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Concurrent Computer Corporation Announces Second Quarter Fiscal Year 2008 Financial Results
Publish Date : 1/25/2008 3:41:00 AM   Source : Technology News Onlypunjab.com

Concurrent (Nasdaq: CCUR), a worldwide leader of on-demand technology and real-time computing technology, today announced its results for the second quarter of its fiscal year ended June 30, 2008.

Second Quarter Results:

In the second quarter of fiscal 2008, company-wide revenue aggregated $17.6 million compared to $16.3 million in the first quarter of fiscal 2008, an increase of 8% over the first quarter of fiscal 2008 and an increase of 3% over the second quarter of fiscal 2007. Revenue from Concurrents on-demand product line totaled $9.4 million for the second quarter of fiscal 2008 compared to $10.0 million in the first quarter of fiscal 2008, a decrease of 5%. Revenue from the Companys real-time product line totaled $8.2 million for the second quarter of fiscal 2008 compared to $6.3 million in the first quarter of fiscal 2008, an increase of 29%. The variability in quarter to quarter revenue is due to the timing of large customer orders within each fiscal year.

Consolidated gross margins increased for the second consecutive quarter to 54% compared to 53% in the first quarter of fiscal 2008. The operating loss also improved to ($847,000) in the second quarter of fiscal 2008 from an operating loss of ($1.8 million) in the first quarter of fiscal 2008. Net loss in the second quarter of fiscal 2008, which includes depreciation and amortization of approximately $1.0 million and share-based compensation of $339,000, was ($769,000), or ($0.01) per basic and diluted share, compared to a net income of $1.7 million, or $0.02 per basic and diluted share, in the first quarter of fiscal 2008. Net income in the first quarter of fiscal 2008 included approximately $3.3 million in net proceeds from the settlement of two legal matters in that quarter.

Cash at December 31, 2007 totaled $23.1 million compared to $20.4 million at the end of fiscal 2007, an increase of $2.7 million. The increase was primarily the result of the $3.3 million in net proceeds from legal settlements in the first quarter of fiscal 2008.

Given the typical challenges of a calendar year end quarter, I am pleased that we were able to improve revenues and gross margins. On revenue of $17.6 million, we had an operating loss of $847,000, our lowest operating loss in over 2 years, which includes over $1.3 million in non-cash items, said Gary Trimm, Concurrent president and chief executive officer. He added, We have an improved operating model now and we will continue efforts to achieve even more efficiency. Revenue growth is the top priority. We are adding sales and marketing resources in our traditional business areas and in new initiatives such as the StorageMaster product line announced yesterday. The growth in our Real-Time business this quarter is evidence that this effort is working. We believe the VOD market will be strong in 2008 and that our industry leading MediaHawk 4500 system will continue to capture a significant share of the opportunities. In VOD particularly we see a trend toward larger projects similar to our recent wins at Cox in Arizona and Brighthouse in Tampa and Orlando. This could make quarterly revenues highly variable, but we believe the last half our fiscal year will be stronger.

Concurrent Computer Corporation will hold a conference call to discuss these results on Friday, January 25, 2008 at 10:00 a.m. E.S.T., which will be broadcast live over the Internet on the companys web page at www.ccur.com, Investor Relations page.

About Concurrent

Concurrent (NASDAQ: CCUR) is a leading provider of high-performance, real-time Linux software and solutions for commercial and government markets. For 40 years Concurrents best-of-breed products have enabled a range of time-critical solutions including: modeling and simulation, high speed data acquisition, visual imaging, low latency transaction processing and on-demand television. Concurrents on-demand television applications are utilized by major service providers in the cable and IPTV industries to deliver video-on-demand (VOD) and, through subsidiary company Everstream, measure the effectiveness of interactive television. Concurrent is a global company with regional offices in North America, Europe, Asia and Australia, and has products actively deployed in more than 24 countries. Concurrents products and services are recognized for being uniquely flexible, comprehensive, robust and reliable. For more information, please visit www.ccur.com.

Certain statements made or incorporated by reference in this release may constitute forward-looking statements within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as our expectations, beliefs, plans, estimates, or projections relating to the future, are forward-looking statements within the meaning of these laws. Examples of forward looking statements in this press release include, without limitation, our expectations with regard to our Real-Time business, our MediaHawk 4500 system and our fiscal year 2008 results. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected.

The risks and uncertainties which could affect our financial condition or results of operations include, without limitation: our ability to keep our customers satisfied; delays or cancellations of customer orders; changes in product demand; economic conditions; our ability to satisfy the financial covenants in the credit agreement; various inventory risks due to changes in market conditions; uncertainties relating to the development and ownership of intellectual property; uncertainties relating to our ability and the ability of other companies to enforce their intellectual property rights; the pricing and availability of equipment, materials and inventories; the concentration of our customers; failure to effectively manage change; delays in testing and introductions of new products; rapid technology changes; system errors or failures; reliance on a limited number of suppliers; uncertainties associated with international business activities, including foreign regulations, trade controls, taxes, and currency fluctuations; the impact of competition on the pricing of on-demand products; failure to effectively service the installed base; the entry of new well-capitalized competitors into our markets; the success of new on-demand and real-time products; the availability of Linux software in light of issues raised by SCO Group; capital spending patterns by a limited customer base; the possible delisting of our shares of common stock from the Nasdaq Global Market; privacy issues regarding data collection; the success of our relationship with Alcatel and Novell; and the availability of debt or equity financing to support our liquidity needs if cash flow does not improve.

Other important risk factors are discussed in our Form 10-K filed with the Securities and Exchange Commission (the SEC) on August 31, 2007 and may be discussed in subsequent filings with the SEC. The risk factors discussed in such Form 10-K under the heading Risk Factors are specifically incorporated by reference in this press release. Our forward-looking statements are based on current expectations and speak only as of the date of such statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information, or otherwise.



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