Concurrent Computer Corp. is a leading provider of high-performance real-time Linux software and solutions for commercial and government markets. Concurrent's best-of-breed products have enabled a range of time-critical solutions including: modeling and simulation high speed data acquisition visual imaging low latency transaction processing and on-demand television. Concurrent's on-demand television applications are utilized by major service providers in the cable and IPTV industries to deliver video-on-demand and through subsidiary company Everstream measure the effectiveness of interactive television. Concurrent is a global company with regional offices in North America Europe Asia and Australia and has products actively deployed in more than twenty four countries. Concurrent's products and services are recognized for being uniquely flexible comprehensive robust and reliable. Concurrent Computer Corp. has a market cap of $31.81 million; its shares were traded at around $3.84 with a P/E ratio of 29.54 and P/S ratio of 0.44. Concurrent Computer Corp. had an annual average earning growth of 31.1% over the past 5 years. Highlight of Business Operations:Product Revenue. Total product revenue for the three months ended September 30, 2009 was $6.7 million, a decrease of approximately $5.4 million, or 44.5%, from approximately $12.0 million for the three months ended September 30, 2008. The decrease in product revenue resulted from a $6.5 million, or 77.4%, decrease in video product sales during the three months ended September 30, 2009, compared to the same period in the prior year. Video product sales decreased by $6.1 million in the United States due to significant reductions in purchases from our two largest customers. We believe that the decreasing volume of video product sales is primarily due to the impact of the economic downturn and the pace at which our broadband customers implement, upgrade or replace video technology. The recent trend of declining video product sales may continue as a result of the sustained economic downturn. 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 6.6% to $3.8 million in the three months ended September 30, 2009 from $3.6 million in the three months ended September 30, 2008. Sales and marketing expense increased primarily because we incurred $0.2 million of additional costs to support channel partner sales and other business development opportunities during the three months ended September 30, 2009, compared to the same period in the prior year. Also, we incurred $0.1 million of additional severance costs as a result of changes to our sales group during the three months ended September 30, 2009. Partially offsetting these increases in costs, we incurred $0.1 million less in incentive compensation primarily due to lower revenue in the three months ended September 30, 2009, compared to the same period in the prior year. We anticipate that our sales and marketing expenses may increase in the upcoming fiscal year as we implement our strategy to sell our video solutions to the internet and mobile device markets, as well as increase our effort to sell through new channels.
Research and Development. Research and development expenses decreased approximately $0.7 million, or 19.2%, to approximately $3.1 million in the three months ended September 30, 2009 from $3.8 million in the three months ended September 30, 2008. Decreasing research and development expenses were primarily attributable to a $0.7 million reduction of research and development related salaries, benefits and other employee related costs, resulting from headcount reductions, as part of our effort to reduce operating expenses. We anticipate that our research and development expenses may increase this fiscal year as we implement our strategy to develop video solutions for the internet and mobile device markets.
General and Administrative. General and administrative expenses decreased approximately $0.4 million, or 17.5%, to approximately $1.9 million in the three months ended September 30, 2009 from $2.3 million in the three months ended September 30, 2008. General and administrative expense decreased primarily because we incurred $0.2 million less in consulting fees, primarily attributable to prior year strategic planning costs. Additionally, we were able to reduce our accounting costs by $0.1 million and insurance costs by $0.1 million during the three months ended September 30, 2009, compared to the same period in the prior year.
Net (Loss) Income. The net loss for the three months ended September 30, 2009 was ($1.0) million or ($0.12) per basic and diluted share, compared to net income for the three months ended September 30, 2008 of $0.1 million, or $0.01 per basic and diluted share.
At September 30, 2009, we had working capital (current assets less current liabilities) of $28.6 million, including cash and cash equivalents of approximately $27.2 million, and had no material commitments for capital expenditures, compared to working capital of $29.7 million at June 30, 2009, including cash and cash equivalents of approximately $29.1 million. Based upon our existing cash balances, historical cash usage, available credit facility, and anticipated operating cash flow in the current fiscal year, we believe that existing cash balances will be sufficient to meet our anticipated working capital and capital expenditure requirements for the next twelve months.
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