EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
FIRST QUARTER FISCAL YEAR 2007 FINANCIAL RESULTS
ATLANTA, GEORGIA, OCTOBER 30, 2006 - Concurrent (Nasdaq: CCUR), a worldwide
leader of on-demand technology and real-time computing technology, today
announced its results for the first quarter of its fiscal year ended June 30,
2007.
Company-wide revenue aggregated $14.8 million compared to $15.9 million in the
fourth quarter of fiscal 2006, a decrease of 7%. Revenue from Concurrent's
on-demand product line totaled $8.0 million for the first quarter of fiscal 2007
compared to $8.9 million in the fourth quarter of fiscal 2006, a decrease of
10%. Revenue from the company's real-time product line totaled $6.8 million for
the first quarter of fiscal 2007 compared to $7.0 million in the fourth quarter
of fiscal 2006, a decrease of 3%.
The net loss for the first quarter of fiscal 2007 was $4.9 million, or a loss of
$0.07 per fully diluted share, compared to a net loss of $4.5 million, or a loss
of $0.06 per fully diluted share, in the fourth quarter of fiscal 2006.
Consolidated gross margins for the first quarter of fiscal 2007 were 47%
compared to 45% in the fourth quarter of fiscal 2006.
"Although I am not pleased with these results, they are as we expected. We are
in a period of major transition in both of our product lines as we migrate
customers to the next generation of VOD architecture, the Media Hawk 4500, and
move the real-time business to a software centric model, in part, through our
partnership with Novell," said Gary Trimm, Concurrent president and chief
executive officer. He continued, "I am encouraged by the outlook for sales of
our real-time operating system software products and the success of our
Everstream subsidiary. Additionally, I believe our Media Hawk 4500 video server
system, which we will begin shipping in our second quarter, will outperform our
competition. We believe this architecture will set a new performance standard in
the industry."
Concurrent Computer Corporation will hold a conference call to discuss these
results on Monday, October 30, 2006 at 5:00 p.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.
For More Information Contact:
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Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
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, provide performance measurement systems
for interactive media. 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, our partnership with
Novell, 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.
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
For More Information Contact:
- -----------------------------
Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
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; privacy issues regarding data collection; the success of our relationship
with Novell; 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. 1, 2006 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.
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 SEPTEMBER 30,
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2006 2005
(Unaudited) (Unaudited)
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Revenues:
Product $ 9,332 $ 10,943
Service 5,449 5,264
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Total revenues 14,781 16,207
Cost of sales:
Product 5,188 5,368
Service 2,639 2,745
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Total cost of sales 7,827 8,113
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Gross margin 6,954 8,094
Operating expenses:
Sales and marketing 4,313 4,128
Research and development 4,652 4,338
General and administrative 2,743 2,523
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Total operating expenses 11,708 10,989
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Operating loss (4,754) (2,895)
Other income 120 759
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Loss before income taxes (4,634) (2,136)
Provision for income taxes 218 47
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Net loss $ (4,852) $ (2,183)
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Basic net loss per share $ (0.07) $ (0.03)
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Diluted net loss per share $ (0.07) $ (0.03)
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Basic weighted average shares outstanding 71,535 62,770
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Diluted weighted average shares outstanding 71,535 62,770
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
SEPTEMBER 30 JUNE 30,
2006 2006
(UNAUDITED)
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ASSETS
Cash and cash equivalents $ 10,342 $ 14,423
Trade accounts receivable, net 14,360 15,111
Inventories, net 6,146 6,164
Prepaid expenses and other current assets 2,075 1,578
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Total current assets 32,923 37,276
Property, plant and equipment, net 5,533 6,015
Intangible assets, net 8,514 8,787
Goodwill 15,560 15,560
Other long-term assets, net 974 1,120
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Total assets $ 63,504 $ 68,758
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LIABILITIES
Accounts payable and accrued expenses $ 11,601 $ 11,581
Notes payable to bank, current portion 1,055 1,034
Short term note payable 487 -
Deferred revenue 6,701 7,277
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Total current liabilities 19,844 19,892
Long-term deferred revenue 1,393 1,602
Notes payable to bank, less current portion 278 549
Other long-term liabilities 2,933 2,941
STOCKHOLDERS' EQUITY
Common stock 716 716
Additional paid-in capital 189,588 189,409
Retained earnings (deficit) (150,652) (145,800)
Treasury stock (6) (13)
Accumulated other comprehensive loss (590) (538)
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Total stockholders' equity 39,056 43,774
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Total liabilities and stockholders' equity $ 63,504 $ 68,758
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