Monday February 8, 4:11 pm Eastern Time
Company Press Release
Concurrent Computer Corporation Announces Second Quarter Results
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Feb. 8, 1999--Concurrent Computer Corporation (Nasdaq:CCUR - news) today reported earnings for the quarter ended December 31, 1998 of $0.9 million, or $0.02 per share, compared with a loss of ($0.4) million, or ($0.01) per share, for the quarter ended September 30, 1998. Revenue for the quarter was $19.2 million, up 14% from first quarter revenue of $16.9 million.
''The real-time division showed good improvement over last quarter. These results put the division on plan for the year,'' said E. Courtney Siegel, Concurrent's Chairman, President and Chief Executive Officer. ''All geographic areas contributed, with North America, Europe and Asia reporting strong improvements. Equipment revenue was up 35% over the first quarter. This strong performance was offset by weakness in Japan.''
''The quarter saw significant developments in our Video-on-Demand (VOD) division, including the previously announced selection by Time Warner Cable for participation in its Pegasus Program, selection by Intertainer, Inc. as its platform of choice, and alliances with General Instruments Corporation and Pioneer Digital Technologies. We are experiencing significant progress on all fronts. First, in the domestic residential cable market we installed our first system. In the international residential cable market, our server is being used in laboratory demonstrations by BBT for Telefonica in Spain, utilizing VDSL technology. Telefonica plans pilot system implementation to commence July 1999, in two to five cities. Second, on the hotel front, we just shipped our first system to DOMINTEL for installation in the Canary Islands. The DOMINTEL relationship should provide opportunities for another fifteen hotels.
''Further, our corporate intranet server has been retargeted to the educational field, with $1 million opportunities showing up in our fourth quarter through our Asian resellers. Finally, we started the new year with the welcome addition of Steve Nussrallah as President, Video-on-Demand, demonstrating our continued dedication to this exciting emerging market. We plan to continue our investment in our VOD division and remain bullish in respect to the VOD marketplace and Concurrent's position in that marketplace,'' Mr. Siegel concluded.
Concurrent Computer Corporation (Nasdaq:CCUR - news; ccur.com), headquartered in Fort Lauderdale, Florida, is a leading supplier in the emerging digital video server marketplace. This market includes the residential, corporate training, hospitality and in-flight entertainment industries. For over 30 years, Concurrent has been a leader provider of high-performance real-time computer systems and software for the commercial and government markets. The company's real-time market focuses on strategic business areas that include industrial systems; software and embedded applications; data acquisition; simulation; and vibration control. Operating in 32 countries worldwide, Concurrent provides sales and support from offices throughout North America, South America, Europe, Asia, and Australia.
Certain matters discussed in this news release may be ''forward-looking statements'' as defined in the Private Securities Litigation Reform Act of 1995. Concurrent Computer Corporation cautions investors that any forward-looking statements made herein are not guarantees of future performance and that a variety of factors could cause its actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. The risks and uncertainties which could affect Concurrent Computer Corporation's performance or results include, without limitation, changes in product demand; economic conditions; various inventory risks due to changes in market conditions; uncertainties relating to the development and ownership of intellectual property; uncertainties relating to the ability of Concurrent Computer Corporation and other companies to enforce their intellectual property rights; the pricing and availability of equipment, materials and inventories; technological developments; delays in testing of new products; rapid technology changes; the highly competitive environment in which Concurrent Computer Corporation operates; the entry of new well-capitalized competitors into Concurrent Computer Corporation's markets, and other risks and uncertainties.
CONCURRENT COMPUTER CORPORATION
INCOME STATEMENT ($K)
Three Months Ended Six Months Ended
December 31, December 31,
1998 1997 1998 1997
-------- -------- -------- --------
Net sales:
Computer systems $ 9,068 $ 9,759 $15,796 $18,625
Service and other 10,113 11,257 20,259 22,996
-------- -------- -------- --------
Total 19,181 21,016 36,055 41,621
Cost of sales:
Computer systems 4,244 4,516 7,258 8,793
Service and other 5,103 5,737 10,214 12,182
-------- -------- -------- --------
Total 9,347 10,253 17,472 20,975
-------- -------- -------- --------
Gross margin 9,834 10,763 18,583 20,646
Operating expenses:
Research and development 2,545 2,694 5,249 5,514
Selling, general and
administrative 6,750 5,870 12,583 11,894
Other one-time transaction - - - (607)
-------- -------- -------- --------
Total operating expenses 9,295 8,564 17,832 16,801
-------- -------- -------- --------
Operating income 539 2,199 751 3,845
Interest expense (71) (188) (149) (450)
Interest income 41 36 93 58
Other one-time gain (loss) 341 - (88) 420
Other income (expense) - net 151 (41) (32) (242)
-------- -------- -------- --------
Income before provision
for income taxes 1,001 2,006 575 3,631
Provision for income taxes 86 583 86 908
-------- -------- -------- --------
Net income $ 915 $ 1,423 $ 489 $ 2,723
Preferred stock dividends
and accretion of mandatory
redeemable preferred shares - - - (18)
-------- -------- -------- --------
Net income available to
common shareholders $ 915 $ 1,423 $ 489 $ 2,705
======== ======== ======== ========
Basic and diluted net
income per share $ 0.02 $ 0.03 $ 0.01 $ 0.06
======== ======== ======== ========
BALANCE SHEET ($K)
Dec. 31, June 30,
1998 1998
ASSETS
Current assets:
Cash and cash equivalents $ 5,777 $ 5,733
Accounts receivable - net 16,675 18,571
Notes receivable - net 722 425
Inventories 6,183 6,263
Prepaid expenses and other
current assets 1,466 1,487
--------------- ---------------
Total current assets 30,823 32,479
Property, plant and equipment - net 12,993 12,419
Other long-term assets 1,212 1,337
=============== ===============
Total assets $ 45,028 $ 46,235
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 440 $ 365
Revolving credit facility 922 1,123
Accounts payable and accrued expenses 10,866 13,321
Deferred revenue 3,249 4,018
--------------- ---------------
Total current liabilities 15,477 18,827
Other long-term liabilities 2,095 1,898
--------------- ---------------
Total liabilities 17,572 20,725
--------------- ---------------
Total stockholders' equity 27,456 25,510
--------------- ---------------
Total liabilities and
stockholders' equity $ 45,028 $ 46,235
=============== ===============
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
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Contact:
Concurrent Computer Corporation, Fort Lauderdale
Beth Alonzo, 954/973-5100
Fax: 954/973-5253
Beth.alonzo@mail.ccur.com |
