EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONCURRENT COMPUTER CORPORATION ANNOUNCES
THIRD QUARTER FISCAL YEAR 2007 FINANCIAL RESULTS
Bottom-line and Margins Improve
ATLANTA, GEORGIA, MAY 4, 2007 - Concurrent (Nasdaq: CCUR), a worldwide leader of
on-demand technology and real-time computing technology, today announced its
results for the third quarter of its fiscal year ended March 31, 2007.
The Company had an increase in cash of $0.4 million during the quarter, ending
the quarter with a cash balance of $8.8 million. The Company improved its net
loss for the third quarter of fiscal 2007 to $3.1 million, or a loss of $0.04
per fully diluted share, compared to a net loss of $3.5 million, or a loss of
$0.05 per fully diluted share, in the second quarter of fiscal 2007. The Company
also improved consolidated gross margins for the third quarter of fiscal 2007 to
49% compared to 43% in the second quarter of fiscal 2007. The increased gross
margins were the result of increased software sales for the on-demand business
and improved service gross margins.
These bottom-line results were accomplished with company-wide revenue of $16.1
million in the third quarter of fiscal 2007 compared to $17.1 million in the
second quarter of fiscal 2007, a decrease of 5.8%. Revenue from Concurrent's
On-Demand product line totaled $10.3 million for the third quarter of fiscal
2007 compared to $10.9 million in the second quarter of fiscal 2007, a decrease
of 5.5%. Revenue from the company's Real-Time product line totaled $5.8 million
for the third quarter of fiscal 2007 compared to $6.2 million in the second
quarter of fiscal 2007, a decrease of 6.3%.
"We made good improvement in our financial metrics with the exception of
revenue. Our On-Demand revenue was down slightly from the previous quarter due
largely to a late change of terms in an Everstream contract which negatively
impacted the revenue in the quarter. In our Real-Time business we made
significant progress toward closing orders for our real-time operating systems
software involving major financial institutions, but revenue from those products
was minimal in the quarter," stated Gary Trimm, Concurrent's president & chief
executive officer. "Cash and margins both improved and operating expenses
continued a downward trend. We see a strong demand for our On-Demand products
for the next few quarter as the Media Hawk 4500, our new back-office system and
Everstream products demonstrate their value and add new capabilities for
customers. We feel that the market is driven by the need for higher content
ingest and the associated increase in storage and streaming as VOD continues to
grow in importance for the operators. Along with this, comes the need for
advanced reporting, analysis and advertising measurement which bodes well for
our growing Everstream business. With recent wins, we estimate that Everstream
will cover approximately 85% of U.S. subscribers."
For More Information Contact:
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Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
Concurrent Computer Corporation will hold a conference call to discuss these
results on Friday, May 4, 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, 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, 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 respect to the demand
for our On-Demand and Everstream products. 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; 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
For More Information Contact:
- -----------------------------
Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
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 (the SEC) on September 1, 2006 and our Form
10-Q for the second quarter of 2007 filed with the SEC on February 9, 2007 and
may be discussed in subsequent filings with the SEC. The risk factors discussed
in such Form 10-K and Form 10-Q 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 (UNAUDITED)
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED MARCH 31, NINE MONTHS ENDED MARCH 31,
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2007 2006 2007 2006
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Revenues:
Product $ 10,492 $ 15,133 $ 31,509 $ 38,826
Service 5,656 5,500 16,554 16,870
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Total revenues 16,148 20,633 48,063 55,696
Cost of sales:
Product 5,788 7,456 17,974 18,908
Service 2,487 2,944 7,847 8,544
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Total cost of sales 8,275 10,400 25,821 27,452
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Gross margin 7,873 10,233 22,242 28,244
Operating expenses:
Sales and marketing 3,539 4,053 11,985 12,415
Research and development 4,587 4,852 13,346 14,090
General and administrative 2,506 2,395 7,751 7,297
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Total operating expenses 10,632 11,300 33,082 33,802
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Operating loss (2,759) (1,067) (10,840) (5,558)
Other income (expense) (7) 33 (158) 810
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Loss before income taxes (2,766) (1,034) (10,998) (4,748)
Provision for income taxes 310 14 461 87
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Net loss $ (3,076) $ (1,048) $ (11,459) $ (4,835)
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Basic net loss per share $ (0.04) $ (0.01) $ (0.16) $ (0.07)
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Diluted net loss per share $ (0.04) $ (0.01) $ (0.16) $ (0.07)
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Basic weighted average shares outstanding 71,646 71,373 71,593 68,153
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Diluted weighted average shares outstanding 71,646 71,373 71,593 68,153
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CONCURRENT COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, DECEMBER 31, JUNE 30,
2007 2006 2006
(UNAUDITED) (UNAUDITED)
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ASSETS
Cash and cash equivalents $ 8,750 $ 8,335 $ 14,423
Trade accounts receivable, net 14,427 14,439 15,111
Inventories 4,587 5,617 6,164
Prepaid expenses and other current assets 1,921 1,857 1,578
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Total current assets 29,685 30,248 37,276
Property, plant and equipment, net 4,893 5,320 6,015
Intangible assets, net 7,971 8,243 8,787
Goodwill 15,560 15,560 15,560
Other long-term assets 908 921 1,120
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Total assets $ 59,017 $ 60,292 $ 68,758
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LIABILITIES
Accounts payable and accrued expenses $ 12,873 $ 12,087 $ 11,581
Revolving bank line of credit 1,077 1,077 -
Notes payable to bank, current portion - - 1,034
Short term note payable 71 281 -
Deferred revenue 7,708 6,700 7,277
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Total current liabilities 21,729 20,145 19,892
Long-term deferred revenue 911 1,115 1,602
Notes payable to bank, less current portion - - 549
Other long-term liabilities 3,184 3,086 2,941
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Total liabilities 25,824 24,346 24,984
STOCKHOLDERS' EQUITY
Common stock 717 717 716
Additional paid-in capital 190,091 189,893 189,409
Accumulated deficit (157,259) (154,183) (145,800)
Treasury stock, at cost - (30) (13)
Accumulated other comprehensive loss (356) (451) (538)
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Total stockholders' equity 33,193 35,946 43,774
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Total liabilities and stockholders' equity $ 59,017 $ 60,292 $ 68,758
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