EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
THIRD QUARTER OF FISCAL YEAR 2006 FINANCIAL RESULTS
Revenue Growth Continues - On-Demand Strong
ATLANTA, GEORGIA, APRIL 21, 2006 - Concurrent (Nasdaq: CCUR), a worldwide
leader of on-demand and real-time computing technology, today announced its
results for the third quarter of fiscal year 2006.
In the third quarter of fiscal 2006, consolidated revenue for the company
aggregated $20.6 million compared to $18.9 million in the second quarter of
fiscal 2006, an increase of 9.4%. Revenue from Concurrent's on-demand product
line totaled $11.6 million for the third quarter of fiscal 2006 compared to $9.8
million in the second quarter of fiscal 2006, an increase of 19.1%. Revenue
from the company's real-time product line totaled $9.0 million for the third
quarter of fiscal 2006 compared to $9.1 million in the second quarter of fiscal
2006, a decrease of 1.0%. Cash at the end of the third quarter of fiscal 2006
totaled $14.8 million, a decrease of $2.2 million from the prior quarter.
The net loss for the third quarter of fiscal 2006 was $1.0 million, or a
loss of $0.01 per fully diluted share, compared to a net loss of $1.6 million,
or a loss of $0.02 per fully diluted share, in the second quarter of fiscal
2006.
"We are pleased to report continued revenue growth on a consolidated basis
with particularly strong sales from our on-demand group," said Gary Trimm,
Concurrent's president and chief executive officer. "The on-demand market is
improving and the potential for sales of our real-time operating system software
into broad markets make us optimistic about our opportunities going forward. We
have won a number of new VOD systems as well as upgrades and enhancements to
our installed base and additional "Startover" projects. Our Everstream
subsidiary completed its first deployment outside North America at J:COM in
Japan and marked a milestone of now monitoring over 14 million digital
subscribers. We anticipate growing revenues in the coming quarters which,
coupled with sound fundamentals, should extend our trend of sequential
improvements."
As previously announced, Concurrent Computer Corporation will hold a conference
call to discuss its third quarter fiscal 2006 results on April 21, 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 (NASDAQ: CCUR) is a leading provider of high-performance, real-time
Linux software and solutions for commercial and government markets. For 40
years Concurrent's best-of-breed products have enabled a range of time-critical
solutions including: modeling and simulation, high speed data acquisition,
visual imaging, low latency transaction processing and on-demand television.
Concurrent's on-demand television applications are utilized by major service
providers in the cable and IPTV industries to deliver video-on-demand (VOD).
Concurrent is a global company with regional offices in North America, Europe,
Asia and Australia, and has products actively deployed in more than 24
countries. Concurrent's products and services are recognized for being uniquely
flexible, comprehensive, robust and reliable. For more information, please
visit www.ccur.com.
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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 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 STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED MARCH 31, NINE MONTHS ENDED MARCH 31,
--------------------------------- --------------------------------
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------- ----------------- ------------- -----------------
Revenues:
Product $ 15,133 $ 14,391 $ 38,826 $ 40,699
Service 5,500 5,458 16,870 16,504
-------------- ----------------- ------------- -----------------
Total revenues 20,633 19,849 55,696 57,203
Cost of sales:
Product 7,456 5,747 18,908 19,294
Service 2,944 3,132 8,544 9,904
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Total cost of sales 10,400 8,879 27,452 29,198
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Gross margin 10,233 10,970 28,244 28,005
Operating expenses:
Sales and marketing 4,053 4,333 12,415 12,897
Research and development 4,852 4,447 14,090 14,299
General and administrative 2,395 2,363 7,297 7,144
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Total operating expenses 11,300 11,143 33,802 34,340
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Operating loss (1,067) (173) (5,558) (6,335)
Loss on minority investment - - - (313)
Other income - net 33 (2) 810 71
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Loss before income taxes (1,034) (175) (4,748) (6,577)
Provision for income taxes 14 2 87 68
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Net loss $ (1,048) $ (177) $ (4,835) $ (6,645)
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Basic net loss per share $ (0.01) $ (0.00) $ (0.07) $ (0.11)
============== ================= ============= =================
Diluted net loss per share $ (0.01) $ (0.00) $ (0.07) $ (0.11)
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Basic weighted average shares outstanding 71,373 62,758 68,153 62,728
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Diluted weighted average shares outstanding 71,373 62,758 68,153 62,728
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, DECEMBER 31, JUNE 30,
2006 2005 2005
(UNAUDITED) (UNAUDITED)
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ASSETS
Cash and cash equivalents $ 14,811 $ 17,050 $ 19,880
Trade accounts receivable, net 19,978 15,495 16,577
Inventories, net 5,245 6,640 5,071
Prepaid expenses and other current assets 2,026 2,176 1,084
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Total current assets 42,060 41,361 42,612
Property, plant and equipment, net 6,570 6,899 8,319
Intangible assets, net 9,059 9,331 823
Goodwill 15,590 15,590 10,744
Investment in minority owned company - - 140
Other long-term assets, net 1,106 1,086 1,339
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Total assets $ 74,385 $ 74,267 $ 63,977
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LIABILITIES
Accounts payable and accrued expenses $ 12,591 $ 12,667 $ 12,055
Notes payable to bank, current portion 1,013 993 954
Deferred revenue 7,714 6,706 6,692
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Total current liabilities 21,318 20,366 19,701
Long-term deferred revenue 1,944 1,843 2,349
Notes payable to bank, less current portion 815 1,077 1,583
Other long-term liabilities 2,108 2,046 1,991
STOCKHOLDERS' EQUITY
Common stock 715 714 637
Additional paid-in capital 189,164 188,879 175,769
Retained earnings (deficit) (141,290) (140,242) (136,455)
Treasury stock (27) (34) -
Unearned compensation - - (1,562)
Accumulated other comprehensive loss (362) (382) (36)
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Total stockholders' equity 48,200 48,935 38,353
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Total liabilities and stockholders' equity $ 74,385 $ 74,267 $ 63,977
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