Concurrent Reports Fiscal Year 2013 Second Quarter Financial Results

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ATLANTA, Jan. 29, 2013 /PRNewswire/ -- Concurrent (NASDAQ: CCUR), a global leader in video, media data intelligence and real-time Linux® solutions, today announced financial results for its second quarter fiscal 2013 ended December 31, 2012.

(Logo:  http://photos.prnewswire.com/prnh/20110317/CL67141LOGO )

Revenue for the fiscal 2013 second quarter was $16.6 million compared with $16.4 million for the same period in fiscal 2012, and $15.0 million in the preceding quarter. 

Gross margin for the fiscal 2013 second quarter was 57.5% compared with 54.8% for the same period in fiscal 2012, and 58.7% in the preceding quarter, primarily reflecting the mix of customers.  Operating expenses were $8.7 million, compared with $9.5 million for the same period in fiscal 2012, and $8.4 million in the preceding quarter.  

The company reported net income of $673 thousand, or $0.08 per diluted share, in the second quarter of fiscal 2013, compared with a loss of $833 thousand, or $0.10 per diluted share, in the same period in fiscal 2012, and net income of $325 thousand, or $0.04 per diluted share, in the preceding quarter.

"I am pleased with the operating results in the second quarter, which marked our fourth consecutive quarter of profitability," said Dan Mondor, the company's president and CEO. "Continued focus on improving our operating model through cost reduction and process improvements allowed us to generate increased value for our shareholders."  

The company paid three quarterly dividends of $0.06 each and a $0.50 special dividend in the first half of the fiscal year.  At December 31, 2012, Concurrent had cash and cash equivalents of $24.6 million. The company has no debt.

Recent Company Highlights

  • Expanded support for Smart TVs on our MediaHawk VX™ unified CDN solution. With this software solution, operators can reach new customers on Internet-connected TVs and eliminate the need for traditional set-top box terminals.

  • Launched new Multi-screen Video Assurance Services, designed to help operators proactively identify issues and trends that could affect their quality of service.

  • Selected by General Electric and Mitsubishi Heavy Industries to power mission critical design testing applications using Concurrent's real time solutions.

  • Launched a new website (www.ccur.com) designed to better highlight Concurrent's products and value proposition for the markets we serve.

Conference Call Information                                       

Concurrent will hold a conference call to discuss its fiscal 2013 second quarter financial results today, Tuesday, January 29th, at 4:30 p.m. ET, followed by a question and answer session with analysts.  The call will be broadcast live at www.ccur.com, under the "Investors" section.  The call can be accessed live by dialing 1-800-230-1093 (U.S.) 612-288-0337 (international) and entering pass code 130129.  A webcast of the live call as well as a replay will also be available at www.ccur.com.

To view Financial Results click here.

About Concurrent
Concurrent (NASDAQ: CCUR) is a global leader in video, media data intelligence and real-time Linux® solutions.  Concurrent provides customers with transformative solutions to fuel their business beyond what was thought possible. Concurrent's unified video delivery and media data intelligence solutions support every screen simultaneously, making it easier for cable MSOs, fixed-line telecommunications providers, mobile operators, online media companies and satellite TV broadcasters to deliver revenue generating video services to consumers on any device, over any network. The world's leading telecommunication and online media companies have selected Concurrent to provide the solutions and services required to support their next-generation multi-screen video initiatives. Concurrent's Emmy award-winning video solutions are based upon a rich heritage of high-performance real-time technology.  Concurrent's real-time Linux solutions are used to support applications in the defense, aerospace, automotive and financial industries. Concurrent has offices in North America, Europe and Asia. Visit www.ccur.com for further information and follow us on Twitter: www.twitter.com/Concurrent_CCUR.

