Concurrent Computer Corporation Announces Fourth Quarter and 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: 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 technology 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 fourth quarter and fiscal year ended June June: see month. 30, 2006. Fourth Quarter Results: In the fourth quarter of fiscal 2006, company-wide revenue aggregated $15.9 million compared to $20.6 million in the third quarter of fiscal 2006, a decrease of 22.9%. Revenue from Concurrent's on-demand product line totaled $8.9 million for the fourth quarter of fiscal 2006 compared to $11.6 million in the third quarter of fiscal 2006, a decrease of 23.4%. 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 $7.0 million for the fourth quarter of fiscal 2006 compared to $9.0 million in the third quarter of fiscal 2006, a decrease of 22.2%. The net loss for the fourth quarter of fiscal 2006 was $4.5 million, or a loss of $0.06 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 $1.0 million, or a loss of $0.01 per fully diluted share, in the third quarter of fiscal 2006. Consolidated gross margins for the fourth quarter of fiscal 2006 were 45% compared to 50% in the third quarter of fiscal 2006. The gross margins were down primarily due to pricing pressure in the VOD See video-on-demand. VoD - video on demand market and a lower revenue base for the quarter. Fiscal Year 2006 Results: Company-wide revenue for fiscal year 2006 totaled $71.6 million compared to $78.7 million in fiscal year 2005, a decrease of 9.0%. For fiscal 2006, revenue from the company's on-demand product line totaled $37.6 million compared to $40.0 million in the prior year, a decrease of 5.9% while revenue from the company's real-time product line totaled $34.0 million in fiscal year 2006 compared to $38.7 million in fiscal year 2005, a decrease of 12.1%. For fiscal year 2006, the company reported a net loss of $9.3 million, or a loss of $0.14 per fully diluted share, compared to a net loss of $7.7 million, or a loss of $0.12 per fully diluted share, for fiscal year 2005. Cash at the end of the fiscal year 2006 totaled $14.4 million compared to $19.9 million at the end of fiscal year 2005, a decrease of $5.5 million. "I am disappointed with our fourth quarter and fiscal year results," 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 president and chief executive officer. He continued, "However, I am encouraged by the outlook for our software only sales of 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. products and the potential for our Everstream products. Additionally, I believe the release of our Media Hawk hawk, name generally applied to the smaller members of the Accipitridae, a heterogeneous family of diurnal birds of prey, such as the eagle, the kite, the Old World vulture, and the secretary bird. 4500 software platform will leap-frog the competition, reinforcing our position as a technology leader in the VOD market." 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 these results on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , August 11, 2006 at 10:00 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 (NASDAQ: CCUR) is 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 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. software and solutions for commercial and government markets. For 40 years Concurrent's 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. products have enabled a range of time-critical solutions including: modeling and simulation, high speed data acquisition, visual imaging, low latency Low latency allows human-unnoticeable delays between an input being processed and the corresponding output providing real time characteristics. This can be especially important for internet connections utilizing services such as online gaming and VOIP - VOIP is not as important as transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. and on-demand television. Concurrent's on-demand television applications are utilized by major service providers in the cable and IPTV (Internet Protocol TV) Also called "TV over IP," IPTV delivers scheduled TV programs and video-on-demand (VOD) via the IP protocol and digital streaming techniques used to watch video on the Internet. industries to deliver 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) and, through subsidiary company Everstream, measure the effectiveness of interactive television. Concurrent is a global company with regional 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, 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. 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 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. 