FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
SECOND QUARTER FISCAL YEAR 2005 FINANCIAL RESULTS
ATLANTA, GEORGIA, JANUARY 21, 2005 - Concurrent Computer Corporation (NASDAQ:
CCUR) today reported results for the quarter ended December 31, 2004.
In the second quarter of fiscal 2005, consolidated revenue for the company
aggregated $20.0 million compared to $17.3 million in the first quarter of
fiscal 2005, an increase of 16%, and compared to $22.6 million in the second
quarter of fiscal 2004, a decrease of 12%. Video-On-Demand (VOD) revenue totaled
$10.5 million for the second quarter of fiscal 2005 compared to $8.5 million in
the first quarter of fiscal 2005, an increase of 23%, and compared to $13.0
million in the second quarter of the prior year, a decrease of 19%. Revenue from
the company's Integrated Solutions Division (ISD) in the second quarter of
fiscal 2005 totaled $9.5 million compared to $8.8 million in the first quarter
of fiscal 2005, an increase of 8%, and compared to $9.6 million in the second
quarter of the prior year, a decrease of 1%.
The net loss for the second quarter of fiscal 2005 was $1.4 million, including a
$0.3 million net write down of the company's minority investments and $0.2
million in severance costs, or $0.02 per fully diluted share compared to a net
loss of $5.0 million or $0.08 per fully diluted share in the first quarter of
fiscal 2005 and compared to net income of $1.2 million or $0.02 per fully
diluted share in the second quarter of the prior year.
"We are beginning to see the positive effects of the organizational changes and
customer initiatives that we made last quarter. Our operating expenses decreased
$1.1 million, including severance costs of $0.5 million, in the second quarter
compared to the first quarter of fiscal 2005. We believe our software quality,
customer service and support initiatives have substantially improved our
customer relationships and resulted in a return to growth in both business
segments. We ended the quarter with $24 million in cash and positive cash flow
from operating activities of $1.8 million. We are pleased with the improved
results and will strive to continue this trend. We are also continuing the
process begun last quarter to enable Concurrent to operate more effectively as a
united company," announced Gary Trimm, president and chief executive officer.
For More Information Contact:
- -----------------------------
Concurrent - Angie Carson - Supervisor, Strategic Communications -
(678) 258-4118
As part of its initiative to further unite the company, Warren Neuburger,
Integrated Solutions Division president, has been promoted to the position of
chief operating officer for the company. Mr. Neuburger will have all the
operating groups reporting to him including engineering, customer service, sales
and marketing, and manufacturing. Mr. Neuburger will report to the chief
executive officer, Gary Trimm, as will human resources, investor relations,
quality, finance, and legal. The divisional structure will be consolidated
under a functional organization with ISD and VOD product lines. Gary Brust,
currently vice president of North American VOD sales, has been named vice
president of worldwide sales and marketing for the company and will now lead
sales and marketing for all product lines. Kirk Somers, Concurrent's general
counsel, will add investor relations to his responsibilities.
"In 2005 we will continue to strengthen our relationships with customers so that
we can better develop and deliver real-time solutions that meet their needs,
while also maximizing the tremendous resources that we have worldwide. We
believe this will lead to a more efficient utilization of our sales, engineering
and customer service and support resources and ultimately to increased company
profitability," added Mr. Trimm.
As previously announced, Concurrent Computer Corporation will hold a conference
call to discuss its second quarter of fiscal 2005 results on Jan. 21 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 global leader in providing
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digital VOD systems to the broadband industry and real-time computer systems for
industry and government. Concurrent's VOD systems are utilized within the
domestic and international broadband cable, DSL, and IP-based markets and are
widely deployed worldwide by major broadband operators. Concurrent's proven
technology is based on open standards and 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 experience and
provides its best of breed solutions through offices in North America, Europe,
Asia, and Australia.
For More Information Contact:
- -----------------------------
Concurrent - Angie Carson - Supervisor, Strategic Communications -
(678) 258-4118
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 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.
