EXHIBIT 99.1
For More Information Contact:
-----------------------------
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
FOURTH QUARTER AND FISCAL YEAR 2003 FINANCIAL RESULTS
-Concurrent Announces Key Win With Top 5 MSO-
-First to Surpass 4 Million Digital VOD Subscribers-
ATLANTA, GEORGIA, AUGUST 21, 2003 - Concurrent Computer Corporation (NASDAQ:
CCUR) today reported results for its fourth quarter and fiscal year ended June
30, 2003.
Video-On-Demand (VOD) revenue from the Company's Xstreme Division totaled $38.6
million in fiscal year 2003 compared to $48.0 million in fiscal year 2002, a
decrease of 19.6%. In the fiscal fourth quarter of 2003, VOD revenue totaled
$7.0 million compared to $17.4 million in the same quarter of the prior year, a
decrease of 60.1%.
Revenue from the Company's Integrated Solutions Division, formerly known as the
Real-Time Division, totaled $36.9 million in fiscal year 2003 compared to $41.4
million in fiscal year 2002, a decrease of 10.9%. In the fiscal fourth quarter
of 2003, revenue from the Integrated Solutions Division totaled $8.6 million
compared to $10.3 million in the same quarter of the prior year, a decrease of
17.0%.
Company-wide revenue for fiscal year 2003 totaled $75.5 million compared to
$89.4 million in fiscal year 2002, a decrease of 15.6%. In the fiscal fourth
quarter of 2003, company-wide revenue totaled $15.5 million compared to $27.8
million in the same quarter of the prior year, a decrease of 44.1%.
On June 23, 2003, the Company announced a company-wide realignment to focus
resources on nearer term opportunities. Under this global realignment, the
Company reported a charge of $1.6 million in the fourth fiscal quarter. The
charge, of which approximately $0.3 million was non-cash, consisted primarily of
employee severance costs, both domestically and internationally and lease
termination costs for offices downsized internationally, as a result of a 7%
reduction in workforce.
For More Information Contact:
- -----------------------------
Concurrent - Walt Ungerer - Director Investor Relations - (678) 258-4103
or walt.ungerer@ccur.com
---------------------
For fiscal year 2003, the Company reported a net loss of $24.6 million or
($0.40) per share compared to net income of $4.4 million or $0.07 per share for
fiscal year 2002. In the fiscal fourth quarter of 2003, the net loss was $6.2
million or ($0.10) per share compared to net income of $5.0 million or $.08 per
share in the same quarter of the prior year.
The Company's cash and cash equivalents balance at June 30, 2003 was $30.7
million. For fiscal year 2003, Concurrent had cash flow from operations of $7.1
million.
In the current quarter ending September 30, 2003, the Company anticipates
deployments of its newly introduced MediaHawk(R) 4G On-Demand Platform into 4 to
5 new VOD markets. The Company anticipates VOD revenue in the range of $9 to $10
million in the first fiscal quarter. Revenue from the Integrated Solutions
Division is expected to be between $8 and $9 million in the first fiscal
quarter. Company-wide revenues are anticipated to total between $17 and $19
million. Additionally, the Company expects to have a positive impact to the VOD
gross margins in the first quarter of approximately $1.3 million from the
reversal of an accrual for stock warrants related to the sale of Concurrent VOD
systems on the Scientific-Atlanta, Inc. platform. Including the benefit from the
stock warrant accrual reversal, the estimated net loss for the quarter is
anticipated to be between ($0.01) and ($0.03) per share.
"Adelphia has selected Concurrent to provide a VOD system in a major U.S.
market, and we have surpassed over 4 million digital VOD subscribers, an
industry milestone and evidence of our significant steps toward strengthening
and securing our market leadership in the evolving Everything-On-Demand market,"
said Jack Bryant, Concurrent president and chief executive officer.
"Additionally, we have instituted a number of new growth initiatives within our
newly named Integrated Solutions Division. We believe we have well positioned
Concurrent for expected profitable revenue growth in fiscal 2004."
"Our fiscal year 2003 was challenging due to our North American cable customers'
capital spending stall in their drive to generate incremental free cash flow
along with the macro economic and geopolitical issues. The good news is that
these trends appear to be reversing, based on the positive activity we are
seeing in support of new market deployment opportunities by a number of our
customers," added Bryant.
At the end of the fourth quarter, Concurrent had 62 commercial VOD system
deployments to the largest multiple system cable operators in North America.
