Concurrent Reports Fiscal Year 2013 First Quarter Financial Results

Oct 30, 2012, 16:01 ET from Concurrent

ATLANTA, Oct. 30, 2012 /PRNewswire/ -- Concurrent (NASDAQ: CCUR), a global leader in video and media data solutions, today announced financial results for its first quarter Fiscal 2013 ended September 30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20110317/CL67141LOGO )

Revenue for the fiscal 2013 first quarter was $15.0 million compared with $12.9 million for the same period in fiscal 2012, and $14.7 million in the preceding quarter.

Gross margin for the fiscal 2013 first quarter was 58.7% compared with 56.5% for the same period in fiscal 2012, and 57.4% in the preceding quarter, primarily reflecting the mix of product and service revenue. Operating expenses were $8.4 million, compared with $9.8 million for the same period in fiscal 2012, and $8.3 million in the preceding quarter.

The company reported net income of $325 thousand, or $0.04 per diluted share, in the first quarter of fiscal 2013, compared with a loss of $2.6 million, or $0.31 per diluted share, in the same period in fiscal 2012, and net income of $209 thousand, or $0.02 per diluted share, in the preceding quarter.

"The company achieved its third consecutive quarter of profitability despite a modest revenue level," said Dan Mondor, the company's president and CEO. "We continue to benefit from the steps we took in the last fiscal year to improve our operating model." Mondor continued, "The competitive position of our products remains solid and our customer relationships are strong; however, we continue to face a challenging revenue environment, notably in Europe."

At September 30, 2012, Concurrent had cash and cash equivalents of $28.9 million. The company has no debt.

Recent Company Highlights

  • Demonstrated a joint offering with Alcatel-Lucent's Velocix CDN technology that enables service providers to cost-effectively expand their video content catalogs by hundreds of thousands of hours by accessing regional or national archives;
  • Combined digital rights management (DRM) technology from AuthenTec with Concurrent's eFactor solution enabling customers to utilize Microsoft's market-leading PlayReady DRM to stream to Android and Apple iOS devices; and
  • Extended its Media Data Intelligence software to monitor and analyze on-line and mobile video consumption to provide operators with data on subscriber viewing for traditional television services and TV Everywhere offerings.

Conference Call Information

Concurrent will hold a conference call to discuss its fiscal 2013 first quarter financial results today, Tuesday, October 30th, at 4:30 p.m. ET, followed by a question and answer session with analysts. The call will be broadcast live at www.ccur.com, under the "Investors" section. The call can be accessed live by dialing 1-800-230-1766 (U.S.) 612-332-0228 (international) and entering pass code 121030. A webcast of the live call as well as a replay will also be available at www.ccur.com.

Click here to view Financial Results

About Concurrent

Concurrent (NASDAQ: CCUR) is a global leader in multi-screen video delivery, media data management and real-time computing solutions. Built on a solid foundation of Emmy Award-winning technology, service providers, content providers, and others across the video ecosystem are provided with enterprise-level CDN technology, multi-screen video delivery, content workflow applications, and video on demand. Additionally, Concurrent's media data solutions provide media stakeholders with a holistic view of their consumers' video experience, offering opportunities for monetization. Concurrent's video solutions are built upon a rich heritage of Real-Time technology, which has powered solutions for the aerospace, defense, automotive, transportation, energy and financial industries for more than four decades. Concurrent is headquartered in Atlanta with offices in North America, Europe and Asia. Visit www.ccur.com for further information. Follow us on Twitter: www.twitter.com/Concurrent_CCUR.

For more information, contact:

Investor Relations: Concurrent Kirk Somers (678) 258-4000 investor.relations@ccur.com

Media Relations: Concurrent Kristen Izzo (678) 258-4221 Kristen.Izzo@ccur.com

Certain statements made or incorporated by reference in this release may constitute "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and the company's future performance, including, but not limited to, management's expectations, beliefs, plans, estimates, or projections relating to 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: delays or cancellations of customer orders; changes in product demand; economic conditions; various inventory risks due to changes in market conditions; margins of video business to capture new business; fluctuations and timing of large video orders; doing business in the People's Republic of China; 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; the impact of reductions in force on our operations; rapid technology changes; system errors or failures; reliance on a limited number of suppliers and failure of components provided by those suppliers; uncertainties associated with international business activities, including foreign regulations, trade controls, taxes, and currency fluctuations; the impact of competition on the pricing of video solutions products; our ability to satisfy the financial covenants in the Revolver; failure to effectively service the installed base; the entry of new well-capitalized competitors into our markets; the success of new video solutions; the success of our relationships with technology and channel partners; capital spending patterns by a limited customer base; the current challenging macro-economic environment; continuing unevenness of the global economic recovery; privacy concerns over data collection; earthquakes, tsunamis, floods and other natural disasters in areas in which our customers and suppliers operate; and the availability of debt or equity financing to support our liquidity needs.

