Concurrent Computer Corp. (CCUR, Financial) filed Quarterly Report for the period ended 2010-09-30.
Concurrent Computer Corp. has a market cap of $61.6 million; its shares were traded at around $6.9 with and P/S ratio of 1. CCUR is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Product Revenue. Total product revenue for the three months ended September 30, 2010 was approximately $9.4 million, an increase of $2.7 million, or 39.9%, from $6.7 million for the three months ended September 30, 2009. The increase in product revenue resulted from a $2.9 million, or 154.2%, increase in video product sales during the three months ended September 30, 2010, compared to the same period in the prior year. Video product sales increased by $2.3 million in the United States, primarily due to completion of a custom product deliverable to one of our largest domestic customers during the three months ended September 30, 2010. During the three months ended September 30, 2010, we also experienced a general increase in spending from many of our video customers relative to the same period in the prior year. During the first quarter of our prior fiscal year, we experienced lower domestic volume of video product sales that we believe was due to the impact of the economic downturn and the pace at which our domestic broadband customers were implementing, upgrading and replacing video technology during that period. Also, video product sales increased by $0.6 million in our Asia/Pacific markets during the three months ended September 30, 2010, compared to the same period in the prior year, due to the sale of video storage expansion systems to our largest Japanese cable customer during the three months ended September 30, 2010. Fluctuation in video revenue is often due to the fact that we have a small number of customers making periodic large purchases that account for a significant percentage of revenue.
Sales and Marketing. Sales and marketing expenses increased approximately $0.2 million, or 6.4% to approximately $4.1 million in the three months ended September 30, 2010 from $3.8 million in the three months ended September 30, 2009. Sales and marketing expense increased primarily because we incurred $0.1 million in additional incentive compensation from higher sales during the three months ended September 30, 2010, compared to the same period in the prior year. Also, we incurred $0.1 million in additional sales and marketing related salaries and benefits as part of the implementation of our strategy to sell our video solutions to the internet and mobile device markets, and because we have increased our efforts to sell through new channels.
Research and Development. Research and development expenses increased $0.3 million, or 8.3%, to approximately $3.4 million in the three months ended September 30, 2010 from $3.1 million in the three months ended September 30, 2009. Research and development expenses increased primarily because we incurred $0.6 million in additional salaries and benefits to develop solutions to deliver video to the internet and mobile device markets and expenses resulting from the purchase of intellectual property from Tellytopia during the three months ended September 30, 2010. We determined that this technology had not reached technological feasibility; therefore, we expensed the full amount of the cost to research and development expenses at the time of purchase. Partially offsetting these increases in costs, we capitalized an additional $0.3 million of development costs related to customized solutions developed for and sold to existing customers, compared to the same period in the prior year.
General and Administrative. General and administrative expenses increased approximately $0.1 million, or 7.1%, to approximately $2.1 million in the three months ended September 30, 2010 from $1.9 million in the three months ended September 30, 2009. General and administrative expense increased primarily because we incurred an additional $0.1 million of share based compensation and incentive compensation costs during the three months ended September 30, 2010, compared to the same period in the prior year.
Net (Loss). The net loss for the three months ended September 30, 2010 was ($1.2) million or ($0.14) per basic and diluted share, compared to a net loss for the three months ended September 30, 2009 of ($1.0) million, or ($0.12) per basic and diluted share.
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Concurrent Computer Corp. has a market cap of $61.6 million; its shares were traded at around $6.9 with and P/S ratio of 1. CCUR is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Revenue for the three months ended September 30, 2010 was $15,546,000, with the adoption of ASU 2009-13 and ASU 2009-14. This compares with revenue of $14,918,000 for the three months ended September 30, 2010, had we not adopted ASU 2009-13 and ASU 2009-14. The primary driver of the impact was the $621,000 increase in product revenue during the three months ended September 30, 2010. The increase in product revenue primarily resulted from our ability to recognize revenue from a product sale that had an undelivered element for which we are now able to establish an estimated selling price, but that would have required a full deferral of revenue under previous accounting guidance, due to our inability to establish VSOE for the undelivered element. The increase in recognizable product revenue also resulted from allocating discounts on bundled orders to both delivered elements, which typically include products, and undelivered elements, which typically include maintenance and professional services, using the relative selling price method under ASU 2009-13. Prior to adoption of ASU 2009-13 and 2009-14 we used the residual method which required us to allocate the entire discount on bundled arrangements to the delivered elements. As of September 30, 2010, our deferred revenue was $12,193,000, as compared to $12,793,000 had we not adopted ASU 2009-13 and 2009-14.Product Revenue. Total product revenue for the three months ended September 30, 2010 was approximately $9.4 million, an increase of $2.7 million, or 39.9%, from $6.7 million for the three months ended September 30, 2009. The increase in product revenue resulted from a $2.9 million, or 154.2%, increase in video product sales during the three months ended September 30, 2010, compared to the same period in the prior year. Video product sales increased by $2.3 million in the United States, primarily due to completion of a custom product deliverable to one of our largest domestic customers during the three months ended September 30, 2010. During the three months ended September 30, 2010, we also experienced a general increase in spending from many of our video customers relative to the same period in the prior year. During the first quarter of our prior fiscal year, we experienced lower domestic volume of video product sales that we believe was due to the impact of the economic downturn and the pace at which our domestic broadband customers were implementing, upgrading and replacing video technology during that period. Also, video product sales increased by $0.6 million in our Asia/Pacific markets during the three months ended September 30, 2010, compared to the same period in the prior year, due to the sale of video storage expansion systems to our largest Japanese cable customer during the three months ended September 30, 2010. Fluctuation in video revenue is often due to the fact that we have a small number of customers making periodic large purchases that account for a significant percentage of revenue.
Sales and Marketing. Sales and marketing expenses increased approximately $0.2 million, or 6.4% to approximately $4.1 million in the three months ended September 30, 2010 from $3.8 million in the three months ended September 30, 2009. Sales and marketing expense increased primarily because we incurred $0.1 million in additional incentive compensation from higher sales during the three months ended September 30, 2010, compared to the same period in the prior year. Also, we incurred $0.1 million in additional sales and marketing related salaries and benefits as part of the implementation of our strategy to sell our video solutions to the internet and mobile device markets, and because we have increased our efforts to sell through new channels.
Research and Development. Research and development expenses increased $0.3 million, or 8.3%, to approximately $3.4 million in the three months ended September 30, 2010 from $3.1 million in the three months ended September 30, 2009. Research and development expenses increased primarily because we incurred $0.6 million in additional salaries and benefits to develop solutions to deliver video to the internet and mobile device markets and expenses resulting from the purchase of intellectual property from Tellytopia during the three months ended September 30, 2010. We determined that this technology had not reached technological feasibility; therefore, we expensed the full amount of the cost to research and development expenses at the time of purchase. Partially offsetting these increases in costs, we capitalized an additional $0.3 million of development costs related to customized solutions developed for and sold to existing customers, compared to the same period in the prior year.
General and Administrative. General and administrative expenses increased approximately $0.1 million, or 7.1%, to approximately $2.1 million in the three months ended September 30, 2010 from $1.9 million in the three months ended September 30, 2009. General and administrative expense increased primarily because we incurred an additional $0.1 million of share based compensation and incentive compensation costs during the three months ended September 30, 2010, compared to the same period in the prior year.
Net (Loss). The net loss for the three months ended September 30, 2010 was ($1.2) million or ($0.14) per basic and diluted share, compared to a net loss for the three months ended September 30, 2009 of ($1.0) million, or ($0.12) per basic and diluted share.
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