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Concurrent Reports Fiscal Year 2015 Third Quarter Financial Results
[April 28, 2015]

Concurrent Reports Fiscal Year 2015 Third Quarter Financial Results


ATLANTA, April 28, 2015 /PRNewswire/ -- Concurrent (NASDAQ: CCUR), a global leader in unified content delivery, video analytics, and real-time Linux® solutions, today announced financial results for the third quarter of its fiscal 2015 ended March 31, 2015.

Revenue for the third quarter of fiscal 2015 was $17.1 million, compared with $18.3 million for the same period in fiscal 2014 and $16.0 million in the preceding quarter. 

Gross margin for the third quarter of fiscal 2015 was 58.9%, compared with 56.1% for the same period in fiscal 2014, and 55.1% in the preceding quarter.  Third quarter operating expenses were $8.6 million, compared with $9.0 million for the same period in fiscal 2014 and $9.4 million in the preceding quarter.  

For the third quarter of fiscal 2015, the company reported operating income of $1.5 million, which included non-cash expenses of $458 thousand in depreciation and amortization, and $232 thousand in share-based compensation.  For the same period in the prior year, the company reported operating income of $1.3 million, which included non-cash expenses of $442 thousand in depreciation and amortization, and $254 thousand in share-based compensation.  The company incurred a $608 thousand operating loss in the preceding quarter of fiscal 2015, which included $0.8 million of CEO transition costs, and non-cash expenses of $358 thousand in depreciation and amortization and $185 thousand in share-based compensation.

The company reported net income of $784 thousand, or $0.09 per share, in the third quarter of fiscal 2015, compared with net income of $1.1 million, or $0.12 per diluted share, in the same period in fiscal 2014, and a net loss of $571 thousand, or $0.06 per diluted share, in the preceding quarter. 

"In the third quarter we added five new customers, shipped our recently released software-defined storage solution to two major service providers, and won several competitive deals in the automotive simulation market," said Derek Elder, the company's president and CEO.  "I am encouraged by the progress in our business and the growing level of interest from customers in our latest products." 

The company paid quarterly dividends of $0.12 per share in each of the first three quarters of the fiscal year.  At March 31, 2015, Concurrent had cash and cash equivalents of $26.8 million. The company has no debt.

Recent Company Highlights

  • Two major North American service providers selected Concurrent's UpShift™ Unified Content Delivery Solution to power their next generation video service offering
  • Concurrent introduced a new software-defined object storage solution and shipped it to a North American MSO and a tier 1 telecommunications operator to support IP video applications
  • The company received two U.S. patents for its unique, self-healing, resilient video streaming technology
  • The company shipped its Simulation Workbench™ solution to a new racing team customer in the U.S.
  • Concurrent shipped simulation systems to two new automotive customers through a system integrator and sold additional systems to several major automakers in Japan
  • In the aerospace and defense market, the company sold additional systems for hardware-in-the-loop testing of avionics for a heavy lift rocket program

Conference Call Information       
Concurrent will hold a conference call today, Tuesday, April 28th, at 4:30 p.m. ET to review its third quarter of fiscal 2015 financial results.  The call will be broadcast at www.ccur.com, on the "Investors" page, under the 'About' tab. The call can be accessed live by dialing 1-800-230-1059 (U.S.) 612-332-0107 (international) and entering pass code 150428.  A replay will also be available at www.ccur.com.

To view Financial Results visit our Investors page here.

About Concurrent
Concurrent (NASDAQ: CCUR) is a global software and solutions provider that develops content delivery and real-time applications on a core foundation of high-performance Linux and storage technologies. The company serves industries and customers that demand uncompromising performance, reliability, and flexibility to gain a competitive edge, drive meaningful growth, and power brighter ideas that enrich the lives of millions of people around the world every day.  Concurrent works closely with service providers, aerospace and defense organizations, automotive manufacturers, and a diverse range of companies in the manufacturing, financial, energy, and healthcare markets to launch innovative solutions and help achieve their most ambitious endeavors. Offices are located 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 Bryant
(678) 258-4221
[email protected]

Horn Group
Debra Raine
Phone: (646) 202-9755
Email: [email protected]

Investor Relations Contact:
Concurrent
Sandra Dover
(678) 258-4112
[email protected]

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: the potential consolidation of the markets that we serve, U.S. government sequestration; European austerity measures; delays or cancellations of customer orders; non-renewal of maintenance and support service agreements with customers; changes in product demand; economic conditions; various inventory risks due to changes in market conditions; margins of video solutions business to capture new business; fluctuations and timing of large video solutions 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 provide 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; 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 macroeconomic environment; continuing unevenness of the global economic recovery; privacy concerns over data collection; our ability to utilize net operating losses to offset cash taxes in the event of an ownership change as defined by the Internal Revenue Service; 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 27, 2014 with the Securities and Exchange Commission ("SEC"), and in subsequent filings of periodic reports with the SEC. The risk factors discussed in the Form 10-K and subsequently filed periodic reports 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 Concurrent product names are trademarks or registered 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 March 31, 


 Nine Months Ended March 31, 






2015


2014


2015


2014

Revenues:










Product 


$             11,327


$             12,197


$       34,881


$           34,651


Service 


5,783


6,081


15,765


18,662




Total revenues


17,110


18,278


50,646


53,313

Cost of sales:










