Concurrent Reports First Quarter Fiscal Year 2017 Financial Results
(Thomson Reuters ONE) -
ATLANTA, Nov. 09, 2016 (GLOBE NEWSWIRE) -- Concurrent (NASDAQ:CCUR), a global
provider of high-performance Linux(®) and storage solutions, today announced
financial results for the first quarter ended September 30, 2016.
"In the first quarter, Concurrent reported revenue of $13.1 million. The results
were impacted by the timing of a large order from a Content Delivery customer,
which we received shortly after the close of the quarter," said Derek Elder,
President and CEO of Concurrent. "While we had higher expectations in the
quarter for our Content Delivery business, we had another strong quarter with
our Real-Time customers and made good progress on the development of our Aquari
scale-out storage product."
First Quarter Financial Highlights
Revenue for the first quarter of fiscal 2017 was $13.1 million, compared with
$17.4 million in the fourth quarter of fiscal 2016 and $13.4 million for the
first quarter of fiscal 2016. The first quarter 2016 comparable included $0.5
million from the multi-screen video analytics product line that was sold in
September 2015.
Gross margin for the first quarter of fiscal 2017 was 54.8%, compared with
63.4% in the fourth quarter of fiscal 2016 and 58.8% for the same period in
fiscal 2016.
The company reported a net loss of $(2.9) million, or $(0.32) loss per diluted
share, in the first quarter of fiscal 2017, compared with a net loss of $(12.9)
million, or $(1.40) loss per diluted share, in the fourth quarter of fiscal
2016 and net income of $3.2 million, or $0.35 income per diluted share, in the
first quarter of fiscal 2016. The net loss in the fourth quarter of fiscal 2016
was due to the company's income tax provision, which was comprised almost
entirely of non-cash income tax expense due to the reestablishment of a full
valuation allowance on our U.S. net operating losses. Net income during the
first quarter of fiscal 2016 included a gain of $4.1 million related to the sale
of the company's multi-screen video analytics product line.
Adjusted EBITDA was $(2.2) million in the first quarter of fiscal 2017, compared
with Adjusted EBITDA of $1.9 million in the fourth quarter of fiscal 2016 and
Adjusted EBITDA of $(0.6) million in the first quarter of fiscal 2016. See "Non-
GAAP Financial Measurements" below for more information on the calculation of
Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to net income.
The company continued to pay a quarterly dividend of $0.12 per share in the
first quarter of fiscal 2017. At September 30, 2016, Concurrent had working
capital of $18.5 million including cash and cash equivalents of $19.3 million.
The company has no debt.
Recent Company Highlights
* Concurrent sold its market-leading RedHawk(TM) real-time Linux operating
system to a government agency and shipped iHawk systems to several aerospace
customers.
* NOS, Portugal's market-leading communications and entertainment company,
selected Concurrent's Aquari(TM) software-defined storage solution to
support their multi-screen cloud digital video recording service.
* Vectra, Poland's second largest cable and telecommunications operator,
selected the company's UpShift(TM) Unified Content Delivery Solution to
expand their on-demand content library.
Non-GAAP Financial Measurements
To supplement the company's condensed consolidated financial statements prepared
in accordance with U.S. generally accepted accounting principles ("GAAP"), this
news release provides information concerning the company's Adjusted EBITDA, a
non-GAAP financial measure. Reconciliations of Adjusted EBITDA to net income,
the most comparable GAAP financial measure, can be found in tables immediately
following the condensed consolidated balance sheets.
For purposes of this news release, Adjusted EBITDA is defined as GAAP net
income, less interest income and other income (expense), net, provision for
income taxes, depreciation and amortization expenses, share-based compensation
expense and gain on the sale of assets. The company considers Adjusted EBITDA
important to understanding its historical results and identifying current and
future trends impacting its business. Management uses Adjusted EBITDA to compare
the company's performance to that of prior periods and evaluate the company's
financial and operating results on a consistent basis from period to period. The
company also believes this measure, when viewed in combination with the
company's financial results prepared in accordance with GAAP, provides useful
information to investors to evaluate ongoing operating results and trends. The
adjustments to the company's GAAP results are made with the intent of providing
both management and investors a more complete understanding of the company's
underlying operational results, trends and performance. Additionally, adjusted
EBITDA is not intended to be a measure of cash flow for management's
discretionary use. We believe that the inclusion of Adjusted EBITDA is
appropriate to provide additional information to investors because securities
analysts, noteholders and other investors use these non-GAAP financial measures
to assess our operating performance across periods on a consistent basis and to
evaluate the relative risk of an investment in our securities.