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, 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. 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 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; the integration of Everstream; the availability of debt or equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. to support our liquidity needs if cash flow does not improve; and contractual 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 Everstream and its 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 sub·li·cense n. A license giving rights of production or marketing of products or services to a person or company that is not the primary holder of such rights. tr.v. from the Linux Mark Institute The Linux Mark Institute (LMI) is an organization which administers the "Linux" trademark on behalf of Linus Torvalds for computer software which includes the Linux kernel, computer hardware utilizing Linux-based software, and for services associated with the . 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 Twelve Months Ended
June 30, June 30,
------------------------- -------------------------
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ ------------ ------------ ------------
Revenues:
Product $10,766 $16,371 $49,592 $57,070
Service 5,150 5,111 22,020 21,615
------- ------- ------- -------
Total
revenues 15,916 21,482 71,612 78,685
Cost of sales:
Product 6,102 7,759 25,010 27,053
Service 2,689 2,952 11,233 12,856
------- ------- ------- -------
Total cost
of sales 8,791 10,711 36,243 39,909
------- ------- ------- -------
Gross margin 7,125 10,771 35,369 38,776
Operating
expenses:
Sales and
marketing 4,161 4,871 16,576 17,768
Research and
development 4,693 4,449 18,783 18,748
General and
administrative 2,293 2,573 9,590 9,717
------- ------- ------- -------
Total
operating
expenses 11,147 11,893 44,949 46,233
------- ------- ------- -------
Operating loss (4,022) (1,122) (9,580) (7,457)
Loss on minority
investment - - - (313)
Other income
(expense) - net (61) (302) 749 (231)
------- ------- ------- -------
Loss before income
taxes and
cumulative effect
of change in
accounting
principle (4,083) (1,424) (8,831) (8,001)
Provision
(benefit) for
income taxes 104 (340) 191 (272)
------- ------- ------- -------
Net loss before
cumulative effect
of change in
accounting
principle (4,187) (1,084) (9,022) (7,729)
Cumulative effect
of accounting
change (net of
taxes) (323) - (323) -
------- ------- ------- -------
Net loss $(4,510) $(1,084) $(9,345) $(7,729)
======= ======= ======= =======
Basic net loss per
share $ (0.06) $ (0.02) $ (0.14) $ (0.12)
======= ======= ======= =======
Diluted net loss
per share $ (0.06) $ (0.02) $ (0.14) $ (0.12)
======= ======= ======= =======
Basic weighted
average shares
outstanding 71,503 62,764 68,988 62,737
======= ======= ======= =======
Diluted weighted
average shares
outstanding 71,503 62,764 68,988 62,737
======= ======= ======= =======
Concurrent Computer Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
June 30, March 31, June 30,
2006 2006 2005
(unaudited) (unaudited)
----------- ----------- -------
ASSETS
Cash and cash equivalents $ 14,423 $ 14,811 $ 19,880
Trade accounts receivable, net 15,111 19,978 16,577
Inventories, net 6,163 5,245 5,071
Prepaid expenses and other current
assets 1,578 2,026 1,084
--------- --------- ---------
Total current assets 37,275 42,060 42,612
Property, plant and equipment, net 6,015 6,570 8,319
Intangible assets, net 8,787 9,059 823
Goodwill 15,560 15,590 10,744
Investment in minority owned company - - 140
Other long-term assets, net 1,120 1,106 1,339
--------- --------- ---------
Total assets $ 68,757 $ 74,385 $ 63,977
========= ========= =========
LIABILITIES
Accounts payable and accrued expenses $ 11,581 $ 12,591 $ 12,055
Notes payable to bank, current
portion 1,583 1,013 954
Deferred revenue 7,277 7,714 6,692
--------- --------- ---------
Total current liabilities 20,441 21,318 19,701
Long-term deferred revenue 1,602 1,944 2,349
Notes payable to bank, less current
portion - 815 1,583
Other long-term liabilities 2,941 2,108 1,991
STOCKHOLDERS' EQUITY
Common stock 716 715 637
Additional paid-in capital 189,409 189,164 175,769
Retained earnings (deficit) (145,800) (141,290) (136,455)
Treasury stock (13) (27) -
Unearned compensation - - (1,562)
Accumulated other comprehensive loss (539) (362) (36)
--------- --------- ---------
Total stockholders' equity 43,773 48,200 38,353
--------- --------- ---------
Total liabilities and stockholders'
equity $ 68,757 $ 74,385 $ 63,977
========= ========= =========
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