Our VOD customers include Bright House Networks,
For More Information Contact:
- -----------------------------
Concurrent - Walt Ungerer - Director Investor Relations - (678) 258-4103
or walt.ungerer@ccur.com
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Charter, Cogeco, Comcast, Cox, Mediacom, Time Warner Cable, Videotron and
others. At June 30, 2003, these cable operators had purchased from Concurrent
video stream capacity of 308 thousand commercial streams for their base of 13.3
million basic subscribers, of which over 4.1 million are digital subscribers.
As previously announced, Concurrent Computer Corporation will hold a conference
call to discuss its fourth quarter and fiscal year 2003 results on August 21,
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/corp_overview.asp.
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ABOUT CONCURRENT
Concurrent Computer Corporation (www.ccur.com) is a worldwide leader in
providing digital VOD systems to the broadband industry and real-time computer
systems for industry and government.
Concurrent's VOD systems are utilized within the broadband cable, DSL, and
hospitality markets. Within the digital cable market, Concurrent is a
recognized leader, currently serving eight major cable operators in 62 markets
with over 4.1 million digital subscribers. Concurrent's proven technology
provides a flexible, comprehensive, robust solution for HFC, DSL, and IP-based
networks. The Company's powerful and scalable VOD systems are based on open
standards and are integrated with many of the leading broadband technologies.
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 acquisition, and industrial control systems for
commercial and government markets.
For More Information Contact:
- -----------------------------
Concurrent - Walt Ungerer - Director Investor Relations - (678) 258-4103
or walt.ungerer@ccur.com
---------------------
Concurrent has over 35 years of real-time experience and is providing these
solutions through its offices in North America, Europe, Asia, and Australia.
Certain statements made or incorporated by reference in this release may
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.
Other important risk factors 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. The risk factors discussed in such Form 10-K
under the heading "Risk Factors" are specifically incorporated by reference in
this press release. Our forward-looking statements are based on current
expectations and 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, Suite 100, Duluth, GA 30096. Call toll free in the U.S. and
Canada at (877) 978-7363, fax (678) 258-3938. Readers can also access
information through the company's Web site at www.ccur.com.
Concurrent Computer Corporation, its logo and MediaHawk are registered and
unregistered trademarks of Concurrent Computer Corporation. All other product
names are trademarks or registered trademarks of their respective owners.
For More Information Contact:
- -----------------------------
Concurrent - Walt Ungerer - Director Investor Relations - (678) 258-4103
or walt.ungerer@ccur.com
---------------------
CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, JUNE 30,
2003 2002
---------- ----------
ASSETS
Cash and cash equivalents $ 30,697 $ 30,519
Trade accounts receivable, net 10,371 23,894
Inventories 7,174 6,822
Prepaid expenses and other current assets 1,877 1,879
---------- ----------
Total current assets 50,119 63,114
Property, plant and equipment, net 11,862 10,696
Purchased developed computer software, net 1,203 1,393
Goodwill 10,744 10,744
Investment in minority owned company 553 7,814
Note receivable from minority owned company - 3,000
Other long-term assets, net 3,358 1,927
---------- ----------
Total assets $ 77,839 $ 98,688
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LIABILITIES
Accounts payable and accrued expenses $ 14,644 $ 15,514
Deferred revenue 5,433 4,055
---------- ----------
Total current liabilities 20,077 19,569
Long-term deferred revenue 2,212 1,677
Other long-term liabilities 12,092 8,218
STOCKHOLDERS' EQUITY
Common stock 623 618
Additional paid-in capital 174,396 172,929
Unearned compensation (576) -
Treasury stock (58) (58)
Retained earnings (deficit) (122,929) (98,377)
Accumulated other comprehensive loss (7,998) (5,888)
---------- ----------
Total stockholders' equity 43,458 69,224
---------- ----------
Total liabilities and stockholders' equity $ 77,839 $ 98,688
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ------------------
2003 2002 2003 2002
(Unaudited) (Unaudited)
------------ -------- --------- -------
Revenues:
Product:
Real-time systems $ 4,419 $ 5,756 $ 19,417 $21,601
