Concurrent Reports Second Quarter FY2017 Financial Results
(Thomson Reuters ONE) -
Aquari® Storage Solution Gains New Customers;
Improved Operating Performance Leads to Sharply Reduced Net Loss
Conference Call Today at 11 A.M. ET
ATLANTA, Feb. 08, 2017 (GLOBE NEWSWIRE) -- Concurrent (NASDAQ:CCUR), a global
provider of high-performance Linux® and storage solutions, today announced
financial results for the second quarter of fiscal 2017 ended December 31, 2016.
Fiscal Second Quarter Financial Highlights:
* Total revenue increased 19% sequentially and 4% year-over-year to $15.5
million.
- Content Delivery segment revenue (which includes revenue from the
company's Aquari storage solutions product line) increased 41% sequentially
to $7.2 million. Content Delivery segment revenue decreased year over year
due to a single large customer purchase that occurred in the prior fiscal
year period.
- Real-Time segment revenue increased 4% sequentially to $8.3 million and
grew 32% from the prior fiscal year period, driven by strength in the
company's Asia-Pacific markets.
* Net loss was reduced to $(0.1) million, or $(0.01) per share, compared to a
net loss of $(2.9) million, or $(0.32) per share, in the first quarter of
fiscal 2017, and a net loss of $(0.3) million, or $(0.03) per share, in the
prior fiscal year period.
* Adjusted EBITDA improved to $0.7 million, compared to an Adjusted EBITDA
loss of $(2.2) million in the first quarter of fiscal 2017, and Adjusted
EBITDA of $0.3 million in the prior fiscal year period.
* Cash and cash equivalents were $18.8 million as of December 31, 2016.
Concurrent has no debt.
* Quarterly dividend paid during the fiscal second quarter was $0.12 per
share.
"We believe our second quarter results begin to illustrate Concurrent's
evolution as we continue to broaden our customer base and expand the addressable
market for our Content Delivery products," said Derek Elder, President and CEO.
"As we execute our plan to capitalize on the market opportunity, we should
generate a more consistent sequential revenue trend as we move into fiscal
2018. In addition, we are positioned to grow our revenue as we bring cost-
efficient media delivery and storage solutions, like our Aquari product line, to
a broader market. Meanwhile, our Real-Time segment had an excellent quarter
driven by strength in our Asia-Pacific markets and expanding footprint in
Automotive."
"We introduced several operational efficiencies during the quarter that have led
to improved profitability, and implemented additional steps after quarter end.
We believe that these efficiency measures, combined with continued progress on
the revenue front, will enable us to fund our investments to accelerate topline
growth in fiscal 2018. Looking ahead, although we expect we will have a net loss
for the remainder of fiscal 2017, we believe we will maintain positive Adjusted
EBITDA over the period," Mr. Elder concluded.
Fiscal Second Quarter Financial Results:
Total revenue was $15.5 million, compared to $13.1 million in the first quarter
of fiscal 2017, and $14.9 million for the second quarter of fiscal 2016.
Content delivery segment revenue (which includes Aquari storage revenue) was
$7.2 million, compared to $5.1 million in the first quarter of fiscal 2017 and
$8.6 million in the second quarter of fiscal 2016.
Real-time segment revenue was $8.3 million, compared to $8.0 million in the
first quarter of fiscal 2017 and $6.3 million in the second quarter of fiscal
2016.
Total gross margin as a percentage of revenue was 60.8%, compared to 54.8% in
the first quarter of fiscal 2017 and 62.9% for the second quarter of fiscal
2016.
Net loss was $(0.1) million, or $(0.01) per share, compared to net loss of
$(2.9) million, or $(0.32) per share, in the first quarter of fiscal 2017 and a
net loss of $(0.3) million, or $(0.03) per share, in the second quarter of
fiscal 2016.
Adjusted EBITDA was $0.7 million, compared to an Adjusted EBITDA loss of $(2.2)
million in the first quarter of fiscal 2017 and an Adjusted EBITDA loss of
$(0.3) million in the second 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.
Fiscal Six Months Financial Results:
Revenue was $28.7 million, compared to $28.3 million for the first six months of
fiscal 2016.
Content delivery segment revenue (which includes Aquari storage revenue) was
$12.4 million, compared to $15.1 million for the same period last year.
Real-time segment revenue was $16.3 million, compared to $13.2 million for the
same period last year.
Gross margin was 58.0%, compared to 61.0% for the same period last year.
Net loss was $(3.0) million, or $(0.33) per share, compared to net income of
$2.9 million, or $0.32 per diluted share, in the same period last year.
