EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
FIRST QUARTER OF FISCAL YEAR 2006 FINANCIAL RESULTS
ATLANTA, GEORGIA, OCTOBER 21, 2005 - Concurrent (Nasdaq: CCUR), a worldwide
leader of on-demand and real-time computing technology, today announced its
results for the first quarter of fiscal year 2006.
In the first quarter of fiscal 2006, consolidated revenue for the company
aggregated $16.2 million compared to $21.5 million in the fourth quarter of
fiscal 2005, a decrease of 24.6%, and compared to $17.3 million in the first
quarter of fiscal 2005, a decrease of 6.5%. Revenue from Concurrent's on-demand
product line totaled $7.3 million for the first quarter of fiscal 2006 compared
to $11.7 million in the fourth quarter of fiscal 2005, a decrease of 37.3%, and
compared to $8.5 million in the first quarter of the prior year, a decrease of
14.3%. Revenue from the company's real-time product line totaled $ 8.9 million
for the first quarter of fiscal 2006 compared to $9.8 million in the fourth
quarter of fiscal 2005, a decrease of 9.4%, and compared to $8.8 million in the
first quarter of the prior year, an increase of 1.1%.
The net loss for the first quarter of fiscal 2006 was $2.2 million, or a loss of
$0.03 per fully diluted share, compared to a net loss of $1.1 million, or a loss
of $0.02 per fully diluted share, in the fourth quarter of fiscal 2005, and
compared to a net loss of $5.0 million or $0.08 per fully diluted share in the
first quarter of the prior year.
"We knew this would be a down quarter for us due to cutbacks in end of year
spending by some cable MSOs and delays on some projects in our real-time
business," said Gary Trimm, Concurrent's president and chief executive officer.
"We were able to return our operating expenses to planned level in the quarter
through tight controls and strong management. While we believe our customers
are pleased with our products and performance, it appears that we are in the
midst of a low capital spending cycle with some of our major cable customers as
they prepare for calendar 2006. We are excited about the Everstream acquisition
as it manifests the fact that Concurrent is a software company and will be
quickly accretive to our earnings growth. In addition to the acquisition, we
are pleased that our real-time operating system and tools, RedHawk(TM) Linux and
NightStar(TM), have been embraced as best-of-breed as evidenced in our recent
win of the next generation Aegis program and acceptance as an Advanced Member of
the IBM Partnerworld Program. Our business fundamentals are sound and we
believe the revenues will get back on-track over the next few quarters."
As previously announced, Concurrent Computer Corporation will hold a conference
call to discuss its first quarter fiscal 2006 results on October 21 at 9:00 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. 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 future
revenues, integration of Everstream, anticipated growth in the markets for our
on-demand and real-time products, and the performance of our products. All
forward-looking statements are subject to certain risks and uncertainties that
could cause actual events to differ materially from those projected.
Such risks and uncertainties include our ability to integrate the acquisition
and realize expected synergies, achieve revenue goals, and win new
opportunities. In addition, 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. 2, 2005 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.
Concurrent Computer Corporation, its logo and are registered trademarks of
Concurrent Computer Corporation. All other product names are trademarks or
registered trademarks of their respective owners.
# # #
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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SEPTEMBER 30,
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2005 2004
(Unaudited) (Unaudited)
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Revenues:
Product $ 10,943 $ 11,587
Service 5,264 5,743
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Total revenues 16,207 17,330
Cost of sales:
Product 5,368 6,667
Service 2,745 3,524
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Total cost of sales 8,113 10,191
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Gross margin 8,094 7,139
Operating expenses:
Sales and marketing 4,128 4,477
Research and development 4,338 5,180
General and administrative 2,523 2,506
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Total operating expenses 10,989 12,163
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Operating loss (2,895) (5,024)
Other income 759 57
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Loss before income taxes (2,136) (4,967)
Provision for income taxes 47 54
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Net loss $ (2,183) $ (5,021)
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Basic net loss per share $ (0.03) $ (0.08)
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Diluted net loss per share $ (0.03) $ (0.08)
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Basic weighted average shares outstanding 62,770 62,852
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Diluted weighted average shares outstanding 62,770 62,852
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
SEPTEMBER 30 JUNE 30,
2005 2005
(UNAUDITED)
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ASSETS
Cash and cash equivalents $ 17,435 $ 19,880
Trade accounts receivable, net 14,422 16,577
Inventories, net 5,436 5,071
Prepaid expenses and other current assets 2,176 1,084
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Total current assets 39,469 42,612
Property, plant and equipment, net 7,471 8,319
Purchased developed computer software, net 776 823
Goodwill 10,744 10,744
Investment in minority owned company 140 140
Other long-term assets, net 1,193 1,339
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Total assets $ 59,793 $ 63,977
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LIABILITIES
Accounts payable and accrued expenses $ 10,501 $ 12,055
Notes payable to bank, current portion 973 954
Deferred revenue 6,593 6,692
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Total current liabilities 18,067 19,701
Long-term deferred revenue 2,059 2,349
Notes payable to bank, less current portion 1,333 1,583
Other long-term liabilities 2,038 1,991
STOCKHOLDERS' EQUITY
Common stock 628 637
Additional paid-in capital 174,370 175,769
Retained earnings (deficit) (138,638) (136,455)
Unearned compensation - (1,562)
Accumulated other comprehensive loss (64) (36)
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Total stockholders' equity 36,296 38,353
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Total liabilities and stockholders' equity $ 59,793 $ 63,977
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