EX-99.1 2 ex99_1.htm EXHIBIT 99.1
EXHIBIT 99.1

 
Concurrent Reports Fiscal Year 2013 Fourth Quarter and
Fiscal Year Financial Results

ATLANTA — August 27, 2013 — Concurrent (NASDAQ: CCUR), a global leader in video, media data intelligence and real-time Linux® solutions, today announced financial results for its fourth quarter and fiscal year ended June 30, 2013.

Revenue for the fourth quarter of fiscal 2013 was $14.9 million, compared with $14.7 million for the same period in fiscal 2012, and $16.9 million in the preceding quarter.

Gross margin for the fourth quarter of fiscal 2013 was 56.8%, compared with 57.4% for the same period in fiscal 2012, and 59.1% in the preceding quarter, primarily reflecting the mix of customers and products.  Operating expenses included a $2.4 million gain on the sale of non-strategic intellectual property and were $6.0 million, compared with $8.3 million for the same period in fiscal 2012, and $8.8 million in the preceding quarter.

The company reported net income of $2.3 million, or $0.26 per diluted share, in the fourth quarter of fiscal 2013, compared with net income of $209 thousand, or $0.02 per diluted share, in the same period in fiscal 2012, and net income of $937 thousand, or $0.11 per diluted share, in the preceding quarter.

"I am pleased to announce our sixth consecutive quarter and first full year of profitability in recent history," said Dan Mondor, the company's president and CEO. "We are encouraged by the overall progress we made in the business in fiscal 2013 underpinned by the continued market acceptance of our video and real-time solutions. We achieved a number of new design wins and saw an improvement in spending levels from some of our top customers resulting in a 5% year over year increase in revenue. We closed out the full year with a gain in net income of more than $7 million versus the prior year. Fiscal year 2013 represented a notable improvement in the financial performance of the company."

For fiscal 2013, revenue totaled approximately $63.4 million, compared with $60.3 million for fiscal 2012.  Consolidated gross margin for the year was 58.1%, compared with 57.6% for fiscal 2012.  Total operating expenses included a $2.4 million gain on the sale of non-strategic intellectual property and were $31.8 million for fiscal 2013, compared with total operating expenses of $36.8 million for fiscal 2012.  For fiscal 2013, the company posted $4.2 million of net income, equal to $0.48 per diluted share, compared with a net loss of $2.9 million, equal to $0.34 per diluted share, in fiscal 2012.

The company paid four cash dividends, each for $0.06 per share, one cash dividend of $0.12 per share, and a $0.50 per share special dividend in fiscal 2013.  At June 30, 2013, Concurrent had cash and cash equivalents of $27.9 million. The company has no debt.

Recent Company Highlights
 
· Concurrent announced Cache Xpander™, a high performance, scalable storage device that improves the efficiency of edge based caching for high performance CDN applications and support of larger content libraries.
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· Concurrent released intelligent video archival software for unified CDN and network DVR applications designed to cost optimize content placement in multi-tier storage complexes.
 
· Ultra high-density multi-screen transcoding was added to Concurrent's online video solution portfolio.
 
· The company showcased its latest generation video and media data intelligence products at the NAB show in Las Vegas, announcing new session based policy controls for its eFactorTM dynamic content adaptation solution.
 
· At the NCTA Cable Show, Concurrent hosted meetings to discuss the status, trends and the future of OTT and IP video services.
 
· Concurrent shipped Imagen visual servers to KCEI in Korea for the K-Series Tank Platoon Simulation program.
 
· The company increased its quarterly cash dividend from $0.06 per share to $0.12 per share in June 2013.

Conference Call Information
 
Concurrent will hold a conference call to review its fiscal 2013 fourth quarter and fiscal year financial results today, Tuesday, August 27th, at 4:30 p.m. ET.  The call will be broadcast live at www.ccur.com, under the "Investors" section at the 'About' tab.  The call can be accessed live by dialing 1-877-260-8898 (U.S.) 612-332-0802 (international) and entering pass code 130827.

A webcast of the live call as well as a replay will also be available at www.ccur.com.  To view financial results visit our Investors page here.

