Concurrent Reports Fiscal Year 2013 Fourth Quarter and Fiscal Year Financial Results

27 Aug, 2013, 16:01 ET from Concurrent

ATLANTA, Aug. 27, 2013 /PRNewswire/ -- Concurrent (NASDAQ: CCUR), a global leader in video, media data intelligence and real-time Linux® solutions, today announced financial results for its fourth quarter and fiscal year ended June 30, 2013.

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

Revenue for the fourth quarter of fiscal 2013 was $14.9 million, compared with $14.7 million for the same period in fiscal 2012, and $16.9 million in the preceding quarter. 

Gross margin for the fourth quarter of fiscal 2013 was 56.8%, compared with 57.4% for the same period in fiscal 2012, and 59.1% in the preceding quarter, primarily reflecting the mix of customers and products.  Operating expenses included a $2.4 million gain on the sale of non-strategic intellectual property and were $6.0 million, compared with $8.3 million for the same period in fiscal 2012, and $8.8 million in the preceding quarter.  

The company reported net income of $2.3 million, or $0.26 per diluted share, in the fourth quarter of fiscal 2013, compared with net income of $209 thousand, or $0.02 per diluted share, in the same period in fiscal 2012, and net income of $937 thousand, or $0.11 per diluted share, in the preceding quarter.

"I am pleased to announce our sixth consecutive quarter and first full year of profitability in recent history," said Dan Mondor, the company's president and CEO. "We are encouraged by the overall progress we made in the business in fiscal 2013 underpinned by the continued market acceptance of our video and real-time solutions. We achieved a number of new design wins and saw an improvement in spending levels from some of our top customers resulting in a 5% year over year increase in revenue. We closed out the full year with a gain in net income of more than $7 million versus the prior year. Fiscal year 2013 represented a notable improvement in the financial performance of the company."

For fiscal 2013, revenue totaled approximately $63.4 million, compared with $60.3 million for fiscal 2012.  Consolidated gross margin for the year was 58.1%, compared with 57.6% for fiscal 2012.  Total operating expenses included a $2.4 million gain on the sale of non-strategic intellectual property and were $31.8 million for fiscal 2013, compared with total operating expenses of $36.8 million for fiscal 2012.  For fiscal 2013, the company posted $4.2 million of net income, equal to $0.48 per diluted share, compared with a net loss of $2.9 million, equal to $0.34 per diluted share, in fiscal 2012.

The company paid four cash dividends, each for $0.06 per share, one cash dividend of $0.12 per share, and a $0.50 per share special dividend in fiscal 2013.  At June 30, 2013, Concurrent had cash and cash equivalents of $27.9 million. The company has no debt.

Recent Company Highlights

  • Concurrent announced Cache Xpander™, a high performance, scalable storage device that improves the efficiency of edge based caching for high performance CDN applications and support of larger content libraries.
  • Concurrent released intelligent video archival software for unified CDN and network DVR applications designed to cost optimize content placement in multi-tier storage complexes.
  • Ultra high-density multi-screen transcoding was added to Concurrent's online video solution portfolio.
  • The company showcased its latest generation video and media data intelligence products at the NAB show in Las Vegas, announcing new session based policy controls for its eFactor dynamic content adaptation solution.
  • At the NCTA Cable Show, Concurrent hosted meetings to discuss the status, trends and the future of OTT and IP video services.
  • Concurrent shipped Imagen visual servers to KCEI in Korea for the K-Series Tank Platoon Simulation program.
  • The company increased its quarterly cash dividend from $0.06 per share to $0.12 per share in June 2013.

Conference Call Information 

Concurrent will hold a conference call to review its fiscal 2013 fourth quarter and fiscal year financial results today, Tuesday, August 27th, at 4:30 p.m. ET.  The call will be broadcast live at www.ccur.com, under the "Investors" section at the 'About' tab.  The call can be accessed live by dialing 1-877-260-8898 (U.S.) 612-332-0802 (international) and entering pass code 130827.

A webcast of the live call as well as a replay will also be available at www.ccur.com.

To view financial results visit our Investors page here.

About Concurrent

Concurrent (NASDAQ: CCUR) is a global leader in video, media data intelligence and real-time Linux® solutions.  Concurrent provides customers with transformative solutions to fuel their business beyond what was thought possible. Concurrent's unified video delivery and media data intelligence solutions support every screen simultaneously, making it easier for cable MSOs, fixed-line telecommunications providers, mobile operators, online media companies and satellite TV broadcasters to deliver revenue generating video services to consumers on any device, over any network. The world's leading multichannel video service providers have selected Concurrent to deliver the solutions and services required to support their next-generation multi-screen video initiatives. Concurrent's Emmy® award-winning video solutions are based upon a rich heritage of high-performance real-time technology.  Concurrent's real-time Linux solutions are used to support applications in the defense, aerospace, automotive and financial industries. Concurrent has offices in North America, Europe and Asia. Visit www.ccur.com for further information. Follow us on Twitter: www.twitter.com/Concurrent_CCUR.

