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EXHIBIT 99.1

 

 

Concurrent Reports Fiscal Year 2014 Fourth Quarter and Fiscal Year Financial Results

ATLANTA — August 27, 2014 — Concurrent (NASDAQ: CCUR), a global leader in video, media data intelligence and real-time Linux^® solutions, today announced financial results for the fourth quarter and fiscal year ended June 30, 2014.

Revenue for the fourth quarter of fiscal 2014 grew by 19.7% year over year to $17.9 million, compared with $14.9 million for the same period in fiscal 2013, and was down 2.3% compared with $18.3 million in the preceding quarter.

Gross margin for the fourth quarter of fiscal 2014 was 60.0%, compared with 56.8% for the same period in fiscal 2013, and 56.1% in the preceding quarter, primarily reflecting the mix of products and customers.  Operating expenses were $8.6 million, compared with $6.0 million for the same period in fiscal 2013, and $9.0 million in the preceding quarter.  Operating expenses in the prior year period were reduced by $2.4 million as a result of a one-time benefit on the sale of non-strategic intellectual property.

The company reported net income of $15.6 million, or $1.71 per diluted share, in the fourth quarter of fiscal 2014, compared with net income of $2.3 million, or $0.26 per diluted share, in the same period in fiscal 2013, and net income of $1.1 million, or $0.12 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 continued progress in the fourth quarter and a solid finish to fiscal 2014," said Dan Mondor, Concurrent's president and CEO. "Our revenue in the fourth quarter was up nearly 20% versus the same period last year and full year revenue grew more than 12% over the prior year.  Not including proceeds related to the sale of intellectual property in fiscal 2013, we nearly doubled our operating income year-over-year, grew our operating cash flow over 37%, and returned $4.4M to our shareholders in the form of cash dividends.  We also expanded our video and real-time customer base, added to our product portfolio, and were awarded five new video patents during the course of the year.  In summary, we made solid progress in fiscal 2014 in both improved financial performance and continued market traction and we are optimistic as we move forward in fiscal 2015."

For fiscal 2014, revenue totaled approximately $71.2 million, compared with $63.4 million for fiscal 2013.  Consolidated gross margin for the year was 56.8%, compared with 58.1% for fiscal 2013.  Total operating expenses were $35.1 million for fiscal 2014, compared with total operating expenses of $31.8 million for fiscal 2013.  Prior year operating expenses included a $2.4 million one-time benefit on the sale of non-strategic intellectual property.  For fiscal 2014, the company posted $18.5 million of net income, equal to $2.04 per diluted share, compared with net income of $4.2 million, equal to $0.48 per diluted share, in fiscal 2013. Fiscal 2014 results included a $13.9 million non-cash gain associated with the reversal of $13.7 million of the company's U.S. tax valuation allowance in the fourth quarter, and the reversal of $0.2 million of the company's U.K. tax valuation allowance earlier in the year.

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The company paid quarterly dividends of $0.12 per share in each of the four quarters of the fiscal year.  At June 30, 2014, Concurrent had cash and cash equivalents of $28.1 million.  The company has no debt.

 

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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.

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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, United States 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 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 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 macro-economic 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 September 17, 2013 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.

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		Three Months Ended June 30,								Twelve Months Ended June 30,
		2014				2013				2014				2013
Revenues:
Product		$	13,242			$	8,637			$	47,893			$	38,414
Service			4,616				6,287				23,278				25,030
Total revenues			17,858				14,924				71,171				63,444
Cost of sales:
Product			4,701				3,935				20,402				16,374
Service			2,450				2,507				10,356				10,233
Total cost of sales			7,151				6,442				30,758				26,607
Gross margin			10,707				8,482				40,413				36,837
Operating expenses:
Sales and marketing			3,760				3,550				14,350				14,358
Research and development			3,021				2,926				13,019				11,599
General and administrative			1,819				1,874				7,744				8,226
Gain on sale of intellectual property, net			-				(2,381	)			-				(2,381	)
Total operating expenses			8,600				5,969				35,113				31,802
Operating income			2,107				2,513				5,300				5,035
Other expense, net			(75	)			(11	)			(203	)			(418	)
Income before income taxes			2,032				2,502				5,097				4,617
Income tax (benefit) provision			(13,568	)			189				(13,408	)			369
Net income		$	15,600			$	2,313			$	18,505			$	4,248
Basic net income per share		$	1.74			$	0.26			$	2.08			$	0.49
Diluted net income per share		$	1.71			$	0.26			$	2.04			$	0.48
Basic weighted average shares outstanding			8,954				8,764				8,911				8,736
Diluted weighted average shares outstanding			9,107				8,966				9,086				8,910
Cash dividends declared per common share		$	0.12			$	0.12			$	0.48			$	0.86

		Three Months Ended
		June 30,				March 31,
		2014				2014
Revenues:
Product		$	13,242			$	12,197
Service			4,616				6,081
Total revenues			17,858				18,278
Cost of sales:
Product			4,701				5,495
Service			2,450				2,535
Total cost of sales			7,151				8,030
Gross margin			10,707				10,248
Operating expenses:
Sales and marketing			3,760				3,595
Research and development			3,021				3,409
General and administrative			1,819				1,984
Total operating expenses			8,600				8,988
Operating income			2,107				1,260
Other expense, net			(75	)			(38	)
Income before income taxes			2,032				1,222
Income tax (benefit) provision			(13,568	)			140
Net income		$	15,600			$	1,082
Basic net income per share		$	1.74			$	0.12
Diluted net income per share		$	1.71			$	0.12
Basic weighted average shares outstanding			8,954				8,944
Diluted weighted average shares outstanding			9,107				9,090
Cash dividends declared per common share		$	0.12			$	0.12

		June 30				March 31,				June 30,
		2014				2014				2013
		(unaudited)				(unaudited)
ASSETS
Cash and cash equivalents		$	28,074			$	22,452			$	27,927
Trade accounts receivable, net			11,355				18,165				10,701
Inventories			3,272				3,609				2,844
Deferred income taxes - current, net			1,458				599				618
Prepaid expenses and other current assets			804				827				1,706
Total current assets			44,963				45,652				43,796
Property, plant and equipment, net			3,081				2,992				3,102
Intangible assets, net			476				512				834
Deferred income taxes, net			13,231				304				137
Other long-term assets			635				617				600
Total assets		$	62,386			$	50,077			$	48,469
LIABILITIES
Accounts payable and accrued expenses		$	7,591			$	9,274			$	7,671
Deferred revenue			7,441				8,590				8,383
Total current liabilities			15,032				17,864				16,054
Long-term deferred revenue			1,400				1,160				1,924
Other long-term liabilities			5,500				4,987				4,706
Total liabilities			21,932				24,011				22,684
STOCKHOLDERS' EQUITY
Common stock			90				90				88
Additional paid-in capital			209,711				209,464				208,677
Accumulated deficit			(169,001	)			(183,494	)			(183,085	)
Treasury stock, at cost			(255	)			(255	)			(255	)
Accumulated other comprehensive income			(91	)			261				360
Total stockholders' equity			40,454				26,066				25,785
Total liabilities and stockholders' equity		$	62,386			$	50,077			$	48,469

 

 

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