EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
FOURTH QUARTER AND FISCAL YEAR 2004 FINANCIAL RESULTS
- VOD Solution Serves 16.6 Million Basic Subscribers in North America -
- ISD Receives Orders for More Than 480 Real-Time Linux(R)-Based iHawk(TM)
Systems -
ATLANTA, GEORGIA, AUGUST 12, 2004 - Concurrent Computer Corporation (NASDAQ:
CCUR) today reported results for its fourth quarter and fiscal year ended June
30, 2004.
For fiscal 2004, Video-On-Demand (VOD) revenue from the company's VOD Division
totaled $46.1 million compared to $38.6 million in the prior year, an increase
of 20%. In the fiscal fourth quarter of 2004, VOD revenue totaled $7.9 million
compared to $7.0 million in the same quarter of the prior year, an increase of
14%.
Revenue from the company's Integrated Solutions Division (ISD) totaled $33.1
million in fiscal year 2004 compared to $36.9 million in fiscal year 2003, a
decrease of 10%. In the fiscal fourth quarter of 2004, revenue from the
Integrated Solutions Division totaled $6.2 million compared to $8.6 million in
the same quarter of the prior year, a decrease of 28%.
Company-wide revenue for fiscal year 2004 totaled $79.2 million compared to
$75.5 million in fiscal year 2003, an increase of 5%. In the fiscal fourth
quarter of 2004, company-wide revenue totaled $14.1 million compared to $15.5
million in the same quarter of the prior year, a decrease of 9%.
For fiscal year 2004, the company reported a net loss of $5.7 million or ($0.09)
per fully diluted share compared to a net loss of $24.6 million or ($0.40) per
fully diluted share for fiscal year 2003. In the fiscal fourth quarter of 2004,
the net loss was $7.5 million or ($0.12) per fully diluted share compared to a
net loss of $6.2 million or ($.10) per fully diluted share in the same quarter
of the prior year.
The company's cash and cash equivalents balance at June 30, 2004 was $27.9
million and the company had no bank debt.
"Both divisions' performance for the quarter and the fiscal year was less than
expectations. Setting the appropriate expectations has been challenging given
both the economic and market conditions that we have experienced," said Gary
Trimm, Concurrent president and chief executive officer. He continued, "I am,
however, encouraged by our advances in both the high-speed computing and VOD
markets, and in the increasing level of international VOD activity as evidenced
by several recent wins in the far-east. We anticipate being able to announce
them over the next several weeks."
In the quarter, Concurrent added seven new VOD system deployments for a total of
87. These commercial VOD system deployments are with many of the largest cable
network operators in North America, with 62 deployments on the Motorola digital
platform and 25 deployments on the Scientific-Atlanta digital platform.
Concurrent's VOD customers include Bright House Networks, Charter, Cogeco,
Comcast, Cox, Mediacom, Time Warner Cable, Videotron and others. At June 30,
2004, these cable operators had purchased video stream capacity from Concurrent
of 548 thousand commercial streams for their base of 16.6 million basic
subscribers, of which over 5.5 million are digital subscribers.
Within the quarter, the Integrated Solutions Division received orders for over
480 commercial-off-the-shelf, real-time Linux(R)-based iHawk(TM) systems from
multiple customers in Germany and France. Applications for these systems
include air traffic control, hardware-in-the-loop and music research simulation.
The company also announced two changes to its board of directors effective
immediately. Gary Trimm, Concurrent president and chief executive officer
appointed in July 2004, has been elected to the board of directors.
Additionally, Bruce N. Hawthorne has elected to resign from its board of
directors. Mr. Hawthorne served as a director since February 2000 and has served
on the compensation, nominating and executive committees at various times. The
board has initiated a search for Mr. Hawthorne's replacement. His resignation
is prompted by his appointment as executive vice president, secretary and
general counsel at Electronic Data Systems Corporation.
Steve Nussrallah, Concurrent's chairman of the board stated, "Since joining
Concurrent, Mr. Hawthorne has provided valuable advisory leadership during key
junctures in our business. Particularly, his leadership in incorporating
best-in-class corporate governance practices will benefit the Board and
Concurrent's shareholders in the years to come." He added, "Concurrent's board
and executive management team wish Bruce the very best as he embarks on his new
role as executive vice president, secretary and general counsel at EDS."
