EX-99.1 2 ex99_1.txt EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONCURRENT COMPUTER CORPORATION ANNOUNCES SECOND QUARTER FISCAL YEAR 2007 FINANCIAL RESULTS Strong VOD Growth ATLANTA, GEORGIA, JANUARY 26, 2007 - Concurrent (Nasdaq: CCUR), a worldwide leader of on-demand technology and real-time computing technology, today announced its results for the second quarter of its fiscal year ended June 30, 2007. Company-wide revenue aggregated $17.1 million compared to $14.8 million in the first quarter of fiscal 2007, an increase of 15.9%. Revenue from Concurrent's on-demand product line totaled $10.9 million for the second quarter of fiscal 2007 compared to $8.0 million in the first quarter of fiscal 2007, an increase of 36.6%. Revenue from the company's real-time product line totaled $6.2 million for the second quarter of fiscal 2007 compared to $6.8 million in the first quarter of fiscal 2007, a decrease of 8.6%. The net loss for the second quarter of fiscal 2007 was $3.5 million, or a loss of $0.05 per fully diluted share, compared to a net loss of $4.9 million, or a loss of $0.07 per fully diluted share, in the first quarter of fiscal 2007. Consolidated gross margins for the second quarter of fiscal 2007 were 43% compared to 47% in the first quarter of fiscal 2007. The reduced gross margins were the result of multiple factors including lower sales of high margin items by the real-time business and pricing pressure on the MediaHawk 4000 products in anticipation of wide release of the new MediaHawk 4500. The Company used $2.0 million during the quarter, ending the quarter with a cash balance of $8.3 million. "Given the fact that we are at the beginning of two new product cycles, I am pleased with these results and progress on our plan for the year," stated Gary Trimm, Concurrent president and chief executive officer. "We have continued to drive down operating expenses which were $10.7 million in the quarter, a decrease of a million dollars from the first quarter, while delivering what I believe to be the best, most robust and fault tolerant video server available in the market. Additionally, although the top-line does not reflect any Novell sales of SUSE Linux Enterprise Real Time, we continue to make progress with trial deployments while enhancing the product with new features needed by our enterprise and financial For More Information Contact: ----------------------------- Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000 customers. In addition, we believe our Everstream products have captured a substantial majority share of the data analytics space for VOD with great possibilities for growth, as broadband providers seek to capitalize on the potential for targeted advertisement and audience measurement. We have continued our evolution to a software company providing best of breed products while effectively managing costs and redistributing assets to meet customer demands. We believe we are on-track with our products and our internal structure and continue to believe we are executing on our business plan to achieve profitability." Concurrent Computer Corporation will hold a conference call to discuss these results on Friday, January 26, 2007 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) and, through subsidiary company Everstream, provide performance measurement systems for interactive media. 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 our software only sales of our real-time operating system products, our partnership with Novell, the potential for Everstream products and our outlook for the release of our Media Hawk 4500 software platform. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. For More Information Contact: ----------------------------- Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000 The risks and uncertainties which could affect our financial condition or results of operations include, without limitation: our ability to keep our customers satisfied; delays or cancellations of customer orders; changes in product demand; economic conditions; our ability to satisfy the financial covenants in the credit agreement; 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 impact of competition on the pricing of VOD products; 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; privacy issues regarding data collection; the success of our relationship with Alcatel and Novell; and the availability of debt or equity financing to support our liquidity needs if cash flow does not improve. Other