Concurrent Tech. - Interim Results
October 13 1999 - 3:30AM
UK Regulatory
RNS No 9555j
CONCURRENT TECHNOLOGIES PLC
13 October 1999
Concurrent Technologies Plc
Interim Results Announcement
Strong forward order book
Concurrent Technologies Plc, which designs, produces and markets
single board computers known as Multibus II and VME, announces its
Interim Results for the six months ended 30 June 1999.
* Turnover for the period was #1.9 million (1998H1: #2.08m,
1998:#3.7m)
* Loss for the period #331,636 (1998H1: #1,895 profit,
1998:#359,915 loss)
* Strong balance sheet
* Substantial forward order book, at end of September
* H2 sales expected to be #3.6 million
* Further range of products introduced - CompactPCI
architecture
Michael Collins, Chairman, commented:
".. we are starting to see real tangible benefits from the raising
of new share capital last year, the expansion of our product
portfolio and our investment in further design and development and
in the USA sales team.
".. in the last quarter of the year, we anticipate that sales
will be approximately #2.17m, an average of over #720,000 per
month. This compares with an average of #266,000 per month in the
first quarter of this year.
"Our forward order book gives us confidence that sales will
continue into 2000 at the same level as or better than those
anticipated in the last quarter of 1999.
"I have in the past been extremely conservative in my statements
about Concurrent Technologies. I feel, however, that I am
justified at this time in stating to you more bullish sentiments
about the company's prospects."
13 October 1999
Enquiries:
Concurrent Technologies Plc Tel.No.0171 457 2020 (today)
Glen Fawcett, Managing Director Tel.No.01206 752626
College Hill Tel. No. 0171 457 2020
Michael Padley
THE CHAIRMAN'S STATEMENT
* Significantly increased sales anticipated for second
half of 1999 and into 2000
* Positive sales indications from USA for 2000 and 2001
* Substantial new markets opening up for Concurrent
Technologies products in VME and CompactPCI
* Confident of significantly improved financial results
in 2000
Financial
The turnover for the group for the six month period ended 30th
June 1999 was #1,914,259. Although this was slightly behind the
turnover for the same period in 1998 there are now clear
indications that we are starting to see real tangible benefits
from the raising of new share capital last year, the expansion
of our product portfolio and our investment in further design
and development and in the USA sales team. The loss for the
period was #331,636.
Our balance sheet remains strong. As at 30th June 1999 our
management figures indicate that our current assets (including
cash of #1.58m) exceeded our current liabilities by over #2.5m
and our total assets exceeded our total liabilities by over
#2.9m. Also the shareholders should note that the considerable
investment in product design and human resources which are not
reflected in the balance sheet have had an impact on
profitability.
Our outstanding sales order book as at the end of September 1999
leads us to believe that sales for the whole of 1999 will be
approximately #5.5m. In support of this statement, we have taken
the unusual step of having our Auditors review and confirm this
figure. We anticipate that in the second half of the year sales
will be approximately #3.6m which is about 90% up on the sales
in the first half of the year. Further, in the last quarter of
the year, we anticipate that sales will be approximately #2.17m,
an average of over #720,000 per month. This compares with an
average of #266,000 per month in the first quarter of this year.
Our forward order book gives us confidence that sales will
continue into 2000 at the same level as or better than those
anticipated in the last quarter of 1999 and the Board expects to
approve a sales budget for 2000 in the region of #10m.
Our confidence is based upon the fact that a major part of this
anticipated level of business is from customers who have
indicated to us that their requirements in 2000 and beyond are
anticipated to be higher than they have been this year. We are
achieving continued success with the original Multibus II
product range where we have been particularly successful of late
in achieving design wins in projects involving
telecommunications, medical imaging and air traffic control.
Although in the immediate future our sales will continue to be
dominated by Multibus II projects, the key to our anticipated
expansion lies with the broadening of our product range
including VME single board computers ("SBCs") and ancillary
products. I am also able to announce that we have recently
introduced a further range of products using the CompactPCI
architecture. All our SBCs, however, are still based primarily
on the Intel Pentium, Pentium II and successor processors which
continue to be the processors of choice for many systems
builders.
In 2000 we shall begin to see real benefits from our recently
recruited USA sales force which is opening up many more
opportunities than were previously available to the company.
They have submitted very positive sales indications for the USA
in 2000 and 2001. I am confident that our sales in the USA will
build substantially and are likely to be a significant
proportion of group sales in future years.
Dividends
The Board does not propose to pay an interim dividend.
Markets
Concurrent Technologies' growing range of products has gained
universal acceptance amongst many leading companies. Projects
such as telecommunications systems (including mobile digital
telephone systems), radar networks, aerospace applications,
defence, medical and industrial systems incorporate Concurrent
Technologies' SBCs.
