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Technology Stocks : Concurrent Computer (CCUR) -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (3505)	4/29/1998 3:13:00 PM
From: Randolph Gwirtzman	Read Replies (2) \| Respond to of 21143

Arthur, I suppose that if CCUR doesn't sell VOD equipment, that the shift from RT hardware may look bad for CCUR. However, my view is that CCUR has shrewdly restructured to leverage more proprietary, higher margin items (i.e. its RT operating systems). This is reflected in the improving margins. With regard to Operating Expenses (SG&A, R&D), I'm not sure how much more cutting CCUR can do without hurting operations and future product development. The Operating Expense margin for Q1 and Q2 were about 40% of sales (with absolute R&D and SG&A expenditures steadily declining over the last 6 Q's). Although at first blush, these margins seem consistent with last year's margins, last year's Q1 and Q2 benefited significantly from favorable OPRB reversals. CCUR seems to be running relatively lean and mean (although I would be interested to see the breakout of the $5.8 million in SG&A).