Concurrent Computer Corporation Announces Third Quarter Fiscal Year 2008 Financial Results
Friday April 25, 9:00 am ET
Improved Revenue and Margins Produce Net Income
Board Authorizes Reverse Split
ATLANTA--(BUSINESS WIRE)--Concurrent (Nasdaq: CCUR - News), a worldwide leader of on-demand and real-time computing technology, today announced its results for the third quarter of its fiscal year ended June 30, 2008. The Company also announced that its Board of Directors has authorized management to seek approval from Concurrent’s stockholders for a reverse split of Concurrent common stock at a ratio of one-for-ten.
Third Quarter Results:
In the third quarter of fiscal 2008, company-wide revenue aggregated $19.4 million compared to $17.6 million in the second quarter of fiscal 2008, an increase of 10% over the second quarter of fiscal 2008 and an increase of 20% over the third quarter of fiscal 2007. Revenue from Concurrent’s on-demand product line totaled $12.1 million for the third quarter of fiscal 2008 compared to $9.4 million in the second quarter of fiscal 2008, an increase of over 27%. Revenue from the Company’s real-time product line totaled $7.3 million for the third quarter of fiscal 2008 compared to approximately $8.2 million in the second quarter of fiscal 2008, a decrease of approximately 10%.
Consolidated gross margins increased for the third consecutive quarter to 55% compared to 54% in the second quarter of fiscal 2008. The operating income was $56,000 in the third quarter of fiscal 2008 compared to a loss of ($847,000) in the second quarter of fiscal 2008. Net income in the third quarter of fiscal 2008 was $301,000, or $0.00 per basic and diluted share, compared to a net loss of ($769,000), or ($0.01) per basic and diluted share, in the second quarter of fiscal 2008.
Cash at March 31, 2008 totaled $24.6 million compared to $20.4 million at the end of fiscal 2007. Our cash position has increased by $4.2 million since the end of the prior fiscal year as the result of improved operating results and $3.3 million in net proceeds from legal settlements in the first quarter of fiscal 2008.
Concurrent previously announced that Gary Trimm would retire effective April 23, 2008 as president and chief executive officer and Dan Mondor would take over that leadership role on the same date. Gary Trimm, retired president and chief executive officer commented, “I am very pleased with these results, which I believe reflect the changes we have implemented over the last several years to build a foundation of excellence. I’m particularly pleased to be handing over to Dan a strong and vibrant company and also to have the opportunity to continue to serve Concurrent in a consulting capacity.”
Dan Mondor, Concurrent’s president and chief executive officer stated, “The company delivered solid third quarter results across the board which reflect continued improvement in financial performance. Gary, his leadership team and every Concurrent employee have done an excellent job in establishing a strong foundation.”
Reverse Split:
Concurrent further announced that its Board of Directors has authorized management to seek approval from Concurrent’s stockholders for a reverse split of Concurrent common stock at a ratio of one-for-ten. Concurrent will seek approval of its stockholders via a special meeting of stockholders that is expected to be scheduled in the next two months.
As a result of the reverse stock split, every ten shares of common stock of Concurrent will be combined into one share of common stock. The number of shares subject to Concurrent’s outstanding options and warrants will be reduced in the same ratio as the reduction in the outstanding shares, and the per share exercise price of those options and warrants will be increased in direct proportion to the reverse stock split ratio. The Company intends to file a preliminary proxy statement regarding the reverse stock split with the Securities and Exchange Commission and mail a definitive proxy statement regarding this proposal to its stockholders. The Company encourages its stockholders to read the information in the definitive proxy statement when it is made available because it will contain important information regarding the reverse stock split.
While the Company intends to effect the reverse stock split as soon as practicable, there can be no assurances that the reverse stock split will be consummated. The Company reserves the right, at its discretion, to withdraw the reverse stock split proposal at any time prior to filing the applicable charter amendment with the Delaware Secretary of State.
After the completion of the reverse stock split, Concurrent stockholders will receive instructions with respect to the exchange of their stock certificates.
Concurrent Computer Corporation will hold a conference call to discuss these results on Friday, April 25, 2008 at 10:00 a.m. E.D.T., which will be broadcast live over the Internet on the company’s web page at www.ccur.com, Investor Relations page. Mr. Mondor and Mr. Trimm will both participate in the call. |
