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Concurrent Computer Corporation and Scientific-Atlanta, Inc. Execute Letter of Intent for VOD Systems for the Cable Market
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--May 20, 1998--Concurrent Computer Corporation (NASDAQ:CCUR - news) today announced that it had entered into a Letter of Intent with Scientific-Atlanta, Inc. (NYSE:SFA - news), providing for joint development and marketing of a video-on-demand system to cable network operators. In exchange for Scientific-Atlanta's technical and marketing contributions, Concurrent Computer will issue a warrant for 2,000,000 shares of its common stock, exercisable at $5.00 per share over a four-year term. Under FASB 123, Concurrent Computer is required to take a non-cash charge against earnings of approximately three million dollars in connection with the issuance of the warrant. The charge against earnings is a one-time event that will have no impact on cash flow or the balance sheet.
In addition, Concurrent Computer contemplates that it will issue additional warrants upon achievement of pre-determined revenue targets. The warrants will be issued with a strike price of 15% discount to the then current market price. The proposed transaction is subject to execution of a definitive agreement.
''Having Scientific-Atlanta not only as market/technical partner but also as an equity partner, strengthens our position in this emerging market,'' said E. Courtney Siegel, Concurrent's Chairman, President and Chief Executive Officer.
Concurrent Computer Corporation and Scientific-Atlanta will collaborate in developing and deploying a commercially-viable, integrated, digital video-on-demand system for cable operators in 1998. The alliance will combine the MediaHawk(tm) server with Scientific-Atlanta's standards-based Explorer(R) 2000 advanced digital set-tops and interactive network to enable consumers to access the server instantly, 24 hours a day. The letter of intent is subject to a definitive agreement.
Concurrent provides high-performance real-time computer systems and software for commercial and government markets. To address its strategic focus on interactive video-on-demand, the company offers MediaHawk Video Servers that store libraries of movies, documentaries, and other videos for immediate access. The MediaHawk Video Server can easily scale to support more than 1,000 MPEG2 digital video streams delivered to subscribers.
Scientific-Atlanta, Inc. is a leading supplier of broadband communications systems, satellite-based video, voice and data communications networks, and worldwide customer service and support. Further information on Scientific-Atlanta can be obtained through its web site at (http://www.sciatl.com).
Concurrent Computer Corporation (http://www.ccur.com), headquartered in Fort Lauderdale, Florida, is the leading supplier in the emerging digital video server marketplace. This market includes the hospitality, residential, corporate training, and in-flight entertainment industries. 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 are forward-looking statements involving certain risks and uncertainties including, without limitation, changes in product demand, changes in competition, economic conditions, various inventory risks due to changes in market conditions and other risks.
Note to Editors: For additional company or product information from Concurrent Computer Corporation, please contact Concurrent Computer Corporation, 2101 West Cypress Creek Road, Fort Lauderdale, Florida 33309. Call toll free in the U.S. and Canada at (800) 666-4544, fax (954) 977-5580. Readers can also access information through the company's web site at ccur.com.
MediaHawk is a trademark of Concurrent Computer Corporation. Explorer is a registered trademark of Scientific-Atlanta, Inc. All other trademarks are the property of their respective owners.
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Contact:
Concurrent Computer Corporation, Fort Lauderdale
Andrea Smith (Media)
(954) 973-5342 or asmith@mail.ccur.com
or
Beth Alonzo (Analysts/Investors)
(954) 973-5100
-Urlman |