As previously announced, Concurrent Computer Corporation will hold a conference
call to discuss its fourth quarter and fiscal 2004 results on August 13, 2004 at
10:00 a.m. E.T., which will be broadcast live over the Internet on the company's
web page at www.ccur.com, Investor Relations page.
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ABOUT CONCURRENT
Concurrent Computer Corporation (www.ccur.com) is a worldwide leader in
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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 IP-based markets. Within the digital cable
market, Concurrent is a recognized leader, currently serving nine of the largest
network operators in 87 markets, surpassing 16.6 million basic subscribers and
5.5 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 nearly four decades 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: our ability to keep our customers
satisfied; 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 and predatory pricing pressures; failure to effectively
service the installed base; the entry of new well-capitalized competitors into
our markets; the success of new products in both the VOD and ISD divisions; the
success of our new initiative in our CFSI subsidiary to penetrate opportunities
with the U.S. government; the availability of Linux software in light of issues
raised by SCO group; capital spending patterns by a limited customer base; and
contract obligations that could impact revenue recognition.
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,
please contact Concurrent, 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, iHawk and its logo 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)
JUNE 30, MARCH 31, JUNE 30,
2004 2004 2003
(UNAUDITED)
---------- ------------ ----------
ASSETS
Cash and cash equivalents $ 27,928 $ 25,706 $ 30,697
Trade accounts receivable, net 10,192 21,478 10,371
Inventories 9,617 8,342 7,174
Prepaid expenses and other current assets 1,378 2,203 1,877
---------- ------------ ----------
Total current assets 49,115 57,729 50,119
Property, plant and equipment, net 11,569 11,580 11,862
Purchased developed computer software, net 1,013 1,061 1,203
Goodwill 10,744 10,744 10,744
Investment in minority owned company 553 553 553
Other long-term assets, net 1,548 3,450 3,358
---------- ------------ ----------
Total assets $ 74,542 $ 85,117 $ 77,839
========== ============ ==========
LIABILITIES
Accounts payable and accrued expenses $ 12,069 $ 13,850 $ 14,644
Deferred revenue 10,668 8,294 5,295
---------- ------------ ----------
Total current liabilities 22,737 22,144 19,939
Long-term deferred revenue 4,117 4,116 2,350
Other long-term liabilities 1,962 13,528 12,092
STOCKHOLDERS' EQUITY
Common stock 628 630 623
Additional paid-in capital 174,338 174,468 174,396
Unearned compensation (351) (372) (576)
Treasury stock (42) (58) (58)
Retained earnings (deficit) (128,712) (121,167) (122,929)
Accumulated other comprehensive loss (135) (8,172) (7,998)
---------- ------------ ----------
Total stockholders' equity 45,726 45,329 43,458
---------- ------------ ----------
Total liabilities and stockholders' equity $ 74,542 $ 85,117 $ 77,839
========== ============ ==========
CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED JUNE 30, TWELVE MONTHS ENDED JUNE 30,
-------------------------------- ---------------------------------
2004 2003 2004 2003
(Unaudited) (Unaudited)
-------------- ---------------- --------------- ----------------
Revenues:
Product:
Real-time systems $ 2,613 $ 4,419 $ 17,568 $ 19,417
Video-on-demand systems 5,414 6,080 39,379 35,039
-------------- ---------------- --------------- ----------------
Total product revenues 8,027 10,499 56,947 54,456
Service:
Real-time systems 3,570 4,142 15,566 17,474
Video-on-demand systems 2,499 889 6,722 3,523
-------------- ---------------- --------------- ----------------
Total service revenues 6,069 5,031 22,288 20,997
-------------- ---------------- --------------- ----------------
Total revenues 14,096 15,530 79,235 75,453
Cost of sales:
Product:
Real-time systems 1,335 1,827 7,228 7,817
Video-on-demand systems 3,988 3,366 20,863 17,851
-------------- ---------------- --------------- ----------------
Total product cost of sales 5,323 5,193 28,091 25,668
Service:
Real-time systems 2,028 2,567 8,521 10,402
Video-on-demand systems 1,288 744 3,901 2,960
-------------- ---------------- --------------- ----------------
Total service cost of sales 3,316 3,311 12,422 13,362
