Concurrent Reports Fiscal Year 2014 Third Quarter Financial Results

News provided by

Concurrent

Apr 29, 2014, 04:01 ET

ATLANTA, April 29, 2014 /PRNewswire/ -- Concurrent (NASDAQ: CCUR), a global leader in video, media data intelligence and real-time Linux® solutions, today announced financial results for the third quarter of its fiscal 2014 ended March 31, 2014.

Revenue for the third quarter of fiscal 2014 grew by 8.0% year over year to $18.3 million compared with $16.9 million for the same period in fiscal 2013, and $17.8 million in the preceding quarter. 

Gross margin for the third quarter of fiscal 2014 was 56.1% compared with 59.1% for the same period in fiscal 2013, and 55.8% in the preceding quarter, primarily reflecting the mix of products and customers.  Operating expenses were $9.0 million, compared with $8.8 million for the same period in fiscal 2013, and $8.8 million in the preceding quarter.  

The company reported net income of $1.1 million, or $0.12 per diluted share, in the third quarter of fiscal 2014, compared with net income of $937 thousand, or $0.11 per diluted share, in the same period in fiscal 2013, and net income of $1.1 million, or $0.12 per diluted share, in the preceding quarter.

"In the third quarter we added new customers, expanded our patent portfolio, and released a host of new product innovations," said Dan Mondor, Concurrent's president and CEO. "With healthy contribution from both our video and real-time businesses, our Q3 revenue grew by 8% versus the same quarter last year.  On a year to date basis, revenue has grown 10%, operating income is up 27%, and net income has improved by $0.10 per diluted share. I am pleased with our market momentum and the solid progress we have made in the business this year."  

The company paid quarterly dividends of $0.12 per share in each of the first three quarters of the fiscal year.  At March 31, 2014, Concurrent had cash and cash equivalents of $22.5 million.  The company has no debt.

Recent Company Highlights

Video Solutions:

  • Get, Norway's leading digital television and broadband Internet provider, selected Concurrent's MediaHawk VX™ unified content delivery solution to power their "Get TV" online video streaming service.
  • Concurrent delivered multi-screen video solutions to two new top-tier service providers in Europe.
  • The company set a record pace for video patent awards by securing four U.S. patents in the past nine months. 
  • The company offered customers a glimpse of Concurrent's future products at the NAB show in Las Vegas, highlighting new solutions for over the top video delivery.

Real-Time:

  • Concurrent was awarded new design wins for jet engine test stands, military aircraft simulators, and commercial automotive simulators.
  • The company enhanced its SIMulation Workbench application to introduce support for FMI/FMU (functional mock-up interface), an emerging standard for model based systems development that supports faster frame rates.
  • The company shipped a large ImaGen solution for a U.S. Navy training program.

Conference Call Information       

Concurrent will broadcast a conference call today, Tuesday, April 29th, at 4:30 p.m. ET to review its third quarter of fiscal 2014 financial results.  The call will be broadcast at www.ccur.com, on the "Investors" page, under the 'About' tab. The call can be accessed by dialing 1-800-230-1093 (U.S.) 612-288-0329 (international) and entering pass code 140429.  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 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 multichannel video service providers have selected Concurrent to deliver 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 Bryant
(678) 258-4221
[email protected] 

Horn Group
Alex Shapiro
(415) 905-4011
[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; United States government sequestration; European austerity measures; 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; 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 September 17, 2013 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, 





2014

2013

2014

2013

Revenues:








Product 

$          12,197

$          10,714

$       34,651

$           29,777

Service 

6,081

6,213

18,662

18,743


Total revenues

18,278

16,927

53,313

48,520

Cost of sales:








Product 

5,495

4,591

15,701

12,439

Service 

2,535

2,336

7,906

7,726


Total cost of sales

8,030

6,927

23,607

20,165

Gross margin

10,248

10,000

29,706

28,355

Operating expenses:








Sales and marketing

3,595

3,527

10,590

10,808

Research and development

3,409

2,878

9,998

8,673

General and administrative

1,984

2,362

5,925

6,352


Total operating expenses

8,988

8,767

26,513

25,833

Operating income 

1,260

1,233

3,193

2,522

Other expense, net

(38)

