CCUR NEWS - EARNINGS!!! Good Luck
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Friday February 6, 8:01 am Eastern Time
Company Press Release
Concurrent Computer Corporation Reports Earnings For
Quarter Ended December 31, 1997
FT. LAUDERDALE, Fla.--(BUSINESS WIRE)--February 6, 1998-- Concurrent Computer
Corporation (NASDAQ:CCUR - news) today reported profit for the quarter ended December 31,
1997 of $1.4 million or $0.03 per share, compared with a profit of $1.3 million or $0.03 per share
and $2.7 million or $0.06 per share for the quarters ended September 30, 1997 and December 28,
1996, respectively. The year ago quarter ended December 28, 1996 included a one-time gain of
$2.2 million or $0.05 per share from the sale of CyberGuard Corporation stock. Revenue for the
quarter was $21.0 million, compared with $26.6 million for the same quarter a year ago.
''The decline in service revenue and the continued transition of our business to a software
value-added business contributed to the anticipated decline in total revenue,'' said E. Courtney
Siegel, Chairman, President, and Chief Executive Officer. ''Notwithstanding the revenue decline,
profit from operations continued to increase to $2.2 million for the quarter, compared with $1.6
million and $1.7 million for the quarters ended September 30, 1997 and December 28, 1996,
respectively, demonstrating the improved performance and favorable trend experienced by
Concurrent since the acquisition of Harris Computer Systems Corporation's real-time business on
June 27, 1996. We are very pleased with these results and believe we are well-positioned for the
rest of the fiscal year. Our balance sheet continued to strengthen as we paid off our long-term debt
during January - six months ahead of plan.''
''Video-on-demand continues to progress on several market fronts. In the hospitality market, we
have been selected by On Command Corporation [Nasdaq:ONCO - news] as one of two vendors
to supply digital video servers. On Command is the largest supplier of video-on-demand to the
hospitality market worldwide, providing service to 3,100 hotels comprising approximately one
million rooms. Its customers include Hyatt, Marriott, Marriott Courtyard, Residence Inn, Hilton, and
Ritz Carlton.''
''On the residential front, we have established two significant alliances. Concurrent has signed an
exclusive marketing agreement with Omnio Inc., a Time Warner spinoff. Omnio key personnel were
responsible for Time Warner's Full Service Network in Orlando, Florida. Omnio will assist in
marketing Concurrent's video servers to the Time Warner Divisions, as well as to other multi-system
operators.''
''Second, we continue to work with Scientific-Atlanta to integrate our video server with its
Explorer(r) 2000 set top box, which has been selected by Time Warner, Adelphia Communications,
Comcast Cable, Cox Cable, Marcus Cable, and MediaOne. The integration should be completed in
May and will be demonstrated in a new video-on-demand laboratory under construction at
Concurrent's headquarters in Ft. Lauderdale, Florida. We believe the relationships forged with On
Command, Omnio, Scientific-Atlanta and others will start generating revenue in our fourth quarter,
calendar second quarter, with volume shipments in our fiscal year 1999, July 1, 1998 to June 30,
1999.''
Concurrent Computer Corporation, headquartered in Fort Lauderdale, Florida, is the leading
provider of high-performance real-time computer systems, solutions, and software to commercial
and government markets. The Company is one of the leaders in the emerging digital video server
marketplace. This market includes the hospitality, residential, corporate training, in-flight
entertainment, and digital video management segments. The Company operates in 32 countries and
provides sales and support from offices throughout North America, South America, Europe, Asia,
and Australia.
Certain matters discussed in this news release are forward-looking statements involving certain risks
and uncertainties including, without limitation, changes in product demand, changes in competition,
economic conditions, various inventory risks due to changes in market conditions and other risks.
Explorer is a registered trademark of Scientific-Atlanta, Inc.
QUARTER TWO INCOME STATEMENT ($K)
Three Months Ended Six Months Ended
12/31/97 12/28/96 12/31/97 12/28/96
Net sales
Computer systems $9,759 $12,870 $18,625 $26,244
Service and other 11,257 13,755 22,996 28,138
Total 21,016 26,625 41,621 54,382
Cost of sales
Computer systems 4,516 6,796 8,793 13,905
Service and other 5,737 7,156 12,182 14,914
Transition - 64 - 802
Total 10,253 14,016 20,975 29,621
Gross margin 10,763 12,609 20,646 24,761
Operating expenses:
Research and development 2,694 3,443 5,514 6,799
Selling, general and
administrative 5,870 7,797 11,894 15,028
Transition/restructuring - 872 (607) 2,106
Post-retirement benefit
reversal - (1,200) - (2,181)
Total operating expenses 8,564 10,912 16,801 21,752
Operating income (loss) 2,199 1,697 3,845 3,009
Interest expense (188) (532) (450) (1,191)
Interest income 36 29 58 81
Gain/Loss on CyberGuard Stock - 2,192 420 (1,876)
Other income (expense) - net (41) (161) (242) (420)
Income (loss) before
provision for income taxes 2,006 3,225 3,631 (397)
Provision for income taxes 583 530 908 970
Net income (loss) $1,423 $2,695 $2,723 ($1,367)
Net income (loss) per share $0.03 $0.06 $0.06 ($0.03)
BALANCE SHEET ($K)
December 30, June 30,
1997 1997
Cash $4,992 $4,024
Securities Available for Sale 0 2,718
Net Accounts Receivable 19,665 25,720
Net Inventories 7,262 8,399
Other Current Assets 1,705 2,286
Total Current Assets 33,624 43,147
Plant & Equipment 13,032 14,207
Facility Held for Disposal 4,700
Other Long Term Assets 1,377 1,474
Total Assets $48,033 $63,528
Notes & Loans Payable $4,478 $5,399
Current Portion of LTD 1,529 1,668
Revolver Credit Facility 0 3,118
Accounts Payable 4,535 7,451
Accrued Wages and Benefit 4,332 5,891
Deferred Revenue 3,100 4,402
Other Accrued Expenses 5,256 10,524
Total Current Liabilities 23,230 38,453
Long Term Debt 434 4,493
Other Long Term Liabilities 1,574 1,219
Preferred Stock 0 1,243
Equity 22,795 18,120
Total Liabilities and Equity $48,033 $63,528
-0-
Note: For additional company or product information from Concurrent Computer Corporation via
fax, call 1.888.286.6418 or visit our website at ccur.com
Contact:
Concurrent Computer Corporation, Fort Lauderdale
Corporate Communications
Beth Alonzo 954.973.5100
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