Concord Announces Preliminary First Quarter Results

Apr 03, 2001, 01:00 ET from Concord Communications Inc.

    MARLBORO, Mass., April 3 /PRNewswire/ -- Concord Communications Inc.
 (Nasdaq:   CCRD) an industry leader in automating technology management of the
 internet infrastructure, today announced preliminary financial results for its
 first quarter ended March 31, 2001. Unaudited revenue for the quarter is
 expected to be between $20.0 and $21.0 million, versus revenues of $19.3
 million in the first quarter of 2000.  Proforma loss per share is expected to
 be between $.18 and $.20.
     "High interest in our new, end-to-end management products provided
 confidence early in the quarter that we could meet projections.  However, in
 the last two weeks, when historically we record a significant amount of
 business, numerous deals in the approval process were delayed because of the
 wide-spread economic slowdown," said Jack Blaeser, President and Chief
 Executive Officer.  "While these results are disappointing to us and to our
 investors, our business model remains strong with no debt, a significant cash
 reserve of approximately $61 million, and a diverse global customer base of
 more than 2200 customers who continue to rely on Concord to manage their
 internet infrastructure.  With proven ROI-focused products, Concord is well
 positioned to optimize the return of our customers' existing infrastructure,
 as they too, weather this difficult economic period.  At the same time, we
 will be managing the impact this economic slowdown has on our own financials
 by taking action with the goal of returning to profitability within 2001."
 
     BUSINESS OUTLOOK
     Concord's Operations
     -- Service revenues of $7.4 million or approximately 36% of total revenue.
     -- Reported 39 deals greater than $100,000 each.
     -- Recorded international revenues of $6.9 million, or 34% of total
        revenue including Telemar, NTT Singapore, Smith Kline Beecham, and
        Telekom Austria.
     -- Gross margin was approximately 77%, a quarterly decrease due to greater
        percentage of service revenue.
     -- DSO was approximately 76 days.
     -- Cash of approximately $61 million or $3.70 per share.
 
     Concord's Customers
     -- Won 117 new customers, including telco/service providers such as
        Williams Communications, Sprint PCS, iBEAM, CoreExpress and World
        Online Denmark and enterprise customers such as Giant Eagle, Stanford
        University, and Southtrust Bank.
     -- Existing customers provided 65% of quarterly revenue.
     -- Telco/Service Providers continued at 41% of quarterly revenue.
 
     Concord's Strategic Initiatives
     -- Launching application management modules for Oracle, SQL server,
        Apache, and Checkpoint as well as management solutions specifically
        designed for managing mobile wireless, VoIP, cable technologies and
        Quality of Service.
     -- Readying eHealth version 5.0 for early fall focused on systems,
        applications and fault solutions which are high growth and immediate
        revenue producing areas.
     -- Added Ellen Kokos as Executive Vice President of Marketing to the
        management team.  She is a recognized leader in marketing strategy,
        with more than 25 years of industry experience at market leadership
        companies in both the software and networking arenas.
 
     Note: Concord will host a teleconference live at 1-800-865-4460 (US) and
 1-973-633-6740 (International) today at 8:00 a.m.  EDT.  To listen to a replay
 of the conference call, it will be hosted on www.vcall.com or by calling 1-
 877-519-4471 (US) and 1-973-341-3080 (International); access #2517719.  The
 replay will be available shortly after the end of the conference call for one
 week.
 
