EXHIBIT 99.1
For Further Information Contact:
--------------------------------
Concurrent Computer Corporation
Walt Ungerer, Director of Investor Relations
(678) 258-4103
Fax (678) 258-3938
FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES THIRD QUARTER FISCAL 2003
FINANCIAL RESULTS
ATLANTA, GEORGIA, APRIL 24, 2003 - In line with the Company's revised outlook
provided on March 17, 2003, Concurrent Computer Corporation (NASDAQ: CCUR) today
announced that for the quarter ended March 31, 2003, the Company achieved
revenue totaling $17.6 million compared to $25.0 million in the same quarter of
the previous year. In the quarter, the Company recognized a non-cash impairment
charge of $10.5 million or $0.17 per share related to the write-off of the
remaining balance of its equity and debt investments in Thirdspace Living
Limited. Including the impairment charge, the Company reported a net loss of
$14.3 million or $0.23 per share, compared to net income of $2.3 million or
$0.04 per share in the same quarter of the previous year.
Video-On-Demand (VOD) revenue from its Xstreme Division totaled $8.5 million,
down from $14.6 million in the same quarter of the prior year. During the third
quarter, the Company shipped its MediaHawk(R) Video Servers to six new markets
in support of the commercial deployment of multiple VOD applications.
In line with expectations, total revenue from the Company's Real-Time Division
was $9.2 million in the third quarter as compared to $10.5 million in the same
quarter of the prior year.
For the fourth quarter ending June 30, 2003, the Company is anticipating revenue
from its VOD business to aggregate between $7 and $9 million and expects revenue
from its Real-Time business to be between $9 and $9.5 million. On a consolidated
basis, revenues are anticipated to aggregate between $16 and $18.5 million in
the fourth quarter and produce a per share loss between $0.05 and $0.07.
Steve Necessary, Xstreme Division president stated, "We remain highly focused on
further developing our leading VOD integration and deployment expertise in what
is clearly a mixed deployment environment. While initial feedback and
statistics from our customers and industry analysts indicate highly favorable
consumer demand for on-demand video services-especially as those expand from
movies to subscription VOD and limited free on demand content-many operators
remain cautious and deliberate as they manage their capital spending." He
added, "Competitively, our position remains
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Concurrent/Q32003Earnings Page 2 April 24, 2003
strong, evidenced by the addition of a new commitment from a top 10 North
American Cable operator and 6 new commercial VOD market deployments in the
quarter. Concurrent currently serves 58 markets that have a market-leading 3.6
million digital subscribers and 12.2 million basic subscribers. In these 58
markets, we have installed 822 servers with the capacity of approximately 291
thousand video streams. In the fourth quarter, we expect commitments for four
to five new VOD market deployments in addition to expansion and add-on revenues
related to MSO's expanding on-demand offerings to include incremental
applications such as Subscription Video-On-Demand (SVOD) and Free-On-Demand
(FOD)."
Paul Meyer, president of Real-Time, commented, "We continue to build upon the
excitement driven by the introduction of our iHawk(R) line of Intel/RedHawk(R)
Linux(R) servers. By offering this commercial-off-the-shelf (COTS) platform
accompanied with our boutique toolset running on Linux, we have already gained
access to new markets and won back previous customers."
The Company's balance sheet remained solid with $30.2 million in cash and cash
equivalents and virtually no long-term debt at quarter end. Cash generated from
operations was $1.4 million for the quarter and $6.6 million fiscal year to date
through March 31, 2003. Days Sales Outstanding (DSO) at March 31, 2003, were 76
days compared to 81 days on the same date of the previous year.
Jack Bryant, Concurrent president and CEO stated, "Beyond our immediate focus of
diligently managing our business in a market of macro-economic and industry
specific uncertainties, we remain committed to furthering our leadership and
expertise in delivering innovative products and solutions for our customers."
As previously announced, Concurrent Computer Corporation will hold a conference
call to discuss its third quarter results on April 24, 2003 at 4:30 p.m. ET
which will be broadcast live over the Internet on the company's web page at
http://www.ccur.com/corporate/investor_info.html.
