EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
FIRST QUARTER FISCAL YEAR 2005 FINANCIAL RESULTS
ATLANTA, GEORGIA, OCTOBER 22, 2004 - Concurrent Computer Corporation
(NASDAQ: CCUR) today reported results for its first quarter of fiscal year 2005
ended September 30, 2004.
In the first quarter of fiscal 2005, consolidated revenue for the company
aggregated $17.3 million compared to $14.1 million in the fourth quarter of
fiscal 2004, an increase of 22.9%, and compared to $18.9 million in the first
quarter of fiscal 2004, a decrease of 8.3%. Video-On-Demand (VOD) revenue
totaled $8.5 million for the first quarter of fiscal 2005 compared to $7.9
million in the fourth quarter of fiscal 2004, an increase of 7.7%, and compared
to $10.4 million in the same quarter of the prior year, a decrease of 17.7%.
Revenue from the company's Integrated Solutions Division (ISD) in the first
quarter of fiscal 2005 totaled $8.8 million compared to $6.2 million in the
fourth quarter of fiscal 2004, an increase of 42.4%, and compared to $8.5
million in the same quarter of the prior year, an increase of 3.1%.
The net loss for the first quarter of fiscal 2005 was $5.0 million, including
severance costs of $0.7 million, or $0.08 per fully diluted share compared to a
net loss of $7.5 million or $0.12 per share in the fourth quarter of fiscal 2004
and compared to net income of $0.6 million or $0.01 per fully diluted share in
the same quarter of the prior year.
"Although our results are an improvement from last quarter, particularly in our
ISD Division, North American VOD fell short of our expectations. Orders for five
new market deployments were once again delayed. However, we do expect that these
orders will be received and revenue will be recognized in our second quarter,"
announced Gary Trimm, Concurrent president and chief executive officer. "Most of
our North American VOD shipments were upgrades to our 4th generation
architecture, which negatively impacted our margins," he added. "As evidenced by
our recent announcements with C&M Co., Ltd. (C&M) and Korea Digital Cable Media
Center Co., Ltd. (KDMC), international orders have been strong. We are also
currently finalizing two additional new customer announcements, which, together
with C&M and KDMC, address approximately 7.5 million basic subscribers. These
wins, coupled with
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strong order flow and backlog in our ISD business, are expected to result in
improving revenues and operating results for the second and third quarters of
our fiscal 2005."
As previously announced, Concurrent Computer Corporation will hold a conference
call to discuss its first quarter of fiscal 2005 results on October 22, 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 both the domestic and international broadband cable, DSL, and IP-based
markets. 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,
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materials and inventories; the concentration of our customers; failure to
effectively manage change; delays in testing and introductions of new products;
rapid technology changes; 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 availability of Linux
software in light of issues raised by SCO group; capital spending patterns by a
limited customer base; and 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 Sept. 7, 2004 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, 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.
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
SEPTEMBER 30, JUNE 30,
2004 2004
(UNAUDITED)
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ASSETS
Cash and cash equivalents $ 18,779 $ 27,928
Trade accounts receivable, net 11,421 10,192
Inventories, net 7,378 9,617
Prepaid expenses and other current assets 2,452 1,378
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Total current assets 40,030 49,115
Property, plant and equipment, net 10,851 11,569
Purchased developed computer software, net 966 1,013
Goodwill 10,744 10,744
Investment in minority owned company 553 553
Other long-term assets, net 1,450 1,548
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Total assets $ 64,594 $ 74,542
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LIABILITIES
Accounts payable and accrued expenses $ 11,004 $ 12,069
Deferred revenue 6,607 10,668
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Total current liabilities 17,611 22,737
Long-term deferred revenue 3,986 4,117
Other long-term liabilities 2,034 1,962
STOCKHOLDERS' EQUITY
Common stock 629 628
Additional paid-in capital 174,375 174,338
Retained earnings (deficit) (133,747) (128,712)
Treasury stock - (42)
Unearned compensation (335) (351)
Accumulated other comprehensive income (loss) 41 (135)
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Total stockholders' equity 40,963 45,726
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Total liabilities and stockholders' equity $ 64,594 $ 74,542
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------
2004 2003
(Unaudited) (Unaudited)
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Revenues:
Product:
ISD systems $ 5,533 $ 4,394
Video-on-demand systems 6,054 9,147
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Total product revenues 11,587 13,541
Service:
ISD systems 3,274 4,146
Video-on-demand systems 2,469 1,215
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Total service revenues 5,743 5,361
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Total revenues 17,330 18,902
Cost of sales:
Product:
ISD systems 2,457 1,356
Video-on-demand systems 4,210 3,657
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Total product cost of sales 6,667 5,013
Service:
ISD systems 2,003 2,184
Video-on-demand systems 1,521 755
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Total service cost of sales 3,524 2,939
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Total cost of sales 10,191 7,952
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Gross margin 7,139 10,950
Operating expenses:
Sales and marketing 4,477 4,080
Research and development 5,180 4,668
General and administrative 2,506 2,169
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Total operating expenses 12,163 10,917
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Operating income (loss) (5,024) 33
Recovery of minority investment - 1,060
Other income (expense) 57 (74)
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Income (loss) before income taxes (4,967) 1,019
Provision for income taxes 54 407
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Net income (loss) $ (5,021) $ 612
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Basic net income (loss) per share $ (0.08) $ 0.01
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Diluted net income (loss) per share $ (0.08) $ 0.01
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Basic weighted average shares outstanding 62,852 62,369
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Diluted weighted average shares outstanding 62,852 63,006
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CONCURRENT COMPUTER CORPORATION
SEGMENT DATA
(IN THOUSANDS)
INTEGRATED SOLUTIONS DIVISION VOD DIVISION
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THREE MONTHS ENDED THREE MONTHS ENDED
----------------------------- ---------------------------
09/30/04 09/30/03 09/30/04 09/30/03
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------- -------------- ------------ -------------
Revenues:
Product $ 5,533 $ 4,394 $ 6,054 $ 9,147
Service 3,274 4,146 2,469 1,215
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Total 8,807 8,540 8,523 10,362
Cost of sales:
Product 2,457 1,356 4,210 3,657
Service 2,003 2,184 1,521 755
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Total 4,460 3,540 5,731 4,412
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Gross margin 4,347 5,000 2,792 5,950
Operating expenses
Sales and marketing 1,935 1,807 2,542 2,273
Research and development 1,575 1,482 3,605 3,186
General and administrative 1,111 1,094 1,395 1,075
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Total operating expenses 4,621 4,383 7,542 6,534
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Operating income (loss) $ (274) $ 617 $ (4,750) $ (584)
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