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: United States government sequestration; European austerity measures; 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 in subsequent filings of periodic reports with the SEC. The risk factors discussed in the Forms 10-K and subsequently filed periodic reports 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. 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 June 30, 

 Twelve Months Ended June 30, 

2013

2012

2013

2012

Revenues:

Product 

$             8,637

$             8,167

$           38,414

$           34,981

Service 

6,287

6,541

25,030

25,316

Total revenues

14,924

14,708

63,444

60,297

Cost of sales:

Product 

3,935

3,038

16,374

13,706

Service 

2,507

3,224

10,233

11,854

Total cost of sales

6,442

6,262

26,607

25,560

Gross margin

8,482

8,446

36,837

34,737

Operating expenses:

Sales and marketing

3,550

3,666

14,358

16,257

Research and development

2,926

2,781

11,599

13,153

General and administrative

1,874

1,812

8,226

7,373

Gain on sale of intellectual property, net

(2,381)

-

(2,381)

-

Total operating expenses

5,969

8,259

31,802

36,783

Operating income (loss)

2,513

187

5,035

(2,046)

Other (expense) income, net

(11)

241

(418)

(190)

Income (loss) before income taxes

2,502

428

4,617

(2,236)

Income tax provision

189

219

369

651

Net income (loss)

$             2,313

$                209

$             4,248

$            (2,887)

Basic net income (loss) per share

$               0.26

$               0.02

$               0.49

$              (0.34)

Diluted net income (loss) per share

$               0.26

$               0.02

$               0.48

$              (0.34)

Basic weighted average shares outstanding

8,764

8,658

8,736

8,602

Diluted weighted average shares outstanding

8,966

8,776

8,910

8,602

Cash dividends declared per common share

$               0.12

$                  -

$               0.86

$                   -

 

Concurrent Computer Corporation

Condensed Consolidated Statements of Operations (Unaudited)

(In Thousands Except Per Share Data)

 Three Months Ended  

 June 30, 

 March 31, 

2013

2013

Revenues:

Product 

$             8,637

$           10,714

Service 

6,287

6,213

Total revenues

14,924

16,927

Cost of sales:

Product 

3,935

4,591

Service 

2,507

2,336

Total cost of sales

6,442

6,927

Gross margin

8,482

10,000

Operating expenses:

Sales and marketing

3,550

3,527

Research and development

2,926

2,878

General and administrative

1,874

2,362

Gain on sale of intellectual property, net

(2,381)

-

Total operating expenses

5,969

8,767

Operating income

2,513

1,233

Other expense, net

(11)

(229)

Income before income taxes

2,502

1,004

Provision for income taxes

189

67

Net income

$             2,313

$                937

Basic net income per share

$               0.26

$               0.11

Diluted net income per share

$               0.26

$               0.11

Basic weighted average shares outstanding

8,764

8,754

Diluted weighted average shares outstanding

8,966

8,894

Cash dividends declared per common share

$               0.12

$               0.06

 

 

Concurrent Computer Corporation

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In Thousands Except Per Share Data)

 Three Months Ended 

 Twelve Months Ended 

June 30, 

March 31, 

June 30,

June 30,

June 30,

2013

2013

2012

2013

2012

Net income (loss)

$       2,313

$          937

$          209

$       4,248

$      (2,887)

Other comprehensive income (loss):

Foreign currency translation adjustment

(83)

(24)

172

(325)

379

Unrealized gain on investment

-

-

-

-

2

Pension, net of tax

(180)

2

(583)

(174)

(583)

Other comprehensive loss

(263)

(22)

(411)

(499)

(202)

     Comprehensive income (loss)

$       2,050

$          915

$         (202)

$       3,749

$      (3,089)

 

Concurrent Computer Corporation

 Condensed Consolidated Balance Sheets

(In Thousands)

June 30,

March 31,

June 30,

2013

2013

2012

(unaudited)

(unaudited)

ASSETS

 Cash and cash equivalents 

$           27,927

$           22,370

$            29,613

 Trade accounts receivable, net 

10,701

16,862

8,739

 Inventories 

2,844

2,949

3,683

 Prepaid expenses and other current assets 

2,324

1,559

2,129

    Total current assets 

43,796

43,740

44,164

 Property, plant and equipment, net 

3,102

3,114

3,966

 Intangible assets, net 

834

1,060

1,738

 Other long-term assets 

737

779

1,005

 Total assets 

$           48,469

$           48,693

$            50,873

 LIABILITIES 

 Accounts payable and accrued expenses 

$             7,671

$             7,450

$              5,931

 Deferred revenue 

8,383

10,575

8,850

    Total current liabilities 

16,054

18,025

14,781

 Non-current deferred revenue 

1,924

1,607

2,788

 Other non-current liabilities 

4,706

4,474

4,198

     Total liabilities 

22,684

24,106

21,767

 STOCKHOLDERS' EQUITY 

 Common stock 

88

88

87

 Additional paid-in capital 

208,677

208,422

207,830

 Accumulated deficit 

(183,085)

(184,291)

(179,415)

 Treasury stock, at cost 

(255)

(255)

(255)

 Accumulated other comprehensive income  

360

623

859

    Total stockholders' equity 

25,785

24,587

29,106

 Total liabilities and stockholders' equity 

$           48,469

$           48,693

$            50,873

 

SOURCE Concurrent



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