Concurrent Computer Corporation Announces First Quarter Fiscal 2003 Financial Results; Concurrent Achieves 57% Year Over Year Revenue Growth.Business Editors ATLANTA--(BUSINESS WIRE)--Oct. 28, 2002 Concurrent Computer Corporation  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . (Nasdaq:CCUR CCUR Center for Crops Utilization Research ) today announced that for the quarter ended September September: see month. 30, 2002, the Company achieved revenue totaling $22.1 million, up from $14.1 million in the same quarter of the previous year. Company-wide gross margins were 54%, up from 46% in the first quarter of the prior year with net income of $620 thousand or $0.01 cent per share compared to a net loss of $3.0 million or $0.05 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in the same quarter of the prior year. Video-On-Demand The ability to deliver a movie, sports event or other video program to a TV set whenever the customer requests it. Video-on-demand (VOD) typically refers to free and paid programs from the cable TV companies or the telephone companies that offer video over DSL lines. (VOD See video-on-demand. VoD - video on demand ) revenue from its XSTREME Division totaled $13.4 million. This compares to VOD revenue of $3.5 million in the same quarter of the prior year, an increase of 281%. During the first quarter, the Company shipped its MediaHawk(R) Video Servers to nine new markets in support of the commercial deployment of Movies-On-Demand (MOD (1) See modulo and magneto-optic disk. (2) (MODify or MODification) Refers to enhancements made by PC and gaming enthusiasts to their computer systems. "Modders" alter the standard desktop computer for looks, performance or both. ) and Subscription Video-On-Demand (SVOD SVOD Subscription Video on Demand SVOD Stacked Volumetric Optical Disk SVOD Subscription Voice on Demand ). For the second quarter ending December December: see month. 31, 2002, the Company is anticipating revenue from its VOD business to aggregate approximately $7 to $8 million and expects revenue from its Real-Time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. business to be between $9 and $9.5 million. On a consolidated basis, revenues are anticipated to aggregate between $16.0 and $17.5 million in the second quarter, and produce an estimated net loss of between $0.04 and $0.05 cents per share. The Company believes that the second half of the year will be a substantial improvement over the first half, both in revenue and in earnings. Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Necessary, XSTREME Division President stated, "I am pleased to report that this is the third consecutive quarter of profitability for our VOD business. With the addition of 9 new commercial VOD market deployments, we continue to build on our commercial VOD leadership position in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . As of today, Concurrent serves 48 markets with 3.4 million digital subscribers and 11.7 million basic subscribers. In these 48 markets, we have installed 692 servers with the capacity of approximately 228,000 video streams. In the second quarter, the XSTREME Division expects commitments for 4 to 5 new VOD market deployments in addition to new orders driven by operators expanding their existing on-demand On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front offering to include additional applications such as SVOD and Free On Demand (FOD FOD - /fod/ [Abbreviation for "Finger of Death", originally a spell-name from fantasy gaming] To terminate with extreme prejudice and with no regard for other people. From MUDs where the wizard command "FOD " results in the immediate and total death of )." Total revenue from the Company's Real-Time Division was $8.8 million in the first quarter of the current year compared to $10.6 million in the same quarter of the prior year, a decrease of 17%. Gross margins for the current quarter on Real-Time product sales were 57% compared to 53% for the same quarter of the prior year. Paul Meyer
Marie-Paul-Hyacinthe Meyer (January 17, 1840 - September 7, 1917), was a French philologist. , president of Real-Time, commented, "We launched our iHawk(R) line of Intel/RedHawk(R) Linux Linux Nonproprietary operating system (OS) for digital computers. In 1991 Linus Torvalds of Finland began asking for volunteer programmers over the Internet to collaborate on the development of a UNIX-like OS for personal computers; the “1. servers in September, and we are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. by the level of interest shown by both existing and new customers in this high performance, real-time platform. We also recently incorporated Concurrent Federal Systems, Inc. with an office in Tyson's Corner to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our defense program successes and small business status. We anticipate that these initiatives will positively impact Real-Time's business in the second half of this fiscal year." The Company's balance sheet remains solid with $29.1 million in cash and no debt. This is net of the $3 million loaned to Thirdspace Living Limited in September which completed Concurrent's commitments related to the previously announced strategic investment in