# # #
For More Information Contact:
- -----------------------------
Concurrent - Angie Carson - Supervisor, Strategic Communications -
(678) 258-4118
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.
For More Information Contact:
- -----------------------------
Concurrent - Angie Carson - Supervisor, Strategic Communications -
(678) 258-4118
CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
DECEMBER 31, SEPTEMBER 30, JUNE 30,
2004 2004 2004
(UNAUDITED) (UNAUDITED)
-------------- --------------- ----------
ASSETS
Cash and cash equivalents $ 23,921 $ 18,779 $ 27,928
Trade accounts receivable, net 11,940 11,421 10,192
Inventories, net 4,562 7,378 9,617
Prepaid expenses and other current assets 2,294 2,452 1,378
-------------- --------------- ----------
Total current assets 42,717 40,030 49,115
Property, plant and equipment, net 9,871 10,851 11,569
Purchased developed computer software, net 918 966 1,013
Goodwill 10,744 10,744 10,744
Investment in minority owned company 140 553 553
Other long-term assets, net 1,408 1,450 1,548
-------------- --------------- ----------
Total assets $ 65,798 $ 64,594 $ 74,542
============== =============== ==========
LIABILITIES
Accounts payable and accrued expenses $ 9,970 $ 11,004 $ 12,069
Notes payable to bank, current portion 930 - -
Deferred revenue 6,567 6,607 10,668
-------------- --------------- ----------
Total current liabilities 17,467 17,611 22,737
Long-term deferred revenue 3,670 3,986 4,117
Notes payable to bank, less current portion 2,070 - -
Other long-term liabilities 2,204 2,034 1,962
STOCKHOLDERS' EQUITY
Common stock 638 629 628
Additional paid-in capital 176,376 174,375 174,338
Retained earnings (deficit) (135,194) (133,747) (128,712)
Treasury stock - - (42)
Unearned compensation (2,224) (335) (351)
Accumulated other comprehensive income (loss) 791 41 (135)
-------------- --------------- ----------
Total stockholders' equity 40,387 40,963 45,726
-------------- --------------- ----------
Total liabilities and stockholders' equity $ 65,798 $ 64,594 $ 74,542
============== =============== ==========
CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED DECEMBER 31, SIX MONTHS ENDED DECEMBER 31,
------------------------------------- -----------------------------------
2004 2003 2004 2003
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------------ ----------------- ---------------- -----------------
Revenues:
Product:
ISD systems $ 6,162 $ 5,597 $ 11,695 $ 9,991
Video-on-demand systems 8,559 11,568 14,613 20,715
------------------ ----------------- ---------------- -----------------
Total product revenues 14,721 17,165 26,308 30,706
Service:
ISD systems 3,347 4,018 6,621 8,164
Video-on-demand systems 1,956 1,443 4,425 2,658
------------------ ----------------- ---------------- -----------------
Total service revenues 5,303 5,461 11,046 10,822
------------------ ----------------- ---------------- -----------------
Total revenues 20,024 22,626 37,354 41,528
Cost of sales:
Product:
ISD systems 2,527 2,628 4,984 3,984
Video-on-demand systems 4,353 5,484 8,563 9,141
------------------ ----------------- ---------------- -----------------
Total product cost of sales 6,880 8,112 13,547 13,125
Service:
ISD systems 2,060 2,233 4,063 4,417
Video-on-demand systems 1,188 862 2,709 1,617
------------------ ----------------- ---------------- -----------------
Total service cost of sales 3,248 3,095 6,772 6,034
------------------ ----------------- ---------------- -----------------
Total cost of sales 10,128 11,207 20,319 19,159
------------------ ----------------- ---------------- -----------------
Gross margin 9,896 11,419 17,035 22,369
Operating expenses:
Sales and marketing 4,087 4,429 8,564 8,509
Research and development 4,672 4,705 9,852 9,373
General and administrative 2,275 2,175 4,781 4,344
