Concurrent Reports Fiscal Year 2015 First Quarter Financial Results

ATLANTA, Oct. 28, 2014 /PRNewswire/ -- Concurrent CCUR, a global leader in unified content delivery, video analytics, and real-time Linux^® solutions, today announced financial results for the first quarter of its fiscal 2015 ended September 30, 2014.

Revenue for the first quarter of fiscal 2015 increased to $17.5 million, compared with $17.2 million for the same period in fiscal 2014, and decreased from $17.9 million in the preceding quarter. 

Gross margin was 55.3% for each of the first quarters of fiscal 2015 and fiscal 2014, and was down from 60.0% in the preceding quarter, primarily reflecting the mix of products and customers.  Operating expenses were $8.8 million, including a gain on the sale of a non-strategic IT asset, in the first quarter of fiscal 2015, compared with $8.7 million for the same period in fiscal 2014, and $8.6 million in the preceding quarter.  

The company reported net income of $387 thousand, or $0.04 per diluted share, in the first quarter of fiscal 2015, compared with net income of $734 thousand, or $0.08 per diluted share, in the same period in fiscal 2014, and net income of $15.6 million, or $1.71 per diluted share, in the preceding quarter. Fourth quarter fiscal 2014 results included a $13.7 million non-cash gain associated with the reversal of a portion of the company's U.S. tax valuation allowance.

"We are pleased to report a solid start to the fiscal year with year-over-year revenue growth and continued profitability in the first quarter," said Dan Mondor, Concurrent's president and CEO.  "We continue to make progress in both video and real time markets with new product announcements, design wins, and market momentum.  In video solutions, we launched new products and rebranded our solution portfolio to reflect our commitment to helping service providers accelerate their evolution toward IP video architectures.  In real-time, we continued to have success in the automotive market with another new win at a major Japanese automaker and another order from a leading Formula 1^™ racing team.  We are pleased with our steady and continued progress in the first quarter of fiscal 2015."

The company paid a quarterly dividend of $0.12 per share during the first quarter of fiscal 2015.  At September 30, 2014, Concurrent had cash and cash equivalents of $26.2 million.  The company has no debt.

Recent Company Highlights

Video Solutions:

• Concurrent unveiled a new unified transparent caching solution to boost the performance of over-the-top (OTT) video services
• Concurrent announced UP^™, a new unified video solutions portfolio that enables service providers to accelerate their transition toward pure IP video services
• The company was again ranked as the leader for on-demand video servers by Current Analysis, an independent industry analyst firm
• Concurrent met with customers and exhibited its latest solutions at the IBC show in Amsterdam and the CableTec Expo in Denver

Real-Time:

• Concurrent received an order from a major Japanese automaker for its SIMulation Workbench^™ solution and an order from a UK based Formula 1^™ racing team for a hardware-in-the-loop test stand
• The company shipped its GPU Workbench^™ solution to a Japanese naval contractor for use in designing new defense systems
• Concurrent shipped iHawk^™ servers to NASA's Marshall Space Flight Center and integrated test stands to a major defense contractor for a space program

Conference Call Information      

Concurrent will broadcast an earnings call today, Tuesday, October 28th, at 4:30 p.m. ET to review its first 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 1-800-230-1074 (U.S.) 612-234-9960 (international) and entering pass code 141028.  A replay will also be available at www.ccur.com.

To view Financial Results visit our Investors page here.

About Concurrent
Concurrent CCUR is a global leader in unified content delivery, video analytics, and real-time Linux solutions.  The company delivers solutions for every screen and every network in support of commercial video services.  Concurrent's unified content delivery and video analytics solutions support every screen simultaneously, making it easier for cable MSOs, fixed-line telecommunications providers, mobile operators, and online media companies 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.

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.

For more information, contact:

Media Relations:
Concurrent
Kristen Bryant
(678) 258-4221
kristen.bryant@ccur.com

Horn Group
Alex Shapiro
(415) 905-4011
Concurrentteam@horngroup.com

Investor Relations Contact:
Concurrent
Sandra Dover
(678) 258-4112
investor.relations@ccur.com

 

 

 

 

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SOURCE Concurrent