Concurrent Reports Fiscal 2017 Third Quarter Financial Results
(Thomson Reuters ONE) -
Conference Call Today at 5:00 P.M. ET
ATLANTA, May 15, 2017 (GLOBE NEWSWIRE) -- Concurrent (NASDAQ:CCUR), a global
leader in storage, protection, transformation, and delivery of visual assets,
today announced financial results for its fiscal third quarter of 2017 ended
March 31, 2017.
Recent Business Highlights:
* Introduced next-generation versions of its video streaming and Aquari(TM)
software-defined storage solutions that add new capabilities and improved
scalability and performance.
* Signed nine new or expanded video media delivery and storage customers in
the calendar year to date, including Midco and Blue Ridge Communications.
* Sold Real-Time business segment for gross proceeds of $35 million to Battery
Ventures.
"We continued building momentum during the quarter as we expanded our Aquari
customer base by four to a total of 17 active deployments," said Derek Elder,
President and CEO. "The business model of our Aquari product line provides a
product and service revenue stream for the life of the installation, which makes
new customer acquisition a key metric for future revenue growth. We also added
three new CDN customers in the quarter, which is a testament to the competitive
position of our portfolio."
"We've also made great progress defining a more focused operating model, which
culminated today with the sale of our Real-Time segment. We have a blue-chip
list of cable, telco, and media companies that have a strong need for the
solutions that Concurrent provides and our new focus will allow us to
successfully address this opportunity."
Fiscal Third Quarter Financial Results:
Total revenue was $15.0 million, compared to $15.5 million in both the second
quarter of fiscal 2017 and the third quarter of fiscal 2016. Content delivery
segment revenue (which includes Aquari storage revenue) was $7.5 million,
compared to $7.2 million in the second quarter of fiscal 2017 and $8.2 million
in the third quarter of fiscal 2016. Real-time segment revenue was $7.5
million, compared to $8.3 million in the second quarter of fiscal 2017 and $7.3
million in the third quarter of fiscal 2016.
Total gross margin as a percentage of revenue was 56.8%, compared to 60.8% in
the second quarter of fiscal 2017 and 51.5% for the third quarter of fiscal
2016.
Net loss was $(1.7) million, or $(0.18) per share, compared to net loss of
$(0.1) million, or $(0.01) per share, in the second quarter of fiscal 2017 and a
net loss of $(1.2) million, or $(0.13) per share, in the third quarter of fiscal
2016. The company did generate cash from operations of $0.6 million during the
third quarter.
Adjusted EBITDA loss was $(1.0) million, which included $1.1 million in
transaction-related expenses in connection with the sale of the Real-Time
segment that was announced today. The Adjusted EBITDA loss compares to $0.7
million in the second quarter of fiscal 2017 and an Adjusted EBITDA loss of
$(1.3) million in the third 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.
Cash and cash equivalents and short-term investments were $18.2 million as of
March 31, 2017. Concurrent has no debt.
The company continued to pay a quarterly dividend of $0.12 per share in the
third quarter of fiscal 2017.
Guidance
Due to the sale of the Real-Time business segment, the company has withdrawn its
previously provided fiscal 2017 annual guidance and plans to provide fiscal
2018 full year guidance when it reports its fiscal fourth quarter and annual
fiscal 2017 results in early September 2017.
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, Monday, May 15 at 5:00 p.m. ET to
review its third 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 800-230-1085 (U.S.) or 612-
288-0337 (International) and entering passcode 170515. 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.
