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

Concurrent Reports Fourth Quarter and Fiscal 2009 Results
 
ATLANTA, Georgia, August 26, 2009 – Concurrent (Nasdaq: CCUR), a world-wide leader in video solutions, today announced results for its fiscal fourth quarter and fiscal year ended June 30, 2009.

For the fourth quarter, total revenues were $15.9 million with gross margins of 59.2%.  Operating expenses totaled $9.1 million resulting in net income of $245,000, or $0.03 per diluted share.  The Company’s cash balance as of June 30, 2009 was $29.1 million.

“In the fourth quarter, revenue was impacted by reduced spending from some of our top customers, and we expect this trend to continue in the first quarter,” commented Dan Mondor, Concurrent President and Chief Executive Officer. 

For the fiscal year, total revenues were $71.6 million.  Including a non-cash impairment charge of $17.1 million incurred in the third quarter, the Company recorded a net loss for the year of $14.5 million, or $1.75 per share.  Excluding the impact of the impairment charges and the related income tax benefit, adjusted net income for the year was $2.2 million, or $0.26 per diluted share.  This compares to revenue of $70.8 million and net income of $265,000, or $0.03 per diluted share, reported in fiscal year 2008.

Including the impairment charges noted above, for fiscal year 2009 operating expenses were $55.6 million and the operating loss was $14.3 million for the year.  Excluding the impact of the impairment charges, adjusted operating expenses for the year decreased by approximately 8.3% to $38.5 million compared to $42.0 million for the prior fiscal year.  The Company’s adjusted operating income for the fiscal year was $2.8 million, compared to an operating loss of $3.9 million in the prior year.  The Company’s cash flow from operations for the fiscal year was $4.3 million, leading to a $1.7 million improvement in the cash balance during fiscal year 2009.

 
 
 

“In fiscal year 2009, we lowered our revenue breakeven point, established more efficient operations and improved cash management,” stated Mondor. “With more efficient operations, we are better positioned to invest in new products to address new markets consistent with our three-screen strategy.”

Conference Call Information
Concurrent will hold a conference call to discuss fourth quarter results today, Wednesday, August 26, 2009, at 10:00 a.m. ET, which will be broadcast live at www.ccur.com, under the Investor Relations page.  The call can be accessed live by dialing 1-800-841-9385 and entering pass code 090826#.  A webcast of the live call as well as a replay will also be available at www.ccur.com.

Use of Non-GAAP Financial Information
To help our readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. Specifically, in this press release, we present adjusted net income, adjusted operating expenses,  adjusted operating income and adjusted earnings per share.  These non-GAAP financial measures exclude the impact of $17.1 million of non-cash impairment charges and adjusted net income and adjusted earnings per share also exclude the related income tax benefit of $430,000.  These non-GAAP financial measures are among the primary factors management used in assessing the Company’s results for fiscal year 2009 and for planning and forecasting future periods.  We believe the non-GAAP disclosures provide better comparability of our operating results over the relevant periods.

The method we use to produce these non-GAAP financial measures is not computed according to GAAP and may differ from the methods used by other companies.  Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.  Our management uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to this press release and which can be found, along with other financial information, on the investor relations’ page of our Web site at: www.ccur.com

 
 
 

About Concurrent
Concurrent (Nasdaq:  CCUR) is a global leader in innovative solutions that enable the seamless delivery, management and monetization of video on any screen.  Built on a solid foundation of video firsts and Emmy-Award winning technology, Concurrent’s screen-independent video delivery solutions create a truly holistic, 360 degree view of the consumer video experience.  Concurrent provides customers in the cable, telco, wireless, Web, advertising and content development industries with new revenue opportunities by harnessing the full potential of video.  Concurrent’s video solutions are built upon a rich heritage of high-performance, real-time technology which also powers solutions for the defense, aerospace, automotive and financial industries.  Concurrent is a global company with offices in North America, Europe and Asia.  For more information, please visit www.ccur.com.

For more information, contact:
Concurrent Investor Relations
Kirk Somers
678.258.4000
investor.relations@ccur.com

Erica Abrams, Jonathan Schaffer
The Blueshirt Group for Concurrent
415.217.5864 or 212.551.1452
erica@blueshirtgroup.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.  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;  delays or cancellations of customer orders; changes in product demand; economic conditions; our ability to satisfy the financial covenants in our 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 our products; failure to effectively service the installed base; the entry of new well-capitalized competitors into our markets; the success of new video 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 and in light of the current negative macro-economic environment; privacy issues regarding data collection; and the success of our relationship with Alcatel-Lucent and other partners.

