Executive Summary

Q3 FY2015 (quarter ended Jan 31, 2015) showed a sequential revenue rebound to $8.05M (+17.0% q/q; +5.4% y/y) and improved loss metrics vs Q2, aided by cost controls; GAAP net loss was $(0.67)M and basic/diluted EPS was $(0.90), which reflects $1.63M of non-cash preferred dividends allocated to common for the quarter .
Operating loss improved to $(0.59)M from $(0.81)M in Q2 on lower SG&A ($1.53M vs $1.66M in Q2) and stable gross margin mix; other expense fell materially q/q ($0.08M vs $0.70M in Q2, which included debt discount amortization) .
Management emphasized an aggressive transformation with “more than $2.3M in net annual operating cost reductions in the last 90 days” and signaled continued sales expansion and investor outreach via a non-deal roadshow in March 2015, framing catalysts around execution and visibility .
No earnings-call transcript or numeric guidance was provided; S&P Global Wall Street consensus estimates for Q3 FY2015 were unavailable, limiting beat/miss assessment (we attempted to retrieve estimates; unavailable via S&P Global at this time).

What Went Well and What Went Wrong

What Went Well

Sequential top-line re-acceleration: revenue rose to $8.05M from $6.88M in Q2 (+17.0% q/q) and +5.4% y/y vs $7.64M in Q3 FY2014, signaling demand stabilization and/or improved execution .
Cost discipline: SG&A declined to $1.53M from $1.66M in Q2 and $1.86M y/y, consistent with management’s $2.3M annualized cost takeout; CEO: “continuing to aggressively transform… more than $2.3M in net annual operating cost reductions in the last 90 days” .
Lower non-operating drag: other expense dropped to $0.08M vs $0.70M in Q2 (which included $0.62M interest expense for amortization of debt discount), improving bottom-line trajectory q/q .

What Went Wrong

Profitability still negative: operating loss $(0.59)M and net loss $(0.67)M persisted despite higher revenue; gross margin compressed y/y (calc. ~15.0% vs ~18.5% y/y) amid memory pricing/standardization dynamics highlighted earlier in FY2015 .
Preferred dividends diluted EPS optics: $1.63M in non-cash preferred dividends drove basic/diluted EPS to $(0.90), masking underlying q/q improvement in operating and non-operating lines .
No quantitative guidance or call: lack of numeric outlook and absence of an earnings call transcript limit visibility and near-term estimate recalibration by the Street (no guidance in release); (no transcript found for period searched).

Financial Results

Note: All figures are GAAP. Margins are calculated from figures in cited exhibits (revenues, cost of sales, operating loss, net loss) .

Metric	Q3 2014	Q1 2015	Q2 2015	Q3 2015
Revenue ($USD Millions)	$7.64	$7.73	$6.88	$8.05
Gross Profit ($USD Millions)	$1.42	$1.25	$1.01	$1.21
Gross Margin (%)	18.6% (calc. from )	16.2% (calc. from )	14.7% (calc. from )	15.0% (calc. from )
Operating Income (Loss) ($USD Millions)	$(0.78)	$(0.56)	$(0.81)	$(0.59)
Operating Margin (%)	(10.2%) (calc. from )	(7.3%) (calc. from )	(11.8%) (calc. from )	(7.3%) (calc. from )
Net Income (Loss) ($USD Millions)	$(0.85)	$(0.76)	$(1.51)	$(0.67)
Net Margin (%)	(11.1%) (calc. from )	(9.8%) (calc. from )	(21.9%) (calc. from )	(8.3%) (calc. from )
Basic EPS ($)	$(0.40)	$(0.32)	$(0.63)	$(0.90)
Weighted Avg Shares (M)	2.11	2.41	2.41	2.57

Balance sheet snapshot and capital structure:

Metric	Q1 2015	Q2 2015	Q3 2015
Cash & Equivalents ($USD Millions)	$0.14	$0.03	$0.45
Revolving Credit Line ($USD Millions)	$2.42	$2.62	$2.46
Convertible Notes, net (current) ($USD Millions)	$0.11	$0.60	$0.60
Convertible Notes, related party (current) ($USD Millions)	$0.03	$0.15	$0.15
Stockholders’ Equity ($USD Millions)	$1.98	$0.48	$2.51

Segment breakdown: Not disclosed (single reporting line in releases) .
KPI table: Not disclosed beyond GAAP line items .

Guidance Changes

No quantitative guidance was provided in the Q3 FY2015 earnings press release; no updates on revenue, margins, OpEx, OI&E, tax rate, or segment-specific guidance; no dividend actions disclosed .

