EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
FOURTH QUARTER AND FISCAL YEAR 2006 FINANCIAL RESULTS
ATLANTA, GEORGIA, AUGUST 11, 2006 - Concurrent (Nasdaq: CCUR), a worldwide
leader of on-demand technology and real-time computing technology, today
announced its results for the fourth quarter and fiscal year ended June 30,
2006.
Fourth Quarter Results:
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In the fourth quarter of fiscal 2006, company-wide revenue aggregated $15.9
million compared to $20.6 million in the third quarter of fiscal 2006, a
decrease of 22.9%. Revenue from Concurrent's on-demand product line totaled
$8.9 million for the fourth quarter of fiscal 2006 compared to $11.6 million in
the third quarter of fiscal 2006, a decrease of 23.4%. Revenue from the
company's real-time product line totaled $7.0 million for the fourth quarter of
fiscal 2006 compared to $9.0 million in the third quarter of fiscal 2006, a
decrease of 22.2%.
The net loss for the fourth quarter of fiscal 2006 was $4.5 million, or a loss
of $0.06 per fully diluted share, compared to a net loss of $1.0 million, or a
loss of $0.01 per fully diluted share, in the third quarter of fiscal 2006.
Consolidated gross margins for the fourth quarter of fiscal 2006 were 45%
compared to 50% in the third quarter of fiscal 2006. The gross margins were
down primarily due to pricing pressure in the VOD market and a lower revenue
base for the quarter.
Fiscal Year2006Results:
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Company-wide revenue for fiscal year 2006 totaled $71.6 million compared to
$78.7 million in fiscal year 2005, a decrease of 9.0%. For fiscal 2006,
revenue from the company's on-demand product line totaled $37.6 million compared
to $40.0 million in the prior year, a decrease of 5.9% while revenue from the
company's real-time product line totaled $34.0 million in fiscal year 2006
compared to $38.7 million in fiscal year 2005, a decrease of 12.1%. For fiscal
year 2006, the company reported a net loss of $9.3 million, or a loss of $0.14
per fully diluted share, compared to a net loss of $7.7 million, or a loss of
$0.12 per fully diluted share, for fiscal year 2005. Cash at the end of the
fiscal year 2006 totaled $14.4 million compared to $19.9 million at the end of
fiscal year 2005, a decrease of $5.5 million.
For More Information Contact:
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Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
"I am disappointed with our fourth quarter and fiscal year results," said Gary
Trimm, Concurrent president and chief executive officer. He continued, "However,
I am encouraged by the outlook for our software only sales of our real-time
operating system products and the potential for our Everstream products.
Additionally, I believe the release of our Media Hawk 4500 software platform
will leap-frog the competition, reinforcing our position as a technology leader
in the VOD market."
Concurrent Computer Corporation will hold a conference call to discuss these
results on Friday, August 11, 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
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Relations page.
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) and,
through subsidiary company Everstream, measure the effectiveness of interactive
television. 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 our software
only sales of our real-time operating system products, the potential for
Everstream products and our outlook for the release of our Media Hawk 4500
software platform. All forward-looking statements are subject to certain risks
and uncertainties that could cause actual events to differ materially from those
projected.
For More Information Contact:
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Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
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; the
availability of debt or equity financing to support our liquidity needs if cash
flow does not improve; 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 Everstream and it's logo are
registered trademarks of Concurrent Computer Corporation. All other Concurrent
product names are trademarks of Concurrent while all other product names are
trademarks or registered trademarks of their respective owners. Linux(R) is
used pursuant to a sublicense from the Linux Mark Institute.
# # #
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.
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For More Information Contact:
- -----------------------------
Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED JUNE 30, TWELVE MONTHS ENDED JUNE 30,
-------------------------------- ---------------------------------
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------- ---------------- --------------- ----------------
Revenues:
Product $ 10,766 $ 16,371 $ 49,592 $ 57,070
Service 5,150 5,111 22,020 21,615
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Total revenues 15,916 21,482 71,612 78,685
Cost of sales:
Product 6,102 7,759 25,010 27,053
Service 2,689 2,952 11,233 12,856
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Total cost of sales 8,791 10,711 36,243 39,909
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Gross margin 7,125 10,771 35,369 38,776
Operating expenses:
Sales and marketing 4,161 4,871 16,576 17,768
Research and development 4,693 4,449 18,783 18,748
General and administrative 2,293 2,573 9,590 9,717
-------------- ---------------- --------------- ----------------
Total operating expenses 11,147 11,893 44,949 46,233
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Operating loss (4,022) (1,122) (9,580) (7,457)
Loss on minority investment - - - (313)
Other income (expense) - net (61) (302) 749 (231)
-------------- ---------------- --------------- ----------------
Loss before income taxes and cumulative effect
of change in accounting principle (4,083) (1,424) (8,831) (8,001)
Provision (benefit) for income taxes 104 (340) 191 (272)
-------------- ---------------- --------------- ----------------
Net loss before cumulative effect of
change in accounting principle (4,187) (1,084) (9,022) (7,729)
Cumulative effect of accounting change (net of taxes) (323) - (323) -
-------------- ---------------- --------------- ----------------
Net loss $ (4,510) $ (1,084) $ (9,345) $ (7,729)
============== ================ =============== ================
Basic net loss per share $ (0.06) $ (0.02) $ (0.14) $ (0.12)
============== ================ =============== ================
Diluted net loss per share $ (0.06) $ (0.02) $ (0.14) $ (0.12)
============== ================ =============== ================
Basic weighted average shares outstanding 71,503 62,764 68,988 62,737
============== ================ =============== ================
Diluted weighted average shares outstanding 71,503 62,764 68,988 62,737
============== ================ =============== ================
CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, MARCH 31, JUNE 30,
2006 2006 2005
(UNAUDITED) (UNAUDITED)
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ASSETS
Cash and cash equivalents $ 14,423 $ 14,811 $ 19,880
Trade accounts receivable, net 15,111 19,978 16,577
Inventories, net 6,163 5,245 5,071
Prepaid expenses and other current assets 1,578 2,026 1,084
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Total current assets 37,275 42,060 42,612
Property, plant and equipment, net 6,015 6,570 8,319
Intangible assets, net 8,787 9,059 823
Goodwill 15,560 15,590 10,744
Investment in minority owned company - - 140
Other long-term assets, net 1,120 1,106 1,339
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Total assets $ 68,757 $ 74,385 $ 63,977
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LIABILITIES
Accounts payable and accrued expenses $ 11,581 $ 12,591 $ 12,055
Notes payable to bank, current portion 1,583 1,013 954
Deferred revenue 7,277 7,714 6,692
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Total current liabilities 20,441 21,318 19,701
Long-term deferred revenue 1,602 1,944 2,349
Notes payable to bank, less current portion - 815 1,583
Other long-term liabilities 2,941 2,108 1,991
STOCKHOLDERS' EQUITY
Common stock 716 715 637
Additional paid-in capital 189,409 189,164 175,769
Retained earnings (deficit) (145,800) (141,290) (136,455)
Treasury stock (13) (27) -
Unearned compensation - - (1,562)
Accumulated other comprehensive loss (539) (362) (36)
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Total stockholders' equity 43,773 48,200 38,353
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Total liabilities and stockholders' equity $ 68,757 $ 74,385 $ 63,977
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