SQL Server Express database timeout is temporary fixed by executing sp_updatestats stored procedure

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We have an ASP.net MVC website running in a Webecs.com virtual dedicated server with 1Gb CPU, 3 Gb of RAM and using a SQL Server Express database within the same server. Now and then, the database is giving a timeout error that is fixed temporary by executing sp_updatestats stored procedure.

Initially, we thought it was a RAM problem and we raised the RAM in the server to the current 3Gb amount. Even though the problem is less frequent now, it is still happening when the traffic in the website increases and more queries are executed. We have been monitoring the CPU and RAM usage and it does not seem to be the problem, CPU is around 30% with some picks up to 90% and RAM is around 80%.

We have the exact same website running in a different, more potent server with SQL Server 2008 R2 and is working without problems.

Any ideas what’s happening here?

Edit

Queries are of a normal size, nothing too big.

We have profile it with glimpse.

There is not n+1 queries, there is an average of 10 queries per page and sometimes the timeout happens in the login page where there is only one query.

The database isn't too big either.

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