Metric	Period	Previous Guidance	Current Guidance	Change
All financial metrics	FY2015/Q4	None	None	Maintained (no guidance)

Earnings Call Themes & Trends

No earnings call transcript was found for Q3 FY2015. Themes tracked from the last three company communications (Q1, Q2, Q3 press releases):

Topic	Previous Mentions (Q1 FY2015)	Previous Mentions (Q2 FY2015)	Current Period (Q3 FY2015)	Trend
Cost reduction/efficiency	Early cost actions and capitalized software to support plan	Emphasis on liquidity: $2.7M preferred raise; working capital access; expense cutting underway	“More than $2.3M in net annual operating cost reductions in the last 90 days”	Improving execution on cost-out
Capital structure/liquidity	Bridge notes and warrants ($0.75M) to fund plan	$2.7M Series A Preferred raise; access to ~$3.5M additional working capital	Preferred dividends impact on EPS optics ($1.63M)	Neutral to improving liquidity; EPS optics pressured
Product/technology	Storage caching software development; capitalization begins May 1, 2014	Continued product development; platform for growth	Focus on “introduce new solutions” and “extend leadership”	Strategic focus maintained
Go-to-market/customer engagement	Partnerships, distributors expansion	Positioning for growth post-financing	“Very positive response… from customers,” investor relations campaign launched	Increasing outreach/engagement
Pricing/macro in memory	13% q/q decline in material cost/GB; industry standardization pressure	Noted debt-related expenses impacting loss	No specific pricing commentary; GM modest q/q improvement	Stabilizing vs Q2

Management Commentary

“Dataram is continuing to aggressively transform, executing against our strategic priorities of cost reduction and sales expansion. We implemented more than $2.3M in net annual operating cost reductions in the last 90 days.” — David A. Moylan, Chairman & CEO .
“We are disciplined in our approach to using financial and operational excellence to improve performance, and intend to make focused investments that drive meaningful growth… while increasing capital return to shareholders.” — Anthony Lougee, Chief Accounting Officer .
“We are seeing a very positive response to our transformation from both existing customers and potential new customers.” — Phil Marino, VP Global Sales .
“Dataram… has committed the time and resources to ensure that it is actively communicating its story to the Wall Street and investor communities.” — Investor relations campaign press release .

Q&A Highlights

No earnings call transcript was found for Q3 FY2015; therefore, no Q&A highlights or guidance clarifications are available for this period (we searched for “earnings-call-transcript” and none were found for March 2015).

Estimates Context

We attempted to retrieve S&P Global consensus estimates for Q3 FY2015 (EPS and revenue). Data were unavailable at this time; therefore, we cannot quantify beats/misses versus Street expectations. This limits near-term estimate recalibration analysis.
As a result, observed performance context relies on q/q and y/y comparisons from company-reported GAAP results and commentary .

Key Takeaways for Investors

Sequential turn in revenue (+17% q/q to $8.05M) with improved operating and non-operating expense trajectories positions the model for potential breakeven progress if demand holds and cost actions annualize .
The $2.3M annualized cost reductions already visible in lower SG&A and operating loss should continue to benefit FY2015 exit run-rate and FY2016, contingent on execution and sales expansion .
EPS optics are negatively skewed by non-cash preferred dividends ($1.63M this quarter); investors should focus on operating loss and cash metrics for core progress tracking .
Liquidity remains tight but improved q/q: cash rose to $0.45M (from $0.03M in Q2) with stable revolver utilization; equity improved to $2.51M; monitor revolver and convert balances for dilution/deleveraging path .
No quantitative guidance and no call reduce visibility; however, the investor relations campaign may increase market awareness and potentially reduce the information gap as operational milestones are communicated .
Watch gross margin trajectory and pricing dynamics; earlier commentary highlighted memory cost/standardization pressures—GM is roughly stable q/q but below y/y; sustained revenue mix improvement and cost reduction are key to margin recovery .

Notes and sources:

Q3 FY2015 earnings press release and financial statements (Form 8-K, Item 2.02; quarter ended Jan 31, 2015): .
Q2 FY2015 press release and financials (quarter ended Oct 31, 2014): .
Q1 FY2015 press release and financials (quarter ended Jul 31, 2014): .
Additional relevant press release (Investor Relations campaign, Mar 10, 2015): .

Footnote on margins: Gross, operating, and net margins are calculated directly from the revenue, cost of sales, operating loss, and net loss presented in the cited exhibits for each period .

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