ATLANTA, Aug. 26 /PRNewswire-FirstCall/ -- 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. (Logo:
http://www.newscom.com/cgi-bin/prnh/20081216/CLTU015LOGO ) 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. 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 and annual results today, Wednesday, August 26,
2009, at 10:00 a.m. ET, which will be broadcast live at
http://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 http://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: http://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 http://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. 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
Twelve Months Ended June 30, 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 --------------------- Twelve Months
June 30, March 31, June 30, 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 ===== ===== ===== ===== =====
http://www.newscom.com/cgi-bin/prnh/20081216/CLTU015LOGODATASOURCE:
Concurrent CONTACT: Kirk Somers, Concurrent Investor Relations,
+1-678-258-4000, ; Erica Abrams, Jonathan Schaffer, of The
Blueshirt Group for Concurrent, +1-415-217-5864, or +1-212-551-1452
Web Site: http://www.ccur.com/
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