Concurrent Reports Fiscal 2010 First Quarter Results

• Press Release
• Source: Concurrent Computer Corporation
• On 9:00 am EDT, Tuesday October 27, 2009

ATLANTA, Oct. 27 /PRNewswire-FirstCall/ -- Concurrent (Nasdaq: CCUR - News), a worldwide leader in video and media data and advertising solutions, today announced results for its fiscal year 2010 first quarter ended September 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081216/CLTU015LOGO)

Company-wide revenue for the first quarter of fiscal year 2010 was approximately $12.8 million, compared to $18.3 million in the first quarter of fiscal 2009. Gross margins for the first quarter of fiscal year 2010 were 60.7%, compared to 56.1% in the prior year's first quarter. Operating expenses for first quarter of fiscal year 2010 were $8.8 million, compared to $9.7 million in the prior year's first quarter. The Company incurred a net loss of $1.0 million, or $0.12 per diluted share, in the first quarter of fiscal year 2010 compared to net income of $93,000, or $0.01 per diluted share, in the same quarter of the previous fiscal year.

"Our video-on-demand business continued to be impacted by reduced spending by our top two North American MSO customers which led to lower revenues in the first quarter. The impact on revenue was due to delays in implementing new projects in combination with utilization of existing VOD capacity, not cancellation of orders or loss of market share. In fact the video-on-demand market is experiencing double digit growth in consumer viewing," commented Dan Mondor, Concurrent President and Chief Executive Officer. "We believe our first half of fiscal 2010 will be the bottom of this spending slow-down. The video market continues to migrate to an on-demand viewing experience across all three screens and we are committed to provide new video and media data and advertising solutions to our current and prospective customers."

Conference Call Information

Concurrent will hold a conference call to discuss first quarter results today, Tuesday, October 27, 2009, at 10:00 a.m. ET, which will be broadcast live at www.ccur.com, under the Investor Relations page. The call can be accessed live by dialing 1-800-841-9385 and entering pass code 091027. A webcast of the live call as well as a replay will also be available at www.ccur.com.

About Concurrent

Concurrent (Nasdaq: CCUR - News) is a global leader in innovative solutions that enable the seamless delivery, management and monetization of video on any screen. Built on a solid foundation of video firsts and Emmy® Award winning technology, Concurrent's screen-independent video delivery solutions create a truly holistic, 360-degree view of the consumer video experience. Concurrent provides customers in the cable, telco, wireless, Web, advertising and content development industries with new revenue opportunities by harnessing the full potential of video. Concurrent's video solutions are built upon a rich heritage of high-performance, real-time technology which also powers solutions for the defense, aerospace, automotive and financial industries. Concurrent is a global company with offices in North America, Europe and Asia. For more information, please visit www.ccur.com.

    For more information, contact:
    Concurrent Investor Relations
    Kirk Somers
    678.258.4000
    investor.relations@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. 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; delays or cancellations of customer orders; changes in product demand; economic conditions; our ability to satisfy the financial covenants in our credit agreement; 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 impact of competition on the pricing of our products; failure to effectively service the installed base; the entry of new well-capitalized competitors into our markets; the success of new video 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 and in light of the current negative macro-economic environment; privacy issues regarding data collection; and the success of our relationship with Alcatel-Lucent and other partners.

Other important risk factors are discussed in our Form 10-K filed with the Securities and Exchange Commission (the SEC) on August 28, 2009, and may be discussed in subsequent filings with the SEC. The risk factors discussed in the 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 and its logo are registered trademarks of Concurrent. All other Concurrent product names are trademarks of Concurrent while all other product names are trademarks or registered trademarks of their respective owners. Linux® is used pursuant to a sublicense from the Linux Mark Institute.