(229)

(128)

(407)

Income before income taxes

1,222

1,004

3,065

2,115

Income tax provision

140

67

160

180

Net income 

$            1,082

$               937

$         2,905

$             1,935











Basic net income per share

$              0.12

$              0.11

$           0.33

$               0.22

Diluted net income per share

$              0.12

$              0.11

$           0.32

$               0.22

Basic weighted average shares outstanding

8,944

8,754

8,897

8,726

Diluted weighted average shares outstanding

9,090

8,894

9,074

8,873

Cash dividends declared per common share

$              0.12

$              0.06

$           0.36

$               0.74



Concurrent Computer Corporation



Condensed Consolidated Statements of Operations (Unaudited)



(In Thousands Except Per Share Data)














 Three Months Ended  





 March 31, 

 December 31, 





2014

2013

Revenues:





Product 

$           12,197

$           11,008

Service 

6,081

6,829



Total revenues

18,278

17,837

Cost of sales:





Product 

5,495

5,222

Service 

2,535

2,659



Total cost of sales

8,030

7,881

Gross margin

10,248

9,956

Operating expenses:





Sales and marketing

3,595

3,513

Research and development

3,409

3,416

General and administrative

1,984

1,894



Total operating expenses

8,988

8,823

Operating income

1,260

1,133

Other expense, net

(38)

(63)

Income before income taxes

1,222

1,070

Provision (benefit) for income taxes

140

(19)

Net income

$             1,082

$             1,089









Basic net income per share

$               0.12

$               0.12

Diluted net income per share

$               0.12

$               0.12

Basic weighted average shares outstanding

8,944

8,934

Diluted weighted average shares outstanding

9,090

9,041

Cash dividends declared per common share

$               0.12

$               0.12

Concurrent Computer Corporation

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In Thousands Except Per Share Data)



















Three Months Ended

Nine Months Ended





 March 31, 

Dec. 31,

March 31,

 March 31, 

March 31,





2014

2013

2013

2014

2013














Net income 

$      1,082

$      1,089

$         937

$      2,905

$      1,935














Other comprehensive income (loss):










Foreign currency translation adjustment

31

(92)

(24)

(114)

(242)

Pension and post-retirement benefits, net of tax

5

5

2

15

6

Other comprehensive income (loss)

36

(87)

(22)

(99)

(236)

     Comprehensive income

$      1,118

$      1,002

$         915

$      2,806

$      1,699

Concurrent Computer Corporation

 Condensed Consolidated Balance Sheets

(In Thousands)













March 31,

December 31,

June 30,




2014

2013

2013




(unaudited)

(unaudited)













ASSETS








 Cash and cash equivalents 

$           22,452

$           25,096

$           27,927


 Trade accounts receivable, net 

18,165

11,745

10,701


 Inventories 

3,609

3,856

2,844


 Prepaid expenses and other current assets 

1,426

1,408

2,324


    Total current assets 

45,652

42,105

43,796












 Property, plant and equipment, net 

2,992

2,921

3,102


 Intangible assets, net 

512

552

834


 Other long-term assets 

921

889

737

 Total assets 

$           50,077

$           46,467

$           48,469











 LIABILITIES 








 Accounts payable and accrued expenses 

$             9,274

$             7,990

$             7,671


 Deferred revenue 

8,590

6,303

8,383


    Total current liabilities 

17,864

14,293

16,054












 Long-term deferred revenue 

1,160

1,462

1,924


 Other long-term liabilities 

4,987

4,906

4,706


     Total liabilities 

24,011

20,661

22,684











 STOCKHOLDERS' EQUITY 








 Common stock 

90

90

88


 Additional paid-in capital 

209,464

209,211

208,677


 Accumulated deficit 

(183,494)

(183,465)

(183,085)


 Treasury stock, at cost 

(255)

(255)

(255)


 Accumulated other comprehensive income  

261

225

360


    Total stockholders' equity 

26,066

25,806

25,785

 Total liabilities and stockholders' equity 

$           50,077

$           46,467

$           48,469

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

SOURCE Concurrent

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