important risk factors are discussed in our Form 10-K filed with the Securities and Exchange Commission on Sept. 1, 2006 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 Everstream and it's logo are registered trademarks of Concurrent Computer Corporation. All other Concurrent product names are trademarks of Concurrent while all other product names are trademarks or registered trademarks of their respective owners. Linux(R) is used pursuant to a sublicense from the Linux Mark Institute. # # # 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. For More Information Contact: ----------------------------- Concurrent - Kirk Somers - Investor Relations & General Counsel - (678) 258-4000
CONCURRENT COMPUTER CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) DECEMBER 31 SEPTEMBER 30 JUNE 30, 2006 2006 2006 (UNAUDITED) (UNAUDITED) ------------- -------------- ---------- ASSETS Cash and cash equivalents $ 8,335 $ 10,342 $ 14,423 Trade accounts receivable, net 14,439 14,360 15,111 Inventories, net 5,617 6,146 6,164 Prepaid expenses and other current assets 1,857 2,075 1,578 ------------- -------------- ---------- Total current assets 30,248 32,923 37,276 Property, plant and equipment, net 5,320 5,533 6,015 Intangible assets, net 8,243 8,514 8,787 Goodwill 15,560 15,560 15,560 Other long-term assets, net 921 974 1,120 ------------- -------------- ---------- Total assets $ 60,292 $ 63,504 $ 68,758 ============= ============== ========== LIABILITIES Accounts payable and accrued expenses $ 11,787 $ 11,601 $ 11,581 Revolving bank line of credit 1,077 - - Notes payable to bank, current portion - 1,055 1,034 Short term note payable 281 487 - Deferred revenue 6,700 6,701 7,277 ------------- -------------- ---------- Total current liabilities 19,845 19,844 19,892 Long-term deferred revenue 1,115 1,393 1,602 Notes payable to bank, less current portion - 278 549 Other long-term liabilities 3,086 2,933 2,941 STOCKHOLDERS' EQUITY Common stock 717 716 716 Additional paid-in capital 190,193 189,588 189,409 Retained earnings (deficit) (154,183) (150,652) (145,800) Treasury stock (30) (6) (13) Accumulated other comprehensive loss (451) (590) (538) ------------- -------------- ---------- Total stockholders' equity 36,246 39,056 43,774 ------------- -------------- ---------- Total liabilities and stockholders' equity $ 60,292 $ 63,504 $ 68,758 ============= ============== ==========
CONCURRENT COMPUTER CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS EXCEPT PER SHARE DATA) THREE MONTHS ENDED DECEMBER 31, SIX MONTHS ENDED DECEMBER 31, ------------------------------ ------------------------------ 2006 2005 2006 2005 (Unaudited) (Unaudited) (Unaudited) (Unaudited) -------------- -------------- -------------- -------------- Revenues: Product $ 11,685 $ 12,750 $ 21,017 $ 23,693 Service 5,449 6,106 10,898 11,370 -------------- -------------- -------------- -------------- Total revenues 17,134 18,856 31,915 35,063 Cost of sales: Product 6,998 6,084 12,186 11,452 Service 2,721 2,855 5,360 5,600 -------------- -------------- -------------- -------------- Total cost of sales 9,719 8,939 17,546 17,052 -------------- -------------- -------------- -------------- Gross margin 7,415 9,917 14,369 18,011 Operating expenses: Sales and marketing 4,133 4,234 8,446 8,362 Research and development 4,107 4,900 8,759 9,238 General and administrative 2,502 2,379 5,245 4,902 -------------- -------------- -------------- -------------- Total operating expenses 10,742 11,513 22,450 22,502 -------------- -------------- -------------- -------------- Operating loss (3,327) (1,596) (8,081) (4,491) Other income (expense) (271) 18 (151) 777 -------------- -------------- -------------- -------------- Loss before income taxes (3,598) (1,578) (8,232) (3,714) Provision (benefit) for income taxes (67) 26 151 73 -------------- -------------- -------------- -------------- Net loss $ (3,531) $ (1,604) $ (8,383) $ (3,787) ============== =============== ============= ============== Basic net loss per share $ (0.05) $ (0.02) $ (0.12) $ (0.06) ============== =============== ============= ============== Diluted net loss per share $ (0.05) $ (0.02) $ (0.12) $ (0.06) ============== =============== ============= ============== Basic weighted average shares outstanding 71,600 70,385 71,567 66,578 ============== =============== ============= ============== Diluted weighted average shares outstanding 71,600 70,385 71,567 66,578 ============== =============== ============= ==============