Concurrent Computer Corporation Announces Fourth Quarter and Fiscal Year 2006 Financial Results

Concurrent (Nasdaq: CCUR), a worldwide leader of on-demand technology and real-time computing technology, today announced its results for the fourth quarter and fiscal year ended June 30, 2006.

Fourth Quarter Results:

In the fourth quarter of fiscal 2006, company-wide revenue aggregated $15.9 million compared to $20.6 million in the third quarter of fiscal 2006, a decrease of 22.9%. Revenue from Concurrent's on-demand product line totaled $8.9 million for the fourth quarter of fiscal 2006 compared to $11.6 million in the third quarter of fiscal 2006, a decrease of 23.4%. Revenue from the company's real-time product line totaled $7.0 million for the fourth quarter of fiscal 2006 compared to $9.0 million in the third quarter of fiscal 2006, a decrease of 22.2%.

The net loss for the fourth quarter of fiscal 2006 was $4.5 million, or a loss of $0.06 per fully diluted share, compared to a net loss of $1.0 million, or a loss of $0.01 per fully diluted share, in the third quarter of fiscal 2006. Consolidated gross margins for the fourth quarter of fiscal 2006 were 45% compared to 50% in the third quarter of fiscal 2006. The gross margins were down primarily due to pricing pressure in the VOD market and a lower revenue base for the quarter.

Fiscal Year 2006 Results:

Company-wide revenue for fiscal year 2006 totaled $71.6 million compared to $78.7 million in fiscal year 2005, a decrease of 9.0%. For fiscal 2006, revenue from the company's on-demand product line totaled $37.6 million compared to $40.0 million in the prior year, a decrease of 5.9% while revenue from the company's real-time product line totaled $34.0 million in fiscal year 2006 compared to $38.7 million in fiscal year 2005, a decrease of 12.1%. For fiscal year 2006, the company reported a net loss of $9.3 million, or a loss of $0.14 per fully diluted share, compared to a net loss of $7.7 million, or a loss of $0.12 per fully diluted share, for fiscal year 2005. Cash at the end of the fiscal year 2006 totaled $14.4 million compared to $19.9 million at the end of fiscal year 2005, a decrease of $5.5 million.

"I am disappointed with our fourth quarter and fiscal year results," said Gary Trimm, Concurrent president and chief executive officer. He continued, "However, I am encouraged by the outlook for our software only sales of our real-time operating system products and the potential for our Everstream products. Additionally, I believe the release of our Media Hawk 4500 software platform will leap-frog the competition, reinforcing our position as a technology leader in the VOD market."

Concurrent Computer Corporation will hold a conference call to discuss these results on Friday, August 11, 2006 at 10:00 a.m. E.D.T., which will be broadcast live over the Internet on the company's web page at www.ccur.com, Investor Relations page.

About Concurrent

Concurrent (NASDAQ: CCUR) is a leading provider of high-performance, real-time Linux software and solutions for commercial and government markets. For 40 years Concurrent's best-of-breed products have enabled a range of time-critical solutions including: modeling and simulation, high speed data acquisition, visual imaging, low latency transaction processing and on-demand television. Concurrent's on-demand television applications are utilized by major service providers in the cable and IPTV industries to deliver video-on-demand (VOD) and, through subsidiary company Everstream, measure the effectiveness of interactive television. Concurrent is a global company with regional offices in North America, Europe, Asia and Australia, and has products actively deployed in more than 24 countries. Concurrent's products and services are recognized for being uniquely flexible, comprehensive, robust and reliable. For more information, please visit www.ccur.com.

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 our future performance, as well as our expectations, beliefs, plans, estimates, or projections relating to the future, are forward-looking statements within the meaning of these laws. Examples of forward looking statements in this press release include, without limitation, our expectation with regard to our software only sales of our real-time operating system products, the potential for Everstream products and our outlook for the release of our Media Hawk 4500 software platform. 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: our ability to keep our customers satisfied; availability of video-on-demand content; delays or cancellations of customer orders; changes in product demand; economic conditions; various inventory risks due to changes in market conditions; 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; rapid technology changes; system errors or failures; reliance on a limited number of suppliers; uncertainties associated with international business activities, including foreign regulations, trade controls, taxes, and currency fluctuations; the highly competitive environment in which we operate and predatory pricing pressures; failure to effectively service the installed base; the entry of new well-capitalized competitors into our markets; the success of new on-demand and real-time products; the availability of Linux software in light of issues raised by SCO Group; capital spending patterns by a limited customer base; the integration of Everstream; the availability of debt or equity financing to support our liquidity needs if cash flow does not improve; and contractual obligations that could impact revenue recognition.

Other important risk factors are discussed in our Form 10-K filed with the Securities and Exchange Commission on Sept. 2, 2005 and may be discussed in subsequent filings with the SEC. The risk factors discussed in such Form 10-K under the heading "Risk Factors" are specifically incorporated by reference in this press release. Our forward-looking statements are based on current expectations and speak only as of the date of such statements. We undertake 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, its logo and Everstream and its logo are registered trademarks of Concurrent Computer Corporation. All other Concurrent product names are trademarks of Concurrent while all other product names are trademarks or registered trademarks of their respective owners. Linux(R) is used pursuant to a sublicense from the Linux Mark Institute.

