EX-99.1 3 doc2.txt EXHIBIT 99.1 EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONCURRENT COMPUTER CORPORATION ANNOUNCES THIRD QUARTER FISCAL YEAR 2004 FINANCIAL RESULTS - Surpasses 5 Million Digital Subscribers and 15.8 Million Basic Subscribers in North America - ATLANTA, GEORGIA, APRIL 22, 2004 - Concurrent Computer Corporation (NASDAQ: CCUR) today reported results for its third quarter of fiscal year 2004 ended March 31, 2004. In the third quarter of fiscal 2004, Video-On-Demand (VOD) revenue from the company's VOD Division totaled $14.8 million compared to $8.5 million in the same quarter of the prior year, an increase of 75.3%. Compared to the second quarter of fiscal 2004, VOD revenue increased 13.9% from $13.0 million. Revenue from the company's Integrated Solutions Division (ISD) in the third quarter of fiscal 2004 totaled $8.8 million compared to $9.2 million in the same quarter of the prior year, a decrease of 4.3%. Compared to the second quarter of fiscal 2004, ISD revenue decreased 8.5% from $9.6 million. Company-wide revenue in the third quarter of fiscal 2004 totaled $23.6 million compared to $17.6 million in the same quarter of the prior year, an increase of 33.8%. Compared to the second quarter of fiscal 2004, company-wide revenue increased 4.4%, from $22.6 million. The company's net earnings were breakeven or $0.00 per fully diluted share compared to a loss of $14.3 million or $0.23 per fully diluted share in the same quarter of the prior year. Last year's third quarter net loss included a non-cash impairment charge of $10.5 million or $0.17 per fully diluted share related to the partial write-down of Concurrent's equity investment in Thirdspace Living Limited. The breakeven results were down from net income of $1.2 million or $0.02 per fully diluted share in the second quarter of fiscal 2004, which included a favorable impact of $1.7 million in cash or $0.02 per fully diluted share from the continued liquidation of the assets of Thirdspace Living Limited. The company ended the quarter with $25.7 million in cash and cash equivalents and no bank debt. The company anticipates VOD revenue to be in the range of $10.0 to $12.0 million in the fourth quarter of fiscal 2004. For the same period, revenue from ISD is expected to be in the range of $8.0 to -more- Concurrent/EarningsQ3FY04 Page 2 April 22, 2004 $9.0 million. Company-wide revenues are anticipated to total between $18.0 and $21.0 million with a net loss of between $0.05 and $0.08 per share in the fourth quarter of fiscal 2004. The company will discuss the guidance further during today's conference call. "Within the quarter we continued to make marked progress on several fronts. In the VOD Division, we added seven new VOD market deployments, shipped a record number of streams and were selected for a third new market trial in Asia. These successes are a result of our MediaHawk(R) 4G On-Demand Platform that we believe offers unprecedented flexibility, scalability and economic efficiency. In the ISD Division, we continued to execute on our strategy of opening new markets by expanding our Linux-based, commercial-off-the-shelf (COTS) solutions through market-leading technology partnerships," said Jack Bryant, Concurrent president and chief executive officer. In the quarter, Concurrent added 7 new system deployments for a net total of 80. These commercial VOD system deployments are with many of the largest cable network operators in North America, with 55 deployments on the Motorola digital platform and 25 deployments on the Scientific-Atlanta digital platform. Concurrent's VOD customers include Adelphia, Bright House Networks, Charter, Cogeco, Comcast, Cox, Mediacom, Time Warner Cable, Videotron and others. At March 31, 2004, these cable operators had purchased video stream capacity from Concurrent of 518 thousand commercial streams for their base of 15.8 million basic subscribers, of which over 5.2 million are digital subscribers. As previously announced, Concurrent Computer Corporation will hold a conference call to discuss its third quarter of fiscal 2004 results on April 22, 2004 at 4:30 p.m. ET which will be broadcast live over the Internet on the company's web page at www.ccur.com, Investor Relations page. ------------ ABOUT CONCURRENT Concurrent Computer Corporation (www.ccur.com) is a worldwide leader in providing digital VOD systems to the broadband industry and real-time computer systems for industry and government. Concurrent's VOD systems are utilized within the broadband cable, DSL, and IP-based markets. Within the digital cable market, Concurrent is a recognized leader, currently serving nine of the largest network operators in 80 markets, surpassing 15.8 million basic subscribers and 5.2 million digital subscribers. Concurrent's proven technology provides a flexible, comprehensive, robust solution for HFC, DSL, and IP-based networks. The company's powerful and scalable VOD systems are based on open standards and are integrated with the leading broadband technologies. Concurrent is also a leading provider of high-performance, real-time computer systems, solutions, and software that focus on hardware-in-the- -more- Concurrent/EarningsQ3FY04 Page 3 April 22, 2004 loop and man-in-the-loop simulation, data acquisition, and industrial control systems for commercial and government markets. Concurrent has nearly four decades of experience in real-time technology and provides its best of breed solutions through offices in North America, Europe, Asia, and Australia. Certain statements made or incorporated by reference in this release may constitute "forward-looking statements" within the meaning of the federal securities laws. When used or incorporated by reference in this release, the words "believes," "expects," "estimates," "anticipates," and similar expressions are intended to identify forward-looking statements. 