About Concurrent
Concurrent (NASDAQ: CCUR) is a global leader in video, media data intelligence and real-time Linux® solutions.  Concurrent provides customers with transformative solutions to fuel their business beyond what was thought possible. Concurrent's unified video delivery and media data intelligence solutions support every screen simultaneously, making it easier for cable MSOs, fixed-line telecommunications providers, mobile operators, online media companies and satellite TV broadcasters to deliver revenue generating video services to consumers on any device, over any network. The world's leading multichannel video service providers have selected Concurrent to deliver the solutions and services required to support their next-generation multi-screen video initiatives. Concurrent's Emmy® award-winning video solutions are based upon a rich heritage of high-performance real-time technology.  Concurrent's real-time Linux solutions are used to support applications in the defense, aerospace, automotive and financial industries. Concurrent has offices in North America, Europe and Asia. Visit www.ccur.com for further information. Follow us on Twitter: www.twitter.com/Concurrent_CCUR.
 
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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 the company's future performance, including, but not limited to, management's 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.
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The risks and uncertainties which could affect our financial condition or results of operations include, without limitation: United States government sequestration; European austerity measures; delays or cancellations of customer orders; changes in product demand; economic conditions; various inventory risks due to changes in market conditions; margins of video business to capture new business; fluctuations and timing of large video orders; doing business in the People's Republic of China; 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;  the impact of reductions in force on our operations; rapid technology changes; system errors or failures; reliance on a limited number of suppliers and failure of components provided by those suppliers; uncertainties associated with international business activities, including foreign regulations, trade controls, taxes, and currency fluctuations; the impact of competition on the pricing of video solutions products; our ability to satisfy the financial covenants in the Revolver; failure to effectively service the installed base; the entry of new well-capitalized competitors into our markets; the success of new video solutions; the success of our relationships with technology and channel partners; capital spending patterns by a limited customer base; the current challenging macro-economic environment; continuing unevenness of the global economic recovery; privacy concerns over data collection; earthquakes, tsunamis, floods and other natural disasters in areas in which our customers and suppliers operate; and the availability of debt or equity financing to support our liquidity needs.
 
Other important risk factors are discussed in Concurrent's Form 10-K filed August 28, 2012 with the Securities and Exchange Commission ("SEC"), and in subsequent filings of periodic reports with the SEC. The risk factors discussed in the Forms 10-K and subsequently filed periodic reports under the heading "Risk Factors" are specifically incorporated by reference in this press release. Forward-looking statements are based on current expectations and speak only as of the date of such statements. Concurrent undertakes 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. Concurrent product names are trademarks of Concurrent while all other product names are trademarks or registered trademarks of their respective owners.
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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,
  
 
  
2013
    
2012
    
2013
    
2012
  
Revenues:
  
   
   
   
 
Product
  
$
8,637
    
$
8,167
    
$
38,414
    
$
34,981
  
Service
    
6,287
      
6,541
      
25,030
      
25,316
  
Total revenues
    
14,924
      
14,708
      
63,444
      
60,297
  
Cost of sales:
                                
Product
    
3,935
      
3,038
      
16,374
      
13,706
  
Service
    
2,507
      
3,224
      
10,233
      
11,854
  
Total cost of sales
    
6,442
      
6,262
      
26,607
      
25,560
  
Gross margin
    
8,482
      
8,446
      
36,837
      
34,737
  
Operating expenses:
                                
Sales and marketing
    
3,550
      
3,666
      
14,358
      
16,257
  
Research and development
    
2,926
      
2,781
      
11,599
      
13,153
  
General and administrative
    
1,874
      
1,812
      
8,226
      
7,373
  
Gain on sale of intellectual property, net
    
(2,381
)
    
-
      
(2,381
)
    
-
  
Total operating expenses
    
5,969
      
8,259
      
31,802
      
36,783
  
Operating income (loss)
    
2,513
      
187
      
5,035
      
(2,046
)
Other (expense) income, net
    
(11
)
    
241
      
(418
)
    
(190
)
Income (loss) before income taxes
    
2,502
      
428
      
4,617
      
(2,236
)
Income tax provision
    
189
      
219
      
369
      
651
  
Net income (loss)
  
$
2,313
    
$
209
    
$
4,248
    
$
(2,887
)
Basic net income (loss) per share
  
$
0.26
    
$
0.02
    
$
0.49
    
$
(0.34
)
Diluted net income (loss) per share
  
$
0.26
    
$
0.02
    
$
0.48
    
$
(0.34
)
Basic weighted average shares outstanding
    
8,764
      
8,658
      
8,736
      
8,602
  
Diluted weighted average shares outstanding
    
8,966
      
8,776
      
8,910
      
8,602
  
Cash dividends declared per common share
  
$
0.12
    
$
-
    
$
0.86
    
$
-
  

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Concurrent Computer Corporation
Condensed Consolidated Statements of Operations (Unaudited)
(In Thousands Except Per Share Data)
 
 
  