Product 


4,578


5,495


14,897


15,701


Service 


2,447


2,535


7,159


7,906




Total cost of sales


7,025


8,030


22,056


23,607

Gross margin


10,085


10,248


28,590


29,706

Operating expenses:










Sales and marketing


3,410


3,595


10,889


10,590


Research and development


3,484


3,409


10,164


9,998


General and administrative


1,729


1,984


6,173


5,925


Gain on sale of IPv4 addresses, net


-


-


(339)


-




Total operating expenses


8,623


8,988


26,887


26,513

Operating income 


1,462


1,260


1,703


3,193

Other income (expense), net


1


(38)


(370)


(128)

Income before income taxes


1,463


1,222


1,333


3,065

Income tax provision 


679


140


733


160

Net income 


$                  784


$               1,082


$            600


$             2,905













Basic net income per share


$                 0.09


$                 0.12


$           0.07


$               0.33

Diluted net income per share


$                 0.09


$                 0.12


$           0.07


$               0.32

Basic weighted average shares outstanding


9,096


8,944


9,058


8,897

Diluted weighted average shares outstanding


9,143


9,090


9,141


9,074

Cash dividends declared per common share


$                 0.12


$                 0.12


$           0.36


$               0.36




 

 

 

Concurrent Computer Corporation

Condensed Consolidated Statements of Operations (Unaudited)

(In Thousands Except Per Share Data)














 Three Months Ended  






 March 31, 


 December 31, 






2015


2014

Revenues:






Product 


$           11,327


$           11,076


Service 


5,783


4,920




Total revenues


17,110


15,996

Cost of sales:






Product 


4,578


4,779


Service 


2,447


2,410




Total cost of sales


7,025


7,189

Gross margin


10,085


8,807

Operating expenses:






Sales and marketing


3,410


3,513


Research and development


3,484


3,412


General and administrative


1,729


2,490




Total operating expenses


8,623


9,415

Operating income (loss)


1,462


(608)

Other income (expense), net


1


(86)

Income (loss) before income taxes


1,463


(694)

Income tax provision (benefit) 


679


(123)

Net income (loss)


$                784


$              (571)









Basic net income (loss)per share


$               0.09


$             (0.06)

Diluted net income (loss) per share


$               0.09


$             (0.06)

Basic weighted average shares outstanding


9,096


9,088

Diluted weighted average shares outstanding


9,143


9,088

Cash dividends declared per common share


$               0.12


$               0.12


 

 

 

Concurrent Computer Corporation

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited)

(In Thousands Except Per Share Data)




















Three Months Ended


Nine Months Ended






 March 31,  


 December 31, 


 March 31, 


 March 31, 






2015


2014


2014


2015


2014















Net income (loss)


$              784


$            (571)


$           1,082


$         600


$      2,905















Other comprehensive income (loss):














Foreign currency translation adjustment


210


(110)


31


311


(114)




Pension and post-retirement benefits, net of tax


10


10


5


30


15




Other comprehensive income (loss) 


220


(100)


36


341


(99)




     Comprehensive income (loss)


$           1,004


$            (671)


$           1,118


$         941


$      2,806















 

 

 

Concurrent Computer Corporation

 Condensed Consolidated Balance Sheets

(In Thousands)














March 31,


December 31,


June 30,





2015


2014


2014





(unaudited)


(unaudited)













ASSETS









 Cash and cash equivalents 


$           26,826


$           25,121


$           28,074



 Trade accounts receivable, net 


12,402


11,315


11,355



 Inventories 


3,946


2,335


3,272



 Deferred income taxes - current, net 


1,354


1,350


1,458



 Prepaid expenses and other current assets 


799


983


804



    Total current assets 


45,327


41,104


44,963












 Property, plant and equipment, net 


2,411


2,367


3,081



 Intangible assets, net 


367


396


476



 Deferred income taxes, net 


12,927


13,287


13,231



 Other long-term assets 


1,312


1,539


635


 Total assets 


$           62,344


$           58,693


$           62,386











 LIABILITIES 









 Accounts payable and accrued expenses 


$             7,098


$             5,994


$             7,591



 Deferred revenue 


10,049


7,037


7,441



    Total current liabilities 


17,147


13,031


15,032












 Long-term deferred revenue 


1,929


2,195


1,400



 Other long-term liabilities 


4,544


4,881


5,500



     Total liabilities 


23,620


20,107


21,932











 STOCKHOLDERS' EQUITY 









 Common stock 


91


91


90



 Additional paid-in capital 


210,353


210,121


209,711



 Accumulated deficit 


(171,715)


(171,401)


(169,001)



 Treasury stock, at cost 


(255)


(255)


(255)



 Accumulated other comprehensive income  


250


30


(91)



    Total stockholders' equity 


38,724


38,586


40,454


 Total liabilities and stockholders' equity 


$           62,344


$           58,693


$           62,386










 

Concurrent, a global leader in innovative solutions, enables seamless delivery, management and monetization of video on any screen. Concurrent's screen-independent video delivery and media data solutions create a 360-degree view of the consumer video experience and provides cable, telco, wireless, web, advertising and content development industries with new revenue opportunities. Concurrent, Concurrent Computer Corporation and its logo are registered trademarks of Concurrent Computer Corporation.

Logo - http://photos.prnewswire.com/prnh/20110317/CL67141LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/concurrent-reports-fiscal-year-2015-third-quarter-financial-results-300073697.html

SOURCE Concurrent


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