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. 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; availability of video-on-demand content; delays or cancellations of customer orders; changes in product demand; economic conditions; 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 limited operating history of our video-on-demand segment; the concentration of our customers; failure to effectively manage growth; delays in testing and introductions of new products; rapid technology changes; demand shifts from high-priced, proprietary real-time systems to low-priced, open server systems; 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 highly competitive environment in which we operate and predatory pricing pressures; failure to effectively service the installed base; the entry of new well-capitalized competitors into our markets; the success of new products in both the VOD and ISD divisions; the success of our new initiative in our CFSI subsidiary to penetrate opportunities with the U.S. government; the availability of Linux software in light of issues raised by SCO group; capital spending patterns by a limited customer base; and contract obligations that could impact revenue recognition. Other important risk factors are discussed in our Form 10-K filed with the Securities and Exchange Commission on September 18, 2003 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. # # # -more- Concurrent/EarningsQ3FY04 Page 4 April 22, 2004 Note to Editors: For additional company or product information from Concurrent, please contact Concurrent, 4375 River Green Parkway, Suite 100, Duluth, GA 30096. Call toll free in the U.S. and Canada at (877) 978-7363, fax (678) 258-4199. Readers can also access information through the company's Web site at www.ccur.com. Concurrent Computer Corporation and its logo are registered and unregistered trademarks of Concurrent Computer Corporation. All other product names are trademarks or registered trademarks of their respective owners. For More Information Contact: ----------------------------- Concurrent - Walt Ungerer - Director Investor Relations - (678) 258-4103 or walt.ungerer@ccur.com ---------------------
CONCURRENT COMPUTER CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) MARCH 31, DECEMBER 31, JUNE 30, 2004 2003 2003 (UNAUDITED) (UNAUDITED) ------------ -------------- ---------- ASSETS Cash and cash equivalents $ 25,706 $ 27,496 $ 30,697 Trade accounts receivable, net 21,478 19,991 10,371 Inventories 8,342 8,055 7,174 Prepaid expenses and other current assets 2,203 2,485 1,877 ------------ -------------- ---------- Total current assets 57,729 58,027 50,119 Property, plant and equipment, net 11,580 11,472 11,862 Purchased developed computer software, net 1,061 1,108 1,203 Goodwill 10,744 10,744 10,744 Investment in minority owned company 553 553 553 Other long-term assets, net 3,450 3,455 3,358 ------------ -------------- ---------- Total assets $ 85,117 $ 85,359 $ 77,839 ============ ============== ========== LIABILITIES Accounts payable and accrued expenses $ 13,850 $ 13,846 $ 14,644 Deferred revenue 8,294 8,697 5,295 ------------ -------------- ---------- Total current liabilities 22,144 22,543 19,939 Long-term deferred revenue 4,116 3,390 2,350 Other long-term liabilities 13,528 13,091 12,092 STOCKHOLDERS' EQUITY Common stock 630 627 623 Additional paid-in capital 174,468 175,311 174,396 Unearned compensation (372) (457) (576) Treasury stock (58) (58) (58) Retained earnings (deficit) (121,167) (121,104) (122,929) Accumulated other comprehensive loss (8,172) (7,984) (7,998) ------------ -------------- ---------- Total stockholders' equity 45,329 46,335 43,458 ------------ -------------- ---------- Total liabilities and stockholders' equity $ 85,117 $ 85,359 $ 77,839 ============ ============== ==========
