Concurrent Computer Corporation Announces First Quarter Fiscal Year 2008 Financial Results
9:00a ET October 26, 2007 (Business Wire)
Concurrent (Nasdaq: CCUR), a worldwide leader of on-demand technology and real-time computing technology, today announced its results for the first quarter of its fiscal year ended June 30, 2008.
In the first quarter of fiscal 2008, company-wide revenue aggregated $16.3 million compared to $21.1 million in the fourth quarter of fiscal 2007, a decrease of 23%. Revenue from Concurrent's on-demand product line totaled $10.0 million for the first quarter of fiscal 2008 compared to $14.0 million in the fourth quarter of fiscal 2007, a decrease of 29%. Revenue from the Company's real-time product line totaled $6.3 million for the first quarter of fiscal 2008 compared to $7.1 million in the fourth quarter of fiscal 2007, a decrease of 12%. The variability in quarter to quarter revenue is due to the timing of large customer orders within each fiscal year.
Net income in the first quarter of fiscal 2008 was $1.7 million, or earnings of $0.02 per basic and diluted share, compared to a net loss of ($712,000), or a loss of ($0.01) per basic and diluted share, in the fourth quarter of fiscal 2007. Consolidated gross margins for the first quarter of fiscal 2008 were 53% compared to 48% in the fourth quarter of fiscal 2007. The gross margins increased primarily due to additional installation service revenue recorded in the current quarter and severance charges recorded to service cost of sales in the prior quarter. Net income was positively impacted by $1.9 million and $1.4 million from the Vicor settlement and the patent settlement with C-COR, respectively.
Cash at September 30, 2007 totaled $26.1 million compared to $20.4 million at the end of fiscal year 2007, an increase of $5.7. Cash was positively impacted by $3.3 million from the Vicor settlement and the patent settlement with C-COR discussed above. The balance of $2.4 million of additional cash growth came primarily from operations.
"Operationally we are doing very well as evidenced by the generation of cash flow from operations over the past twelve months, excluding the legal settlements. The legal settlements gave a nice additional boost to our cash balance," said Gary Trimm, Concurrent president and chief executive officer. He added, "We believe our business fundamentals are sound. We have effectively managed costs and expenses, generating improved margins and a lower breakeven point. We also believe our product portfolio and service offerings are ahead of our competition and we are winning the majority of competitive projects. Revenue growth is our top priority and we are investing in marketing, sales and business development activities as part of our effort to make that happen. In VOD, we expect a robust market in 2008 as operators address the need for time shifted video, more HD Content, and advanced advertising, all driving stream counts and reporting requirements to higher levels. In real-time, we believe we have an improved financial model and the project pipeline is beginning to grow. While our quarter to quarter revenues will likely remain highly variable, we expect the last half of fiscal 2008 to be strong, resulting in improved overall results." |
