Hurt by weaker prices for memory, Dataram (NASDAQ:DRAM) reported Tuesday a widened second-quarter loss, sending its shares lower.
The Princeton, NJ-based company posted a net loss of $1.7 million, or 19 cents a share, compared with a loss of $1.6 million, or 18 cents a share, in the same quarter last year.
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Revenue for the maker of large capacity memory products, used primarily in high performance network servers and workstations, was $10.9 million, narrowly ahead of $10.7 million a year ago.
Dataram CEO John H. Freeman said declining prices combined with the company’s investment in XcelaSAN contributed to the second-quarter loss.
Average selling prices in its memory business fell about 13%, due primarily to an industry-wide decline in prices.
“We are initiating actions to align our costs with our revenues,” he said, noting actions include the consolidation of manufacturing facilities and tighter expenses.
"Although we project continued growth in our memory solutions business, these actions should position the memory solutions business to operate profitably at current revenue levels," Freeman said.