FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
SECOND QUARTER FISCAL YEAR 2007 FINANCIAL RESULTS
Strong VOD Growth
ATLANTA, GEORGIA, JANUARY 26, 2007 - Concurrent (Nasdaq: CCUR), a worldwide
leader of on-demand technology and real-time computing technology, today
announced its results for the second quarter of its fiscal year ended June 30,
2007.
Company-wide revenue aggregated $17.1 million compared to $14.8 million in the
first quarter of fiscal 2007, an increase of 15.9%. Revenue from Concurrent's
on-demand product line totaled $10.9 million for the second quarter of fiscal
2007 compared to $8.0 million in the first quarter of fiscal 2007, an increase
of 36.6%. Revenue from the company's real-time product line totaled $6.2
million for the second quarter of fiscal 2007 compared to $6.8 million in the
first quarter of fiscal 2007, a decrease of 8.6%.
The net loss for the second quarter of fiscal 2007 was $3.5 million, or a loss
of $0.05 per fully diluted share, compared to a net loss of $4.9 million, or a
loss of $0.07 per fully diluted share, in the first quarter of fiscal 2007.
Consolidated gross margins for the second quarter of fiscal 2007 were 43%
compared to 47% in the first quarter of fiscal 2007. The reduced gross margins
were the result of multiple factors including lower sales of high margin items
by the real-time business and pricing pressure on the MediaHawk 4000 products in
anticipation of wide release of the new MediaHawk 4500. The Company used $2.0
million during the quarter, ending the quarter with a cash balance of $8.3
million.
"Given the fact that we are at the beginning of two new product cycles, I am
pleased with these results and progress on our plan for the year," stated Gary
Trimm, Concurrent president and chief executive officer. "We have continued to
drive down operating expenses which were $10.7 million in the quarter, a
decrease of a million dollars from the first quarter, while delivering what I
believe to be the best, most robust and fault tolerant video server available in
the market. Additionally, although the top-line does not reflect any Novell
sales of SUSE Linux Enterprise Real Time, we continue to make progress with
trial deployments while enhancing the product with new features needed by our
enterprise and financial
For More Information Contact:
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Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
customers. In addition, we believe our Everstream products have captured a
substantial majority share of the data analytics space for VOD with great
possibilities for growth, as broadband providers seek to capitalize on the
potential for targeted advertisement and audience measurement. We have continued
our evolution to a software company providing best of breed products while
effectively managing costs and redistributing assets to meet customer demands.
We believe we are on-track with our products and our internal structure and
continue to believe we are executing on our business plan to achieve
profitability."
Concurrent Computer Corporation will hold a conference call to discuss these
results on Friday, January 26, 2007 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,
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Investor 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, 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.
For More Information Contact:
- -----------------------------
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; delays or cancellations of customer orders; changes in
product demand; economic conditions; our ability to satisfy the financial
covenants in the credit agreement; 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 impact of competition on the
pricing of VOD products; 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; privacy issues regarding data collection; the success of our relationship
with Alcatel and Novell; and the availability of debt or equity financing to
support our liquidity needs if cash flow does not improve.
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 BALANCE SHEETS
(IN THOUSANDS)
DECEMBER 31 SEPTEMBER 30 JUNE 30,
2006 2006 2006
(UNAUDITED) (UNAUDITED)
------------- -------------- ----------
ASSETS
Cash and cash equivalents $ 8,335 $ 10,342 $ 14,423
Trade accounts receivable, net 14,439 14,360 15,111
Inventories, net 5,617 6,146 6,164
Prepaid expenses and other current assets 1,857 2,075 1,578
------------- -------------- ----------
Total current assets 30,248 32,923 37,276
Property, plant and equipment, net 5,320 5,533 6,015
Intangible assets, net 8,243 8,514 8,787
Goodwill 15,560 15,560 15,560
Other long-term assets, net 921 974 1,120
------------- -------------- ----------
Total assets $ 60,292 $ 63,504 $ 68,758
============= ============== ==========
LIABILITIES
Accounts payable and accrued expenses $ 11,787 $ 11,601 $ 11,581
Revolving bank line of credit 1,077 - -
Notes payable to bank, current portion - 1,055 1,034
Short term note payable 281 487 -
Deferred revenue 6,700 6,701 7,277
------------- -------------- ----------
Total current liabilities 19,845 19,844 19,892
Long-term deferred revenue 1,115 1,393 1,602
Notes payable to bank, less current portion - 278 549
Other long-term liabilities 3,086 2,933 2,941
STOCKHOLDERS' EQUITY
Common stock 717 716 716
Additional paid-in capital 190,193 189,588 189,409
Retained earnings (deficit) (154,183) (150,652) (145,800)
Treasury stock (30) (6) (13)
Accumulated other comprehensive loss (451) (590) (538)
------------- -------------- ----------
Total stockholders' equity 36,246 39,056 43,774
------------- -------------- ----------
Total liabilities and stockholders' equity $ 60,292 $ 63,504 $ 68,758
============= ============== ==========
CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED DECEMBER 31, SIX MONTHS ENDED DECEMBER 31,
------------------------------ ------------------------------
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------- -------------- -------------- --------------
Revenues:
Product $ 11,685 $ 12,750 $ 21,017 $ 23,693
Service 5,449 6,106 10,898 11,370
-------------- -------------- -------------- --------------
Total revenues 17,134 18,856 31,915 35,063
Cost of sales:
Product 6,998 6,084 12,186 11,452
Service 2,721 2,855 5,360 5,600
-------------- -------------- -------------- --------------
Total cost of sales 9,719 8,939 17,546 17,052
-------------- -------------- -------------- --------------
Gross margin 7,415 9,917 14,369 18,011
Operating expenses:
Sales and marketing 4,133 4,234 8,446 8,362
Research and development 4,107 4,900 8,759 9,238
General and administrative 2,502 2,379 5,245 4,902
-------------- -------------- -------------- --------------
Total operating expenses 10,742 11,513 22,450 22,502
-------------- -------------- -------------- --------------
Operating loss (3,327) (1,596) (8,081) (4,491)
Other income (expense) (271) 18 (151) 777
-------------- -------------- -------------- --------------
Loss before income taxes (3,598) (1,578) (8,232) (3,714)
Provision (benefit) for income taxes (67) 26 151 73
-------------- -------------- -------------- --------------
Net loss $ (3,531) $ (1,604) $ (8,383) $ (3,787)
============== =============== ============= ==============
Basic net loss per share $ (0.05) $ (0.02) $ (0.12) $ (0.06)
============== =============== ============= ==============
Diluted net loss per share $ (0.05) $ (0.02) $ (0.12) $ (0.06)
============== =============== ============= ==============
Basic weighted average shares outstanding 71,600 70,385 71,567 66,578
============== =============== ============= ==============
Diluted weighted average shares outstanding 71,600 70,385 71,567 66,578
============== =============== ============= ==============