Financial: Concurrent Computer Corporation Announces First Quarter Results - Company Financial Information

Edge: Work-Group Computing Report, Nov 2, 1998

Concurrent Computer Corporation (Nasdaq:CCUR) Thursday reported earnings for the quarter ended September 30, 1998 of $3.0 thousand, or $0.00 per share, compared with $1.3 million, or $0.03 per share, for the comparative quarter a year ago. Not included in these figures is a $429,000 non-cash charge for the write off of a cumulative translation adjustment for a non-operating French subsidiary.

Gross margins increased to 52% from 48% year over year, and increased to 52% from 50% on a sequential basis. Revenue for the quarter was $16.8 million compared with $20.6 million for the comparative quarter a year ago. "Real-time product revenue for the quarter was approximately $1 million below our expectations and was attributable largely to lower than anticipated international revenue," said E. Courtney Siegel, Concurrent's Chairman, President and Chief Executive Officer. "The second quarter looks stronger and should put us back on track for the year." "We continue to make progress in the video-on-demand area, with two to three live trials anticipated to start before year-end. We continue ongoing discussions with every one of the top ten Multiple Systems Operators, as most now believe that interactive video-on-demand to be the killer application. We have entered into an agreement with General Instrument Corporation, adding to our already strong list of cable integrators. Our server has also been selected by a major application house to be unveiled at the Western Cable Show in Anaheim, California on December 2 through 4." Concurrent Computer Corporation (Nasdaq:CCUR) (http://www.ccur.com), headquartered in Fort Lauderdale, Florida, is a leading supplier in the emerging digital video server marketplace. This market includes the residential, corporate training, hospitality and in-flight entertainment industries. For over 30 years, Concurrent has been a leader provider of high-performance real-time computer systems and software for the commercial and government markets. The company's real-time market focuses on strategic business areas that include industrial systems; software and embedded applications; data acquisition; simulation; and vibration control. Operating in 32 countries worldwide, Concurrent provides sales and support from offices throughout North America, South America, Europe, Asia, and Australia.

INCOME STATEMENT ($K)
                       Three Months Ended
                    9/30/98          9/30/97
Net sales
Computer systems                        $6,728           $8,866
Service and other                       10,146           11,739
Total                                 16,874           20,605
Cost of Sales
Computer systems                         3,014            4,277
Service and other                        5,111            6,445
Total                                  8,125           10,722
Gross margin                               8,749            9,883
Operating expenses
Research and development                 2,704            2,820
Selling, general and administrative      5,833            6,024
Other one time transactions                  0             (607)
Total                                  8,537            8,237
Operating income                             212            1,646
Interest expense                             (78)            (262)
Interest income                               52               22
Other one-time gain/(loss)                  (429)             420
Other income/(expense) - net                (183)            (201)
Income (loss) before
provision for income taxes                 (426)           1,625
Provision for income taxes                     0              325
Net income (loss)                          ($426)          $1,300
Earnigngs per share                       ($0.01)           $0.03
Net income before non-cash charge for
Write off of cumulative translation
adjustment                                   $3
Earnings per share                         $0.00
BALANCE SHEET ($K)
                    Sept. 30,         June 30,
                      1998             1998
ASSETS                                      $                $
Cash                                      $5,424           $5,733
Net accounts receivable                   15,579           18,996
Net inventories                            6,207            6,263
Other current assets                       1,783            1,487
Total current assets                   28,993           32,479
Plant & equipment, net                    13,010           12,419
Other long term assets                     1,119            1,337
Total assets                           43,122           46,235
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes and loans payable                      102              365
Revolving credit facility                    310            1,123
Accounts payable                           3,024            4,946
Accrued wages and benefit                  4,188            4,695
Deferred revenue                           3,970            4,018
Other accrued expenses                     3,472            3,680
Total current liabilities              15,066           18,827
Other long term liabilities                2,052            1,898
Equity                                    26,004           25,510
Total liabilities and equity             $43,122          $46,235