     About Concord Communications
     Concord Communications, Inc. (Nasdaq:   CCRD) is a market leader in software
 solutions that maximize the performance and availability of the internet
 infrastructure. With its eHealth Suite(TM), Concord is automating technology
 management, by offering both enterprises and service providers the only
 solution to combine real time information with historical context for truly
 integrated management across application, systems, and networks.
 Headquartered in Marlboro, Massachusetts -- with offices in Europe, Latin
 America and Asia-Pacific -- Concord is listed on S&P 600 SmallCap Index and
 has been named to InformationWeek's Innovative 100 and the New England
 Technology Fast 50; and was recognized by Network Magazine as producing the
 Product of the Year.  Concord's more than 2200 customers include all of the
 top 20 telecommunications companies in the world, as well as hundreds of blue-
 chip corporations worldwide.  For more information on Concord, call
 1-800-851-8725 or visit Concord's World Wide Web site at www.concord.com.
     Concord Communications, Inc. and Network Health are registered trademarks
 of Concord Communications, Inc. The Concord logos and eHealth Suite are
 trademarks of Concord Communications, Inc.
     Forward-looking statements made in this press release, including forward-
 looking statements regarding revenue and profit expectations, are made
 pursuant to the safe harbor provisions of the Private Securities Litigation
 Reform Act of 1995.  Readers are cautioned that all forward-looking statements
 involve risks and uncertainties, and actual results could differ materially
 from the forward-looking statements contained herein.  Risks and uncertainties
 include, without limitation, the magnitude and duration of the current
 economic slowdown and specifically its impact on the software, networking and
 telecommunications industries; our customers' ability to obtain funding and
 the resulting potential delay of customer purchasing decisions; risks of
 continued operating losses; the ability to attract and retain quality
 professional employees; uncertainties involving intellectual property rights
 and litigation; litigation in general; risks in technology development and
 commercialization; risks in product development and market acceptance of and
 demand for the Company's products;  risks associated with competition and
 competitive pricing pressures; risks associated with international sales; and
 other risks detailed in the Company's filings with the Securities and Exchange
 Commission, including but not limited to, the Company's annual report on Form
 10-K and quarterly reports on Form 10-Q.  Any forward-looking statements
 should be considered in light of all these factors.
     The information contained in this press release is applicable only today
 and should thereafter be considered historical and will no longer constitute
 the Company's current expectations. The company undertakes no obligation to
 update information contained in this press release.
 
    Josef Blumenfeld
    Director, Public Relations
    Concord Communications
    (508) 303-4351
    jblumenfeld@concord.com
 
     Raymond Ruddy
     Director, Investor Relations
     Concord Communications
     508-303-4350
     rruddy@concord.com
 
 

SOURCE Concord Communications Inc.
    MARLBORO, Mass., April 3 /PRNewswire/ -- Concord Communications Inc.
 (Nasdaq:   CCRD) an industry leader in automating technology management of the
 internet infrastructure, today announced preliminary financial results for its
 first quarter ended March 31, 2001. Unaudited revenue for the quarter is
 expected to be between $20.0 and $21.0 million, versus revenues of $19.3
 million in the first quarter of 2000.  Proforma loss per share is expected to
 be between $.18 and $.20.
     "High interest in our new, end-to-end management products provided
 confidence early in the quarter that we could meet projections.  However, in
 the last two weeks, when historically we record a significant amount of
 business, numerous deals in the approval process were delayed because of the
 wide-spread economic slowdown," said Jack Blaeser, President and Chief
 Executive Officer.  "While these results are disappointing to us and to our
 investors, our business model remains strong with no debt, a significant cash
 reserve of approximately $61 million, and a diverse global customer base of
 more than 2200 customers who continue to rely on Concord to manage their
 internet infrastructure.  With proven ROI-focused products, Concord is well
 positioned to optimize the return of our customers' existing infrastructure,
 as they too, weather this difficult economic period.  At the same time, we
 will be managing the impact this economic slowdown has on our own financials
 by taking action with the goal of returning to profitability within 2001."
 
     BUSINESS OUTLOOK
     Concord's Operations
     -- Service revenues of $7.4 million or approximately 36% of total revenue.
     -- Reported 39 deals greater than $100,000 each.
     -- Recorded international revenues of $6.9 million, or 34% of total
        revenue including Telemar, NTT Singapore, Smith Kline Beecham, and
        Telekom Austria.
     -- Gross margin was approximately 77%, a quarterly decrease due to greater
        percentage of service revenue.
     -- DSO was approximately 76 days.
     -- Cash of approximately $61 million or $3.70 per share.
 
