EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm

EXHIBIT 99.1

FOR IMMEDIATE RELEASE


Concurrent Computer Corporation Announces
First Quarter Fiscal Year 2008 Financial Results

 Positive Earnings of $.02 per Share and Stronger Balance Sheet


ATLANTA, Georgia, October 26, 2007 – Concurrent (Nasdaq: CCUR), a worldwide leader of on-demand technology and real-time computing technology, today announced its results for the first quarter of its fiscal year ended June 30, 2008.

In the first quarter of fiscal 2008, company-wide revenue aggregated $16.3 million compared to $21.1 million in the fourth quarter of fiscal 2007, a decrease of 23%.  Revenue from Concurrent’s on-demand product line totaled $10.0 million for the first quarter of fiscal 2008 compared to $14.0 million in the fourth quarter of fiscal 2007, a decrease of 29%.  Revenue from the Company’s real-time product line totaled $6.3 million for the first quarter of fiscal 2008 compared to $7.1 million in the fourth quarter of fiscal 2007, a decrease of 12%.  The variability in quarter to quarter revenue is due to the timing of large customer orders within each fiscal year.

Net income in the first quarter of fiscal 2008 was $1.7 million, or earnings of $0.02 per basic and diluted share, compared to a net loss of ($712,000), or a loss of ($0.01) per basic and diluted share, in the fourth quarter of fiscal 2007.  Consolidated gross margins for the first quarter of fiscal 2008 were 53% compared to 48% in the fourth quarter of fiscal 2007.  The gross margins increased primarily due to additional installation service revenue recorded in the current quarter and severance charges recorded to service cost of sales in the prior quarter.  Net income was positively impacted by $1.9 million and $1.4 million from the Vicor settlement and the patent settlement with C-COR, respectively.

Cash at September 30, 2007 totaled $26.1 million compared to $20.4 million at the end of fiscal year 2007, an increase of $5.7.  Cash was positively impacted by $3.3 million from the Vicor settlement and the patent settlement with C-COR discussed above.  The balance of $2.4 million of additional cash growth came primarily from operations.

“Operationally we are doing very well as evidenced by the generation of cash flow from operations over the past twelve months, excluding the legal settlements.  The legal settlements gave a nice additional boost to our cash balance,” said Gary Trimm, Concurrent president and chief executive officer.  He added, “We believe our business fundamentals are sound.  We have effectively managed costs and expenses, generating improved margins and a lower breakeven point.  We also believe our product portfolio and service offerings are ahead of our competition and we are winning the majority of competitive projects.  Revenue growth is our top priority and we are investing in marketing, sales and business development activities as part of our effort to make that happen.  In VOD, we expect a robust market in 2008 as operators address the need for time shifted video, more HD Content, and advanced advertising, all driving stream counts and reporting requirements to higher levels.  In real-time, we believe we have an improved financial model and the project pipeline is beginning to grow.  While our quarter to quarter revenues will likely remain highly variable, we expect the last half of fiscal 2008 to be strong, resulting in improved overall results.”


For More Information Contact:
Concurrent • Kirk Somers • Executive Vice President • (678) 258-4000



Concurrent Computer Corporation will hold a conference call to discuss these results on Friday, October 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, measure the effectiveness of interactive television.  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 the market for our VOD and real time products in 2008 and our fiscal year 2008 results. 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 • Executive Vice President • (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 on-demand 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 (the SEC) on August 31, 2007 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® is used pursuant to a sublicense from the Linux Mark Institute.

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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 • Executive Vice President • (678) 258-4000


 
Concurrent Computer Corporation
Condensed Consolidated Statements of Operations (Unaudited)
(In Thousands Except Per Share Data)

   
Three Months Ended September 30,
 
   
2007
   
2006
 
             
Revenues:
           
Product
  $
9,768
    $
9,332
 
Service
   
6,487
     
5,449
 
Total revenues
   
16,255
     
14,781
 
                 
Cost of sales:
               
Product
   
5,053
     
5,188
 
Service
   
2,647
     
2,639
 
Total cost of sales
   
7,700
     
7,827
 
                 
Gross margin
   
8,555
     
6,954
 
                 
Operating expenses:
               
Sales and marketing
   
3,793
     
4,313
 
Research and development
   
4,212
     
4,652
 
General and administrative
   
2,347
     
2,743
 
Total operating expenses
   
10,352
     
11,708
 
                 
Operating income
    (1,797 )     (4,754 )
Other income (expense) - net
   
3,595
     
120
 
Income (loss) before income taxes
   
1,798
      (4,634 )
Provision (benefit) for income taxes
   
54
     
218
 
Net income (loss)
  $
1,744
    $ (4,852 )
Basic net income (loss) per share
  $
0.02
    $ (0.07 )
Diluted net income (loss) per share
  $
0.02
    $ (0.07 )
Basic weighted average shares outstanding
   
82,926
     
71,535
 
Diluted weighted average shares outstanding
   
83,106
     
71,535
 
 


Concurrent Computer Corporation
Condensed Consolidated Balance Sheets
(In Thousands)

   
September 30,
   
June 30,
 
   
2007
   
2007
 
   
(unaudited)
       
   
 
   
 
 
ASSETS
           
Cash and cash equivalents
  $
26,085
    $
20,416
 
Trade accounts receivable, net
   
15,674
     
20,987
 
Inventories
   
3,271
     
3,457
 
Prepaid expenses and other current assets
   
1,255
     
934
 
Total current assets
   
46,285
     
45,794
 
                 
Property, plant and equipment, net
   
3,730
     
4,303
 
Intangible assets, net
   
7,427
     
7,699
 
Goodwill
   
15,560
     
15,560
 
Other long-term assets
   
764
     
777
 
Total assets
  $
73,766
    $
74,133
 
                 
LIABILITIES
               
Accounts payable and accrued expenses
  $
12,506
    $
15,566
 
Deferred revenue
   
8,656
     
7,996
 
Total current liabilities
   
21,162
     
23,562
 
                 
Long-term deferred revenue
   
1,081
     
1,053
 
Revolving bank line of credit
   
686
     
1,077
 
Other long-term liabilities
   
2,328
     
1,846
 
Total liabilities
   
25,257
     
27,538
 
                 
STOCKHOLDERS' EQUITY
               
Common stock
   
830
     
829
 
Additional paid-in capital
   
202,978
     
202,819
 
Accumulated deficit
    (156,303 )     (157,971 )
Treasury stock, at cost
    (31 )     (3 )
Accumulated other comprehensive income
   
1,035
     
921
 
Total stockholders' equity
   
48,509
     
46,595
 
Total liabilities and stockholders' equity
  $
73,766
    $
74,133