Safe Harbor
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; the impact of the U.K. exiting the European Union; 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; our ability to obtain
regulatory approval for the sale of the European operations of our Real-Time
business within the timeframe anticipated or at all; our ability to reinvest the
net proceeds from the sale of our Real-Time segment in a manner that we believe
will generate an adequate return to our remaining 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 March
31, Nine Months Ended March 31,
------------------------------- -------------------------------
2017 2016 2017 2016
--------------- --------------- --------------- ---------------
Revenues:
Product $ 9,430 $ 10,772 $ 27,535 $ 29,240
Service 5,551 4,684 16,109 14,466
--------------- --------------- --------------- ---------------
Total
revenues 14,981 15,456 43,644 43,706
Cost of sales:
Product 4,405 5,676 12,274 12,670
Service 2,072 1,821 6,234 5,844
--------------- --------------- --------------- ---------------
Total cost
of sales 6,477 7,497 18,508 18,514
--------------- --------------- --------------- ---------------
Gross margin 8,504 7,959 25,136 25,192
Operating
expenses:
Sales and
marketing 4,024 4,252 12,867 11,443
Research and
development 3,057 3,467 9,180 11,066
General and
administrative 2,996 2,150 7,653 6,103
(Gain) loss on
sale of
product line,
net - - - (4,116 )
--------------- --------------- --------------- ---------------
Total
operating
expenses 10,077 9,869 29,700 24,496
--------------- --------------- --------------- ---------------
Operating income
(loss) (1,573 ) (1,910 ) (4,564 ) 696
Other income
(expense), net 57 292 263 448
--------------- --------------- --------------- ---------------
Income (loss)
before income
taxes (1,516 ) (1,618 ) (4,301 ) 1,144
Income tax
provision
(benefit) 142 (442 ) 373 (604 )
--------------- --------------- --------------- ---------------
Net income
(loss) $ (1,658 ) $ (1,176 ) $ (4,674 ) $ 1,748
--------------- --------------- --------------- ---------------
Basic net income
(loss) per share $ (0.18 ) $ (0.13 ) $ (0.51 ) $ 0.19
--------------- --------------- --------------- ---------------
Diluted net
income (loss)
per share $ (0.18 ) $ (0.13 ) $ (0.51 ) $ 0.19
--------------- --------------- --------------- ---------------
Basic weighted
average shares
outstanding 9,261,862 9,168,978 9,231,932 9,147,681
--------------- --------------- --------------- ---------------
Diluted weighted
average shares
outstanding 9,261,862 9,168,978 9,231,932 9,227,966
--------------- --------------- --------------- ---------------
Cash dividends
declared per
common share $ 0.12 $ 0.12 $ 0.36 $ 0.36
--------------- --------------- --------------- ---------------
Concurrent Computer Corporation
Condensed Consolidated Statements of Operations (Unaudited)
(In Thousands Except Share and Per Share Data)
Three Months Ended
-----------------------------------
March 31, December 31,
2017 2016
----------------- -----------------
Revenues:
Product $ 9,430 $ 10,246
Service 5,551 5,301
----------------- -----------------
Total revenues 14,981 15,547
Cost of sales:
Product 4,405 4,079
Service 2,072 2,019
----------------- -----------------
Total cost of sales 6,477 6,098
----------------- -----------------
Gross margin 8,504 9,449
Operating expenses:
Sales and marketing 4,024 4,368
Research and development 3,057 2,816
General and administrative 2,996 2,313
----------------- -----------------
Total operating expenses 10,077 9,497
----------------- -----------------
Operating income (loss) (1,573 ) (48 )
Other income (expense), net 57 63
----------------- -----------------
Income (loss) before income taxes (1,516 ) 15
Income tax provision 142 103
----------------- -----------------
Net income (loss) $ (1,658 ) $ (88 )
----------------- -----------------
Basic net income (loss) per share $ (0.18 ) $ (0.01 )
----------------- -----------------
Diluted net income (loss) per share $ (0.18 ) $ (0.01 )
----------------- -----------------
Basic weighted average shares
outstanding 9,261,862 9,244,590
