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
FIRST QUARTER FISCAL YEAR 2004 FINANCIAL RESULTS
ATLANTA, GEORGIA, OCTOBER 23, 2003 - Concurrent Computer Corporation (NASDAQ:
CCUR) today reported results for its first quarter of fiscal year 2004 ended
September 30, 2003.
In the first quarter of fiscal 2004, Video-On-Demand (VOD) revenue from the
company's Xstreme (VOD) Division totaled $10.4 million compared to $13.4 million
in the same quarter of the prior year, a decrease of 22.5%. Compared to the
fourth quarter of fiscal 2003, VOD revenue increased 48.7% from $7.0 million,
for the first fiscal quarter. Revenue from the company's Integrated Solutions
Division (ISD) in the first quarter of fiscal 2004 totaled $8.5 million compared
to $8.8 million in the same quarter of the prior year, a decrease of 2.6%. ISD
revenue was flat for the quarter compared to the fourth quarter of fiscal 2003.
Company-wide revenue in the first quarter of fiscal 2004 totaled $18.9 million
compared to $22.1 million in the same quarter of the prior year, a decrease of
14.6%. Compared to the fourth quarter of fiscal 2003, company-wide revenue
increased 21.7%, from $15.5 million, for the first fiscal quarter.
Net income for the period was $0.6 million or $0.01 per fully diluted share,
which is flat compared to the same quarter of the prior year. For the fourth
quarter of fiscal 2003, the company had a loss of $6.2 million or $0.10 per
fully diluted share. Net income for the period includes a favorable impact of
$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 and an
additional $1.1 million in cash from the partial liquidation of the assets of
Thirdspace Living Limited.
The company ended the quarter with $25.2 million in cash and cash equivalents
and no bank debt.
Driven by escalating demand for the MediaHawk 4G and the MediaMatrix
solutions, the company anticipates VOD revenue to increase to the range of $10
to $12 million in the second quarter of fiscal 2004. For the same period,
revenue from ISD is expected to be in the range of $9 to $10 million.
Company-wide revenues are anticipated to total between $19 and $22 million and
net income (loss) is anticipated to be between ($0.02) and $0.00 per fully
diluted share in the second quarter of fiscal 2004.
"I am pleased with the direction of our quarter over quarter financial metrics
and believe that these results are indicative of our growing competitive
position and an improving spending environment," said Jack Bryant, Concurrent
president and chief executive officer. He added, "Our ability to win market
share in the quarter was driven by our providing an on-demand platform that
delivers the unique ability to independently scale streams, storage and content
read/write capability."
"I am delighted to see strong VOD subscriber activity data from the cable
operators indicating an increase in demand for additional content and new
on-demand services such as long-format advertising, subscription Video-On-Demand
(SVOD), music videos on-demand and network-based digital video recording
(NDVR)," said Bryant. "Our newly introduced MediaHawk 4G On-Demand Platform,
MediaMatrix and Real-Time Media solutions were designed for optimal scaling on
all dimensions to meet our customers' present and future needs as they deploy
these next generation VOD services."
In the quarter, Concurrent added 5 new system deployments for a total of 67.
These commercial VOD system deployments are to the largest cable network
operators in North America with 42 integrations on the Motorola digital platform
and 25 integrations on the Scientific-Atlanta digital platform. Concurrent's
VOD customers include Adelphia, Bright House Networks, Charter, Cogeco, Comcast,
Cox, Mediacom, Time Warner Cable, Videotron and others. At September 30, 2003,
these cable operators had purchased video stream capacity from Concurrent of 349
thousand commercial streams for their base of 14.4 million basic subscribers, of
which over 4.5 million are digital subscribers.
As previously announced, Concurrent Computer Corporation will hold a conference
call to discuss its first quarter of fiscal 2004 results on October 23, 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 nine major
cable operators in 67 markets with over 4.5 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 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. Concurrent
has over 35 years of experience in real-time technology and provides its best of
breed solutions through 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," "anticipates," 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 18, 2003 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) 258-4199. Readers can also access
information through the company's Web site at www.ccur.com.
Concurrent Computer Corporation, its logo, MediaHawk, MediaMatrix and Real-Time
Media are registered and unregistered trademarks of Concurrent Computer
Corporation. All other product names are trademarks or registered trademarks of
their respective owners.
CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
SEPTEMBER 30, JUNE 30,
2003 2003
(UNAUDITED)
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ASSETS
Cash and cash equivalents $ 25,181 $ 30,697
Trade accounts receivable, net 13,335 10,371
Inventories 6,483 7,174
Prepaid expenses and other current assets 2,595 1,877
--------------- ----------
Total current assets 47,594 50,119
Property, plant and equipment, net 11,806 11,862
Purchased developed computer software, net 1,156 1,203
Goodwill 10,744 10,744
Investment in minority owned company 553 553
Other long-term assets, net 3,213 3,358
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Total assets $ 75,066 $ 77,839
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LIABILITIES
Accounts payable and accrued expenses $ 11,147 $ 14,644
Deferred revenue 5,556 5,433
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Total current liabilities 16,703 20,077
Long-term deferred revenue 2,562 2,212
Other long-term liabilities 12,240 12,092
STOCKHOLDERS' EQUITY
Common stock 623 623
Additional paid-in capital 173,717 174,396
Unearned compensation (491) (576)
Treasury stock (58) (58)
Retained earnings (deficit) (122,317) (122,929)
Accumulated other comprehensive loss (7,913) (7,998)
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Total stockholders' equity 43,561 43,458
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Total liabilities and stockholders' equity $ 75,066 $ 77,839
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SEPTEMBER 30,
---------------------------------
2003 2002
(Unaudited) (Unaudited)
---------------- ---------------
Revenues:
Product:
Real-time systems $ 4,394 $ 4,092
Video-on-demand systems 9,147 12,449
---------------- ---------------
Total product revenues 13,541 16,541
Service:
Real-time systems 4,146 4,678
Video-on-demand systems 1,215 922
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Total service revenues 5,361 5,600
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Total revenues 18,902 22,141
Cost of sales:
Product:
Real-time systems 1,356 1,776
Video-on-demand systems 3,657 5,241
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Total product cost of sales 5,013 7,017
Service:
Real-time systems 2,184 2,607
Video-on-demand systems 755 660
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Total service cost of sales 2,939 3,267
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Total cost of sales 7,952 10,284
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Gross margin 10,950 11,857
Operating expenses:
Sales and marketing 4,080 4,404
Research and development 4,668 4,447
General and administrative 2,169 2,328
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Total operating expenses 10,917 11,179
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Operating income 33 678
Recovery of previously recognized impairment loss 1,060 -
Other income (expense) (74) 149
---------------- ---------------
Income before income taxes 1,019 827
Provision for income taxes 407 207
---------------- ---------------
Net income $ 612 $ 620
================ ===============
Basic net income per share $ 0.01 $ 0.01
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Diluted net income per share $ 0.01 $ 0.01
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Basic weighted average shares outstanding 62,085 61,860
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Diluted weighted average shares outstanding 62,722 62,368
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CONCURRENT COMPUTER CORPORATION
SEGMENT DATA
(IN THOUSANDS)
INTEGRATED SOLUTIONS DIVISION XSTREME DIVISION
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THREE MONTHS ENDED THREE MONTHS ENDED
----------------------------- --------------------------
09/30/03 09/30/02 09/30/03 09/30/02
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------- -------------- ------------ ------------
Revenues:
Product $ 4,394 $ 4,092 $ 9,147 $ 12,449
Service 4,146 4,678 1,215 922
-------------- -------------- ------------ ------------
Total 8,540 8,770 10,362 13,371
Cost of sales:
Product 1,356 1,776 3,657 5,241
Service 2,184 2,607 755 660
-------------- -------------- ------------ ------------
Total 3,540 4,383 4,412 5,901
-------------- -------------- ------------ ------------
Gross margin 5,000 4,387 5,950 7,470
Operating expenses
Sales and marketing 1,807 1,860 2,273 2,544
Research and development 1,482 1,399 3,186 3,048
General and administrative 1,094 1,004 1,075 1,324
-------------- -------------- ------------ ------------
Total operating expenses 4,383 4,263 6,534 6,916
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Operating income (loss) $ 617 $ 124 $ (584) $ 554
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