Concurrent Computer Corporation Announces Third Quarter Results; Company to Separate Its Two Business Units.FT. LAUDERDALE Lauderdale is the name of various places:
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 reported earnings for the quarter ended March 31, 1999 of $0.3 million, or $0.01 per share, compared with $0.9 million, or $0.02 per share, for the quarter ended December December: see month. 31, 1998. Revenue for the quarter was $17.7 million, compared with the previous quarter's revenue of $19.2 million. As anticipated, 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. service revenue declined by $1.0 million with product revenues remaining essentially flat. Real-time product revenue was affected by last minute delivery issues to international customers that were resolved a week after the quarter closed. This represents approximately $0.4 million of revenue. The real-time business continues to perform profitably. The company's cash position improved by $1.2 million over the previous quarter. Gross margins improved to 52% as the transition to a software/integration business continues. The company's strong real-time business continues to support its 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. business, while also pursuing new directions for its own future expansion. The company is currently spending approximately $1.0 million a month on R&D and sales and marketing in the video-on-demand (VOD See video-on-demand. VoD - video on demand ) business. This $12 million on an annual basis represents $0.17 a share assuming a 30% tax rate. The company's strategy of investing in its growing VOD business is on track. The company also announced it had retained Berenson Ber·en·son , Bernard also Bernhard 1865-1959. Lithuanian-born American art critic and historian particularly noted for his writings on the Italian Renaissance, including Venetian Painters of the Renaissance (1894). Minella & Company and Volpe Volpe means "fox" in Italian. As a surname, it may refer to:
In an effort to maximize the value of that business, as well as its emerging video-on-demand business, the Board of Directors has unanimously approved the separation of the two businesses and has initiated a process that would allow the company to emphasize its growing VOD business. The VOD business grew out of the same proven technology developed over more than 30 years in the company's successful real-time business. The customers and the distribution channels, however, are quite different and unrelated. Resellers of the company's VOD corporate intranet product are forecasting approximately $1 million in revenue for next quarter, and $5-10 million for the company's fiscal year 2000, which starts July July: see month. 1, 1999. In addition, the company continues to work with several cable companies that are planning VOD trials to start as early as next quarter, but no later than the summertime. Significant revenue from the residential cable market is expected in calendar year 2000. The real-time business continues to prosper, and will continue its mission to migrate from a hardware business to a software/integration business. In light of this reality, a more distinct separation of the company's businesses is appropriate. "With our strong position in the VOD business, we believe now is the time to formally separate the real-time and VOD businesses," said E. Courtney Courtney (also Courteney or Courtenay) is a common given name, derived from an English surname. Surname origin This distinguished name is of Norman, Old French origin, introduced into England after the Norman Conquest of 1066. Siegel Siegel, a surname, is associated with two ethnic groups. As a Jewish surname Siegel (סג"ל) it could be an acronym of Segan Levi (סגן לוי), meaning "Assistant Levite". , Concurrent's Chairman, President and Chief Executive Officer. "Since January, we have systematically been restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). our corporation into two business units. Dan Dunleavy will become President of the real-time business, and Steve Nussrallah will continue as President of the video-on-demand business, both reporting to me." The company reported that following the planned separation of its two businesses, Mr. Siegel will continue as Chairman and Chief Executive Officer until January 2000, at which time it is contemplated that Steve Nussrallah will assume the 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. responsibilities of the company's video-on-demand business. For over 30 years Concurrent Computer Corporation (Nasdaq:CCUR) (http://www.ccur.com), headquartered in Fort Lauderdale, Florida Fort Lauderdale, known as the "Venice of America" due to its expansive and intricate canal system, is a city in Broward County, Florida, United States. The city's population is described as metropolitan, where diverse culture is commonplace. According to 2006 