Other important risk factors are discussed in Concurrent's Form 10-K filed August 28, 2012 with the Securities and Exchange Commission (SEC), and may be discussed in subsequent filings with the SEC. The risk factors discussed in the Forms 10-K under the heading "Risk Factors" are specifically incorporated by reference in this press release. Forward-looking statements are based on current expectations and speak only as of the date of such statements. Concurrent undertakes 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 and its logo are registered trademarks of Concurrent. All other Concurrent product names are trademarks of Concurrent while all other product names are trademarks or registered trademarks of their respective owners.

Concurrent Computer Corporation

Condensed Consolidated Statements of Operations (Unaudited)

(In Thousands Except Per Share Data)

Three Months Ended September 30,

2012

2011

Revenues:

Product

$ 8,964

$ 6,784

Service

6,040

6,104

Total revenues

15,004

12,888

Cost of sales:

Product

3,553

2,770

Service

2,639

2,837

Total cost of sales

6,192

5,607

Gross margin

8,812

7,281

Operating expenses:

Sales and marketing

3,638

4,302

Research and development

2,847

3,580

General and administrative

1,914

1,903

Total operating expenses

8,399

9,785

Operating income (loss)

413

(2,504)

Other income, net

19

13

Income (loss) before income taxes

432

(2,491)

Income tax provision

107

109

Net income (loss)

$ 325

$ (2,600)

Other comprehensive income (loss):

Foreign currency translation adjustment

(47)

108

Pension and post-retirement benefits, net of tax

2

-

Other comprehensive income (loss)

(45)

108

Comprehensive income (loss)

$ 280

$ (2,492)

Basic net income (loss) per share

$ 0.04

$ (0.31)

Diluted net income (loss) per share

$ 0.04

$ (0.31)

Basic weighted average shares outstanding

8,683

8,488

Diluted weighted average shares outstanding

8,801

8,488

Cash dividends declared per common share

$ 0.12

$ -

Concurrent Computer Corporation

Condensed Consolidated Statements of Operations (Unaudited)

(In Thousands Except Per Share Data)

Three Months Ended

September 30,

June 30,

2012

2012

Revenues:

Product

$ 8,964

$ 8,167

Service

6,040

6,541

Total revenues

15,004

14,708

Cost of sales:

Product

3,553

3,038

Service

2,639

3,224

Total cost of sales

6,192

6,262

Gross margin

8,812

8,446

Operating expenses:

Sales and marketing

3,638

3,666

Research and development

2,847

2,781

General and administrative

1,914

1,812

Total operating expenses

8,399

8,259

Operating income

413

187

Other income, net

19

241

Income before income taxes

432

428

Provision for income taxes

107

219

Net income

$ 325

$ 209

Other comprehensive income (loss):

Foreign currency translation adjustment

(47)

172

Pension and post-retirement benefits, net of tax

2

(583)

Other comprehensive income (loss)

(45)

(411)

Comprehensive income (loss)

$ 280

$ (202)

Basic net income per share

$ 0.04

$ 0.02

Diluted net income per share

$ 0.04

$ 0.02

Basic weighted average shares outstanding

8,683

8,658

Diluted weighted average shares outstanding

8,801

8,776

Cash dividends declared per common share

$ 0.12

$ -

Concurrent Computer Corporation

Condensed Consolidated Balance Sheets

(In Thousands)

September 30,

June 30,

2012

2012

(unaudited)

ASSETS

Cash and cash equivalents

$ 28,940

$ 29,613

Trade accounts receivable, net

9,517

8,739

Inventories

2,772

3,683

Prepaid expenses and other current assets

2,199

2,129

Total current assets

43,428

44,164

Property, plant and equipment, net

3,647

3,966

Intangible assets, net

1,442

1,667

Other long-term assets

1,040

1,076

Total assets

$ 49,557

$ 50,873

LIABILITIES

Accounts payable and accrued expenses

$ 5,508

$ 5,931

Deferred revenue

9,018

8,850

Total current liabilities

14,526

14,781

Long-term deferred revenue

2,162

2,788

Revolving bank line of credit, non-current

-

-

Other long-term liabilities

4,357

4,198

Total liabilities

21,045

21,767

STOCKHOLDERS' EQUITY

Common stock

87

87

Additional paid-in capital

207,998

207,830

Accumulated deficit

(180,132)

(179,415)

Treasury stock, at cost

(255)

(255)

Accumulated other comprehensive income

814

859

Total stockholders' equity

28,512

29,106

Total liabilities and stockholders' equity

$ 49,557

$ 50,873

SOURCE Concurrent



RELATED LINKS

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