Concurrent Computer Corp. (CCUR, Financial) filed Quarterly Report for the period ended 2012-09-30.
Concurrent Computer Corporation has a market cap of $47.1 million; its shares were traded at around $5.21 with and P/S ratio of 0.8. The dividend yield of Concurrent Computer Corporation stocks is 4.6%.
Product Gross Margin. Product gross margin was $5.4 million for the three months ended September 30, 2012, an increase of approximately $1.4 million, or 34.8%, from $4.0 million for the three months ended September 30, 2011. Product margin increased in terms of dollars primarily due to higher product revenue during the three months ended September 30, 2012, compared to the same period of the prior year. Product gross margin as a percentage of product revenue increased to 60.4% for the three months ended September 30, 2012 from 59.2% for the three months ended September 30, 2011. Product margins increased as a percentage of revenue during the three months ended September 30, 2012, compared to the same period in the prior year, primarily due to the revenue from licensing our IPv4 internet addresses during the current period that has minimal cost to us.
Service Gross Margin. Service gross margin was $3.4 million for the three months ended September 30, 2012, an increase of $0.1 million, or 4.1%, from $3.3 million for the three months ended September 30, 2011. Gross margin on service revenue increased to 56.3% of service revenue for the three months ended September 30, 2012 from 53.5% of service revenue for the three months ended September 30, 2011. The increase in service margin as a percentage of service revenue was primarily due to a $0.2 million, or 7.0% decrease in service costs during the three months ended September 30, 2012. Decreasing service costs resulted from the decrease in support staff costs and severance charges resulting from our prior year actions to lower personnel costs to the level that is appropriate for current and forecasted business volumes.
Sales and Marketing. Sales and marketing expenses decreased $0.7 million, or 15.4% to $3.6 million for the three months ended September 30, 2012 from $4.3 million for the three months ended September 30, 2011. Sales and marketing expenses decreased $0.6 million due to lower salaries, wages and benefits and $0.1 million due to lower severance charges during the three months ended September 30, 2012, compared to the same period in the prior year. Sales and marketing salaries and benefits and severance charges decreased during the three months ended September 30, 2012, compared to the same period in the prior year due to reductions in our international workforce and reorganization of our domestic workforce in the latter half of our prior fiscal year to create greater efficiency. Partially offsetting these decreasing expenses, we incurred an additional $0.1 million of commission expense during the three months ended September 30, 2012, compared to the same period in the prior year, due to higher revenue in the current year period.
Research and Development. Research and development expenses decreased $0.7 million, or 20.5%, to approximately $2.8 million for the three months ended September 30, 2012, from $3.6 million for the three months ended September 30, 2011 due to a $0.8 million reduction in salaries, benefits and contracted labor costs during the three months ended September 30, 2012 resulting from reductions in force during the latter half of our prior fiscal year, enabled by our recent changes to our research and development group. Partially offsetting these decreasing expenses, we incurred an additional $0.1 million of incentive compensation expense during the three months ended September 30, 2012, compared to the same period in the prior year, due to higher revenue and profitability in the current period.
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Concurrent Computer Corporation has a market cap of $47.1 million; its shares were traded at around $5.21 with and P/S ratio of 0.8. The dividend yield of Concurrent Computer Corporation stocks is 4.6%.
Highlight of Business Operations:
Product Revenue. Total product revenue for the three months ended September 30, 2012 was $9.0 million, an increase of $2.2 million, or 32.1%, from $6.8 million for the three months ended September 30, 2011. The increase in product revenue resulted from the $2.3 million, or 85.9%, increase in video product revenue for the three months ended September 30, 2012, compared to the same period in the prior year. This increase in video product revenue was primarily due to resumption of spending by our two largest domestic video customers, who made minimal purchases from us in the same period of the prior year, due to irregular spending patterns, coupled with the economic slowdown. We also generated an additional $0.2 million of video product revenue from licensing our IPv4 internet addresses to a third party during the three months ended September 30, 2012. Fluctuation in video product 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.Product Gross Margin. Product gross margin was $5.4 million for the three months ended September 30, 2012, an increase of approximately $1.4 million, or 34.8%, from $4.0 million for the three months ended September 30, 2011. Product margin increased in terms of dollars primarily due to higher product revenue during the three months ended September 30, 2012, compared to the same period of the prior year. Product gross margin as a percentage of product revenue increased to 60.4% for the three months ended September 30, 2012 from 59.2% for the three months ended September 30, 2011. Product margins increased as a percentage of revenue during the three months ended September 30, 2012, compared to the same period in the prior year, primarily due to the revenue from licensing our IPv4 internet addresses during the current period that has minimal cost to us.
Service Gross Margin. Service gross margin was $3.4 million for the three months ended September 30, 2012, an increase of $0.1 million, or 4.1%, from $3.3 million for the three months ended September 30, 2011. Gross margin on service revenue increased to 56.3% of service revenue for the three months ended September 30, 2012 from 53.5% of service revenue for the three months ended September 30, 2011. The increase in service margin as a percentage of service revenue was primarily due to a $0.2 million, or 7.0% decrease in service costs during the three months ended September 30, 2012. Decreasing service costs resulted from the decrease in support staff costs and severance charges resulting from our prior year actions to lower personnel costs to the level that is appropriate for current and forecasted business volumes.
Sales and Marketing. Sales and marketing expenses decreased $0.7 million, or 15.4% to $3.6 million for the three months ended September 30, 2012 from $4.3 million for the three months ended September 30, 2011. Sales and marketing expenses decreased $0.6 million due to lower salaries, wages and benefits and $0.1 million due to lower severance charges during the three months ended September 30, 2012, compared to the same period in the prior year. Sales and marketing salaries and benefits and severance charges decreased during the three months ended September 30, 2012, compared to the same period in the prior year due to reductions in our international workforce and reorganization of our domestic workforce in the latter half of our prior fiscal year to create greater efficiency. Partially offsetting these decreasing expenses, we incurred an additional $0.1 million of commission expense during the three months ended September 30, 2012, compared to the same period in the prior year, due to higher revenue in the current year period.
Research and Development. Research and development expenses decreased $0.7 million, or 20.5%, to approximately $2.8 million for the three months ended September 30, 2012, from $3.6 million for the three months ended September 30, 2011 due to a $0.8 million reduction in salaries, benefits and contracted labor costs during the three months ended September 30, 2012 resulting from reductions in force during the latter half of our prior fiscal year, enabled by our recent changes to our research and development group. Partially offsetting these decreasing expenses, we incurred an additional $0.1 million of incentive compensation expense during the three months ended September 30, 2012, compared to the same period in the prior year, due to higher revenue and profitability in the current period.
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