Adjusted EBITDA has limitations as an analytical tool, however, including the
following:
* Although depreciation and amortization are non-cash charges, the assets
being depreciated and amortized will often have to be replaced in the future
and adjusted EBITDA does not reflect any cash requirements for such
replacements;
* Adjusted EBITDA does not reflect our cash expenditures, or future
requirements for capital expenditures or contractual commitments;
* Adjusted EBITDA does not reflect changes in, or cash requirements for, our
working capital needs;
* Adjusted EBITDA does not reflect our tax expense or any cash requirements to
pay income taxes; and
* Adjusted EBITDA does not reflect the impact of earnings or charges resulting
from matters we do not consider to be indicative of our ongoing operations,
but may nonetheless have a material impact on our results of operations.
The presentation of Adjusted EBITDA is not meant to be considered in isolation
or as a substitute for or superior to the company's financial results determined
in accordance with GAAP. In addition, the company's presentation of Adjusted
EBITDA may not be computed in the same manner as similarly titled measures used
by other companies, including other companies in our industry.
Conference Call Information
Concurrent will hold a conference call today, Wednesday, November 9, at 4:30
p.m. ET to review its first quarter fiscal year 2017 financial results. The call
will be broadcast at www.concurrent.com, on the "Investors" page, under the
'Company' tab. The call can be accessed live by dialing 1-
800-230-1092 (U.S.) 612-234-9959 (international) and entering passcode 160909. A
replay will also be available at www.concurrent.com.
About Concurrent
Concurrent (NASDAQ:CCUR) is a global software and solutions company that
develops advanced applications on a core foundation of high-performance Linux
and storage technologies. We serve industries and customers that demand
uncompromising performance, reliability and flexibility to gain a competitive
edge, drive meaningful growth and confidently deliver best-in-class solutions
that enrich the lives of millions of people around the world every day. Offices
are located in North America, Europe and Asia. Visit www.concurrent.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 the content delivery business to capture new business;
fluctuations and timing of large content delivery orders; risks associated with
our operations 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 content
delivery products; failure to effectively service the installed base; the entry
of new well-capitalized competitors into our markets; the success of new content
delivery products, including acceptance of our new storage solutions, including
acceptance of our new storage 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; global terrorism; 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; the process of evaluation of strategic
alternatives; 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 30, 2016 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 Share and Per Share Data)
Three Months Ended September
30,
2016 2015
Revenues:
Product $ 7,859 $ 8,494
Service 5,257 4,857
Total revenues 13,116 13,351
Cost of sales:
Product 3,790 3,453
Service 2,143 2,041
Total cost of sales 5,933 5,494
Gross margin 7,183 7,857
Operating expenses:
Sales and marketing 4,475 3,394
Research and development 3,307 3,837
General and administrative 2,344 1,778
Gain (loss) on sale of product line, net - (4,116 )
Total operating expenses 10,126 4,893
Operating income (loss) (2,943 ) 2,964
Other income, net 143 126
Income (loss) before income taxes (2,800 ) 3,090
Income tax provision (benefit) 128 (117 )
Net income (loss) $ (2,928 ) $ 3,207
Basic net income (loss) per share $ (0.32 ) $ 0.35
Diluted net income (loss) per share $ (0.32 ) $ 0.35
Basic weighted average shares outstanding 9,189,343 9,112,891