Thirdspace. Cash generated from operations was $3.4 million for the quarter. Days Sales Outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSO See CSO. ) for the quarter were 75 days down from 89 days in the same quarter of the previous year. Jack Bryant Bry·ant , William Cullen 1794-1878. American poet, critic, and editor known especially for his early nature poems, such as "Thanatopsis" (1817) and "To a Waterfowl" (1821). , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in pleased with our overall performance in the first quarter. In our VOD business we delivered profitable growth in an environment where cable operators are being relatively prudent and cautious in the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. on the timing of their capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . We believe the cable operators recognize the significant competitive and economic value of delivering content on demand and are pursuing a balanced yet aggressive roll out of this service in an effort to accelerate the generation of free cash flow." About Concurrent Concurrent Computer Corporation (http://www.ccur.com) is a worldwide leader in high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" computer systems, software, and servers. Concurrent's XSTREME Division is the worldwide market leader in providing digital VOD systems to the broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). industry. This market includes broadband VOD and rich streaming media See streaming audio, streaming video and digital media hub. applications such as corporate training, education, hospitality, and digital video-to-the-home. Concurrent is also a leading provider of high-performance, real-time computer systems, solutions, and software that focus on hardware-in-the-loop and man-in-the-loop simulation, data acquisition, and industrial control systems for commercial and government markets. Concurrent has 35 years of experience and is providing these best of breed solutions through its offices in North America, Europe, Asia, and Australia. Concurrent is the established leader in the VOD market, serving seven major cable operators in 48 markets with over 3.4 million digital subscribers. Concurrent's proven technology provides one of the most flexible, comprehensive solution for HFC 1. (networking) HFC - Hybrid Fiber Coax. 2. (hardware) HFC - hydrofluorocarbon. , DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary , and IP-based networks. The Company's powerful and scalable VOD systems are based on open standards Specifications for hardware and software that are developed by a standards organization or a consortium involved in supporting a standard. Available to the public for developing compliant products, open standards imply "open systems;" that an existing component in a system can be replaced and are integrated with the leading broadband technologies broadband technology Telecommunications devices, lines, or technologies that allow communication over a wide band of frequencies, and especially over a range of frequencies divided into multiple independent channels for the simultaneous transmission of different signals. . Certain statements made or incorporated by reference in this release may constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the federal securities laws. When used or incorporated by reference in this release, the words "believes," "expects," "estimates," and similar expressions are intended to identify forward-looking statements. Statements regarding future events and developments and our future performance, as well as our expectations, beliefs, plans, estimates, or projections relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the future, are forward-looking statements within the meaning of these laws. 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: 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 limited operating history of our video-on-demand segment; the concentration of our customers; failure to effectively manage growth; delays in testing and introductions of new products; rapid technology changes; demand shifts from high-priced, proprietary real-time systems Real-time systems Computer systems in which the computer is required to perform its tasks within the time restraints of some process or simultaneously with the system it is assisting. to low-priced, open server systems; 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 the entry of new well-capitalized competitors into our markets. Other important risk factors are discussed in our Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on September 25, 2002 and may be discussed in subsequent filings with the SEC. 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. Note to Editors: For additional company or product information from Concurrent Computer Corporation, please contact Concurrent Computer Corporation, 4375 River Green Parkway, 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 http://www.ccur.com. Concurrent Computer Corporation and its logo, MediaHawk, iHawk, and RedHawk are registered and unregistered trademarks of Concurrent Computer Corporation. All other product names are trademarks or registered trademarks of their respective owners.
