EX-99.1 2 doc2.txt EXHIBIT 99.1 EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONCURRENT COMPUTER CORPORATION ANNOUNCES FIRST QUARTER FISCAL YEAR 2005 FINANCIAL RESULTS ATLANTA, GEORGIA, OCTOBER 22, 2004 - Concurrent Computer Corporation (NASDAQ: CCUR) today reported results for its first quarter of fiscal year 2005 ended September 30, 2004. In the first quarter of fiscal 2005, consolidated revenue for the company aggregated $17.3 million compared to $14.1 million in the fourth quarter of fiscal 2004, an increase of 22.9%, and compared to $18.9 million in the first quarter of fiscal 2004, a decrease of 8.3%. Video-On-Demand (VOD) revenue totaled $8.5 million for the first quarter of fiscal 2005 compared to $7.9 million in the fourth quarter of fiscal 2004, an increase of 7.7%, and compared to $10.4 million in the same quarter of the prior year, a decrease of 17.7%. Revenue from the company's Integrated Solutions Division (ISD) in the first quarter of fiscal 2005 totaled $8.8 million compared to $6.2 million in the fourth quarter of fiscal 2004, an increase of 42.4%, and compared to $8.5 million in the same quarter of the prior year, an increase of 3.1%. The net loss for the first quarter of fiscal 2005 was $5.0 million, including severance costs of $0.7 million, or $0.08 per fully diluted share compared to a net loss of $7.5 million or $0.12 per share in the fourth quarter of fiscal 2004 and compared to net income of $0.6 million or $0.01 per fully diluted share in the same quarter of the prior year. "Although our results are an improvement from last quarter, particularly in our ISD Division, North American VOD fell short of our expectations. Orders for five new market deployments were once again delayed. However, we do expect that these orders will be received and revenue will be recognized in our second quarter," announced Gary Trimm, Concurrent president and chief executive officer. "Most of our North American VOD shipments were upgrades to our 4th generation architecture, which negatively impacted our margins," he added. "As evidenced by our recent announcements with C&M Co., Ltd. (C&M) and Korea Digital Cable Media Center Co., Ltd. (KDMC), international orders have been strong. We are also currently finalizing two additional new customer announcements, which, together with C&M and KDMC, address approximately 7.5 million basic subscribers. These wins, coupled with -more- Page 6 strong order flow and backlog in our ISD business, are expected to result in improving revenues and operating results for the second and third quarters of our fiscal 2005." As previously announced, Concurrent Computer Corporation will hold a conference call to discuss its first quarter of fiscal 2005 results on October 22, 2004 at 10:00 a.m. E.T., which will be broadcast live over the Internet on the company's web page at www.ccur.com, Investor Relations page. ------------ ABOUT CONCURRENT Concurrent Computer Corporation (www.ccur.com) is a worldwide leader in ------------ providing digital VOD systems to the broadband industry and real-time computer systems for industry and government. Concurrent's VOD systems are utilized within both the domestic and international broadband cable, DSL, and IP-based markets. Concurrent's proven technology provides a flexible, comprehensive, robust solution for HFC, DSL, and IP-based networks. The company's powerful and scalable VOD systems are based on open standards and are integrated with the leading broadband technologies. Concurrent is also a leading provider of high-performance, real-time computer systems, solutions, and software that focus on hardware-in-the-loop and man-in-the-loop simulation, data acquisition, and industrial control systems for commercial and government markets. Concurrent has nearly four decades of experience in real-time technology and provides its best of breed solutions through offices in North America, Europe, Asia, and Australia. Certain statements made or incorporated by reference in this release may constitute "forward-looking statements" within the meaning of the federal securities laws. When used or incorporated by reference in this release, the words "believes," "expects," "estimates," "anticipates," and similar expressions are intended to identify forward-looking statements. Statements regarding future events and developments and our future performance, as well as our 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: our ability to keep our customers satisfied; availability of video-on-demand content; delays or cancellations of customer orders; changes in product demand; economic conditions; various inventory risks due to changes in market conditions; 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, -more- 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; uncertainties associated with international business activities, including foreign regulations, trade controls, taxes, and currency fluctuations; the highly competitive environment in which we operate and predatory pricing pressures; failure to effectively service the installed base; the entry of new well-capitalized competitors into our markets; the success of new products in both the VOD and ISD divisions; the availability of Linux software in light of issues raised by SCO group; capital spending patterns by a limited customer base; and obligations that could impact revenue recognition. Other important risk factors are discussed in our Form 10-K filed with the