Concurrent Computer Corporation (CCUR)
F2Q13 Earnings Call
January 29, 2013 4:30 pm ET
Emory O. Berry – Chief Financial Officer & Executive Vice President Operations
Dan Mondor – President, Chief Executive Officer & Director
Christopher Ferris – Noble Financial
Previous Statements by CCUR
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Emory O. Berry
Welcome to Concurrent’s second quarter fiscal 2013 earnings conference call for the period ended December 31, 2012. Joining me on today’s call is Dan Mondor Concurrent’s President and Chief Executive Officer. Before we begin let me remind you that this conference call may include forward-looking statements such as believes, expects, estimates, anticipates, and other similar expressions.
These statements are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Accordingly, the cautionary statements made in Concurrent’s 10K and 10Q filings with the Securities & Exchange Commission are incorporated here and by reference. The company’s actual results could differ materially from the forward-looking information presented on this call.
The content of this webcast contains time sensitive information that is accurate only as of the date of the live broadcast, January 29, 2013. Any redistribution, retransmission, or rebroadcast of this call in any form without the express written consent of Concurrent is prohibited. I caution you that any forward-looking statements made by the company are no guarantees of future performance and that a variety of factors could cause our company’s actual results and experience to differ materially from the anticipated or projected results which the company may discuss on this conference call.
You should all have a copy of the earnings release for Concurrent’s fiscal second quarter. If you have not received a copy please contact Leah Connell at 678-258-4108 and she will be happy to provide you with a copy. Alternatively, you may visit the company’s website at www.CCUR.com and find a copy in the investor’s section of the website under the about tab. Additionally, if you would like to arrange a call with management at any time to discuss the business I invite you to contact Leah.
Dan Mondor will now provide a brief update of the business.
The highlights for the quarter is both top line and bottom line growth. We continued to make progress in our business reporting a fourth consecutive quarter of profitability. Sustained focus on improving our operating models through cost reductions and process improvements has resulted in increased value for our shareholders. With the implementation of a new sales organization and improved alignment in the R&D organization, I believe we have strengthened our ability to deliver new products to market and are serving our customers more effectively.
We continue to invest in the development of our unified CDN eFactor and media data intelligent solutions in an effort to address the rapidly changing video landscape. There’s a growing focus on video as operators launch wired line and wireless broadband networks with higher bandwidth and faster speeds. With growth in the number of video capable devices in the marketplace including smartphones, tables computers and smart TVs consumers continue to change their consumption behavior leading to more video viewing more often and in more places.
This represents an opportunity for our customers that is cable, teleco, Internet and CDN operators to generate revenue by streaming premium video content to a growing population of video capable devices over multiple networks. We are helping our customers by reducing the complexity associated with launching new multiscreen video services. Our unified approach enables a single software solution to simultaneously support new IP video applications and classic applications such as VOD.
This makes it easier for operators to reach new customers, support existing customers and quickly adapt to the ongoing changes in content consumption. Whether for streaming video, transforming content on the fly, or analyzing [croft] services media data, our solutions are designed to provide customers with the tools that they need to succeed in the multiscreen video marketplace.
I’ll discuss additional details regarding highlights in the quarter following Emory’s review of the results.
Emory O. Berry
We made progress in the fiscal second quarter with revenue results of approximately $16.6 million compared with revenue of $15 million in the first quarter and a slight increase as compared to $16.4 million in the fiscal 2012 second quarter.
Turning to our product line revenue details, Current’s video revenue which includes media data intelligence was $9.7 million representing approximately 59% of fiscal second quarter revenue compared with $10.2 million or 62% of revenue in the comparable period of fiscal 2012. In the preceding first quarter video revenue was approximately $8.9 million representing approximately 59% of total revenue. The balance represents our real time revenue which was approximately $6.9 million for the fiscal second quarter of 2013 and $6.2 million in 2012 respectively. The real time revenue was $6.1 million in our first quarter fiscal 2013.
Gross margin for the fiscal second quarter increased to over 57% compared with approximately 55% in the second quarter last year. Total operating expense for the fiscal second quarter were $8.7 million down 8% from the second quarter a year ago and up 3% from the first quarter of fiscal 2013. As we have previously communicated we are operating at a lower expense level which is partially offset in the recent quarter by an increase in variable expenses associated with higher revenues and increased profitability of the business.