Concurrent Computer Corporation (CCUR)
F2Q09 Earnings Call
January 27, 2008 10:00 am ET
Dan Mondor – President, Chief Executive Officer
Emory O. Berry – Chief Financial Officer
David King - Chief Marketing Officer
Kirk Somers - Executive Vice President
Todd Koffman - Raymond James
Al Shams - Mid-South Capital
Dan Culver - Intellivest Securities
Previous Statements by CCUR
» Concurrent Computer Corp. F1Q10 (Qtr End 30/09/09) Earnings Call Transcript.
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» Concurrent Computer Corporation F4Q08 (Qtr End 06/30/08) Earnings Call Transcript
Thank you and good morning, everyone. Welcome to Concurrent’s earnings conference call for the second quarter of 2009. The format for this morning’s call will be as follows: Dan Mondor, Concurrent’s President and Chief Executive Officer will highlight some financial results and provide an update on the business. Emory Berry, our Chief Financial Officer will conclude the call with a detailed review of the financials for the second quarter and first half of our fiscal year. Following our scripted comments, we will be pleased to take your questions. We also have David King, our new Chief Marketing Officer with us today and we will all be available to answer questions following the call.
Before we begin, please let me remind you that this presentation 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 concurrence with Form 10-K filed August 27, 2008 and incorporated here by reference. The company’s actual results could differ materially from the forward-looking information in this presentation. The content of this webcast contains time-sensitive information that is accurate only as the date of this live broadcast, January 27, 2009. Any redistribution, retransmission, or rebroadcast of this presentation in any form without the express written consent of Concurrent is prohibited. I caution you that any forward-looking statements made by Concurrent are not guaranteed as future performance and that a variety of factors could cause the company’s actual results and experience to differ materially from the anticipated or projected results which the company may discuss on this conference call today. You should all have a copy of the earnings release document. If you have not received a copy, please call Sandra Dover at 678-258-4112 and she will be pleased to provide you with a copy. With that said, I’ll turn it over to Dan.
Thanks, Kirk. Good morning, everyone and thank you for joining us today. I’ll start with the highlight of our financial performance and then provide an update on the business. Following my remarks, Emory will provide an in-depth review of the financial results and our outlook for the remainder of the fiscal year.
Here are the highlights of the second quarter. Total revenue was $18.1 million with gross margins of approximately 59%. Operating expenses were $9.7 million and operating income of approximately $0.9 million and net income of over $0.5 million. Net income per share was $0.06 on a fully diluted basis and the cash balance at the end of the quarter was over $27.6 million.
It was a strong quarter given the challenging macroeconomic environment. Our performance for the first half of fiscal 2009 compared to the first half of fiscal 2008 illustrates the impact of our focus on profitable revenue growth. We grew revenue approximately 8%. We strengthened our gross margins by 400 basis points to 57% and reduced operating expenses approximately 6%. As a result, operating income improved by over $4 million.
The first half operating income was the highest for two consecutive quarters in over six years. These results were primarily driven by the continued strength in the On-Demand business as well as diligent management of expenses. We continue to strengthen our relationships with our current and expected customers and we are proactively responding to our customers’ challenges and opportunities.
With respect to our international customers, we had an excellent quarter in Japan and our business with JComm remains strong. In Europe, our recent win with ZON TV Cabo began to contribute to our financial results and our North American business was solid with major sales from RightHouse Networks, Cox, Lockheed Martin, Time-Warner Cable and Videotron.
On the innovation front, we are accelerating our efforts to assist our customers as they prepare for emerging on-demand advertising initiatives. As such we engaged in interoperability trials with Cable Ops. We demonstrated successful integration of our myriad line of advanced advertising products with other leading technology providers. These trials demonstrated advanced targeted solutions based on the SAP 130 and E-Disk standards. This will enable broadband providers to deliver advanced functions such as targeting, COD ad insertion, thumping, telescoping and reporting.
We also released new functionality across both the Concurrent MiniHawk and MediaHawk video servers. These software releases provide standard compliance and improved functionality, capacity enhancements and most notably, playlist support enabling it for advanced advertising.
The MediaHawk 4500 continues to be a market leader. In calendar year 2008, we deployed over 400,000 streams with over 240,000 of these deployed in an end-off architecture. We believe this leads the market.
On the real-time side, we introduced ImaGen RL, a PC-based visual server. This solution provides high-performance video simulation in a compact package creating a flexible Linux-based graphics platform.
Finally, with respect to communicating our vision in a forward direction with the company, I would like to share some of these highlights. Video is in our DNA and on-demand video is the future. People want content anywhere, any time and on any device. With that in mind, Concurrent will leverage its technology and video distribution analytics and advanced advertising across new markets and devices.