 
 
 

Other important risk factors are discussed in our Form 10-K filed with the Securities and Exchange Commission (the SEC) on August 27, 2008, our Form 10-Q, for the first and second quarters of fiscal 2009 filed with the SEC on November 3, 2008 and January 28, 2009, and may be discussed in subsequent filings with the SEC. The risk factors discussed in the Form 10-K and our Form 10-Qs 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 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.  Linux® is used pursuant to a sublicense from the Linux Mark Institute.

 
 
 

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

   
Three Months Ended June 30,
    
Twelve Months Ended June 30,
  
   
2009
    
2008
    
2009
    
2008
  
                         
Revenues:
                        
Product
   $ 8,851     $ 11,146     $ 44,696     $ 44,157  
Service
     7,091       6,463       26,944       26,659  
Total revenues
     15,942       17,609       71,640       70,816  
                                 
Cost of sales:
                                
Product
     4,156       5,561       20,710       21,945  
Service
     2,354       2,562       9,619       10,772  
Total cost of sales
     6,510       8,123       30,329       32,717  
                                 
Gross margin
     9,432       9,486       41,311       38,099  
                                 
Operating expenses:
                                
Sales and marketing
     3,792       4,256       15,798       15,693  
Research and development
     3,104       4,179       13,772       16,624  
General and administrative
     2,194       2,350       8,919       9,669  
Impairment of goodwill and trademark
     -       -       17,090       -  
Total operating expenses
     9,090       10,785       55,579       41,986  
                                 
Operating income (loss)
     342       (1,299 )     (14,268 )     (3,887 )
                                 
Other income - net
     228       140       2       4,199  
Income (loss) before income taxes
     570       (1,159 )     (14,266 )     312  
                                 
Income tax provision (benefit)
     325       (148 )     211       47  
                                 
Net income (loss)
   $ 245     $ (1,011 )   $ (14,477 )   $ 265  
                                 
Basic net income (loss) per share
   $ 0.03     $ (0.12 )   $ (1.75 )   $ 0.03  
                                 
Diluted net income (loss) per share
   $ 0.03     $ (0.12 )   $ (1.75 )   $ 0.03  
                                 
Basic weighted average shares outstanding
     8,282       8,306       8,281       8,302  
                                 
Diluted weighted average shares outstanding
     8,335       8,306       8,281       8,318  

 
 
 

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


   
Three Months Ended
  
   
June 30,
    
March 31,
  
   
2009
    
2009
  
             
Revenues:
            
Product
   $ 8,851     $ 12,730  
Service
     7,091       6,513  
Total revenues
     15,942       19,243  
                 
Cost of sales:
                
Product
     4,156       5,813  
Service
     2,354       2,453  
Total cost of sales
     6,510       8,266  
                 
Gross margin
     9,432       10,977  
                 
Operating expenses:
                
Sales and marketing
     3,792       4,200  
Research and development
     3,104       3,522  
General and administrative
     2,194       2,222  
Impairment of goodwill and trademark
     -       17,090  
Total operating expenses
     9,090       27,034  
                 
Operating income (loss)
     342       (16,057 )
                 
Other income (expense) - net
     228       (120 )
Income (loss) before income taxes
     570       (16,177 )
                 
Provision (benefit) for income taxes
     325       (832 )
Net income (loss)
   $ 245     $ (15,345 )
Basic net income (loss) per share
   $ 0.03     $ (1.85 )
Diluted net income (loss) per share
   $ 0.03     $ (1.85 )
Basic weighted average shares outstanding
     8,282       8,276  
Diluted weighted average shares outstanding
     8,335       8,276  

 
 
 

Concurrent Computer Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
 

   
June 30,
    
March 31,
    
June 30,
  
   
2009
    
2009
    
2008
  
   
(unaudited)
    
(unaudited)
        