For the first twelve years or so of its life Concurrent
Technologies produced SBCs based primarily on the Multibus II
Architecture. In that period it built up a substantial body of
knowledge and experience on Intel microprocessor technology and
the operating systems most often used by customers who purchase
Multibus II SBCs. It is clear now that major changes have
occurred and are continuing to occur in the market for SBCs, the
most significant of which being the trend towards Intel CPUs and
operating systems which work well with them such as Microsoft's
Windows NT operating system.
A significant part of the SBC market consists of systems
integrators and original equipment manufacturers (OEMs) which
are using the VME Architecture which traditionally has not been
linked in any significant way with Intel CPUs. Intel has also
promoted the development of another architecture designed for
use with Intel CPUs, namely CompactPCI. Many systems integrators
and OEMs previously used Motorola CPUs, which either have never
worked with Windows NT or are unlikely to work with Windows NT
in the future, and they need to move towards using Intel CPUs.
This has presented a significant opportunity for Concurrent
Technologies to increase its range of SBCs by migrating some of
its designs from its original Multibus II based product range to
new ranges of VME and CompactPCI SBCs. We believe this has
opened up a market to Concurrent Technologies, which on an
annual basis during the next three years, is many times larger
than that in which the Company has operated previously.
A recent survey undertaken by Venture Development Corporation of
the market for merchant computer boards for real time and
embedded applications using bus architectures ("bus boards"), of
which SBC's are the major part, estimated that in 2002 VME bus
boards would constitute 42.6%, CompactPCI boards 4.7% and
Multibus I and II boards 0.3% of this market. The same survey
estimated the market for these bus boards to have been
$1,999,000,000 in 1994 and to be $3,936,000,000 in 2002.
Concurrent Technologies has as yet a comparatively small share
of the total market but we expect to have an expanding and
substantial share of the available Multibus II segment, which we
believe will become increasingly specialist, and we should see
sales opportunities opening up for our new products in 2000.
Because of this we anticipate that Concurrent Technologies will
move up to a higher level in terms of its activity.
Commitment of Directors
The directors and their associates hold between them over 18% of
the issued ordinary share capital of the Company.
Marketability of the Shares in Concurrent Technologies
We have been satisfied with our experience on the Alternative
Investment Market, which enabled us to raise capital for
expansion and investment in further design and development when
we required it in 1998. We will now be considering whether we
should move the listing of the Concurrent Technologies' shares
to another market. There is some interest already in the
proposals recently announced by the Stock Exchange to set up
"TechMARK" as a new market specialising only in high technology
stocks. We will be considering this and other possibilities in
the coming months.
Outlook and Future Plans
In July 1998 our successful fund raising from the Placing and
Open Offer which took place at that time allowed us to increase
the number of qualified engineers and sales support staff, to
expand our marketing activities, particularly in North America,
and to consolidate our production. We believe that we have
premises and production facilities fully capable of producing
products of at least #20m per year subject to incurring a modest
amount of further expenditure on additional production equipment
as turnover expands. We do not anticipate that we will have to
increase our share capital to fund this.
Your Board will be giving consideration to the establishment of
strategic alliances with one or more other companies where
complementary products can be combined to offer a system
solution to customers of either party.
I have in the past been extremely conservative in my statements
about Concurrent Technologies. I feel, however, that I am
justified at this time in stating to you more bullish sentiments
about the company's prospects. This confidence is based upon an
in depth review that your directors have recently undertaken, in
conjunction with our salesmen in USA, Europe, South Africa and
UK, as to the current situation of the company and its sales
prospects until the end of 2000.
MICHAEL COLLINS
CHAIRMAN
13 October 1999
All companies and product names are trademarks of their respective
organisations.
CONSOLIDATED TRADING RESULTS
Unaudited Unaudited Audited
Six months Six Year ended
to 30/6/99 months 31/12/98
to
30/6/98
#'s #'s #'s
Turnover 1,914,259 2,083,029 3,688,895
Profit on ordinary (331,636) 2,199 (383,918)
activities before taxation
Taxation - 304 (24,003)
(Loss) / Profit on ordinary (331,636) 1,895 (359,915)
activities after
taxation retained for the
period
Earnings / (Loss) Per (0.47)p 0.00p (0.61)p
Equity Share
Notes:
1 The results for the year ended 31 December 1998 are abridged
from the Financial Statements for the year which contain an
unqualified audit report and have been filed with the Registrar
of Companies.
2 The Consolidated Trading Results have been prepared on a basis
consistent with the Financial Statements for the year ended 31
December 1998.
3 Copies of this report have been sent to Shareholders and are
available at the Company's Registered Office.
END
IR AUUWKKSKRAAA
Concurrent Technologies (LSE:CNC)
Historical Stock Chart
From Jul 2024 to Aug 2024
Concurrent Technologies (LSE:CNC)
Historical Stock Chart
From Aug 2023 to Aug 2024
