Concurrent Computer Corporation Announces First Quarter of Fiscal Year 2006 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 (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 ), a worldwide leader of 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 and real-time computing “Realtime” redirects here. For other uses, see Realtime (disambiguation). In computer science, real-time computing (RToC) is the study of hardware and software systems which are subject to a "real-time constraint"—i.e. technology, today announced its results for the first quarter of fiscal year 2006. In the first quarter of fiscal 2006, consolidated revenue for the company aggregated $16.2 million compared to $21.5 million in the fourth quarter of fiscal 2005, a decrease of 24.6%, and compared to $17.3 million in the first quarter of fiscal 2005, a decrease of 6.5%. Revenue from Concurrent's on-demand product line totaled $7.3 million for the first quarter of fiscal 2006 compared to $11.7 million in the fourth quarter of fiscal 2005, a decrease of 37.3%, and compared to $8.5 million in the first quarter of the prior year, a decrease of 14.3%. Revenue from the company's 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. product line totaled $ 8.9 million for the first quarter of fiscal 2006 compared to $9.8 million in the fourth quarter of fiscal 2005, a decrease of 9.4%, and compared to $8.8 million in the first quarter of the prior year, an increase of 1.1%. The net loss for the first quarter of fiscal 2006 was $2.2 million, or a loss of $0.03 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 $1.1 million, or a loss of $0.02 per fully diluted share, in the fourth quarter of fiscal 2005, and compared to a net loss of $5.0 million or $0.08 per fully diluted share in the first quarter of the prior year. "We knew this would be a down quarter for us due to cutbacks in end of year spending by some cable MSOs and delays on some projects in our real-time business," said 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's president and chief executive officer. "We were able to return our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. to planned level in the quarter through tight controls and strong management. While we believe our customers are pleased with our products and performance, it appears that we are in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of a low 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. cycle with some of our major cable customers as they prepare for calendar 2006. We are excited about the Everstream acquisition as it manifests the fact that Concurrent is a software company and will be quickly accretive to our earnings growth. In addition to the acquisition, we are pleased that our real-time operating system (operating system) Real-Time Operating System - (RTOS) Any operating system where interrupts are guaranteed to be handled within a certain specified maximum time, thereby making it suitable for control of hardware in embedded systems and other time-critical applications. and tools, RedHawk(TM) 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. and NightStar
Nightstar (TM), have been embraced as best-of-breed The best product of its type. Organizations often purchase software from different vendors in order to obtain the best-of-breed for each application area; for example, a human resources package from one vendor and an accounting package from another. as evidenced in our recent win of the next generation Aegis program and acceptance as an Advanced Member of the IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Partnerworld Program. Our business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point are sound and we believe the revenues will get back on-track over the next few quarters." As previously announced, 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 . will hold a conference call to discuss its first quarter fiscal 2006 results on October 21 at 9:00 a.m. E.D.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 (www.ccur.com) is a global leader in providing digital on-demand 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 computer systems for industry and government. Concurrent's on-demand systems are widely deployed worldwide by major broadband operators and provide a flexible, comprehensive, robust solution which is utilized within 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. The company's powerful and scalable on-demand 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, real-time computer systems, solutions, and software that focus on hardware-in-the-loop and man-in-the-loop simulation, data acquisition and process control for commercial and government markets. Concurrent has nearly four decades of experience in high-performance, on-demand, mission-critical solutions 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, Asia, and Australia. 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. Statements regarding future events and development 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. Examples of forward looking statements in this press release include, without limitation, our expectation with regard to future revenues, integration of Everstream, anticipated growth in the markets for our on-demand and real-time products, and the performance of our products. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. Such risks and uncertainties include our ability to integrate the acquisition and realize expected synergies, achieve revenue goals, and win new opportunities. In addition, 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 on-demand and real-time products; 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 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. 2, 2005 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 are registered trademarks of Concurrent Computer Corporation. All other product names are trademarks or registered trademarks of their respective owners. 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
Condensed Consolidated Statements of Operations
(In Thousands Except Per Share Data)
Three Months Ended
September 30,
---------------------------
2005 2004
(Unaudited) (Unaudited)
------------- -------------
Revenues:
Product $ 10,943 $ 11,587
Service 5,264 5,743
------------- -------------
Total revenues 16,207 17,330
Cost of sales:
Product 5,368 6,667
Service 2,745 3,524
------------- -------------
Total cost of sales 8,113 10,191
------------- -------------
Gross margin 8,094 7,139
Operating expenses:
Sales and marketing 4,128 4,477
Research and development 4,338 5,180
General and administrative 2,523 2,506
------------- -------------
Total operating expenses 10,989 12,163
------------- -------------
Operating loss (2,895) (5,024)
Other income 759 57
------------- -------------
Loss before income taxes (2,136) (4,967)
Provision for income taxes 47 54
------------- -------------
Net loss $ (2,183) $ (5,021)
============= =============
Basic net loss per share $ (0.03) $ (0.08)
============= =============
Diluted net loss per share $ (0.03) $ (0.08)
============= =============
Basic weighted average shares outstanding 62,770 62,852
============= =============
Diluted weighted average shares
outstanding 62,770 62,852
============= =============
Concurrent Computer Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
September 30, June 30,
2005 2005
(unaudited)
------------- -------------
ASSETS
Cash and cash equivalents $ 17,435 $ 19,880
Trade accounts receivable, net 14,422 16,577
Inventories, net 5,436 5,071
Prepaid expenses and other current
assets 2,176 1,084
------------- -------------
Total current assets 39,469 42,612
Property, plant and equipment, net 7,471 8,319
Purchased developed computer software,
net 776 823
Goodwill 10,744 10,744
Investment in minority owned company 140 140
Other long-term assets, net 1,193 1,339
------------- -------------
Total assets $ 59,793 $ 63,977
============= =============
LIABILITIES
Accounts payable and accrued expenses $ 10,501 $ 12,055
Notes payable to bank, current portion 973 954
Deferred revenue 6,593 6,692
------------- -------------
Total current liabilities 18,067 19,701
Long-term deferred revenue 2,059 2,349
Notes payable to bank, less current
portion 1,333 1,583
Other long-term liabilities 2,038 1,991
STOCKHOLDERS' EQUITY
Common stock 628 637
Additional paid-in capital 174,370 175,769
Retained earnings (deficit) (138,638) (136,455)
Unearned compensation - (1,562)
Accumulated other comprehensive loss (64) (36)
------------- -------------
Total stockholders' equity 36,296 38,353
------------- -------------
Total liabilities and stockholders' equity $ 59,793 $ 63,977
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