EX-99.1 2 ex99_1.txt EXHIBIT 99.1 EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONCURRENT COMPUTER CORPORATION ANNOUNCES THIRD QUARTER OF FISCAL YEAR 2006 FINANCIAL RESULTS Revenue Growth Continues - On-Demand Strong ATLANTA, GEORGIA, APRIL 21, 2006 - Concurrent (Nasdaq: CCUR), a worldwide leader of on-demand and real-time computing technology, today announced its results for the third quarter of fiscal year 2006. In the third quarter of fiscal 2006, consolidated revenue for the company aggregated $20.6 million compared to $18.9 million in the second quarter of fiscal 2006, an increase of 9.4%. Revenue from Concurrent's on-demand product line totaled $11.6 million for the third quarter of fiscal 2006 compared to $9.8 million in the second quarter of fiscal 2006, an increase of 19.1%. Revenue from the company's real-time product line totaled $9.0 million for the third quarter of fiscal 2006 compared to $9.1 million in the second quarter of fiscal 2006, a decrease of 1.0%. Cash at the end of the third quarter of fiscal 2006 totaled $14.8 million, a decrease of $2.2 million from the prior quarter. The net loss for the third quarter of fiscal 2006 was $1.0 million, or a loss of $0.01 per fully diluted share, compared to a net loss of $1.6 million, or a loss of $0.02 per fully diluted share, in the second quarter of fiscal 2006. "We are pleased to report continued revenue growth on a consolidated basis with particularly strong sales from our on-demand group," said Gary Trimm, Concurrent's president and chief executive officer. "The on-demand market is improving and the potential for sales of our real-time operating system software into broad markets make us optimistic about our opportunities going forward. We have won a number of new VOD systems as well as upgrades and enhancements to our installed base and additional "Startover" projects. Our Everstream subsidiary completed its first deployment outside North America at J:COM in Japan and marked a milestone of now monitoring over 14 million digital subscribers. We anticipate growing revenues in the coming quarters which, coupled with sound fundamentals, should extend our trend of sequential improvements." As previously announced, Concurrent Computer Corporation will hold a conference call to discuss its third quarter fiscal 2006 results on April 21, 2006 at 10:00 a.m. E.D.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 (NASDAQ: CCUR) is a leading provider of high-performance, real-time Linux software and solutions for commercial and government markets. For 40 years Concurrent's best-of-breed products have enabled a range of time-critical solutions including: modeling and simulation, high speed data acquisition, visual imaging, low latency transaction processing and on-demand television. Concurrent's on-demand television applications are utilized by major service providers in the cable and IPTV industries to deliver video-on-demand (VOD). Concurrent is a global company with regional offices in North America, Europe, Asia and Australia, and has products actively deployed in more than 24 countries. Concurrent's products and services are recognized for being uniquely flexible, comprehensive, robust and reliable. For more information, please visit www.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 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. Examples of forward looking statements in this press release include, without limitation, our expectation with regard to future revenues and revenue growth, anticipated growth in the markets for our on-demand and real-time products, anticipated positive results, and the performance of our products. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. Such risks and uncertainties include our ability to achieve revenue goals, and win new opportunities. In addition, 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, 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 on-demand and real-time products; the availability of Linux software in light of issues raised by SCO Group; capital spending patterns by a limited customer base; the integration of Everstream; and contractual 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. 2, 2005 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. Concurrent Computer Corporation, its logo and are registered trademarks of Concurrent Computer Corporation. All other product names are trademarks or registered trademarks of their respective owners. # # # 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS EXCEPT PER SHARE DATA) THREE MONTHS ENDED MARCH 31, NINE MONTHS ENDED MARCH 31, --------------------------------- -------------------------------- 2006 2005 2006 2005 (Unaudited) (Unaudited) (Unaudited) (Unaudited) -------------- ----------------- ------------- ----------------- Revenues: Product $ 15,133 $ 14,391 $ 38,826 $ 40,699 Service 5,500 5,458 16,870 16,504 -------------- ----------------- ------------- ----------------- Total revenues 20,633 19,849 55,696 57,203 Cost of sales: Product 7,456 5,747 18,908 19,294 Service 2,944 3,132 8,544 9,904 -------------- ----------------- ------------- ----------------- Total cost of sales 10,400 8,879 27,452 29,198 -------------- ----------------- ------------- ----------------- Gross margin 10,233 10,970 28,244 28,005 Operating expenses: Sales and marketing 4,053 4,333 12,415 12,897 Research and development 4,852 4,447 14,090 14,299 General and administrative 2,395 2,363 7,297 7,144 -------------- ----------------- ------------- ----------------- Total operating expenses 11,300 11,143 33,802 34,340 -------------- ----------------- ------------- ----------------- Operating loss (1,067) (173) (5,558) (6,335) Loss on minority investment - - - (313) Other income - net 33 (2) 810 71 -------------- ----------------- ------------- ----------------- Loss before income taxes (1,034) (175) (4,748) (6,577) Provision for income taxes 14 2 87 68 -------------- ----------------- ------------- ----------------- Net loss $ (1,048) $ (177) $ (4,835) $ (6,645) ============== ================= ============= ================= Basic net loss per share $ (0.01) $ (0.00) $ (0.07) $ (0.11) ============== ================= ============= ================= Diluted net loss per share $ (0.01) $ (0.00) $ (0.07) $ (0.11) ============== ================= ============= ================= Basic weighted average shares outstanding 71,373 62,758 68,153 62,728 ============== ================= ============= ================= Diluted weighted average shares outstanding 71,373 62,758 68,153 62,728 ============== ================= ============= =================
CONCURRENT COMPUTER CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) MARCH 31, DECEMBER 31, JUNE 30, 2006 2005 2005 (UNAUDITED) (UNAUDITED) ------------ -------------- ---------- ASSETS Cash and cash equivalents $ 14,811 $ 17,050 $ 19,880 Trade accounts receivable, net 19,978 15,495 16,577 Inventories, net 5,245 6,640 5,071 Prepaid expenses and other current assets 2,026 2,176 1,084 ------------ -------------- ---------- Total current assets 42,060 41,361 42,612 Property, plant and equipment, net 6,570 6,899 8,319 Intangible assets, net 9,059 9,331 823 Goodwill 15,590 15,590 10,744 Investment in minority owned company - - 140 Other long-term assets, net 1,106 1,086 1,339 ------------ -------------- ---------- Total assets $ 74,385 $ 74,267 $ 63,977 ============ ============== ========== LIABILITIES Accounts payable and accrued expenses $ 12,591 $ 12,667 $ 12,055 Notes payable to bank, current portion 1,013 993 954 Deferred revenue 7,714 6,706 6,692 ------------ -------------- ---------- Total current liabilities 21,318 20,366 19,701 Long-term deferred revenue 1,944 1,843 2,349 Notes payable to bank, less current portion 815 1,077 1,583 Other long-term liabilities 2,108 2,046 1,991 STOCKHOLDERS' EQUITY Common stock 715 714 637 Additional paid-in capital 189,164 188,879 175,769 Retained earnings (deficit) (141,290) (140,242) (136,455) Treasury stock (27) (34) - Unearned compensation - - (1,562) Accumulated other comprehensive loss (362) (382) (36) ------------ -------------- ---------- Total stockholders' equity 48,200 48,935 38,353 ------------ -------------- ---------- Total liabilities and stockholders' equity $ 74,385 $ 74,267 $ 63,977 ============ ============== ==========