EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
THIRD QUARTER FISCAL YEAR 2005 FINANCIAL RESULTS
Breakeven at $19.8M in Revenue
ATLANTA, GEORGIA, APRIL 22, 2005 - Concurrent Computer Corporation (NASDAQ:
CCUR) today reported results for the quarter ended March 31, 2005.
In the third quarter of fiscal 2005, consolidated revenue for the company
aggregated $19.8 million compared to $20.0 million in the second quarter of
fiscal 2005, a decrease of 0.9%, and compared to $23.6 million in the third
quarter of fiscal 2004, a decrease of 15.9%. The net loss for the third quarter
of fiscal 2005 was $177,000, including $0.4 million in severance costs, or
breakeven per fully diluted share, compared to a net loss of $1.4 million, or
$0.02 per fully diluted share in the second quarter of fiscal 2005 and compared
to a net loss of $63,000 or breakeven per fully diluted share in the third
quarter of the prior year. These results were impacted by Concurrent's expense
reduction efforts and the evolution to more of a software model with improved
gross margins. Consolidated gross margins for the third quarter of fiscal 2005
were 55.3% compared to 49.4% in the second quarter of fiscal 2005 and 46.1% for
the third quarter of the prior year.
Revenue from Concurrent's on-demand product line totaled $9.3 million for the
third quarter of fiscal 2005 compared to $10.5 million in the second quarter of
fiscal 2005, a decrease of 11.4%, and compared to $14.8 million in the third
quarter of the prior year, a decrease of 37.1%. Revenue from the company's
real-time product line totaled $10.5 million for the third quarter of fiscal
2005 compared to $9.5 million in the second quarter of fiscal 2005, an increase
of 10.8%, and compared to $8.8 million in the third quarter of the prior year,
an increase of 19.7%.
"I am pleased with our progress that resulted in breakeven performance. Our
revenue from on-demand products was impacted by late orders, but that was offset
by great improvement from our real-time product line. Overall, we are on-track
with our plan to return to profitability, and anticipate that we will soon begin
to reap the benefits of our substantial efforts to improve sales and marketing.
In the last nine
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Concurrent/EarningsQ3FY05 Page 2 April 22, 2005
months, we have added seven new people to the sales and marketing team and
redeployed other assets within the company to better support that effort. You
can't expect instantaneous improvement, but I think our position is improving
every day and that should soon translate into top-line growth," announced Gary
Trimm, Concurrent president and chief executive officer.
"I am confident that our position throughout the industries we serve will
continue to improve as we engage more effectively with our customers. Our
support organization has made great strides to provide our customers with
outstanding support. Additionally, our technology initiatives are beginning to
bear fruit as evidenced by the recent introduction of our MediaHawk IMS(TM)
(Interactive Media Solution) and the revenue we are beginning to see from our
ImaGen(TM) simulation product. Our employee team is motivated and committed to
advancing the value we deliver to our customers and shareholders," added Mr.
Trimm.
As previously announced, Concurrent Computer Corporation will hold a conference
call to discuss its third quarter fiscal 2005 results on April 22 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 (www.ccur.com) is a global leader in providing digital on-demand
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systems to the broadband industry and real-time computer systems for industry
and government. Concurrent's on-demand systems are widely deployed worldwide by
major broadband operators and provide a flexible, comprehensive, robust solution
which is utilized within the domestic and international broadband cable, DSL,
and IP-based markets. The company's powerful and scalable on-demand 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
process control for commercial and government markets. Concurrent has nearly
four decades of experience in high-performance, on-demand, mission-critical
solutions 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 development
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Concurrent/EarningsQ3FY05 Page 3 April 22, 2005
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 on-demand and real-time products; 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.
For More Information Contact:
- -----------------------------
Concurrent - Angie Carson - Supervisor, Strategic Communications -
(678)258-4000 or angie.carson@ccur.com
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, DECEMBER 31, JUNE 30,
2005 2004 2004
(UNAUDITED) (UNAUDITED)
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ASSETS
Cash and cash equivalents $ 19,828 $ 23,921 $ 27,928
Trade accounts receivable, net 18,349 11,940 10,192
Inventories, net 6,694 4,562 9,617
Prepaid expenses and other current assets 2,080 2,294 1,378
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Total current assets 46,951 42,717 49,115
Property, plant and equipment, net 8,968 9,871 11,569
Purchased developed computer software, net 871 918 1,013
Goodwill 10,744 10,744 10,744
Investment in minority owned company 140 140 553
Other long-term assets, net 1,426 1,408 1,548
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Total assets $ 69,100 $ 65,798 $ 74,542
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LIABILITIES
Accounts payable and accrued expenses $ 14,398 $ 9,970 $ 12,069
Notes payable to bank, current portion 934 930 -
Deferred revenue 6,825 6,567 10,668
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Total current liabilities 22,157 17,467 22,737
Long-term deferred revenue 2,987 3,670 4,117
Notes payable to bank, less current portion 1,828 2,070 -
Other long-term liabilities 2,174 2,204 1,962
STOCKHOLDERS' EQUITY
Common stock 637 638 628
Additional paid-in capital 175,806 176,376 174,338
Retained earnings (deficit) (135,371) (135,194) (128,712)
Treasury stock - - (42)
Unearned compensation (1,574) (2,224) (351)
Accumulated other comprehensive income (loss) 456 791 (135)
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Total stockholders' equity 39,954 40,387 45,726
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Total liabilities and stockholders' equity $ 69,100 $ 65,798 $ 74,542
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED MARCH 31, NINE MONTHS ENDED MARCH 31,
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2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
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Revenues:
Product revenues $ 14,391 $ 18,214 $ 40,699 $48,920
Service revenues 5,458 5,397 16,504 16,219
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Total revenues 19,849 23,611 57,203 65,139
Cost of sales:
Product cost of sales 5,747 9,643 19,294 22,768
Service cost of sales 3,132 3,072 9,904 9,106
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Total cost of sales 8,879 12,715 29,198 31,874
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Gross margin 10,970 10,896 28,005 33,265
Operating expenses:
Sales and marketing 4,333 4,259 12,897 12,768
Research and development 4,447 5,091 14,299 14,464
General and administrative 2,363 2,656 7,144 7,000
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Total operating expenses 11,143 12,006 34,340 34,232
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Operating loss (173) (1,110) (6,335) (967)
Recovery (loss) of minority investment - 289 (313) 3,047
Other income (expense) (2) 58 71 42
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Income (loss) before income taxes (175) (763) (6,577) 2,122
Provision (benefit) for income taxes 2 (700) 68 360
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Net income (loss) $ (177) $ (63) $ (6,645) $ 1,762
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Basic net income (loss) per share $ (0.00) $ (0.00) $ (0.11) $ 0.03
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Diluted net income (loss) per share $ (0.00) $ (0.00) $ (0.11) $ 0.03
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Basic weighted average shares outstanding 62,758 62,565 62,728 62,318
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Diluted weighted average shares outstanding 62,758 62,565 62,728 63,259
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