CONCURRENT COMPUTER CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS EXCEPT PER SHARE DATA) THREE MONTHS ENDED MARCH 31, NINE MONTHS ENDED MARCH 31, ---------------------------------- --------------------------------- 2004 2003 2004 2003 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ----------------- --------------- ----------------- -------------- Revenues: Product: Real-time systems $ 4,964 $ 5,027 $ 14,955 $ 14,998 Video-on-demand systems 13,250 7,631 33,965 28,959 ----------------- --------------- ----------------- -------------- Total product revenues 18,214 12,658 48,920 43,957 Service: Real-time systems 3,832 4,169 11,996 13,332 Video-on-demand systems 1,565 821 4,223 2,634 ----------------- --------------- ----------------- -------------- Total service revenues 5,397 4,990 16,219 15,966 ----------------- --------------- ----------------- -------------- Total revenues 23,611 17,648 65,139 59,923 Cost of sales: Product: Real-time systems 1,909 1,926 5,893 5,990 Video-on-demand systems 7,734 4,308 16,875 14,485 ----------------- --------------- ----------------- -------------- Total product cost of sales 9,643 6,234 22,768 20,475 Service: Real-time systems 2,076 2,725 6,493 7,835 Video-on-demand systems 996 754 2,613 2,216 ----------------- --------------- ----------------- -------------- Total service cost of sales 3,072 3,479 9,106 10,051 ----------------- --------------- ----------------- -------------- Total cost of sales 12,715 9,713 31,874 30,526 ----------------- --------------- ----------------- -------------- Gross margin 10,896 7,935 33,265 29,397 Operating expenses: Sales and marketing 4,259 4,287 12,768 13,449 Research and development 5,091 4,991 14,464 14,015 General and administrative 2,656 2,381 7,000 6,976 ----------------- --------------- ----------------- -------------- Total operating expenses 12,006 11,659 34,232 34,440 ----------------- --------------- ----------------- -------------- Operating income (loss) (1,110) (3,724) (967) (5,043) Recovery (loss) of previously recognized impairment loss 289 (10,479) 3,047 (13,422) Other income (expense) 58 15 42 313 ----------------- --------------- ----------------- -------------- Income (loss) before income taxes (763) (14,188) 2,122 (18,152) Provision (benefit) for income taxes (700) 72 360 153 ----------------- --------------- ----------------- -------------- Net income (loss) $ (63) $ (14,260) $ 1,762 $ (18,305) ================= =============== ================= ============== Basic net income (loss) per share $ (0.00) $ (0.23) $ 0.03 $ (0.30) ================= =============== ================= ============== Diluted net income (loss) per share $ (0.00) $ (0.23) $ 0.03 $ (0.30) ================= =============== ================= ============== Basic weighted average shares outstanding 62,565 61,975 62,318 61,899 ================= =============== ================= ============== Diluted weighted average shares outstanding 62,565 61,975 63,119 61,899 ================= =============== ================= ==============
CONCURRENT COMPUTER CORPORATION SEGMENT DATA (IN THOUSANDS) INTEGRATED SOLUTIONS DIVISION VOD DIVISION ----------------------------------- -------------------------- THREE MONTHS ENDED THREE MONTHS ENDED ----------------------------------- -------------------------- 03/31/04 03/31/03 03/31/04 03/31/03 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ----------------- ---------------- ------------ ------------ Revenues: Product $ 4,964 $ 5,027 $ 13,250 $ 7,631 Service 3,832 4,169 1,565 821 ----------------- ---------------- ------------ ------------ Total 8,796 9,196 14,815 8,452 Cost of sales: Product 1,909 1,926 7,734 4,308 Service 2,076 2,725 996 754 ----------------- ---------------- ------------ ------------ Total 3,985 4,651 8,730 5,062 ----------------- ---------------- ------------ ------------ Gross margin 4,811 4,545 6,085 3,390 Operating expenses Sales and marketing 1,976 1,827 2,283 2,460 Research and development 1,478 1,371 3,613 3,620 General and administrative 1,061 1,077 1,595 1,304 ----------------- ---------------- ------------ ------------ Total operating expenses 4,515 4,275 7,491 7,384 ----------------- ---------------- ------------ ------------ Operating income (loss) $ 296 $ 270 $ (1,406) $ (3,994) ================= ================ ============ ============
CONCURRENT COMPUTER CORPORATION SEGMENT DATA (IN THOUSANDS) INTEGRATED SOLUTIONS DIVISION VOD DIVISION ----------------------------------- -------------------------- NINE MONTHS ENDED NINE MONTHS ENDED ----------------------------------- -------------------------- 03/31/04 03/31/03 03/31/04 03/31/03 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ----------------- ---------------- ------------ ------------ Revenues: Product $ 14,955 $ 14,998 $ 33,965 $ 28,959 Service 11,996 13,332 4,223 2,634 ----------------- ---------------- ------------ ------------ Total 26,951 28,330 38,188 31,593 Cost of sales: Product 5,893 5,990 16,875 14,485 Service 6,493 7,835 2,613 2,216 ----------------- ---------------- ------------ ------------ Total 12,386 13,825 19,488 16,701 ----------------- ---------------- ------------ ------------ Gross margin 14,565 14,505 18,700 14,892 Operating expenses Sales and marketing 5,783 5,626 6,985 7,823 Research and development 4,351 4,048 10,113 9,967 General and administrative 3,208 3,069 3,792 3,907 ----------------- ---------------- ------------ ------------ Total operating expenses 13,342 12,743 20,890 21,697 ----------------- ---------------- ------------ ------------ Operating income (loss) $ 1,223 $ 1,762 $ (2,190) $ (6,805) ================= ================ ============ ============