FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
FOURTH QUARTER AND FISCAL YEAR 2005 FINANCIAL RESULTS
Solid Fourth Quarter Revenue Growth
Positive Cash Flow
ATLANTA, GEORGIA, AUGUST 12, 2005 - Concurrent (Nasdaq: CCUR), a worldwide
leader of on-demand and real-time computing technology, today announced its
results for the fourth quarter and fiscal year ended June 30, 2005.
Fourth Quarter Results:
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In the fourth quarter of fiscal 2005, consolidated revenue for the company
aggregated $21.5 million compared to $19.8 million in the third quarter of
fiscal 2005, an increase of 8.2%, and compared to $14.1 million in the fourth
quarter of fiscal 2004, an increase of 52.4%. The Company also achieved
positive cash flow for the fourth quarter of fiscal 2005, generating $0.1
million. Revenue from Concurrent's on-demand product line totaled $11.7
million for the fourth quarter of fiscal 2005 compared to $9.3 million in the
third quarter of fiscal 2005, an increase of 25.1%, and compared to $7.9 million
in the fourth quarter of the prior year, an increase of 47.4%. Revenue from the
company's real-time product line totaled $9.8 million for the fourth quarter of
fiscal 2005 compared to $10.5 million in the third quarter of fiscal 2005, a
decrease of 6.7%, and compared to $6.2 million in the fourth quarter of the
prior year, an increase of 58.9%.
The net loss for the fourth quarter of fiscal 2005 was $1.1 million, or a loss
of $0.02 per fully diluted share, compared to a net loss of $177,000, or
breakeven per fully diluted share in the third quarter of fiscal 2005, and
compared to a net loss of $7.5 million or $0.12 per fully diluted share in the
fourth quarter of the prior year. The loss was due primarily to higher than
planned operating expenses related to startup of an expanded sales and marketing
effort, Sarbanes-Oxley 404 work, and severance charges due to a reduction in
force.
For More Information Contact:
- -----------------------------
Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
Fiscal Year 2005 Results:
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Company-wide revenue for fiscal year 2005 totaled $78.7 million compared to
$79.2 million in fiscal year 2004, a decrease of less than 1.0%. For fiscal
2005, revenue from the company's on-demand product line totaled $40.0 million
compared to $46.1 million in the prior year, a decrease of 13.2%, while revenue
from the company's real-time product line totaled $38.7 million in fiscal year
2005 compared to $33.1 million in fiscal year 2004, an increase of 16.7%.
For fiscal year 2005, the company reported a net loss of $7.7 million or $0.12
per fully diluted share compared to a net loss of $5.7 million or $0.09 per
fully diluted share for fiscal year 2004. The net loss for fiscal year 2004
includes gains of $3.1 million from the recovery of Concurrent's investment in
Thirdspace. The company's cash and cash equivalents balance at June 30, 2005
was $19.9 million, including proceeds from a $3.0 million term loan executed in
the quarter ended December 31, 2004, compared to a cash balance of $27.9 million
at the end of fiscal 2004.
"Strong revenue growth in the fourth quarter indicates our increased sales
efforts and quality initiative is beginning to take effect," said Gary Trimm,
Concurrent's president and chief executive officer. "We believe we have restored
customer confidence in our on demand products and services and our real time
annual revenues have grown for the first time in many years. Operating
expenses exceeded our target of $11 million per quarter, but we expect that
subsequent quarters will be at or near that level. Compliance with the new
Sarbanes-Oxley requirements has been an expensive and time consuming process,
but we are nearly done," he added.
"While I am encouraged by the progress we have made to restructure the company
and approach profitability during this last year, we are by no means complete
and have a large slate of new initiatives to address in 2006. We have a strong
suite of products and services to fuel the anticipated growth and we believe
that the markets for on-demand and real-time will support growth. Our RedHawk
Linux operating system is emerging as a leader in high-speed computing
applications in military, government and many commercial applications such as
finance, air traffic control, and numerous simulation systems. Through an
expanded group of channel partners and OEM suppliers, we hope to establish
RedHawk as the Operating System of choice for mission critical projects."
"In the on-demand market, Concurrent believes it can continue to gain new system
wins and provide products and services for planned expansions of storage,
streaming and content ingest in both North America and International markets.
Our MediaHawk 4000 is a rock solid platform which we continue to enhance with
software upgrades for new features and improved quality of service. Our focus
will remain
For More Information Contact:
- -----------------------------
Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
on providing the best in class reliability through the use of commercial off the
shelf hardware. During 2006 we anticipate introducing a new line of higher
density server /storage systems which will add RAM storage and streaming
capability to the MediaHawk 4000 system. The intelligence built into these
systems is derived from six years of real world experience across multiple
settop and client platforms in over 100 installations serving over 25 million
basic subscribers. Fully backward compatible with our existing installations, we
believe the new products will add a new level of resilience, scalability and
reliability while preserving existing investments," said Mr. Trimm.