Note to Editors: For additional company or product information from Concurrent, please contact Concurrent, 4375 River Green Parkway, Suite 100, Duluth, GA 30096. Call toll free in the U.S. and Canada at (877) 978-7363, fax (678) 258-4199. Readers can also access information through the company's Web site at www.ccur.com.

                   Concurrent Computer Corporation
           Condensed Consolidated Statements of Operations
                 (In Thousands Except Per Share Data)



                      Three Months Ended        Twelve Months Ended
                           June 30,                  June 30,
                   ------------------------- -------------------------
                        2006         2005         2006         2005
                    (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
                   ------------ ------------ ------------ ------------

Revenues:
   Product             $10,766      $16,371      $49,592      $57,070
   Service               5,150        5,111       22,020       21,615
                        -------      -------      -------      -------
        Total
         revenues       15,916       21,482       71,612       78,685

Cost of sales:
   Product               6,102        7,759       25,010       27,053
   Service               2,689        2,952       11,233       12,856
                        -------      -------      -------      -------
        Total cost
         of sales        8,791       10,711       36,243       39,909
                        -------      -------      -------      -------

Gross margin             7,125       10,771       35,369       38,776

Operating
 expenses:
   Sales and
    marketing            4,161        4,871       16,576       17,768
   Research and
    development          4,693        4,449       18,783       18,748
   General and
    administrative       2,293        2,573        9,590        9,717
                        -------      -------      -------      -------
        Total
         operating
         expenses       11,147       11,893       44,949       46,233
                        -------      -------      -------      -------

Operating loss          (4,022)      (1,122)      (9,580)      (7,457)

Loss on minority
 investment                  -            -            -         (313)
Other income
 (expense) - net           (61)        (302)         749         (231)
                        -------      -------      -------      -------
Loss before income
 taxes and
 cumulative effect
 of change in
 accounting
 principle              (4,083)      (1,424)      (8,831)      (8,001)

Provision
 (benefit) for
 income taxes              104         (340)         191         (272)
                        -------      -------      -------      -------

Net loss before
 cumulative effect
 of change in
 accounting
 principle              (4,187)      (1,084)      (9,022)      (7,729)

Cumulative effect
 of accounting
 change (net of
 taxes)                   (323)           -         (323)           -
                        -------      -------      -------      -------

Net loss               $(4,510)     $(1,084)     $(9,345)     $(7,729)
                        =======      =======      =======      =======

Basic net loss per
 share                 $ (0.06)     $ (0.02)     $ (0.14)     $ (0.12)
                        =======      =======      =======      =======

Diluted net loss
 per share             $ (0.06)     $ (0.02)     $ (0.14)     $ (0.12)
                        =======      =======      =======      =======

Basic weighted
 average shares
 outstanding            71,503       62,764       68,988       62,737
                        =======      =======      =======      =======

Diluted weighted
 average shares
 outstanding            71,503       62,764       68,988       62,737
                        =======      =======      =======      =======
                   Concurrent Computer Corporation
                 Condensed Consolidated Balance Sheets
                            (In Thousands)


                                       June 30,    March 31,  June 30,
                                         2006        2006      2005
                                      (unaudited) (unaudited)
                                      ----------- ----------- -------

ASSETS
 Cash and cash equivalents             $  14,423  $  14,811 $  19,880
 Trade accounts receivable, net           15,111     19,978    16,577
 Inventories, net                          6,163      5,245     5,071
 Prepaid expenses and other current
  assets                                   1,578      2,026     1,084
                                        ---------  --------- ---------
    Total current assets                  37,275     42,060    42,612

 Property, plant and equipment, net        6,015      6,570     8,319
 Intangible assets, net                    8,787      9,059       823
 Goodwill                                 15,560     15,590    10,744
 Investment in minority owned company          -          -       140
 Other long-term assets, net               1,120      1,106     1,339
                                        ---------  --------- ---------

 Total assets                          $  68,757  $  74,385 $  63,977
                                        =========  ========= =========

 LIABILITIES
 Accounts payable and accrued expenses $  11,581  $  12,591 $  12,055
 Notes payable to bank, current
  portion                                  1,583      1,013       954
 Deferred revenue                          7,277      7,714     6,692
                                        ---------  --------- ---------
    Total current liabilities             20,441     21,318    19,701

 Long-term deferred revenue                1,602      1,944     2,349
 Notes payable to bank, less current
  portion                                      -        815     1,583
 Other long-term liabilities               2,941      2,108     1,991

 STOCKHOLDERS' EQUITY
 Common stock                                716        715       637
 Additional paid-in capital              189,409    189,164   175,769
 Retained earnings (deficit)            (145,800)  (141,290) (136,455)
 Treasury stock                              (13)       (27)        -
 Unearned compensation                         -          -    (1,562)
 Accumulated other comprehensive loss       (539)      (362)      (36)
                                        ---------  --------- ---------
    Total stockholders' equity            43,773     48,200    38,353
                                        ---------  --------- ---------

 Total liabilities and stockholders'
  equity                               $  68,757  $  74,385 $  63,977
                                        =========  ========= =========

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