Concurrent Reports 16% Sequential Increase in Product Revenue for the Fourth Quarter of Fiscal 2017
(Thomson Reuters ONE) -
Conference Call Today at 5:00 P.M. ET
ATLANTA, Sept. 07, 2017 (GLOBE NEWSWIRE) -- Concurrent (NASDAQ:CCUR), a global
leader in storage, protection, transformation, and delivery of visual media
assets, today announced financial results for its fourth quarter and fiscal year
ended June 30, 2017.
"During fiscal 2017, we transformed Concurrent into a focused leader in video
media storage and delivery creating a solid foundation for growth," said Derek
Elder, President and CEO. "According to a recent industry report, by 2020 video
will account for 79% of all global internet traffic, creating a need for a
solution to manage the delivery and storage demands created by this explosion of
video traffic on the Internet. With our Content Delivery and Aquari(TM) storage
solutions, we are uniquely positioned to capitalize on this large and growing
market opportunity.
"We are successfully executing on our growth initiatives and have made
significant progress with new technology and channel partnerships, expanded
customer relationships and new customer design wins. As we move into the new
fiscal year, our continued top priority is to maintain a solid foundation for
steady, profitable growth. For fiscal 2018, we expect to generate full year
revenue growth of at least 10% year over year. Additionally, we expect to
generate breakeven to positive Adjusted EBITDA for the year. We have a
significantly strengthened balance sheet, and our Board of Directors continues
to evaluate strategies to maximize shareholder returns," concluded Mr. Elder.
Financial Results
With the sale of Concurrent's Real-Time business during the fourth quarter of
fiscal 2017, the company now reports results from continuing operations, which
excludes financial results from the Real-Time business. Financial results from
the company's former Real-Time business are reported within discontinued
operations. The following financial results for the current and prior periods
are from Concurrent's continuing operations.
Fiscal Fourth Quarter Financial Results:
Total revenue for the fourth quarter was $7.8 million, compared to $7.4 million
in the third quarter of fiscal 2017 and $8.8 million in the fourth quarter of
fiscal 2016.
Total gross margin as a percentage of revenue was 56.2%, compared to 54.6% in
the third quarter of fiscal 2017 and 65.2% for the fourth quarter of fiscal
2016.
Loss from continuing operations was $(1.0) million, or $(0.10) per share,
compared to loss from continuing operations of $(3.2) million, or $(0.34) per
share, in the third quarter of fiscal 2017 and a loss from continuing operations
of $(9.5) million, or $(1.03) per share, in the fourth quarter of fiscal 2016.
Adjusted EBITDA loss from continuing operations was $(0.9) million, which
included $1.0 million in severance expenses in connection with reducing our
operating expenses subsequent to the sale of the Real-Time business, compared to
an Adjusted EBITDA loss from continuing operations of $(2.9) million in the
third quarter of fiscal 2017, which included $1.1 million in transaction-related
expenses and $0.4 million of severance expenses, and an Adjusted EBITDA loss
from continuing operations of $(0.7) million in the fourth quarter of fiscal
2016. See "Non-GAAP Financial Measurements" below for more information on the
calculation of Adjusted EBITDA from continuing operations, including a
reconciliation of Adjusted EBITDA to loss from continuing operations.
Business Highlights:
* Added nine new Aquari customers in fiscal 2017, for a total of 18 at fiscal
year end.
* Three Aquari customers expanded usage in fiscal 2017.
* Added seven new Content Delivery customers in fiscal 2017, for a total of
27 at fiscal year end.
* Nine Content Delivery customers expanded usage during fiscal 2017.
* Signed multiple new strategic partnership agreements during the fiscal year,
bringing the company's total number of channel partners to 19. These new
partnerships include:
-- An OEM agreement with Hewlett Packard Enterprise (HPE), that expands
Concurrent's reach with telecommunications customer that prefer HPE hardware
-- Technology alliances with Moonwalk Universal and Endavo Media that
expand Concurrent's reach into new use cases of video archiving and over-
the-top (OTT) video platform offerings respectively
-- Channel partnership with Rincon Technology that increases the sales
breadth of Concurrent offerings to Rincon's 1000+ customers.
Fiscal 2017 Financial Results
Total revenue for fiscal 2017 was $27.6 million, compared to $32.0 million in
fiscal 2016.
Gross margin was 55.0%, compared to 58.7% in fiscal 2016.
Loss from continuing operations was $(11.1) million, or $(1.20) loss per diluted
share, compared to a loss from continuing operations of $(12.7) million, or
$(1.39) loss per diluted share, in fiscal 2016.
Adjusted EBITDA loss from continuing operations was ($10.0) million, which
included $1.6 million in severance expenses, compared to an Adjusted EBITDA loss
from continuing operations of ($7.2) million in fiscal 2016, which included $0.2
million of severance expenses. See "Non-GAAP Financial Measurements" below for
more information on the calculation of Adjusted EBITDA loss from continuing
operations, including a reconciliation of Adjusted EBITDA loss from continuing
operations to loss from continuing operations, which we believe to be the most
directly comparable financial measure presented in accordance with GAAP.