------------------ ----------------- ---------------- -----------------
Total operating expenses 11,034 11,309 23,197 22,226
------------------ ----------------- ---------------- -----------------
Operating income (loss) (1,138) 110 (6,162) 143
Recovery (loss) of minority investment (313) 1,698 (313) 2,758
Other income (expense) 16 58 73 (16)
------------------ ----------------- ---------------- -----------------
Income (loss) before income taxes (1,435) 1,866 (6,402) 2,885
Provision for income taxes 12 653 66 1,060
------------------ ----------------- ---------------- -----------------
Net income (loss) $ (1,447) $ 1,213 $ (6,468) $ 1,825
================== ================= ================ =================
Basic net income (loss) per share $ (0.02) $ 0.02 $ (0.10) $ 0.03
================== ================= ================ =================
Diluted net income (loss) per share $ (0.02) $ 0.02 $ (0.10) $ 0.03
================== ================= ================ =================
Basic weighted average shares outstanding 62,747 62,308 62,714 62,197
================== ================= ================ =================
Diluted weighted average shares outstanding 62,747 63,202 62,714 62,991
================== ================= ================ =================
CONCURRENT COMPUTER CORPORATION
SEGMENT DATA
(IN THOUSANDS)
INTEGRATED SOLUTIONS DIVISION VOD DIVISION
----------------------------------- --------------------------
THREE MONTHS ENDED THREE MONTHS ENDED
----------------------------------- --------------------------
12/31/04 12/31/03 12/31/04 12/31/03
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------- ---------------- ------------ ------------
Revenues:
Product $ 6,162 $ 5,597 $ 8,559 $ 11,568
Service 3,347 4,018 1,956 1,443
----------------- ---------------- ------------ ------------
Total 9,509 9,615 10,515 13,011
Cost of sales:
Product 2,527 2,628 4,353 5,484
Service 2,060 2,233 1,188 862
----------------- ---------------- ------------ ------------
Total 4,587 4,861 5,541 6,346
----------------- ---------------- ------------ ------------
Gross margin 4,922 4,754 4,974 6,665
Operating expenses
Sales and marketing 1,765 2,000 2,322 2,429
Research and development 1,320 1,391 3,352 3,314
General and administrative 1,059 1,053 1,216 1,122
----------------- ---------------- ------------ ------------
Total operating expenses 4,144 4,444 6,890 6,865
----------------- ---------------- ------------ ------------
Operating income (loss) $ 778 $ 310 $ (1,916) $ (200)
================= ================ ============ ============
CONCURRENT COMPUTER CORPORATION
SEGMENT DATA
(IN THOUSANDS)
INTEGRATED SOLUTIONS DIVISION VOD DIVISION
----------------------------------- --------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
----------------------------------- --------------------------
12/31/04 12/31/03 12/31/04 12/31/03
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------- ---------------- ------------ ------------
Revenues:
Product $ 11,695 $ 9,991 $ 14,613 $ 20,715
Service 6,621 8,164 4,425 2,658
----------------- ---------------- ------------ ------------
Total 18,316 18,155 19,038 23,373
Cost of sales:
Product 4,984 3,984 8,563 9,141
Service 4,063 4,417 2,709 1,617
----------------- ---------------- ------------ ------------
Total 9,047 8,401 11,272 10,758
----------------- ---------------- ------------ ------------
Gross margin 9,269 9,754 7,766 12,615
Operating expenses
Sales and marketing 3,700 3,807 4,864 4,702
Research and development 2,895 2,873 6,957 6,500
General and administrative 2,170 2,147 2,611 2,197
----------------- ---------------- ------------ ------------
Total operating expenses 8,765 8,827 14,432 13,399
----------------- ---------------- ------------ ------------
Operating income (loss) $ 504 $ 927 $ (6,666) $ (784)
================= ================ ============ ============