For more information, contact:

Media Relations: 
Concurrent   
Kristen Izzo 
678-258-4221 
kristen.izzo@ccur.com

Horn Group 
Nicole Matthews 
(646) 202-9773 
nicole.matthews@horngroup.com

Investor Relations Contact:
Concurrent 
Leah Connell 
(678) 258-4108 
investor.relations@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 the company's future performance, including, but not limited to, management's expectations, beliefs, plans, estimates, or projections relating to the future, are forward-looking statements within the meaning of these laws. 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: delays or cancellations of customer orders; changes in product demand; economic conditions; various inventory risks due to changes in market conditions; margins of video business to capture new business; fluctuations and timing of large video orders; doing business in the People's Republic of China; 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;  the impact of reductions in force on our operations; rapid technology changes; system errors or failures; reliance on a limited number of suppliers and failure of components provided by those suppliers; uncertainties associated with international business activities, including foreign regulations, trade controls, taxes, and currency fluctuations; the impact of competition on the pricing of video solutions products; our ability to satisfy the financial covenants in the Revolver; failure to effectively service the installed base; the entry of new well-capitalized competitors into our markets; the success of new video solutions; the success of our relationships with technology and channel partners; capital spending patterns by a limited customer base; the current challenging macro-economic environment; continuing unevenness of the global economic recovery; privacy concerns over data collection; earthquakes, tsunamis, floods and other natural disasters in areas in which our customers and suppliers operate; and the availability of debt or equity financing to support our liquidity needs.

Other important risk factors are discussed in Concurrent's Form 10-K filed August 28, 2012 with the Securities and Exchange Commission (SEC), and may be discussed in subsequent filings with the SEC. The risk factors discussed in the Forms 10-K and subsequent SEC filings under the heading "Risk Factors" are specifically incorporated by reference in this press release. Forward-looking statements are based on current expectations and speak only as of the date of such statements. Concurrent undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information, or otherwise.

Concurrent Computer Corporation and its logo are registered trademarks of Concurrent. All other Concurrent product names are trademarks of Concurrent while all other product names are trademarks or registered trademarks of their respective owners.

 

 

 

 

Concurrent Computer Corporation

 

 

 

Condensed Consolidated Statements of Operations (Unaudited)

 

 

 

(In Thousands Except Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Three Months Ended December 31, 

 

 Six Months Ended December 31, 

 

 

 

 

 

2012

 

2011

 

2012

 

2011

Revenues:

 

 

 

 

 

 

 

 

 

Product 

 

$          10,099

 

$          10,034

 

$           19,063

 

$           16,818

 

Service 

 

6,490

 

6,376

 

12,530

 

12,480

 

 

 

Total revenues

 

16,589

 

16,410

 

31,593

 

29,298

Cost of sales:

 

 

 

 

 

 

 

 

 

Product 

 

4,295

 

4,569

 

7,848

 

7,339

 

Service 

 

2,751

 

2,843

 

5,390

 

5,680

 

 

 

Total cost of sales

 

7,046

 

7,412

 

13,238

 

13,019

Gross margin

 

9,543

 

8,998

 

18,355

 

16,279

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

3,643

 

4,296

 

7,281

 

8,598

 

Research and development

 

2,948

 

3,346

 

5,795

 

6,926

 

General and administrative

 

2,076

 

1,817

 

3,990

 

3,720

 

 

 

Total operating expenses

 

8,667

 

9,459

 

17,066

 

19,244

Operating income (loss)

 

876

 

(461)

 

1,289

 

(2,965)

Other income, net

 

(197)

 

(180)

 

(178)

 

(167)

Income (loss) before income taxes

 

679

 

(641)

 

1,111

 

(3,132)

Income tax provision

 

6

 

192

 

113

 

301

Net income (loss)

 

$               673

 

$              (833)

 

$                998

 

$           (3,433)

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

$              0.08

 

$             (0.10)

 

$               0.11

 

$             (0.40)

Diluted net income (loss) per share

 

$              0.08

 

$             (0.10)

 

$               0.11

 

$             (0.40)

Basic weighted average shares outstanding

 

8,741

 

8,621

 

8,712

 

8,554

Diluted weighted average shares outstanding

 

8,851

 

8,621

 

8,852

 

8,554

Cash dividends declared per common share

 

$              0.56

 

$                  -

 

$               0.68

 

$                  -

 

 

 

 

 

Concurrent Computer Corporation

 

 

 

Condensed Consolidated Statements of Operations (Unaudited)

 

 

 

(In Thousands Except Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Three Months Ended  

 

 

 

 

 

 

 December 31, 

 

 September 30, 

 

 

 

 

 

 

2012

 

2012

 

Revenues:

 

 

 

 

 

 

Product 

 

$           10,099

 

$             8,964

 

 

Service 

 

6,490

 

6,040

 

 

 