                   
ASSETS
                  
Cash and cash equivalents
   $ 29,110     $ 23,856     $ 27,359  
Trade accounts receivable, net
     14,546       22,355       14,422  
Inventories
     3,060       3,774       5,094  
Prepaid expenses and other current assets
     1,444       1,472       1,360  
Total current assets
     48,160       51,457       48,235  
                         
Property, plant and equipment, net
     3,860       3,885       3,867  
Intangible assets, net
     4,423       4,696       6,611  
Goodwill
     -       -       15,990  
Other long-term assets
     692       804       836  
Total assets
   $ 57,135     $ 60,842     $ 75,539  
                         
LIABILITIES
                        
Accounts payable and accrued expenses
   $ 10,582     $ 12,240     $ 13,984  
Deferred revenue
     7,870       10,182       8,570  
Total current liabilities
     18,452       22,422       22,554  
                         
Long-term deferred revenue
     1,041       1,278       962  
Revolving bank line of credit - non-current
     949       949       949  
Other long-term liabilities
     3,165       3,054       3,646  
Total liabilities
     23,607       27,703       28,111  
                         
STOCKHOLDERS' EQUITY
                        
Common stock
     83       83       83  
Additional paid-in capital
     205,222       205,048       204,574  
Accumulated deficit
     (172,259 )     (172,504 )     (157,782 )
Treasury stock, at cost
     (255 )     (255 )     -  
Accumulated other comprehensive income (loss)
     737       767       553  
Total stockholders' equity
     33,528       33,139       47,428  
Total liabilities and stockholders' equity
   $ 57,135     $ 60,842     $ 75,539  

 
 
 

Concurrent Computer Corporation
Reconciliation of Non-GAAP Adjustments
Condensed Consolidated Statements of Operations (Unaudited)
(In Thousands, Except Per Share Data)


   
Three Months Ended
              
   
June 30,
    
March 31,
    
June 30,
    
Twelve Months Ended June 30,
  
   
2009
    
2009
    
2008
    
2009
    
2008
  
                               
OPERATING EXPENSES:
                              
Operating expenses
   $ 9,090     $ 27,034     $ 10,785     $ 55,579     $ 41,986  
Impairment of goodwill and trademark
     -       (17,090 )     -       (17,090 )     -  
Operating expense adjustment
     -       (17,090 )     -       (17,090 )     -  
Adjusted operating expenses
   $ 9,090     $ 9,944     $ 10,785     $ 38,489     $ 41,986  
                                         
OPERATING INCOME (LOSS):
                                        
Operating income (loss)
   $ 342     $ (16,057 )   $ (1,299 )   $ (14,268 )   $ (3,887 )
Operating expense adjustment
     -       17,090       -       17,090       -  
Adjusted operating income (loss)
   $ 342     $ 1,033     $ (1,299 )   $ 2,822     $ (3,887 )
                                         
INCOME TAX PROVISION (BENEFIT)
                                        
Income tax provision (benefit)
   $ 325     $ (832 )   $ (148 )   $ 211     $ 47  
Deferred tax effect of operating expense adjustment
     -       430       -       430       -  
Adjusted income tax provision (benefit)
   $ 325     $ (402 )   $ (148 )   $ 641     $ 47  
                                         
NET INCOME (LOSS)
                                        
Net income (loss)
   $ 245     $ (15,345 )   $ (1,011 )   $ (14,477 )   $ 265  
Operating expense adjustment
     -       17,090       -       17,090       -  
Deferred tax effect of operating expense adjustment
     -       (430 )     -       (430 )     -  
Adjusted net income (loss)
   $ 245     $ 1,315     $ (1,011 )   $ 2,183     $ 265  
                                         
NET INCOME (LOSS) PER SHARE
                                        
Income (loss) income per share - Diluted
   $ 0.03     $ (1.85 )   $ (0.12 )   $ (1.75 )   $ 0.03  
Operating expense adjustment
     -       2.06       -       2.06       -  
Deferred tax effect of operating expense adjustment
     -       (0.05 )     -       (0.05 )     -  
Adjusted income (loss) per share - Diluted
   $ 0.03     $ 0.16     $ (0.12 )   $ 0.26     $ 0.03  
                                         
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED
                                  
Weighted average shares outstanding - diluted
     8,335       8,276       8,306       8,281       8,318  
Adjusted weighted average shares outstanding - diluted
     8,335       8,315       8,306       8,334       8,318