As previously announced, Concurrent Computer Corporation will hold a conference
call to discuss its fourth quarter and fiscal 2005 results on August 12 at 10:00
a.m. E.D.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 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. Examples of
forward looking statements in this press release include, without limitation,
our expectation with regard to operating expenses, anticipated growth in the
markets for our on-demand and real-time products, and the performance of our
MediaHawk 4000 platform. All forward-looking statements are subject to certain
risks and uncertainties that could cause actual events to differ materially from
those projected. The risks
For More Information Contact:
- -----------------------------
Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
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 - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30. MARCH 31, JUNE 30,
2005 2005 2004
(UNAUDITED) (UNAUDITED)
------------ ----------- ----------
ASSETS
Cash and cash equivalents $ 19,880 $ 19,828 $ 27,928
Trade accounts receivable, net 16,577 18,349 10,192
Inventories, net 5,071 6,694 9,617
Prepaid expenses and other current assets 1,084 2,080 1,378
------------ ----------- ----------
Total current assets 42,612 46,951 49,115
Property, plant and equipment, net 8,319 8,968 11,569
Purchased developed computer software, net 823 871 1,013
Goodwill 10,744 10,744 10,744
Investment in minority owned company 140 140 553
Other long-term assets, net 1,339 1,426 1,548
------------ ----------- ----------
Total assets $ 63,977 $ 69,100 $ 74,542
============ =========== ==========
LIABILITIES
Accounts payable and accrued expenses $ 12,055 $ 14,398 $ 12,069
Notes payable to bank, current portion 954 934 -
Deferred revenue 6,692 6,825 10,668
------------ ----------- ----------
Total current liabilities 19,701 22,157 22,737
Long-term deferred revenue 2,349 2,987 4,117
Notes payable to bank, less current portion 1,583 1,828 -
Other long-term liabilities 1,991 2,174 1,962
STOCKHOLDERS' EQUITY
Common stock 637 637 628
Additional paid-in capital 175,769 175,806 174,338
Retained earnings (deficit) (136,455) (135,371) (128,712)
Treasury stock - - (42)
Unearned compensation (1,562) (1,574) (351)
Accumulated other comprehensive income (loss) (36) 456 (135)
------------ ----------- ----------
Total stockholders' equity 38,353 39,954 45,726
------------ ----------- ----------
Total liabilities and stockholders' equity $ 63,977 $ 69,100 $ 74,542
============ =========== ==========
CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED JUNE 30, TWELVE MONTHS ENDED JUNE 30,
---------------------------------- ----------------------------------
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
---------------- ---------------- ---------------- ----------------
Revenues:
Product revenues $ 16,371 $ 8,027 $ 57,070 $ 56,947
Service revenues 5,111 6,069 21,615 22,288
---------------- ---------------- ---------------- ----------------
Total revenues 21,482 14,096 78,685 79,235
Cost of sales:
Product cost of sales 7,759 5,323 27,053 28,091
Service cost of sales 2,952 3,316 12,856 12,422
---------------- ---------------- ---------------- ----------------
Total cost of sales 10,711 8,639 39,909 40,513
---------------- ---------------- ---------------- ----------------
Gross margin 10,771 5,457 38,776 38,722
Operating expenses:
Sales and marketing 4,871 4,534 17,768 17,302
Research and development 4,449 5,536 18,748 20,000
General and administrative 2,573 3,071 9,717 10,071
Gain on liquidation of foreign subsidiary - (111) - (111)
---------------- ---------------- ---------------- ----------------
Total operating expenses 11,893 13,030 46,233 47,262
---------------- ---------------- ---------------- ----------------
Operating loss (1,122) (7,573) (7,457) (8,540)
Recovery (loss) of minority investment - 56 (313) 3,103
Other income (expense) (302) 142 (231) 184
---------------- ---------------- ---------------- ----------------
Loss before income taxes (1,424) (7,375) (8,001) (5,253)
Provision (benefit) for income taxes (340) 112 (272) 472
---------------- ---------------- ---------------- ----------------
Net loss $ (1,084) $ (7,487) $ (7,729) $ (5,725)
================ ================ ================ ================
Basic net loss per share $ (0.02) $ (0.12) $ (0.12) $ (0.09)
================ ================ ================ ================
Diluted net loss per share $ (0.02) $ (0.12) $ (0.12) $ (0.09)
================ ================ ================ ================
Basic weighted average shares outstanding 62,764 62,616 62,737 62,392
================ ================ ================ ================
Diluted weighted average shares outstanding 62,764 62,616 62,737 62,392
================ ================ ================ ================