Concurrent Computer Corporation Announces First Quarter Fiscal Year 2005 Financial Results.ATLANTA Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. -- 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 NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CCUR CCUR Center for Crops Utilization Research ) today reported results for its first quarter of fiscal year 2005 ended September September: see month. 30, 2004. In the first quarter of fiscal 2005, consolidated revenue for the company aggregated $17.3 million compared to $14.1 million in the fourth quarter of fiscal 2004, an increase of 22.9%, and compared to $18.9 million in the first quarter of fiscal 2004, a decrease of 8.3%. 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 totaled $8.5 million for the first quarter of fiscal 2005 compared to $7.9 million in the fourth quarter of fiscal 2004, an increase of 7.7%, and compared to $10.4 million in the same quarter of the prior year, a decrease of 17.7%. Revenue from the company's Integrated Solutions Division (ISD See IDD. ) in the first quarter of fiscal 2005 totaled $8.8 million compared to $6.2 million in the fourth quarter of fiscal 2004, an increase of 42.4%, and compared to $8.5 million in the same quarter of the prior year, an increase of 3.1%. The net loss for the first quarter of fiscal 2005 was $5.0 million, including severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs of $0.7 million, or $0.08 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to a net loss of $7.5 million or $0.12 per share in the fourth quarter of fiscal 2004 and compared to net income of $0.6 million or $0.01 per fully diluted share in the same quarter of the prior year. "Although our results are an improvement from last quarter, particularly in our ISD Division, North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. VOD fell short of our expectations. Orders for five new market deployments were once again delayed. However, we do expect that these orders will be received and revenue will be recognized in our second quarter," announced Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Trimm, Concurrent president and chief executive officer. "Most of our North American VOD shipments were upgrades to our 4th generation architecture, which negatively impacted our margins," he added. "As evidenced by our recent announcements with C&M Co., Ltd. (C&M) and Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. Digital Cable Media Center Co., Ltd. (KDMC KDMC King's Daughters Medical Center (Ashland, KY) KDMC Kalyan Dombivali Municipal Corporation (India) ), international orders have been strong. We are also currently finalizing two additional new customer announcements, which, together with C&M and KDMC, address approximately 7.5 million basic subscribers. These wins, coupled with strong order flow and backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. in our ISD business, are expected to result in improving revenues and operating results for the second and third quarters of our fiscal 2005." As previously announced, Concurrent Computer Corporation will hold a conference call to discuss its first quarter of fiscal 2005 results on October October: see month. 22, 2004 at 10:00 a.m. E.T., which will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the on the company's web page at www.ccur.com, Investor Relations Investor relations The process by which the corporation communicates with its investors. page. About Concurrent Concurrent Computer Corporation (www.ccur.com) is a worldwide 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 and 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. computer systems for industry and government. Concurrent's VOD systems are utilized within both the domestic and international broadband cable, 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 markets. Concurrent's proven technology provides a flexible, comprehensive, robust solution for HFC 1. (networking) HFC - Hybrid Fiber Coax. 2. (hardware) HFC - hydrofluorocarbon. , DSL, 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. . Concurrent is also a leading provider of 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" , 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 nearly four decades of experience in real-time technology and provides its best of breed solutions through offices 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. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Asia, and
Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. .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," "anticipates," 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: 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 Predatory pricing (also known as destroyer pricing) is the practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors. pressures; failure to effectively service the installed base; the entry of new well-capitalized competitors into our markets; the success of new products in both the VOD and ISD divisions; the availability of Linux software in light of issues raised by SCO group The SCO Group, Inc. (TSG, informally SCO; NASDAQ: SCOX) is a software company formerly called Caldera Systems and Caldera International. After acquiring the Santa Cruz Operation's Server Software and Services divisions, as well as UnixWare and ; 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. patterns by a limited customer base; and obligations that could impact revenue recognition. 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 Sept. 7, 2004 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. 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. Concurrent Computer Corporation, its logo and MediaHawk 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)
September 30, June 30,
2004 2004
(unaudited)
-----------------------
ASSETS
Cash and cash equivalents $ 18,779 $ 27,928
Trade accounts receivable, net 11,421 10,192
Inventories, net 7,378 9,617
Prepaid expenses and other current assets 2,452 1,378
--------- ---------
Total current assets 40,030 49,115
Property, plant and equipment, net 10,851 11,569
Purchased developed computer software, net 966 1,013
Goodwill 10,744 10,744
Investment in minority owned company 553 553
Other long-term assets, net 1,450 1,548
--------- ---------
Total assets $ 64,594 $ 74,542
========= =========
LIABILITIES
Accounts payable and accrued expenses $ 11,004 $ 12,069
Deferred revenue 6,607 10,668
--------- ---------
Total current liabilities 17,611 22,737
Long-term deferred revenue 3,986 4,117
Other long-term liabilities 2,034 1,962
STOCKHOLDERS' EQUITY
Common stock 629 628
Additional paid-in capital 174,375 174,338
Retained earnings (deficit) (133,747) (128,712)
Treasury stock - (42)
Unearned compensation (335) (351)
Accumulated other comprehensive income (loss) 41 (135)
--------- ---------
Total stockholders' equity 40,963 45,726
--------- ---------
Total liabilities and stockholders' equity $ 64,594 $ 74,542
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Concurrent Computer Corporation
Condensed Consolidated Statements of Operations
(In Thousands Except Per Share Data)
Three Months Ended
September 30,
-------------------------
2004 2003
(Unaudited) (Unaudited)
------------ ------------
Revenues:
Product:
ISD systems $ 5,533 $ 4,394
Video-on-demand systems 6,054 9,147
------- -------
Total product revenues 11,587 13,541
Service:
ISD systems 3,274 4,146
Video-on-demand systems 2,469 1,215
------- -------
Total service revenues 5,743 5,361
------- -------
Total revenues 17,330 18,902
Cost of sales:
Product:
ISD systems 2,457 1,356
Video-on-demand systems 4,210 3,657
------- -------
Total product cost of sales 6,667 5,013
Service:
ISD systems 2,003 2,184
Video-on-demand systems 1,521 755
------- -------
Total service cost of sales 3,524 2,939
------- -------
Total cost of sales 10,191 7,952
------- -------
Gross margin 7,139 10,950
Operating expenses:
Sales and marketing 4,477 4,080
Research and development 5,180 4,668
General and administrative 2,506 2,169
------- -------
Total operating expenses 12,163 10,917
------- -------
Operating income (loss) (5,024) 33
Recovery of minority investment - 1,060
Other income (expense) 57 (74)
------- -------
Income (loss) before income taxes (4,967) 1,019
Provision for income taxes 54 407
------- -------
Net income (loss) $(5,021) $ 612
======= =======
Basic net income (loss) per share $ (0.08) $ 0.01
======= =======
Diluted net income (loss) per share $ (0.08) $ 0.01
======= =======
Basic weighted average shares outstanding 62,852 62,369
======= =======
Diluted weighted average shares outstanding 62,852 63,006
======= =======
Concurrent Computer Corporation
Segment Data
(In Thousands)
Integrated Solutions VOD Division
Division
----------------------- ----------------------
Three Months Ended Three Months Ended
----------------------- -----------------------
09/30/04 09/30/03 09/30/04 09/30/03
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
Revenues:
Product $ 5,533 $ 4,394 $ 6,054 $ 9,147
Service 3,274 4,146 2,469 1,215
--------- --------- --------- ---------
Total 8,807 8,540 8,523 10,362
Cost of sales:
Product 2,457 1,356 4,210 3,657
Service 2,003 2,184 1,521 755
--------- --------- --------- ---------
Total 4,460 3,540 5,731 4,412
--------- --------- --------- ---------
Gross margin 4,347 5,000 2,792 5,950
Operating expenses
Sales and marketing 1,935 1,807 2,542 2,273
Research and development 1,575 1,482 3,605 3,186
General and administrative 1,111 1,094 1,395 1,075
--------- --------- --------- ---------
Total operating
expenses 4,621 4,383 7,542 6,534
--------- --------- --------- ---------
Operating income (loss) $ (274) $ 617 $ (4,750) $ (584)
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