Adjusted EBITDA loss was $(1.5) million, compared to an Adjusted EBITDA loss of
$(0.3) million in the first six months 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.
Fiscal 2017 Guidance
Management reiterated its fiscal 2017 guidance, which is as follows:
* Total revenue for the year is expected to be flat to slightly up from 2016
revenue of $61.1 million.
* Although we expect to have a net loss for the remainder of fiscal 2017,
Adjusted EBITDA is expected to remain positive.
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 host a conference call today, Wednesday, February 8, at 11:00
a.m. ET to review its second quarter fiscal 2017 financial results and recent
corporate developments. The call and presentation materials will be webcast
at www.concurrent.com, on the "Investors" page, under the "Company" tab. The
call can be also be accessed live by dialing 1-800-288-8975 (U.S.) or 612-
332-1025 (International) and entering passcode 170208. A webcast 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,
tariffs 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; 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 December Six Months Ended December
31, 31,
------------------------------- -------------------------------
2016 2015 2016 2015
--------------- --------------- --------------- ---------------
Revenues:
Product $ 10,246 $ 9,974 $ 18,105 $ 18,468
Service 5,301 4,925 10,558 9,782
--------------- --------------- --------------- ---------------
Total
revenues 15,547 14,899 28,663 28,250
Cost of sales:
Product 4,079 3,541 7,869 6,994
Service 2,019 1,982 4,162 4,023
--------------- --------------- --------------- ---------------
Total cost
of sales 6,098 5,523 12,031 11,017
--------------- --------------- --------------- ---------------
Gross margin 9,449 9,376 16,632 17,233
Operating
expenses:
Sales and
marketing 4,368 3,797 8,843 7,191
Research and
development 2,816 3,762 6,123 7,599
General and
administrative 2,313 2,175 4,657 3,953
(Gain) loss on
sale of
product line,
net - - - (4,116 )
--------------- --------------- --------------- ---------------
Total
operating
expenses 9,497 9,734 19,623 14,627
--------------- --------------- --------------- ---------------
Operating income
(loss) (48 ) (358 ) (2,991 ) 2,606
Other income,
net 63 30 206 156
--------------- --------------- --------------- ---------------
Income (loss)
before income
taxes 15 (328 ) (2,785 ) 2,762
Income tax
provision
(benefit) 103 (45 ) 231 (162 )
--------------- --------------- --------------- ---------------
Net income
(loss) $ (88 ) $ (283 ) $ (3,016 ) $ 2,924
--------------- --------------- --------------- ---------------
Basic net income
(loss) per share $ (0.01 ) $ (0.03 ) $ (0.33 ) $ 0.32
--------------- --------------- --------------- ---------------
Diluted net
income (loss)
per share $ (0.01 ) $ (0.03 ) $ (0.33 ) $ 0.32
--------------- --------------- --------------- ---------------
Basic weighted
average shares
outstanding 9,244,590 9,161,407 9,216,967 9,137,149
--------------- --------------- --------------- ---------------
Diluted weighted
average shares
outstanding 9,244,590 9,161,407 9,216,967 9,201,099
--------------- --------------- --------------- ---------------
Cash dividends
declared per
common share $ 0.12 $ 0.12 $ 0.24 $ 0.24
--------------- --------------- --------------- ---------------
Concurrent Computer Corporation
Condensed Consolidated Statements of Operations (Unaudited)
(In Thousands Except Share and Per Share Data)
Three Months Ended
-----------------------------------
December 31, September 30,
2016 2016
----------------- -----------------
Revenues:
Product $ 10,246 $ 7,859
Service 5,301 5,257
----------------- -----------------
Total revenues 15,547 13,116
Cost of sales:
Product 4,079 3,790
Service 2,019 2,143
----------------- -----------------
Total cost of sales 6,098 5,933
----------------- -----------------
Gross margin 9,449 7,183
Operating expenses:
Sales and marketing 4,368 4,475
Research and development 2,816 3,307
General and administrative 2,313 2,344
----------------- -----------------
Total operating expenses 9,497 10,126
----------------- -----------------
Operating loss (48 ) (2,943 )
Other income, net 63 143
----------------- -----------------
Income (loss) before income taxes 15 (2,800 )
Income tax provision 103 128
----------------- -----------------
Net loss $ (88 ) $ (2,928 )
----------------- -----------------