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

                                                          Three Months
                                                       Ended September 30,
                                                       ------------------
                                                          2009       2008
                                                          ----       ----

    Revenues:
      Product                                           $6,682    $12,049
      Service                                            6,068      6,286
                                                         -----     -----
          Total revenues                                12,750     18,335

    Cost of sales:
      Product                                            2,890      5,635
      Service                                            2,121      2,418
                                                         -----      -----
          Total cost of sales                            5,011      8,053
                                                         -----      -----

    Gross margin                                         7,739     10,282

    Operating expenses:
      Sales and marketing                                3,805      3,568
      Research and development                           3,100      3,839
      General and administrative                         1,917      2,323
          Total operating expenses                       8,822      9,730
                                                         -----      -----

    Operating (loss) income                            (1,083)        552

    Other income (loss) - net                               98      (209)
                                                            --       ----
    (Loss) income before income taxes                     (985)       343

    Income tax provision                                    30        250
                                                            --        ---

    Net (loss) income                                 $(1,015)        $93
                                                       =======        ===

    Basic net (loss) income per share                  $(0.12)      $0.01
                                                        ======      =====

    Diluted net (loss) income per share                $(0.12)      $0.01
                                                        ======      =====

    Basic weighted average shares outstanding            8,286      8,292
                                                         =====      =====

    Diluted weighted average shares outstanding          8,286      8,308
                                                         =====      =====



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

                                              Three Months Ended
                                             ---------------------
                                            September 30,   June 30,
                                                 2009         2009
                                                 ----         ----

    Revenues:
      Product                                  $6,682       $8,851
      Service                                   6,068        7,091
                                                -----        -----
          Total revenues                       12,750       15,942

    Cost of sales:
      Product                                   2,890        4,156
      Service                                   2,121        2,354
                                                -----        -----
          Total cost of sales                   5,011        6,510
                                                -----        -----

    Gross margin                                7,739        9,432

    Operating expenses:
      Sales and marketing                       3,805        3,792
      Research and development                  3,100        3,104
      General and administrative                1,917        2,194
          Total operating expenses              8,822        9,090
                                                -----        -----

    Operating (loss) income                    (1,083)         342

    Other income - net                             98          228
                                                   --          ---
    (Loss) income before income taxes            (985)         570

    Provision for income taxes                     30          325
                                                   --          ---

    Net (loss) income                         $(1,015)        $245
                                              =======         ====

    Basic net (loss) income per share          $(0.12)       $0.03
                                               ======        =====

    Diluted net (loss) income per
     share                                     $(0.12)       $0.03
                                               ======        =====

    Basic weighted average shares
     outstanding                                8,286        8,282
                                                =====        =====

    Diluted weighted average shares
     outstanding                                8,286        8,335
                                                =====        =====



                            Concurrent Computer Corporation
                         Condensed Consolidated Balance Sheets
                                    (In Thousands)

                                                      September 30,  June 30,
                                                            2009       2009
                                                       (unaudited)
                                                      -----------

      ASSETS
         Cash and cash equivalents                          $27,184   $29,110
         Trade accounts receivable, net                      10,997    14,546
         Inventories                                          4,134     3,060
         Prepaid expenses and other current assets            1,887     1,444
                                                              -----     -----
            Total current assets                             44,202    48,160

         Property, plant and equipment, net                   4,560     3,860
         Intangible assets, net                               4,151     4,423
         Other long-term assets                                 748       692
                                                                ---       ---
       Total assets                                         $53,661   $57,135
                                                            =======   =======

       LIABILITIES
         Accounts payable and accrued expenses               $8,969   $10,582
         Deferred revenue                                     6,679     7,870
                                                              -----     -----
            Total current liabilities                        15,648    18,452

         Long-term deferred revenue                             836     1,041
         Revolving bank line of credit - non-current            949       949
         Other long-term liabilities                          3,539     3,165
                                                              -----     -----
             Total liabilities                               20,972    23,607

       STOCKHOLDERS' EQUITY
         Common stock                                            83        83
         Additional paid-in capital                         205,232   205,222
         Accumulated deficit                               (173,274) (172,259)
         Treasury stock, at cost                               (255)     (255)
         Accumulated other comprehensive income                 903       737
                                                                ---       ---
            Total stockholders' equity                       32,689    33,528
                                                             ------    ------
       Total liabilities and stockholders' equity           $53,661   $57,135
                                                            =======   =======

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