Concurrent Reports Fiscal 2012 Third Quarter Financial Results

ATLANTA, May 1, 2012 /PRNewswire/ -- Concurrent (NASDAQ: CCUR), a global leader in video and media data solutions, today announced financial results for its fiscal year 2012 third quarter ended March 31, 2012.

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Revenue for the fiscal 2012 third quarter was $16.3 million compared with $18.3 million for the same period in fiscal 2011, and $16.4 million in the preceding quarter. 

Gross margin for the fiscal 2012 third quarter was 61% compared with 60% for the same period last year, and up from 55% in the preceding quarter, primarily reflecting the mix of product and services revenue.  Operating expenses were $9.3 million, compared with $10.4 million in the prior-year period.  

The company reported net income of $337,000, or $0.04 per diluted share, in the third quarter of fiscal 2012, compared with $498,000, or $0.06 per diluted share, in the same quarter of the prior fiscal year.  

"In the third quarter we re-architected our video business, implementing processes to more effectively serve our customers and increase our focus on software as our core competency," said Dan Mondor, the company's president and CEO.  "We continue to see strong market acceptance for our software solutions that enable the delivery of video content to multiple devices.  The changes we have implemented make us leaner and more agile overall and establish a foundation for improved performance, efficiency and profitability."

For the first nine months of fiscal 2012, revenue totaled $45.6 million versus $51.7 million in the comparable period of fiscal 2011.  Consolidated gross margin for the nine-month period was 58%, compared with 56% in the first nine months of fiscal 2011.  Total operating expenses were $28.5 million, compared with total operating expenses of $29.8 million in the same period last fiscal year.  For the nine-month period, the company posted a net loss of $3.1 million, equal to $0.36 per share, compared with a net loss of $1.9 million, or $0.23 per share, in the first nine months of fiscal 2011.

At March 31, 2012, Concurrent had cash and cash equivalents of $23.3 million. The company has no debt.

Recent Company Highlights

• Strengthened the company's sales leadership with the addition of industry veteran Jim Marino as senior vice president of Global Sales for the video solutions business;
• Enhanced MediaHawk™ VX, Concurrent's flagship video software solution, allowing operators to insert unique ads in individual VOD sessions at any point during playback; 
• Launched an important new encryption module for the eFactor™ software suite, enabling delivery of multi-format video to a wide variety of devices and increased protection for content when viewed on different devices; and
• Deployed ImaGen™ visual servers powered by Concurrent's RedHawk™ Linux real-time operating system with Hyundai Rotem, a worldwide leader in ground weapon systems.

Conference Call Information

Concurrent will hold a conference call to discuss its fiscal 2012 third quarter financial results today, Tuesday, May 1, 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 1-800-553-0326 and entering pass code 120501.  A webcast of the live call as well as a replay will also be available at www.ccur.com.

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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.

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; 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 30, 2011 and Form 10-Q filed January 31, 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 and 10-Q 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.

SOURCE Concurrent