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Concurrent Computer Corporation (CCUR)
F2Q10 (Qtr. End 12/31/09) Earnings Call Transcript
January 26, 2010 04:30 pm ET
Kirk Somers - EVP
Dan Mondor - President and CEO
David King - Chief Marketing and Strategy Officer
Emory Berry - CFO
Ali Motamed - Boston Partners
Previous Statements by CCUR
» Concurrent Computer Corp. F1Q10 (Qtr End 30/09/09) Earnings Call Transcript.
» Concurrent Computer Corporation F2Q09 (Qtr End 12/31/08) Earnings Call Transcript
» Concurrent Computer Corp. F1Q09 (Qtr End 9/30/2008) Earnings Call Transcript
If you have any objections, you may disconnect at this time. This call is also being webcast live via the internet at www.ccur.com investor relations.
Following the prepared remarks, the company will host a question-and-answer session. (Operator Instructions). I would like to introduce your host, Mr. Kirk Somers, Executive Vice President. Sir, you may begin.
Thank you, operator and good afternoon everyone. Welcome to Concurrent's fiscal year 2010 second quarter earnings conference call for the period ended December 31, 2009. Joining me on today's call are Dan Mondor, Concurrent's President and Chief Executive Officer, David King, our Chief Marketing and Strategy Officer, and Emory Berry, our Chief Financial Officer.
Following our scripted comments, we will be pleased to take your questions. Before we begin, 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 provisions of the Private Securities and Litigation Reform Act of 1995. Accordingly, the cautionary statements made in Concurrent's form 10-K followed August 28, 2009 are incorporated herein 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 of the date of the live broadcast, January 26, 2010. Any redistribution, retransmission or rebroadcast of this presentation in any form without the expressed written consent of Concurrent is prohibited.
I caution you that any forward-looking statements made by the company are not guarantees of 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. You should all have a copy of the earnings release. 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 afternoon, everyone and thank you for joining us today. I'll lead off with highlights of our second quarter results followed by an update on our business. Continuing the format we have used in the past, David King, our Chief Marketing and Strategy Officer, will provide an update on the market roll-out of our three screen strategy. Emory Berry, our Chief Financial Officer, will provide an in-depth discussion of our financial results and I'll then conclude with some closing comments.
In the second quarter we reported revenue of 15 million with gross margins of 62% and operating expenses of approximately a 9.1 million. The sequential improvement in gross margins in part is due to the continued increase in the software content of our overall portfolio of video and media data solutions. We reported operating income of approximately $172,000 and earnings per share of $0.01.
As noted in the press release, our ending cash balance of $31 million is the highest quarter end cash balance in recent history. Our video solutions business improved quarter-over-quarter. However, our VOD business has not recovered to historical revenue levels. We anticipate our core VOD revenue will improve in the second half and our new Three-Screen video solutions will begin to contribute to the business. As such, we are reiterating our forecast for second half revenue to be better than the first half. Over the long term, we anticipate a gradual recovery in VOD spending by our top cable operator customers as the overall economy hopefully continues to improve.
We anticipate that our business will benefit in the future from the deployment of enhanced video services, notably from the increased deployment of time shifted TV, network DVR and increased high-definition video content.
As I mentioned on the prior call, our current and prospective customers are confirming that we are well positioned to capitalize on the fundamental shifts occurring in the video marketplace. Our video to the PC solution, the second screen, if you will, was introduced last fall and has begun to receive market acceptance internationally. We are encouraged about this market opportunity over the long term.
To follow up on my earlier comments on our new Three-Screen video solutions, I am pleased to report that we have recently entered into a multi-year agreement with Charter Communications, the nation's fourth largest cable operator.
We will be providing Charter a comprehensive advanced advertising, data collection and management solution across VOD, linear TV, DVR and interactive TV service platforms. This contract underlines the importance of anonymous, census level data collection to power new video delivery models and we believe we are well positioned to address the evolving market going forward.
At this time we are not able to provide additional details, however, we anticipate issuing a press release in the near future. Additionally, two North American cable operators as well as ZON TV Cabo in Portugal and a major service provider in the Asia-Pacific region have adopted our new media data managed services solutions.