Video-on-demand systems 6,080 17,117 35,039 46,900
------------ -------- --------- -------
Total product revenues 10,499 22,873 54,456 68,501
Service:
Real-time systems 4,142 4,555 17,474 19,807
Video-on-demand systems 889 330 3,523 1,061
------------ -------- --------- -------
Total service revenues 5,031 4,885 20,997 20,868
------------ -------- --------- -------
Total revenues 15,530 27,758 75,453 89,369
Cost of sales:
Product:
Real-time systems 1,827 1,904 7,817 8,586
Video-on-demand systems 3,366 6,966 17,851 22,555
------------ -------- --------- -------
Total product cost of sales 5,193 8,870 25,668 31,141
Service:
Real-time systems 2,567 2,937 10,402 11,588
Video-on-demand systems 744 686 2,960 2,074
------------ -------- --------- -------
Total service cost of sales 3,311 3,623 13,362 13,662
------------ -------- --------- -------
Total cost of sales 8,504 12,493 39,030 44,803
------------ -------- --------- -------
Gross margin 7,026 15,265 36,423 44,566
Operating expenses:
Sales and marketing 4,632 4,458 18,081 16,984
Research and development 4,760 4,314 18,775 15,291
General and administrative 2,417 2,173 9,393 8,612
Restructuring 1,603 - 1,603 -
------------ -------- --------- -------
Total operating expenses 13,412 10,945 47,852 40,887
------------ -------- --------- -------
Operating income (loss) (6,386) 4,320 (11,429) 3,679
Impairment income (loss) on minority investment 471 - (12,951) -
Other income 104 263 417 704
------------ -------- --------- -------
Income (loss) before income taxes (5,811) 4,583 (23,963) 4,383
Provision for income taxes 436 (450) 589 -
------------ -------- --------- -------
Net income (loss) $ (6,247) $ 5,033 $(24,552) $ 4,383
============ ======== ========= =======
Basic net income (loss) per share $ (0.10) $ 0.08 $ (0.40) $ 0.07
============ ======== ========= =======
Diluted net income (loss) per share $ (0.10) $ 0.08 $ (0.40) $ 0.07
============ ======== ========= =======
Basic weighted average shares outstanding 62,079 61,856 61,944 60,997
============ ======== ========= =======
Diluted weighted average shares outstanding 62,079 63,654 61,944 64,088
============ ======== ========= =======
CONCURRENT COMPUTER CORPORATION
SEGMENT DATA
(IN THOUSANDS)
INTEGRATED SOLUTIONS DIVISION XSTREME DIVISION
-------------------------- -------------------------
THREE MONTHS ENDED THREE MONTHS ENDED
-------------------------- -------------------------
06/30/2003 06/30/2002 06/30/2003 06/30/2002
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ ------------ ------------ -----------
Revenues:
Product $ 4,419 $ 5,756 $ 6,080 $ 17,117
Service 4,142 4,555 889 330
------------ ------------ ------------ -----------
Total 8,561 10,311 6,969 17,447
Cost of sales:
Product 1,827 1,904 3,366 6,966
Service 2,567 2,937 744 686
------------ ------------ ------------ -----------
Total 4,394 4,841 4,110 7,652
------------ ------------ ------------ -----------
Gross margin 4,167 5,470 2,859 9,795
Operating expenses
Sales and marketing 1,998 1,854 2,634 2,604
Research and development 1,295 1,496 3,465 2,818
General and administrative 1,118 827 1,299 1,346
Restructuring 993 - 610 -
------------ ------------ ------------ -----------
Total operating expenses 5,404 4,177 8,008 6,768
------------ ------------ ------------ -----------
Operating income (loss) $ (1,237) $ 1,293 $ (5,149) $ 3,027
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CONCURRENT COMPUTER CORPORATION
SEGMENT DATA
(IN THOUSANDS)
INTEGRATED SOLUTIONS DIVISION XSTREME DIVISION
-------------------------- ------------------------
TWELVE MONTHS ENDED TWELVE MONTHS ENDED
-------------------------- ------------------------
6/30/03 6/30/02 6/30/03 6/30/02
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ ------------ ------------ ----------
Revenues:
Product $ 19,417 $ 21,601 $ 35,039 $ 46,900
Service 17,474 19,807 3,523 1,061
------------ ------------ ------------ ----------
Total 36,891 41,408 38,562 47,961
Cost of sales:
Product 7,817 8,586 17,851 22,555
Service 10,402 11,588 2,960 2,074
------------ ------------ ------------ ----------
Total 18,219 20,174 20,811 24,629
------------ ------------ ------------ ----------
Gross margin 18,672 21,234 17,751 23,332
Operating expenses
Sales and marketing 7,624 7,023 10,457 9,961
Research and development 5,343 5,409 13,432 9,882
General and administrative 4,187 3,889 5,206 4,723
Restructuring 993 - 610 -
------------ ------------ ------------ ----------
Total operating expenses 18,147 16,321 29,705 24,566
------------ ------------ ------------ ----------
Operating income (loss) $ 525 $ 4,913 $ (11,954) $ (1,234)
============ ============ ============ ==========