 

Total revenues

 

16,589

 

15,004

 

Cost of sales:

 

 

 

 

 

 

Product 

 

4,295

 

3,553

 

 

Service 

 

2,751

 

2,639

 

 

 

 

Total cost of sales

 

7,046

 

6,192

 

Gross margin

 

9,543

 

8,812

 

Operating expenses:

 

 

 

 

 

 

Sales and marketing

 

3,643

 

3,638

 

 

Research and development

 

2,948

 

2,847

 

 

General and administrative

 

2,076

 

1,914

 

 

 

 

Total operating expenses

 

8,667

 

8,399

 

Operating income

 

876

 

413

 

Other income, net

 

(197)

 

19

 

Income before income taxes

 

679

 

432

 

Provision for income taxes

 

6

 

107

 

Net income

 

$                673

 

$                325

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$               0.08

 

$               0.04

 

Diluted net income per share

 

$               0.08

 

$               0.04

 

Basic weighted average shares outstanding

 

8,741

 

8,683

 

Diluted weighted average shares outstanding

 

8,851

 

8,801

 

Cash dividends declared per common share

 

$               0.56

 

$               0.12

 

 

 

 

 

 

 

Concurrent Computer Corporation

 

 

 

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

 

 

 

(In Thousands Except Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Three Months Ended December 31, 

 

 Six Months Ended December 31, 

 

 

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$               673

 

$              (833)

 

$                998

 

$           (3,433)

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

(172)

 

117

 

(218)

 

229

 

 

 

Pension and post-retirement benefits, net of tax

 

2

 

6

 

4

 

2

 

 

 

Other comprehensive income (loss)

 

(170)

 

123

 

(214)

 

231

 

 

 

     Comprehensive income (loss)

 

$               503

 

$              (710)

 

$                784

 

$           (3,202)

 

 

 

 

Concurrent Computer Corporation

 

 

 Condensed Consolidated Balance Sheets

 

 

(In Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

September 30,

 

June 30,

 

 

 

 

 

 

2012

 

2012

 

2012

 

 

 

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 Cash and cash equivalents 

 

$           24,591

 

$           28,940

 

$           29,613

 

 

 

 

 Trade accounts receivable, net 

 

10,129

 

9,517

 

8,739

 

 

 

 

 Inventories 

 

2,460

 

2,772

 

3,683

 

 

 

 

 Prepaid expenses and other current assets 

 

1,672

 

2,199

 

2,129

 

 

 

 

    Total current assets 

 

38,852

 

43,428

 

44,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Property, plant and equipment, net 

 

3,318

 

3,647

 

3,966

 

 

 

 

 Intangible assets, net 

 

1,218

 

1,442

 

1,667

 

 

 

 

 Other long-term assets 

 

935

 

1,040

 

1,076

 

 

 

 Total assets 

 

$           44,323

 

$           49,557

 

$           50,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 LIABILITIES 

 

 

 

 

 

 

 

 

 

 

 Accounts payable and accrued expenses 

 

$             6,285

 

$             5,508

 

$             5,931

 

 

 

 

 Deferred revenue 

 

7,849

 

9,018

 

8,850

 

 

 

 

    Total current liabilities 

 

14,134

 

14,526

 

14,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Non-current deferred revenue 

 

1,605

 

2,162

 

2,788

 

 

 

 

 Other non-current liabilities 

 

4,608

 

4,357

 

4,198

 

 

 

 

     Total liabilities 

 

20,347

 

21,045

 

21,767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 STOCKHOLDERS' EQUITY 

 

 

 

 

 

 

 

 

 

 

 Common stock 

 

88

 

87

 

87

 

 

 

 

 Additional paid-in capital 

 

208,198

 

207,998

 

207,830

 

 

 

 

 Accumulated deficit 

 

(184,700)

 

(180,132)

 

(179,415)

 

 

 

 

 Treasury stock, at cost 

 

(255)

 

(255)

 

(255)

 

 

 

 

 Accumulated other comprehensive income  

 

645

 

814

 

859

 

 

 

 

    Total stockholders' equity 

 

23,976

 

28,512

 

29,106

 

 

 

 Total liabilities and stockholders' equity 

 

$           44,323

 

$           49,557

 

$           50,873

 

 

 

 

 

SOURCE Concurrent


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