-------------- ---------------- --------------- ----------------
Total cost of sales 8,639 8,504 40,513 39,030
-------------- ---------------- --------------- ----------------
Gross margin 5,457 7,026 38,722 36,423
Operating expenses:
Sales and marketing 4,534 4,632 17,302 18,081
Research and development 5,536 4,760 20,000 18,775
General and administrative 3,071 2,417 10,071 9,393
Restructuring charge - 1,603 - 1,603
Gain on liquidation of foreign subsidiary (111) - (111) -
-------------- ---------------- --------------- ----------------
Total operating expenses 13,030 13,412 47,262 47,852
-------------- ---------------- --------------- ----------------
Operating loss (7,573) (6,386) (8,540) (11,429)
Recovery (loss) of minority investment 56 471 3,103 (12,951)
Other income 142 104 184 417
-------------- ---------------- --------------- ----------------
Loss before income taxes (7,375) (5,811) (5,253) (23,963)
Provision for income taxes 112 436 472 589
-------------- ---------------- --------------- ----------------
Net loss $ (7,487) $ (6,247) $ (5,725) $ (24,552)
============== ================ =============== ================
Basic net loss per share $ (0.12) $ (0.10) $ (0.09) $ (0.40)
============== ================ =============== ================
Diluted net loss per share $ (0.12) $ (0.10) $ (0.09) $ (0.40)
============== ================ =============== ================
Basic weighted average shares outstanding 62,616 62,079 62,392 61,944
============== ================ =============== ================
Diluted weighted average shares outstanding 62,616 62,079 62,392 61,944
============== ================ =============== ================
CONCURRENT COMPUTER CORPORATION
SEGMENT DATA
(IN THOUSANDS)
INTEGRATED SOLUTIONS DIVISION VOD DIVISION
----------------------------------- --------------------------
THREE MONTHS ENDED THREE MONTHS ENDED
----------------------------------- --------------------------
06/30/04 06/30/03 06/30/04 06/30/03
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------- ---------------- ------------ ------------
Revenues:
Product $ 2,613 $ 4,419 $ 5,414 $ 6,080
Service 3,570 4,142 2,499 889
----------------- ---------------- ------------ ------------
Total 6,183 8,561 7,913 6,969
Cost of sales:
Product 1,335 1,827 3,988 3,366
Service 2,028 2,567 1,288 744
----------------- ---------------- ------------ ------------
Total 3,363 4,394 5,276 4,110
----------------- ---------------- ------------ ------------
Gross margin 2,820 4,167 2,637 2,859
Operating expenses
Sales and marketing 2,113 1,998 2,421 2,634
Research and development 1,541 1,295 3,995 3,465
General and administrative 1,336 1,118 1,735 1,299
Restructuring charge - 993 - 610
Gain on liquidation of foreign subsidiary (111) - - -
----------------- ---------------- ------------ ------------
Total operating expenses 4,879 5,404 8,151 8,008
----------------- ---------------- ------------ ------------
Operating loss $ (2,059) $ (1,237) $ (5,514) $ (5,149)
================= ================ ============ ============
CONCURRENT COMPUTER CORPORATION
SEGMENT DATA
(IN THOUSANDS)
INTEGRATED SOLUTIONS DIVISION VOD DIVISION
----------------------------------- --------------------------
TWELVE MONTHS ENDED TWELVE MONTHS ENDED
----------------------------------- --------------------------
06/30/04 06/30/03 06/30/04 06/30/03
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------- ---------------- ------------ ------------
Revenues:
Product $ 17,568 $ 19,417 $ 39,379 $ 35,039
Service 15,566 17,474 6,722 3,523
----------------- ---------------- ------------ ------------
Total 33,134 36,891 46,101 38,562
Cost of sales:
Product 7,228 7,817 20,863 17,851
Service 8,521 10,402 3,901 2,960
----------------- ---------------- ------------ ------------
Total 15,749 18,219 24,764 20,811
----------------- ---------------- ------------ ------------
Gross margin 17,385 18,672 21,337 17,751
Operating expenses
Sales and marketing 7,896 7,624 9,406 10,457
Research and development 5,892 5,343 14,108 13,432
General and administrative 4,544 4,187 5,527 5,206
Restructuring charge - 993 - 610
Gain on liquidation of foreign subsidiary (111) - - -
----------------- ---------------- ------------ ------------
Total operating expenses 18,221 18,147 29,041 29,705
----------------- ---------------- ------------ ------------
Operating income (loss) $ (836) $ 525 $ (7,704) $ (11,954)
================= ================ ============ ============