----------------- -----------------
Diluted weighted average shares
outstanding 9,261,862 9,244,590
----------------- -----------------
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 Nine Months Ended
-------------------------------------- ------------------------
March December March
31, 31, 31, March 31,
2017 2016 2016 2017 2016
------------ ------------ ------------ ------------ -----------
Net income (loss) $ (1,658 ) $ (88 ) $ (1,176 ) $ (4,674 ) $ 1,748
------------ ------------ ------------ ------------ -----------
Other comprehensive
income (loss):
Foreign
currency
translation
adjustment 38 (216 ) (79 ) (253 ) (202 )
Pension and
post-
retirement
benefits, net
of tax (19 ) 110 (35 ) 88 10
------------ ------------ ------------ ------------ -----------
Other
comprehensive
income
(loss) 19 (106 ) (114 ) (165 ) (192 )
------------ ------------ ------------ ------------ -----------
Comprehensive
income (loss) $ (1,639 ) $ (194 ) $ (1,290 ) $ (4,839 ) $ 1,556
------------ ------------ ------------ ------------ -----------
Concurrent Computer Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
March 31, December 31, June 30,
2017 2016 2016
---------------- ---------------- ---------------
(Unaudited) (Unaudited)
ASSETS
Cash and cash
equivalents $ 15,750 $ 18,804 $ 20,268
Short-term investments 2,423 - -
Trade accounts
receivable, net 8,944 7,896 15,104
Inventories 2,939 2,001 3,495
Prepaid expenses and
other current assets 1,855 1,220 1,061
---------------- ---------------- ---------------
Total current assets 31,911 29,921 39,928
Property, plant and
equipment, net 2,319 2,763 3,061
Deferred income taxes,
net 761 820 924
Other long-term assets,
net 1,356 1,281 1,323
---------------- ---------------- ---------------
Total assets $ 36,347 $ 34,785 $ 45,236
---------------- ---------------- ---------------
LIABILITIES
Accounts payable and
accrued expenses $ 9,925 $ 5,908 $ 9,191
Deferred revenue 6,694 6,605 8,126
---------------- ---------------- ---------------
Total current
liabilities 16,619 12,513 17,317
Long-term deferred
revenue 643 708 1,168
Pension liability 3,624 3,558 3,720
Other long-term
liabilities 2,092 2,001 2,033
---------------- ---------------- ---------------
Total liabilities 22,978 18,780 24,238
---------------- ---------------- ---------------
STOCKHOLDERS' EQUITY
Common stock 93 93 92
Additional paid-in
capital 211,666 211,521 210,971
Accumulated deficit (197,425 ) (194,625 ) (189,265 )
Treasury stock, at cost (255 ) (255 ) (255 )
Accumulated other
comprehensive income
(loss) (710 ) (729 ) (545 )
---------------- ---------------- ---------------
Total stockholders'
equity 13,369 16,005 20,998
---------------- ---------------- ---------------
Total liabilities and
stockholders' equity $ 36,347 $ 34,785 $ 45,236
---------------- ---------------- ---------------
Concurrent Computer Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
(In Thousands)
Three Months Ended Nine Months Ended
-------------------------------------- ------------------------
March December March
31, 31, 31, March 31,
2017 2016 2016 2017 2016
------------ ------------ ------------ ------------ -----------
GAAP Net
income (loss) $ (1,658 ) $ (88 ) $ (1,176 ) $ (4,674 ) $ 1,748
Addback
(deduct):
Other
(income)
expense, net (57 ) (63 ) (292 ) (263 ) (448 )
Income tax
provision
(benefit) 142 103 (442 ) 373 (604 )
Depreciation 418 459 406 1,332 1,228
Amortization 3 3 3 9 42
Share-based
compensation 145 309 179 696 561
(Gain) loss
on sale of
assets, net - - - - (4,116 )
------------ ------------ ------------ ------------ -----------
Non-GAAP
Adjusted
EBITDA $ (1,007 ) $ 723 $ (1,322 ) $ (2,527 ) $ (1,589 )
------------ ------------ ------------ ------------ -----------
For more information, contact:
Media Relations:
Sandra Dover
Phone: (678) 258-4112
Email: sandra.dover(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: 15.05.2017 - 22:01 Uhr
Sprache: Deutsch
News-ID 543476
Anzahl Zeichen: 30596
contact information:
Town:
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Kategorie:
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