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

To: DEER HUNTER who wrote (3547)	5/1/1998 6:41:00 PM
From: DEER HUNTER	Read Replies (1) \| Respond to of 21143

3 rd QUARTER 98 conference call notes.....from Thursday April 30. ******************************************************************* The following are a comprehensive listing of the 'notes' from yesterday. They are not complete and are random. Provided for future reference. Corrections to the information is welcome as always. ------------------------------------------------------------------------------------------- Mr. Corky Seigel...Mr. Dan Dunlevy....and Ms. Beth Alonzo on the call. - pretty much where they thought they would be with earnings and revenues for the quarter. - .02 vs .05 last quarter. - 1 penny shy of where they thought it would come in. - 1st month of the 4th quarter is the best month for revenue in about a year and a half. - Significant VOD revenue expected in fiscal 99 starting July 1. Revenue in VOD has already begun.....1-2 million so far. - Balance sheet is in great shape. - have paid off all debt. - revenue decline in R/T was expected and will continue on this year. 4th quarter will be north of quarter 3. - R+D has been stepped up a bit to prepare for the VOD marketplace. - VOD hospitality market...hotels ...cruise ships....revenue has already begun in this quarter. 50-100's of units expected in fiscal 99 beginning July 1,1998. - VOD residential...ahead of schedule..ahead of plan. CCUR working with Scientific Atlanta. May 4-6th will demonstrate VOD with S/A. CCUR working in Europe with demos in Spain to occur in early 99. - New product for Corporate Intranet market has been developed. The product is of higher quality than VCR tapes. This product geared towards corporate training and CEO speeches etc. CCUR needs partners to sell this product. Currently does not have distribution channels....but will. Some of these systems have already been sold. - R/T business. CCUR has a great 6 months ending this quarter with some nice wins. The significant wins are listed in the press release. 6 million in backlogs now. R/T will be more software orientated vs hardware going forward. The following notes taken from the Q + A session. - R/T will become more and more software orientated. - status of Egus(sp)....more and more software and single board computers will be sold going forward. Really good business here going forward. - China has been a disappointment. The order to China was finally shipped yesterday and will be included in the 4th quarter. - Year 2000 business......1-2 million in revenue already in this area. Government has not stepped up as of yet. There will be several million in business to occur in this area next year. - VOD....ONCO...non-disclosure. Could not discuss it. ONCO = On command. - Gross margins are at 48% average vs 47% last year in 9 month comparisons. These numbers represent total business averages. - Sold a lot of product in the Power Hawk range(slightly lower margins). - Risk of buyout? ....no offers currently on the table. VOD...enormous potential in the residential marketplace. Mr. Seigel believes the company will win a significant part of this business but not all of course. - Competition in VOD. Hospitality market segment has Panasonic's and video tape players to compete against. Sea-change is competition in the cruise ship area. In residential competitors are Sea-change and N-cube. Corporate intranet....everyone is a competitor. - Mr. Seigel still believes that CCUR has the best price performance in the VOD server marketplace. - there is no requirement in VOD that CCUR cannot handle regarding stream requirements in VOD applications. - R/T business should see an increase in revenue in 4th vs 3rd quarters. 6 million in backlog currently. 85-90 % of this will occur in 99. - R+D....CCUR has invested 8-10 cents per share in the previous 9 months on VOD research. - 3rd quarter VOD revenue was less than 1 million $. - Diva's solution is geared towards end to end solutions including set top boxes. - Mr. Seigel could not discuss S/A negotiations at the moment. - CCUR will be doing demo's with S/A next week .....ccur's equipment hooked up to S/A's equipment. - 4th quarter revenue expected to be up vs 3rd quarter overall. CCUR revenues are divided 50/50 between domestic and international marketplace. - Mr. Seigel is having discussions with many many customers regarding VOD. CCUR's prices are competitive and Mr. Seigel believes CCUR's are as good as they get. - CCUR earned .08 in 97. Should beat this in 98. Growth is expected in 99. - R/T maintenance business will bottom out in the 30 million area annually. Bottoming to occur between fiscal 99 and 2000 then begin to rise. - Mr. Seigel believes CCUR will be profitable in all segments of the VOD marketplace. - Time Warner doubled orders to S/A last week....for deployment in the period July through December of this year. - the video rental market is believed to be at 15 billion annually. Mr seigel believes the rental market is obsolete. - SUMMARY>>>>>CONCLUDING THOUGHTS........stronger 4th quarter vs 3 rd quarter in R/T. VOD.....CCUR will be successful in all the business areas talked about. VOD revenues will begin to happen in fiscal 99 (July 1,1998). *******>>>>>END OF CONFERENCE CALL