Securities and Exchange Commission on Sept. 7, 2004 and may be discussed in subsequent filings with the SEC. The risk factors discussed in such Form 10-K under the heading "Risk Factors" are specifically incorporated by reference in this press release. Our forward-looking statements are based on current expectations and speak only as of the date of such statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information, or otherwise. # # # Note to Editors: For additional company or product information from Concurrent, please contact Concurrent, 4375 River Green Parkway, Suite 100, Duluth, GA 30096. Call toll free in the U.S. and Canada at (877) 978-7363, fax (678) 258-4199. Readers can also access information through the company's Web site at www.ccur.com. Concurrent Computer Corporation, its logo and MediaHawk are registered and unregistered trademarks of Concurrent Computer Corporation. All other product names are trademarks or registered trademarks of their respective owners. -7-
CONCURRENT COMPUTER CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) SEPTEMBER 30, JUNE 30, 2004 2004 (UNAUDITED) --------------- ---------- ASSETS Cash and cash equivalents $ 18,779 $ 27,928 Trade accounts receivable, net 11,421 10,192 Inventories, net 7,378 9,617 Prepaid expenses and other current assets 2,452 1,378 --------------- ---------- Total current assets 40,030 49,115 Property, plant and equipment, net 10,851 11,569 Purchased developed computer software, net 966 1,013 Goodwill 10,744 10,744 Investment in minority owned company 553 553 Other long-term assets, net 1,450 1,548 --------------- ---------- Total assets $ 64,594 $ 74,542 =============== ========== LIABILITIES Accounts payable and accrued expenses $ 11,004 $ 12,069 Deferred revenue 6,607 10,668 --------------- ---------- Total current liabilities 17,611 22,737 Long-term deferred revenue 3,986 4,117 Other long-term liabilities 2,034 1,962 STOCKHOLDERS' EQUITY Common stock 629 628 Additional paid-in capital 174,375 174,338 Retained earnings (deficit) (133,747) (128,712) Treasury stock - (42) Unearned compensation (335) (351) Accumulated other comprehensive income (loss) 41 (135) --------------- ---------- Total stockholders' equity 40,963 45,726 --------------- ---------- Total liabilities and stockholders' equity $ 64,594 $ 74,542 =============== ==========
CONCURRENT COMPUTER CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS EXCEPT PER SHARE DATA) THREE MONTHS ENDED SEPTEMBER 30, -------------------------------- 2004 2003 (Unaudited) (Unaudited) --------------- -------------- Revenues: Product: ISD systems $ 5,533 $ 4,394 Video-on-demand systems 6,054 9,147 --------------- -------------- Total product revenues 11,587 13,541 Service: ISD systems 3,274 4,146 Video-on-demand systems 2,469 1,215 --------------- -------------- Total service revenues 5,743 5,361 --------------- -------------- Total revenues 17,330 18,902 Cost of sales: Product: ISD systems 2,457 1,356 Video-on-demand systems 4,210 3,657 --------------- -------------- Total product cost of sales 6,667 5,013 Service: ISD systems 2,003 2,184 Video-on-demand systems 1,521 755 --------------- -------------- Total service cost of sales 3,524 2,939 --------------- -------------- Total cost of sales 10,191 7,952 --------------- -------------- Gross margin 7,139 10,950 Operating expenses: Sales and marketing 4,477 4,080 Research and development 5,180 4,668 General and administrative 2,506 2,169 --------------- -------------- Total operating expenses 12,163 10,917 --------------- -------------- Operating income (loss) (5,024) 33 Recovery of minority investment - 1,060 Other income (expense) 57 (74) --------------- -------------- Income (loss) before income taxes (4,967) 1,019 Provision for income taxes 54 407 --------------- -------------- Net income (loss) $ (5,021) $ 612 =============== ============== Basic net income (loss) per share $ (0.08) $ 0.01 =============== ============== Diluted net income (loss) per share $ (0.08) $ 0.01 =============== ============== Basic weighted average shares outstanding 62,852 62,369 =============== ============== Diluted weighted average shares outstanding 62,852 63,006 =============== ==============
CONCURRENT COMPUTER CORPORATION SEGMENT DATA (IN THOUSANDS) INTEGRATED SOLUTIONS DIVISION VOD DIVISION ----------------------------- --------------------------- THREE MONTHS ENDED THREE MONTHS ENDED ----------------------------- --------------------------- 09/30/04 09/30/03 09/30/04 09/30/03 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ------------- -------------- ------------ ------------- Revenues: Product $ 5,533 $ 4,394 $ 6,054 $ 9,147 Service 3,274 4,146 2,469 1,215 ------------- -------------- ------------ ------------- Total 8,807 8,540 8,523 10,362 Cost of sales: Product 2,457 1,356 4,210 3,657 Service 2,003 2,184 1,521 755 ------------- -------------- ------------ ------------- Total 4,460 3,540 5,731 4,412 ------------- -------------- ------------ ------------- Gross margin 4,347 5,000 2,792 5,950 Operating expenses Sales and marketing 1,935 1,807 2,542 2,273 Research and development 1,575 1,482 3,605 3,186 General and administrative 1,111 1,094 1,395 1,075 ------------- -------------- ------------ ------------- Total operating expenses 4,621 4,383 7,542 6,534 ------------- -------------- ------------ ------------- Operating income (loss) $ (274) $ 617 $ (4,750) $ (584) ============= ============== ============ =============