Cash, cash equivalents and short-term investments were $42.8 million and working
capital was $45.2 million as of June 30, 2017. The company continued to pay
quarterly dividends of $0.12 per share in each of the four quarters of fiscal
2017. The company has no debt.
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 loss from
continuing operations, 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 loss from
continuing operations, 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, Thursday, September 7 at 5:00 p.m.
ET to review its fiscal 2017 fourth quarter and full year financial results. 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) 230-1059 (U.S.) or (612) 234-9959 (International) and entering
passcode 170907. A webcast replay will also be available at www.concurrent.com.
About Concurrent
Concurrent (NASDAQ:CCUR) is a global company that develops software solutions
focused on storing, protecting, transforming, and delivering visual media
assets. We enable the world's leading innovators in visual media to entertain,
inform, and communicate, by providing the tools to help them unlock their
creativity and share it with the world. We accomplish this by developing open
software solutions that make the world's visual media available online, when and
where it is needed around the world. Concurrent has offices located in North
America, Europe and Asia. Visit www.concurrent.com for further information and
follow us on Twitter: www.twitter.com/Concurrent_CCUR and LinkedIn
at www.linkedin.com/company/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;; 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 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;
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.
All Concurrent product names and its logo 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 June 30, Year Ended June 30,
------------------------------- ------------------------------
2017 2016 2017 2016
--------------- --------------- --------------- --------------
Revenues:
Product $ 5,248 $ 6,034 $ 17,141 $ 22,044
Service 2,598 2,783 10,506 9,963
--------------- --------------- --------------- --------------
Total
revenues 7,846 8,817 27,647 32,007
Cost of sales:
Product 2,234 1,858 7,632 8,544
Service 1,204 1,208 4,820 4,660
--------------- --------------- --------------- --------------
Total cost
of sales 3,438 3,066 12,452 13,204
--------------- --------------- --------------- --------------
Gross margin 4,408 5,751 15,195 18,803
Operating
expenses:
Sales and
marketing 2,766 2,645 11,130 9,950
Research and
development 2,096 2,292 8,233 10,549
General and
administrative 1,004 2,065 8,068 7,556
Gain (loss) on
sale of
assets, net - 16 - (4,100 )
--------------- --------------- --------------- --------------
Total
operating
expenses 5,866 7,018 27,431 23,955
--------------- --------------- --------------- --------------
Operating loss (1,458 ) (1,267 ) (12,236 ) (5,152 )
Other income
(expense), net (157 ) 183 88 446
--------------- --------------- --------------- --------------
Loss before
income taxes (1,615 ) (1,084 ) (12,148 ) (4,706 )
Provision
(benefit) for
income taxes (661 ) 8,379 (1,037 ) 8,031
--------------- --------------- --------------- --------------
Loss from
Continuing
Operations (954 ) (9,463 ) (11,111 ) (12,737 )
--------------- --------------- --------------- --------------
Income (loss)
from
Discontinued
Operations, net
of income taxes 34,009 (3,395 ) 39,492 1,624
--------------- --------------- --------------- --------------
Net income
(loss) $ 33,055 $ (12,858 ) $ 28,381 $ (11,113 )
--------------- --------------- --------------- --------------
Basic and
diluted earnings
(loss) per
share:
Continuing
operations $ (0.10 ) $ (1.03 ) $ (1.20 ) $ (1.39 )
Discontinued
operations 3.65 (0.37 ) 4.27 0.18
--------------- --------------- --------------- --------------
Net income
(loss) $ 3.55 $ (1.40 ) $ 3.07 $ (1.21 )
--------------- --------------- --------------- --------------
Basic and
diluted weighted
average shares
outstanding 9,313,977 9,174,852 9,252,275 9,154,437
--------------- --------------- --------------- --------------
Cash dividends
declared per
common share $ 0.12 $ 0.12 $ 0.48 $ 0.48
--------------- --------------- --------------- --------------
Concurrent Computer Corporation
Condensed Consolidated Statements of Operations (Unaudited)
(In Thousands Except Share and Per Share Data)
Three Months Ended
----------------------------------
June 30, March 31,
2017 2017
----------------- ----------------
Revenues:
Product $ 5,248 $ 4,537
Service 2,598 2,908
----------------- ----------------
Total revenues 7,846 7,445
Cost of sales:
Product 2,234 2,226
Service 1,204 1,152
----------------- ----------------
Total cost of sales 3,438 3,378
----------------- ----------------
Gross margin 4,408 4,067
Operating expenses:
Sales and marketing 2,766 2,588