     Concord's Customers
     -- Won 117 new customers, including telco/service providers such as
        Williams Communications, Sprint PCS, iBEAM, CoreExpress and World
        Online Denmark and enterprise customers such as Giant Eagle, Stanford
        University, and Southtrust Bank.
     -- Existing customers provided 65% of quarterly revenue.
     -- Telco/Service Providers continued at 41% of quarterly revenue.
 
     Concord's Strategic Initiatives
     -- Launching application management modules for Oracle, SQL server,
        Apache, and Checkpoint as well as management solutions specifically
        designed for managing mobile wireless, VoIP, cable technologies and
        Quality of Service.
     -- Readying eHealth version 5.0 for early fall focused on systems,
        applications and fault solutions which are high growth and immediate
        revenue producing areas.
     -- Added Ellen Kokos as Executive Vice President of Marketing to the
        management team.  She is a recognized leader in marketing strategy,
        with more than 25 years of industry experience at market leadership
        companies in both the software and networking arenas.
 
     Note: Concord will host a teleconference live at 1-800-865-4460 (US) and
 1-973-633-6740 (International) today at 8:00 a.m.  EDT.  To listen to a replay
 of the conference call, it will be hosted on www.vcall.com or by calling 1-
 877-519-4471 (US) and 1-973-341-3080 (International); access #2517719.  The
 replay will be available shortly after the end of the conference call for one
 week.
 
     About Concord Communications
     Concord Communications, Inc. (Nasdaq:   CCRD) is a market leader in software
 solutions that maximize the performance and availability of the internet
 infrastructure. With its eHealth Suite(TM), Concord is automating technology
 management, by offering both enterprises and service providers the only
 solution to combine real time information with historical context for truly
 integrated management across application, systems, and networks.
 Headquartered in Marlboro, Massachusetts -- with offices in Europe, Latin
 America and Asia-Pacific -- Concord is listed on S&P 600 SmallCap Index and
 has been named to InformationWeek's Innovative 100 and the New England
 Technology Fast 50; and was recognized by Network Magazine as producing the
 Product of the Year.  Concord's more than 2200 customers include all of the
 top 20 telecommunications companies in the world, as well as hundreds of blue-
 chip corporations worldwide.  For more information on Concord, call
 1-800-851-8725 or visit Concord's World Wide Web site at www.concord.com.
     Concord Communications, Inc. and Network Health are registered trademarks
 of Concord Communications, Inc. The Concord logos and eHealth Suite are
 trademarks of Concord Communications, Inc.
     Forward-looking statements made in this press release, including forward-
 looking statements regarding revenue and profit expectations, are made
 pursuant to the safe harbor provisions of the Private Securities Litigation
 Reform Act of 1995.  Readers are cautioned that all forward-looking statements
 involve risks and uncertainties, and actual results could differ materially
 from the forward-looking statements contained herein.  Risks and uncertainties
 include, without limitation, the magnitude and duration of the current
 economic slowdown and specifically its impact on the software, networking and
 telecommunications industries; our customers' ability to obtain funding and
 the resulting potential delay of customer purchasing decisions; risks of
 continued operating losses; the ability to attract and retain quality
 professional employees; uncertainties involving intellectual property rights
 and litigation; litigation in general; risks in technology development and
 commercialization; risks in product development and market acceptance of and
 demand for the Company's products;  risks associated with competition and
 competitive pricing pressures; risks associated with international sales; and
 other risks detailed in the Company's filings with the Securities and Exchange
 Commission, including but not limited to, the Company's annual report on Form
 10-K and quarterly reports on Form 10-Q.  Any forward-looking statements
 should be considered in light of all these factors.
     The information contained in this press release is applicable only today
 and should thereafter be considered historical and will no longer constitute
 the Company's current expectations. The company undertakes no obligation to
 update information contained in this press release.
 
    Josef Blumenfeld
    Director, Public Relations
    Concord Communications
    (508) 303-4351
    jblumenfeld@concord.com
 
     Raymond Ruddy
     Director, Investor Relations
     Concord Communications
     508-303-4350
     rruddy@concord.com
 
 SOURCE  Concord Communications Inc.