS loss $0.06 vs. $0.32), despite a modest YoY revenue decline, aided by lower operating expenses and transformation initiatives .
Gross margin trend inflected positively in Q1 FY2016 (19.1% vs. 13.0% in Q4 FY2015 and 15.0% in Q3 FY2015), a constructive signal if sustained . . .
Reaffirmed FY2016 guidance provides a clear bar: watch execution against $28–$34M revenue and breakeven-to-slightly-profitable operating result (ex one-time) as catalysts for sentiment .
Liquidity and listing status are pivotal: capital raise and planned NOL monetization were key to equity base and working capital; NASDAQ compliance determination (Sept. 24) removes an overhang, contingent on continued execution . . .
With no call transcript, the narrative centers on cost discipline and targeted growth; near-term trading will likely hinge on subsequent quarters’ revenue trajectory and margin durability against a competitive/pricing-sensitive memory environment . .

Appendix: Source Documents Read

Q1 FY2016 8-K and press release (full) — Dataram Reports Fiscal 2016 First Quarter Financial Results, dated Sept. 15, 2015 .
Q3 FY2015 8-K and press release (full) — March 23, 2015 .
FY2016/Q4 2016 8-K (for comparative tables including Q4 FY2015 revenue and EPS) — Aug. 2, 2016 .
NASDAQ deficiency notice — Aug. 21, 2015 ; NASDAQ compliance determination press release filing — Sept. 24, 2015 .
FY2015 10-K/A excerpts for context on revenue/margins and balance sheet — Sept. 11, 2015 .

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