EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
SECOND QUARTER OF FISCAL YEAR 2006 FINANCIAL RESULTS
Quarter over Quarter Revenue Growth of 16.3%
ATLANTA, GEORGIA, JANUARY 27, 2006 - Concurrent (Nasdaq: CCUR), a worldwide
leader of on-demand and real-time computing technology, today announced its
results for the second quarter of fiscal year 2006.
In the second quarter of fiscal 2006, consolidated revenue for the company
aggregated $18.9 million compared to $16.2 million in the first quarter of
fiscal 2006, an increase of 16.3%. Revenue from Concurrent's on-demand product
line totaled $9.8 million for the second quarter of fiscal 2006 compared to $7.3
million in the first quarter of fiscal 2006, an increase of 33.7%. Revenue from
the company's real-time product line totaled $9.1 million for the second quarter
of fiscal 2006 compared to $8.9 million in the first quarter of fiscal 2006, an
increase of 2.1%. Cash at the end of the second quarter of fiscal 2006 totaled
$17.0 million, a decrease of $0.4 million from the prior quarter.
The net loss for the second quarter of fiscal 2006 was $1.6 million, or a
loss of $0.02 per fully diluted share, compared to a net loss of $2.2 million,
or a loss of $0.03 per fully diluted share, in the first quarter of fiscal 2006.
"Given the known slowdown in year-end spending in the cable industry, we
are pleased to show quarter over quarter top-line growth," said Gary Trimm,
Concurrent's president and chief executive officer. "We have successfully
completed the integration of Everstream while holding our base operating
expenses in-line. Additionally, we achieved higher overall gross margins partly
due to our continued evolution to a software company. These operating results
combined with the anticipated growth of both the video-on-demand business and
our real-time operating system business indicate improving results in calendar
2006. Our enthusiasm is due to the huge growth in content availability for VOD,
the success of near network DVR applications like "Start Over", and our recent
announcement of a partnership with Novell to sell our real-time Linux operating
system on the SUSE Linux release. Our real-time Linux operating system
continues to gain momentum as the best high performance operating system in the
market. We
anticipate growing revenues in the coming quarters which, coupled with sound
fundamentals, should tend toward positive results."
As previously announced, Concurrent Computer Corporation will hold a conference
call to discuss its second quarter fiscal 2006 results on January 27, 2006 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. 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. Examples of forward looking statements in this press
release include, without limitation, our expectation with regard to future
revenues and revenue growth, anticipated growth in the markets for our on-demand
and real-time products, anticipated positive results, 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 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; the integration of Everstream; and
contractual 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 BALANCE SHEETS
(IN THOUSANDS)
DECEMBER 31, SEPTEMBER 30, JUNE 30,
2005 2005 2005
(UNAUDITED) (UNAUDITED)
-------------- --------------- ------------
ASSETS
Cash and cash equivalents $ 17,050 $ 17,435 $ 19,880
Trade accounts receivable, net 15,495 14,422 16,577
Inventories, net 6,640 5,436 5,071
Prepaid expenses and other current assets 2,176 2,176 1,084
-------------- --------------- ------------
Total current assets 41,361 39,469 42,612
Property, plant and equipment, net 6,899 7,471 8,319
Intangible assets, net 9,331 776 823
Goodwill 15,590 10,744 10,744
Investment in minority owned company - 140 140
Other long-term assets, net 1,086 1,193 1,339
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Total assets $ 74,267 $ 59,793 $ 63,977
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LIABILITIES
Accounts payable and accrued expenses $ 12,667 $ 10,501 $ 12,055
Notes payable to bank, current portion 993 973 954
Deferred revenue 6,706 6,593 6,692
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Total current liabilities 20,366 18,067 19,701
Long-term deferred revenue 1,843 2,059 2,349
Notes payable to bank, less current portion 1,077 1,333 1,583
Other long-term liabilities 2,046 2,038 1,991
STOCKHOLDERS' EQUITY
Common stock 714 628 637
Additional paid-in capital 188,879 174,370 175,769
Retained earnings (deficit) (140,242) (138,638) (136,455)
Treasury stock (34) - -
Unearned compensation - - (1,562)
Accumulated other comprehensive loss (382) (64) (36)
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Total stockholders' equity 48,935 36,296 38,353
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Total liabilities and stockholders' equity $ 74,267 $ 59,793 $ 63,977
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED DECEMBER 31, SIX MONTHS ENDED DECEMBER 31,
------------------------------------- -------------------------------------
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------- ------------------ ----------------- ------------------
Revenues:
Product $ 12,750 $ 14,721 $ 23,693 $ 26,308
Service 6,106 5,303 11,370 11,046
----------------- ------------------ ----------------- ------------------
Total revenues 18,856 20,024 35,063 37,354
Cost of sales:
Product 6,084 6,880 11,452 13,547
Service 2,855 3,248 5,600 6,772
----------------- ------------------ ----------------- ------------------
Total cost of sales 8,939 10,128 17,052 20,319
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Gross margin 9,917 9,896 18,011 17,035
Operating expenses:
Sales and marketing 4,234 4,087 8,362 8,564
Research and development 4,900 4,672 9,238 9,852
General and administrative 2,379 2,275 4,902 4,781
----------------- ------------------ ----------------- ------------------
Total operating expenses 11,513 11,034 22,502 23,197
----------------- ------------------ ----------------- ------------------
Operating loss (1,596) (1,138) (4,491) (6,162)
Loss on minority investment - (313) - (313)
Other income - net 18 16 777 73
----------------- ------------------ ----------------- ------------------
Loss before income taxes (1,578) (1,435) (3,714) (6,402)
Provision for income taxes 26 12 73 66
----------------- ------------------ ----------------- ------------------
Net loss $ (1,604) $ (1,447) $ (3,787) $ (6,468)
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Basic net loss per share $ (0.02) $ (0.02) $ (0.06) $ (0.10)
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Diluted net loss per share $ (0.02) $ (0.02) $ (0.06) $ (0.10)
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Basic weighted average shares outstanding 70,385 62,747 66,578 62,714
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Diluted weighted average shares outstanding 70,385 62,747 66,578 62,714
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