ABOUT CONCURRENT
Concurrent Computer Corporation (www.ccur.com) is a worldwide leader in
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high-performance computer systems, software, and servers. Concurrent's Xstreme
Division is a worldwide market leader in providing digital VOD systems to the
broadband industry. This market includes broadband VOD and rich streaming media
applications such as corporate training, education, hospitality, and digital
video-to-the-home. Concurrent is also a leading provider of high-performance,
real-time computer systems, solutions, and software that focus on
hardware-in-the-loop and man-in-the-loop simulation, data
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Concurrent/Q32003Earnings Page 3 April 24, 2003
acquisition, and industrial control systems for commercial and government
markets. Concurrent has over 35 years of experience and is providing these best
of breed solutions through its offices in North America, Europe, Asia, and
Australia.
Concurrent is an established leader in the VOD market, serving eight major cable
operators in 58 markets with over 3.6 million digital subscribers. Concurrent's
proven technology provides one of the most flexible, comprehensive solutions for
HFC, DSL, and IP-based networks. The Company's powerful and scalable VOD
systems are based on open standards and are integrated with the leading
broadband technologies.
Certain statements made or incorporated by reference in this release constitute
"forward-looking statements" within the meaning of the federal securities laws.
When used or incorporated by reference in this release, the words "believes,"
"expects," "estimates," and similar expressions are intended to identify
forward-looking statements. Statements regarding future events and developments
and our future performance, as well as our expectations, beliefs, plans,
estimates, or projections relating to the future, are forward-looking statements
within the meaning of these laws. All forward-looking statements are subject to
certain risks and uncertainties that could cause actual events to differ
materially from those projected. The risks and uncertainties which could affect
our financial condition or results of operations include, without limitation:
availability of video-on-demand content; delays or cancellations of customer
orders; changes in product demand; economic conditions; various inventory risks
due to changes in market conditions; uncertainties relating to the development
and ownership of intellectual property; uncertainties relating to our ability
and the ability of other companies to enforce their intellectual property
rights; the pricing and availability of equipment, materials and inventories;
the limited operating history of our video-on-demand segment; the concentration
of our customers; failure to effectively manage growth; delays in testing and
introductions of new products; rapid technology changes; demand shifts from
high-priced, proprietary real-time systems to low-priced, open server systems;
system errors or failures; reliance on a limited number of suppliers;
uncertainties associated with international business activities, including
foreign regulations, trade controls, taxes, and currency fluctuations; the
highly competitive environment in which we operate; failure to effectively
service the installed base; the entry of new well-capitalized competitors into
our markets; and the valuation of equity investments and collectibility of notes
receivable, including but not limited to our equity investment in Thirdspace.
Other important risk factors, which are incorporated by reference herein, are
discussed in our Form 10-K filed with the Securities and Exchange Commission on
September 25, 2002 and may be discussed in subsequent filings with the SEC. Our
forward-looking statements are based on current expectations and
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Concurrent/Q32003Earnings Page 4 April 24, 2003
speak only as of the date of such statements. We undertake no obligation to
publicly update or revise any forward-looking statement, whether as a result of
future events, new information, or otherwise.
# # #
Note to Editors: For additional company or product information from Concurrent
Computer Corporation, please contact Concurrent Computer Corporation, 4375 River
Green Parkway, Duluth, GA 30096. Call toll free in the U.S. and Canada at (877)
978-7363, fax (678) 258-4199. Readers can also access information through the
Company's Web site at http://www.ccur.com.
Concurrent Computer Corporation and its logo, MediaHawk, iHawk, and RedHawk are
registered and unregistered trademarks of Concurrent Computer Corporation. Linux
is a trademark of Linus Torvalds. All other product names are trademarks or
registered trademarks of their respective owners.
CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, JUNE 30,
2003 2002
(UNAUDITED)
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ASSETS
Cash and cash equivalents $ 30,227 $ 30,519
Trade accounts receivable, net 14,962 23,894
Inventories 6,750 6,822
Prepaid expenses and other current assets 2,412 1,879
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Total current assets 54,351 63,114
Property, plant and equipment, net 11,900 10,696
Purchased developed computer software, net 1,251 1,393
Goodwill 10,744 10,744
Investment in minority owned companies 553 7,814
Note receivable from minority owned company - 3,000
Other long-term assets, net 2,425 1,927
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Total assets $ 81,224 $ 98,688
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LIABILITIES
Accounts payable and accrued expenses $ 10,593 $ 15,514
Deferred revenue 7,377 4,055
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Total current liabilities 17,970 19,569
Long-term deferred revenue 2,243 1,677
Other long-term liabilities 8,997 8,218
STOCKHOLDERS' EQUITY
Common stock 620 618
Additional Paid-in Capital 173,751 172,929
Treasury stock (58) (58)
Retained earnings (deficit) (116,682) (98,377)
Accumulated other comprehensive loss (5,617) (5,888)
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Total stockholders' equity 52,014 69,224
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Total liabilities and stockholders' equity $ 81,224 $ 98,688
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED MARCH 31, NINE MONTHS ENDED MARCH 31,
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2003 2002 2003 2002
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
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Revenues:
Product:
Real-time systems $ 5,027 $ 5,647 $ 14,998 $ 15,845
Video-on-demand systems 7,631 14,319 28,959 29,783
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Total product revenues 12,658 19,966 43,957 45,628
Service:
Real-time systems 4,169 4,805 13,332 15,252
Video-on-demand systems 821 257 2,634 731
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Total service revenues 4,990 5,062 15,966 15,983
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Total revenues 17,648 25,028 59,923 61,611
Cost of sales:
Product:
Real-time systems 1,926 2,054 5,990 6,682
Video-on-demand systems 4,308 6,822 14,485 15,589
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Total product cost of sales 6,234 8,876 20,475 22,271
Service:
Real-time systems 2,725 2,838 7,835 8,651
Video-on-demand systems 754 553 2,216 1,388
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Total service cost of sales 3,479 3,391 10,051 10,039
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Total cost of sales 9,713 12,267 30,526 32,310
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Gross margin 7,935 12,761 29,397 29,301
Operating expenses:
Sales and marketing 4,287 4,198 13,449 12,526
Research and development 4,991 3,861 14,015 10,977
General and administrative 2,381 2,341 6,976 6,439
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Total operating expenses 11,659 10,400 34,440 29,942
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Operating income (loss) (3,724) 2,361 (5,043) (641)
Impairment loss on minority investment (10,479) - (13,422) -
Other income (loss) 15 93 313 441
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Income (loss) before income taxes (14,188) 2,454 (18,152) (200)
Provision for income taxes 72 150 153 450
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Net income (loss) $ (14,260) $ 2,304 $ (18,305) $ (650)
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Basic net income (loss) per share $ (0.23) $ 0.04 $ (0.30) $ (0.01)
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Diluted net income (loss) per share $ (0.23) $ 0.04 $ (0.30) $ (0.01)
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Basic weighted average shares outstanding 61,975 61,560 61,899 60,712
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Diluted weighted average shares outstanding 61,975 64,767 61,899 60,712
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CONCURRENT COMPUTER CORPORATION
SEGMENT DATA
(IN THOUSANDS)
REAL-TIME DIVISION XSTREME DIVISION
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THREE MONTHS ENDED THREE MONTHS ENDED
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03/31/03 03/31/02 03/31/03 03/31/02
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ ------------ ------------ ------------
Revenues:
Product $ 5,027 $ 5,647 $ 7,631 $ 14,319
Service 4,169 4,805 821 257
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Total 9,196 10,452 8,452 14,576
Cost of sales:
Product 1,926 2,054 4,308 6,822
Service 2,725 2,838 754 553
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Total 4,651 4,892 5,062 7,375
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Gross margin 4,545 5,560 3,390 7,201
Operating expenses
Sales and marketing 1,827 1,734 2,460 2,464
Research and development 1,371 1,409 3,620 2,452
General and administrative 1,077 1,196 1,304 1,145
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Total operating expenses 4,275 4,339 7,384 6,061
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Operating income (loss) $ 270 $ 1,221 $ (3,994) $ 1,140
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CONCURRENT COMPUTER CORPORATION
SEGMENT DATA
(IN THOUSANDS)
REAL-TIME DIVISION XSTREME DIVISION
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NINE MONTHS ENDED NINE MONTHS ENDED
-------------------------- --------------------------
03/31/03 03/31/02 03/31/03 03/31/02
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
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Revenues:
Product $ 14,998 $ 15,845 $ 28,959 $ 29,783
Service 13,332 15,252 2,634 731
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Total 28,330 31,097 31,593 30,514
Cost of sales:
Product 5,990 6,682 14,485 15,589
Service 7,835 8,651 2,216 1,388
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Total 13,825 15,333 16,701 16,977
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Gross margin 14,505 15,764 14,892 13,537
Operating expenses
Sales and marketing 5,626 5,169 7,823 7,357
Research and development 4,048 3,913 9,967 7,064
General and administrative 3,069 3,062 3,907 3,377
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Total operating expenses 12,743 12,144 21,697 17,798
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Operating income (loss) $ 1,762 $ 3,620 $ (6,805) $ (4,261)
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