Diluted weighted average shares outstanding 9,189,343 9,176,877
Cash dividends declared per common share $ 0.12 $ 0.12
Concurrent Computer Corporation
Condensed Consolidated Statements of Operations (Unaudited)
(In Thousands Except Share and Per Share Data)
Three Months Ended
September June 30,
30,
2016 2016
Revenues:
Product $ 7,859 $ 12,214
Service 5,257 5,229
Total revenues 13,116 17,443
Cost of sales:
Product 3,790 4,404
Service 2,143 1,975
Total cost of sales 5,933 6,379
Gross margin 7,183 11,064
Operating expenses:
Sales and marketing 4,475 4,305
Research and development 3,307 3,222
General and administrative 2,344 2,272
(Gain) loss on sale of product line, net - 16
Total operating expenses 10,126 9,815
Operating income (loss) (2,943 ) 1,249
Other income, net 143 420
Income (loss) before income taxes (2,800 ) 1,669
Income tax provision 128 14,530
Net income (loss) $ (2,928 ) $ (12,861 )
Basic net income (loss) per share $ (0.32 ) $ (1.40 )
Diluted net income (loss) per share $ (0.32 ) $ (1.40 )
Basic weighted average shares outstanding 9,189,343 9,174,852
Diluted weighted average shares outstanding 9,189,343 9,174,852
Cash dividends declared per common share $ 0.12 $ 0.12
Concurrent Computer Corporation
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(In Thousands)
Three Months Ended
September June 30, September
30, 30,
2016 2016 2015
Net income (loss) $ (2,928 ) $ (12,861 ) $ 3,207
Other comprehensive income (loss):
Foreign currency translation (75 ) (29 ) (94 )
adjustment
Pension and post-retirement (3 ) (433 ) (3 )
benefits, net of tax
Other comprehensive income (loss) (78 ) (462 ) (97 )
Comprehensive income (loss) $ (3,006 ) $ (13,323 ) $ 3,110
Concurrent Computer Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
September June 30, September
30, 30,
2016 2016 2015
(Unaudited) (Unaudited)
ASSETS
Cash and cash equivalents $ 19,269 $ 20,268 $ 24,462
Trade accounts receivable, 10,453 15,104 10,427
net
Inventories 2,699 3,495 2,963
Prepaid expenses and other 1,421 1,061 1,910
current assets
Total current assets 33,842 39,928 39,762
Property, plant and 3,057 3,061 2,779
equipment, net
Deferred income taxes, net 941 924 14,317
Other long-term assets, net 1,374 1,323 1,350
Total assets $ 39,214 $ 45,236 $ 58,208
LIABILITIES
Accounts payable and accrued $ 7,360 $ 9,191 $ 6,163
expenses
Deferred revenue 8,024 8,126 6,834
Total current liabilities 15,384 17,317 12,997
Long-term deferred revenue 884 1,168 1,518
Pension liability 3,774 3,720 3,251
Other long-term liabilities 2,095 2,033 1,711
Total liabilities 22,137 24,238 19,477
STOCKHOLDERS' EQUITY
Common stock 92 92 92
Additional paid-in capital 211,213 210,971 210,373
Accumulated deficit (193,350 ) (189,265 ) (171,491 )
Treasury stock, at cost (255 ) (255 ) (255 )
Accumulated other (623 ) (545 ) 12
comprehensive income (loss)
Total stockholders' equity 17,077 20,998 38,731
Total liabilities and $ 39,214 $ 45,236 $ 58,208
stockholders' equity
Concurrent Computer Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
(In Thousands)
Three Months Ended
September June 30, September
30, 30,
2016 2016 2015
GAAP Net income (loss) $ (2,928 ) $ (12,861 ) $ 3,207
Addback (deduct):
Other income, net (143 ) (420 ) (126 )
Income tax provision (benefit) 128 14,530 (117 )
Depreciation 455 428 395
Amortization 3 3 36
Share-based compensation 242 228 167
(Gain) loss on sale of product line, - 16 (4,116 )
net
Non-GAAP Adjusted EBITDA $ (2,243 ) $ 1,924 $ (554 )
For more information, contact:
Media Relations:
Tom Williams
Phone: (678) 258-4059
Email: Tom.Williams(at)concurrent.com
Investor Relations:
ICR
Seth Potter
Phone: (646) 277-1230
Email: Seth.Potter(at)icrinc.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Concurrent Computer Corporation via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 09.11.2016 - 22:01 Uhr
Sprache: Deutsch
News-ID 506049
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