U.S. , has been a leading provider of high-performance real-time computer systems, solutions, and software to commercial and government markets. The company's real-time business focuses on strategic areas that include industrial systems, software and embedded applications An application that permanently resides in an industrial or consumer device. Providing some type of control function and/or user interface, the software is typically stored in a non-volatile memory such as ROM or flash memory. , data acquisition, simulation, and vibration control. Concurrent is also one of the leaders in the emerging digital video server marketplace. The company's video-on-demand business focuses on residential entertainment, corporate training and education, hospitality, and in-flight entertainment In-flight entertainment (IFE) refers to the entertainment available to aircraft passengers during a flight. After World War II commercial aviation flights became a daily event in which entertainment was requested by passengers to help the time pass. industries. Operating in 32 countries worldwide, Concurrent provides sales and support from offices throughout 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. , South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Europe, Asia, and Australia. Certain matters discussed in this news release maybe "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. " as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Concurrent Computer Corporation cautions investors that any forward-looking statements made herein are not guarantees of future performance and that a variety of factors could cause its actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. The risks and uncertainties which could affect Concurrent Computer Corporation's performance or results include, without limitation, changes in product demand; economic conditions; various inventory risks due to changes in market conditions; uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the development and ownership of intellectual property; uncertainties relating to the ability of Concurrent Computer Corporation and other companies to enforce their intellectual property rights; the pricing and availability of equipment, materials and inventories; technological developments; delays in testing of new products; rapid technology changes; the highly competitive environment in which Concurrent Computer Corporation operates; the entry of new well-capitalized competitors into Concurrent Computer Corporation's markets, and other risks and uncertainties. -0-
INCOME STATEMENT ($K)
Three Months Ended Nine Months Ended
3/31/99 3/31/98 3/31/99 3/31/98
Revenue
Equipment $ 8,566 $ 9,544 $ 24,362 $ 28,169
Maintenance 9,110 10,850 29,369 33,846
-------- -------- -------- --------
Total 17,676 20,394 53,731 62,015
Cost of Sales
Equipment 3,403 5,123 10,661 13,916
Maintenance 5,016 5,670 15,230 17,852
-------- -------- -------- --------
Total COS 8,419 10,793 25,891 31,768
Gross Margin 9,257 9,601 27,840 30,247
Operating Expenses
Research and development 2,371 2,739 7,620 8,253
Selling, general and
administrative 6,324 5,845 18,907 17,739
Transition/restructuring
cost 0 0 0 (607)
-------- -------- -------- --------
Total Operating Expenses 8,695 8,584 26,527 25,385
Operating Income 562 1,017 1,313 4,862
Interest income (expense) (11) (108) (67) (500)
Other income (expense) -
net (205) 120 (237) (122)
Other one-time gain (loss) 0 0 (88) 420
-------- -------- -------- --------
IBT 346 1,029 921 4,660
Taxes 52 24 138 932
-------- -------- -------- --------
IAT 294 1,005 783 3,728
Preferred stock dividend -- -- -- (18)
-------- -------- -------- --------
Income available to
common shareholders $ 294 $ 1,005 $ 783 $ 3,710
======== ======== ======== ========
Earnings per share $ 0.01 $ 0.02 $ 0.02 $ 0.08
BALANCE SHEET ($K)
March 31, June 30,
1999 1998
---------- ----------
ASSETS
Current assets:
Cash $ 5,607 $ 5,733
Net accounts and notes receivable 16,203 18,996
Net inventories 5,832 6,263
Other current assets 1,599 1,487
------- -------
Total current assets 29,241 32,479
Plant & equipment, net 12,503 12,419
Other long term assets 1,104 1,337
------- -------
Total assets $42,848 $46,235
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes and loans payable $ 0 $ 365
Revolving credit facility 0 1,123
Accounts payable 3,169 4,946
Accrued wages and benefit 3,519 4,695
Deferred revenue 3,598 4,018
Other accrued expenses 2,824 3,680
------- -------
Total current liabilities 13,110 18,827
Other long term liabilities 1,968 1,898
Total stockholders' equity 27,770 25,510
------- -------
Total liabilities and
stockholders' equity $42,848 $46,235
======= =======
Note: For additional company or product information from Concurrent Computer Corporation via fax, call 1.888.286.6418 or visit Concurrent's website at http://www.ccur.com |
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