Basic net loss per share $ (0.01 ) $ (0.32 )
----------------- -----------------
Diluted net loss per share $ (0.01 ) $ (0.32 )
----------------- -----------------
Basic weighted average shares
outstanding 9,244,590 9,189,343
----------------- -----------------
Diluted weighted average shares
outstanding 9,244,590 9,189,343
----------------- -----------------
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 Six Months Ended
-------------------------------------- ------------------------
December September December
31, 30, 31, December 31,
2016 2016 2015 2016 2015
------------ ------------ ------------ ------------ -----------
Net income (loss) $ (88 ) $ (2,928 ) $ (283 ) $ (3,016 ) $ 2,924
------------ ------------ ------------ ------------ -----------
Other comprehensive
income (loss):
Foreign
currency
translation
adjustment (216 ) (75 ) (29 ) (291 ) (123 )
Pension and
post-
retirement
benefits, net
of tax 110 (3 ) 48 107 45
------------ ------------ ------------ ------------ -----------
Other
comprehensive
income
(loss) (106 ) (78 ) 19 (184 ) (78 )
------------ ------------ ------------ ------------ -----------
Comprehensive
income (loss) $ (194 ) $ (3,006 ) $ (264 ) $ (3,200 ) $ 2,846
------------ ------------ ------------ ------------ -----------
Concurrent Computer Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
December 31, September 30, June 30,
2016 2016 2016
---------------- ---------------- ----------------
(Unaudited) (Unaudited)
ASSETS
Cash and cash
equivalents $ 18,804 $ 19,269 $ 20,268
Trade accounts
receivable, net 7,896 10,453 15,104
Inventories 2,001 2,699 3,495
Prepaid expenses and
other current assets 1,220 1,421 1,061
---------------- ---------------- ----------------
Total current
assets 29,921 33,842 39,928
Property, plant and
equipment, net 2,763 3,057 3,061
Deferred income
taxes, net 820 941 924
Other long-term
assets, net 1,281 1,374 1,323
---------------- ---------------- ----------------
Total assets $ 34,785 $ 39,214 $ 45,236
---------------- ---------------- ----------------
LIABILITIES
Accounts payable and
accrued expenses $ 5,908 $ 7,360 $ 9,191
Deferred revenue 6,605 8,024 8,126
---------------- ---------------- ----------------
Total current
liabilities 12,513 15,384 17,317
Long-term deferred
revenue 708 884 1,168
Pension liability 3,558 3,774 3,720
Other long-term
liabilities 2,001 2,095 2,033
---------------- ---------------- ----------------
Total liabilities 18,780 22,137 24,238
---------------- ---------------- ----------------
STOCKHOLDERS' EQUITY
Common stock 93 92 92
Additional paid-in
capital 211,521 211,213 210,971
Accumulated deficit (194,625 ) (193,350 ) (189,265 )
Treasury stock, at
cost (255 ) (255 ) (255 )
Accumulated other
comprehensive income
(loss) (729 ) (623 ) (545 )
---------------- ---------------- ----------------
Total stockholders'
equity 16,005 17,077 20,998
---------------- ---------------- ----------------
Total liabilities and
stockholders' equity $ 34,785 $ 39,214 $ 45,236
---------------- ---------------- ----------------
Concurrent Computer Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
(In Thousands)
Three Months Ended Six Months Ended
-------------------------------------- ------------------------
December September December
31, 30, 31, December 31,
2016 2016 2015 2016 2015
------------ ------------ ------------ ------------ -----------
GAAP Net
income (loss) $ (88 ) $ (2,928 ) $ (283 ) $ (3,016 ) $ 2,924
Addback
(deduct):
Other
(income)
expense, net (63 ) (143 ) (30 ) (206 ) (156 )
Income tax
provision
(benefit) 103 128 (45 ) 231 (162 )
Depreciation 459 455 427 914 822
Amortization 3 3 3 6 39
Share-based
compensation 309 242 215 551 382
(Gain) loss
on sale of
assets, net - - - - (4,116 )
------------ ------------ ------------ ------------ -----------
Non-GAAP
Adjusted
EBITDA $ 723 $ (2,243 ) $ 287 $ (1,520 ) $ (267 )
------------ ------------ ------------ ------------ -----------
For more information, contact:
Media Relations:
Tom Williams
Phone: (678) 258-4059
Email: Tom.Williams(at)ccur.com
Investor Relations:
EVC Group
Doug Sherk
Phone: (415) 652-9100
Email: dsherk(at)evcgroup.com
Todd Kehrli
Phone: (310) 625-4462
Email: tkehrli(at)evcgroup.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: 08.02.2017 - 14:00 Uhr
Sprache: Deutsch
News-ID 522849
Anzahl Zeichen: 32174
contact information:
Town:
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Kategorie:
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