Research and development 2,096 2,033
General and administrative 1,004 2,792
----------------- ----------------
Total operating expenses 5,866 7,413
----------------- ----------------
Operating loss (1,458 ) (3,346 )
Other income (expense), net (157 ) 21
----------------- ----------------
Loss before income taxes (1,615 ) (3,325 )
Benefit for income taxes (661 ) (143 )
----------------- ----------------
Loss from Continuing Operations (954 ) (3,182 )
----------------- ----------------
Income from Discontinued Operations, net
of income taxes 34,009 1,524
----------------- ----------------
Net income (loss) $ 33,055 $ (1,658 )
----------------- ----------------
Basic and diluted earnings (loss) per
share:
Continuing operations $ (0.10 ) $ (0.34 )
Discontinued operations 3.65 0.17
----------------- ----------------
Net income (loss) $ 3.55 $ (0.18 )
----------------- ----------------
Basic and diluted weighted average shares
outstanding 9,313,977 9,261,862
----------------- ----------------
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 Year Ended
--------------------------------------- --------------------------
March
June 30, 31, June 30, June 30,
2017 2017 2016 2017 2016
------------ ------------ ------------- ------------ -------------
Net income (loss) $ 33,055 $ (1,658 ) $ (12,858 ) $ 28,381 $ (11,113 )
------------ ------------ ------------- ------------ -------------
Other comprehensive
income (loss):
Foreign
currency
translation
adjustment (225 ) 38 (29 ) (478 ) (231 )
Pension and
post-retirement
benefits, net
of tax 204 (19 ) (433 ) 292 (423 )
------------ ------------ ------------- ------------ -------------
Other
comprehensive
income (loss) (21 ) 19 (462 ) (186 ) (654 )
------------ ------------ ------------- ------------ -------------
Comprehensive
income (loss) $ 33,034 $ (1,639 ) $ (13,320 ) $ 28,195 $ (11,767 )
------------ ------------ ------------- ------------ -------------
Concurrent Computer Corporation
Condensed Consolidated Balance Sheets (Unaudited)
(In Thousands)
June 30, June 30,
2017 2016
-------------- -------------
ASSETS
Cash and cash equivalents $ 35,893 $ 18,798
Short-term investments 6,870 -
Trade accounts receivable, net 6,930 8,862
Inventories 1,865 2,342
Escrow receivable for sale of Real-Time
business 2,000 -
Prepaid expenses and other current assets 1,366 711
Current assets of discontinued operations - 9,215
-------------- -------------
Total current assets 54,924 39,928
Property, plant and equipment, net 1,726 2,578
Deferred income taxes, net 15 146
Other long-term assets, net 1,142 668
Noncurrent assets of discontinued operations - 1,916
-------------- -------------
Total assets $ 57,807 $ 45,236
-------------- -------------
LIABILITIES
Accounts payable and accrued expenses $ 8,164 $ 6,315
Deferred revenue 1,454 4,017
Current liabilities of discontinued operations - 6,985
-------------- -------------
Total current liabilities 9,618 17,317
Long-term deferred revenue 66 198
Pension liability 3,582 3,720
Other long-term liabilities 1,072 1,056
Noncurrent liabilities of discontinued
operations - 1,947
-------------- -------------
Total liabilities 14,338 24,238
-------------- -------------
STOCKHOLDERS' EQUITY
Common stock 94 92
Additional paid-in capital 212,018 210,971
Accumulated deficit (165,498 ) (189,265 )
Treasury stock, at cost (255 ) (255 )
Accumulated other comprehensive income (loss) (2,890 ) (545 )
-------------- -------------
Total stockholders' equity 43,469 20,998
-------------- -------------
Total liabilities and stockholders' equity $ 57,807 $ 45,236
-------------- -------------
Concurrent Computer Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
(In Thousands)
Three Months Ended Year Ended
------------------------------------ --------------------------
June March
30, 31, June 30, June 30,
2017 2017 2016 2017 2016
---------- ------------ ------------ ------------- ------------
GAAP Loss
from
Continuing
Operations $ (954 ) $ (3,182 ) $ (9,463 ) $ (11,111 ) $ (12,737 )
Addback
(deduct):
Other
(income)
expense, net 157 (21 ) (183 ) (88 ) (446 )
Provision
(benefit) for
income taxes (661 ) (143 ) 8,379 (1,037 ) 8,031
Depreciation 325 339 344 1,409 1,328
Amortization 3 3 3 12 45
Share-based
compensation 233 122 205 857 708
(Gain) loss
on sale of
assets, net - - 16 - (4,100 )
---------- ------------ ------------ ------------- ------------
Non-GAAP
Adjusted
EBITDA from
Continuing
Operations $ (897 ) $ (2,882 ) $ (699 ) $ (9,958 ) $ (7,171 )
---------- ------------ ------------ ------------- ------------
For more information, contact:
Media Relations:
Sandra Dover
(678) 258-4112
Sandra.dover(at)concurrent.com
Investor Relations:
Doug Sherk
(415) 652-9100
dsherk(at)evcgroup.com
Todd Kehrli
(310) 625-4462
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: 07.09.2017 - 22:01 Uhr
Sprache: Deutsch
News-ID 559232
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