Three Months Ended
  
 
  
June 30,
    
March 31,
  
 
  
2013
    
2013
  
Revenues:
  
   
 
Product
  
$
8,637
    
$
10,714
  
Service
    
6,287
      
6,213
  
Total revenues
    
14,924
      
16,927
  
Cost of sales:
                
Product
    
3,935
      
4,591
  
Service
    
2,507
      
2,336
  
Total cost of sales
    
6,442
      
6,927
  
Gross margin
    
8,482
      
10,000
  
Operating expenses:
                
Sales and marketing
    
3,550
      
3,527
  
Research and development
    
2,926
      
2,878
  
General and administrative
    
1,874
      
2,362
  
Gain on sale of intellectual property, net
    
(2,381
)
    
-
  
Total operating expenses
    
5,969
      
8,767
  
Operating income
    
2,513
      
1,233
  
Other expense, net
    
(11
)
    
(229
)
Income before income taxes
    
2,502
      
1,004
  
Provision for income taxes
    
189
      
67
  
Net income
  
$
2,313
    
$
937
  
Basic net income per share
  
$
0.26
    
$
0.11
  
Diluted net income per share
  
$
0.26
    
$
0.11
  
Basic weighted average shares outstanding
    
8,764
      
8,754
  
Diluted weighted average shares outstanding
    
8,966
      
8,894
  
Cash dividends declared per common share
  
$
0.12
    
$
0.06
  

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

 
  
Three Months Ended
    
Twelve Months Ended
  
 
  
June 30,
    
March 31,
    
June 30,
    
June 30,
    
June 30,
  
 
  
2013
    
2013
    
2012
    
2013
    
2012
  
 
  
   
   
   
   
 
Net income (loss)
  
$
2,313
    
$
937
    
$
209
    
$
4,248
    
$
(2,887
)
 
Other comprehensive income (loss):
                                        
Foreign currency translation adjustment
    
(83
)
    
(24
)
    
172
      
(325
)
    
379
  
Unrealized gain on investment
    
-
      
-
      
-
      
-
      
2
  
Pension, net of tax
    
(180
)
    
2
      
(583
)
    
(174
)
    
(583
)
Other comprehensive loss
    
(263
)
    
(22
)
    
(411
)
    
(499
)
    
(202
)
Comprehensive income (loss)
  
$
2,050
    
$
915
    
$
(202
)
  
$
3,749
    
$
(3,089
)

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Concurrent Computer Corporation
Condensed Consolidated Balance Sheets
(In Thousands)

 
  
June 30,
    
March 31,
    
June 30,
  
 
  
2013
    
2013
    
2012
  
 
  
(unaudited)
    
(unaudited)
    
 
 
 
  
   
   
 
ASSETS
  
   
   
 
Cash and cash equivalents
  
$
27,927
    
$
22,370
    
$
29,613
  
Trade accounts receivable, net
    
10,701
      
16,862
      
8,739
  
Inventories
    
2,844
      
2,949
      
3,683
  
Prepaid expenses and other current assets
    
2,324
      
1,559
      
2,129
  
Total current assets
    
43,796
      
43,740
      
44,164
  
 
                        
Property, plant and equipment, net
    
3,102
      
3,114
      
3,966
  
Intangible assets, net
    
834
      
1,060
      
1,738
  
Other long-term assets
    
737
      
779
      
1,005
  
Total assets
  
$
48,469
    
$
48,693
    
$
50,873
  
 
                        
LIABILITIES
                        
Accounts payable and accrued expenses
  
$
7,671
    
$
7,450
    
$
5,931
  
Deferred revenue
    
8,383
      
10,575
      
8,850
  
Total current liabilities
    
16,054
      
18,025
      
14,781
  
 
                        
Non-current deferred revenue
    
1,924
      
1,607
      
2,788
  
Other non-current liabilities
    
4,706
      
4,474
      
4,198
  
Total liabilities
    
22,684
      
24,106
      
21,767
  
 
                        
STOCKHOLDERS' EQUITY
                        
Common stock
    
88
      
88
      
87
  
Additional paid-in capital
    
208,677
      
208,422
      
207,830
  
Accumulated deficit
    
(183,085
)
    
(184,291
)
    
(179,415
)
Treasury stock, at cost
    
(255
)
    
(255
)
    
(255
)
Accumulated other comprehensive income
    
360
      
623
      
859
  
Total stockholders' equity
    
25,785
      
24,587
      
29,106
  
Total liabilities and stockholders' equity
  
$
48,469
    
$
48,693
    
$
50,873
  

 
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