Concurrent Computer Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
Sept. 30, June 30,
2002 2002
(unaudited)
--------------------
ASSETS
Cash and cash equivalents $29,124 $30,519
Trade accounts receivable, net 18,484 23,894
Inventories 6,679 6,822
Prepaid expenses and other current assets 3,089 1,879
--------------------
Total current assets 57,376 63,114
Property, plant and equipment, net 11,135 10,696
Purchased developed computer software, net 1,346 1,393
Goodwill 10,744 10,744
Investment in minority owned companies 7,826 7,814
Note receivable from minority owned company 6,000 3,000
Other long-term assets, net 1,887 1,927
--------------------
Total assets $96,314 $98,688
====================
LIABILITIES
Accounts payable and accrued expenses $12,099 $15,514
Deferred revenue 4,106 4,055
--------------------
Total current liabilities 16,205 19,569
Long-term deferred revenue 1,902 1,677
Other long-term liabilities 8,528 8,218
STOCKHOLDERS' EQUITY
Common stock 618 618
Additional Paid-in Capital 172,982 172,929
Treasury stock (58) (58)
Retained earnings (deficit) (97,757) (98,377)
Accumulated other comprehensive loss (6,106) (5,888)
--------------------
Total stockholders' equity 69,679 69,224
--------------------
Total liabilities and stockholders' equity $96,314 $98,688
====================
Concurrent Computer Corporation
Condensed Consolidated Statements of Operations
(In Thousands Except Per Share Data)
Three Months Ended
September 30,
-------------------------
2002 2001
(Unaudited) (Unaudited)
------------ ------------
Revenues:
Product:
Real-time systems $4,092 $5,336
Video-on-demand systems 12,449 3,254
------------ ------------
Total product revenues 16,541 8,590
Service:
Real-time systems 4,678 5,253
Video-on-demand systems 922 259
------------ ------------
Total service revenues 5,600 5,512
------------ ------------
Total revenues 22,141 14,102
Cost of sales:
Product:
Real-time systems 1,776 2,501
Video-on-demand systems 5,241 1,888
------------ ------------
Total product cost of sales 7,017 4,389
Service:
Real-time systems 2,607 2,849
Video-on-demand systems 660 404
------------ ------------
Total service cost of sales 3,267 3,253
------------ ------------
Total cost of sales 10,284 7,642
------------ ------------
11,857 6,460
Operating expenses:
Sales and marketing 4,404 4,154
Research and development 4,447 3,461
General and administrative 2,328 1,909
------------ ------------
Total operating expenses 11,179 9,524
------------ ------------
Operating income (loss) 678 (3,064)
Other income 149 204
------------ ------------
Income (loss) before income taxes 827 (2,860)
Provision for income taxes 207 150
------------ ------------
Net income (loss) $620 $(3,010)
============ ============
Basic net income (loss)
per share $0.01 $(0.05)
============ ============
Diluted net income (loss)
per share $0.01 $(0.05)
============ ============
Basic weighted average shares
outstanding 61,860 59,564
============ ============
Diluted weighted average
shares outstanding 62,368 59,564
============ ============
Concurrent Computer Corporation
Segment Data
(In Thousands)
Real-Time Division Xstreme Division
----------------------- -----------------------
Three Months Ended Three Months Ended
----------------------- -----------------------
09/30/02 09/30/01 09/30/02 09/30/01
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
Revenues:
Product $4,092 $5,336 $12,449 $3,254
Service 4,678 5,253 922 259
----------- ----------- ----------- -----------
Total 8,770 10,589 13,371 3,513
Cost of sales:
Product 1,776 2,501 5,241 1,888
Service 2,607 2,849 660 404
----------- ----------- ----------- -----------
Total 4,383 5,350 5,901 2,292
----------- ----------- ----------- -----------
Gross margin 4,387 5,239 7,470 1,221
Operating expenses
Sales and
marketing 1,860 1,675 2,544 2,479
Research and
development 1,399 1,232 3,048 2,229
General and
administrative 1,004 919 1,324 990
----------- ----------- ----------- -----------
Total operating
expenses 4,263 3,826 6,916 5,698
----------- ----------- ----------- -----------
Operating income (loss) $124 $1,413 $554 $(4,477)
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