Concurrent Computer Corp. (CCUR, Financial) filed Quarterly Report for the period ended 2009-12-31.
Concurrent Computer Corp. has a market cap of $38.1 million; its shares were traded at around $4.56 with a P/E ratio of 57 and P/S ratio of 0.5. Concurrent Computer Corp. had an annual average earning growth of 31.1% over the past 5 years.CCUR is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
Service Revenue. Total service revenue for the three months ended December 31, 2009 was $6.3 million, a decrease of $0.7 million, or 10.2%, from $7.1 million for the three months ended December 31, 2008. The decrease in service revenue was due to the $0.6 million, or 12.9%, decrease in service revenue related to video products. Video service revenue decreased due to lower installation revenue in the three months ended December 31, 2009, compared to the same period in the prior year. Lower installation service revenue was attributable to lower product sales, from which installation service revenue is often derived, and from the timing of installation services.
Sales and Marketing. Sales and marketing expenses decreased approximately $0.3 million, or 6.9% to $3.9 million in the three months ended December 31, 2009 from $4.2 million in the three months ended December 31, 2008. Sales and marketing expense decreased primarily because of prior year severance charges of $0.4 million as a result of prior year changes to our sales group. Offsetting the decrease in costs, we incurred $0.1 million of additional costs to support channel partner sales. 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 $0.2 million, or 6.4%, to approximately $3.1 million in the three months ended December 31, 2009 from $3.3 million in the three months ended December 31, 2008. Lower research and development expenses were primarily attributable to a $0.3 million reduction of research and development related salaries, benefits and other employee related costs, resulting from an office shutdown during the holidays and headcount reductions in the latter half of the prior fiscal year, as part of our efforts to reduce 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 $0.1 million, or 4.4%, to approximately $2.1 million in the three months ended December 31, 2009 from $2.2 million in the three months ended December 31, 2008. General and administrative expenses decreased primarily because we incurred $0.2 million less in incentive compensation resulting primarily from lower revenue and operating results during the three months ended December 31, 2009, as compared to the same period in the prior year. Partially offsetting the decrease in costs, share-based compensation expense increased by $0.1 million as a result of additional restricted shares granted to executives in the past twelve months.
Net Income. The net income for the three months ended December 31, 2009 was $0.1 million or $0.01 per basic and diluted share, compared to net income for the three months ended December 31, 2008 of $0.5 million, or $0.06 per basic and diluted share.
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Concurrent Computer Corp. has a market cap of $38.1 million; its shares were traded at around $4.56 with a P/E ratio of 57 and P/S ratio of 0.5. Concurrent Computer Corp. had an annual average earning growth of 31.1% over the past 5 years.CCUR is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
Product Revenue. Total product revenue for the three months ended December 31, 2009 was $8.7 million, a decrease of approximately $2.4 million, or 21.7%, from approximately $11.1 million for the three months ended December 31, 2008. The decrease in product revenue resulted from a $2.9 million, or 39.0%, decrease in video product sales during the three months ended December 31, 2009, compared to the same period in the prior year. Video product sales decreased by $1.7 million in the United States due to reductions in purchases from our two largest customers. Video product sales decreased by $1.1 million in Japan due to revenue in the prior year period from completion of a customized software product to a Japanese cable distributor that did not recur in the current year period. 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. 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.Service Revenue. Total service revenue for the three months ended December 31, 2009 was $6.3 million, a decrease of $0.7 million, or 10.2%, from $7.1 million for the three months ended December 31, 2008. The decrease in service revenue was due to the $0.6 million, or 12.9%, decrease in service revenue related to video products. Video service revenue decreased due to lower installation revenue in the three months ended December 31, 2009, compared to the same period in the prior year. Lower installation service revenue was attributable to lower product sales, from which installation service revenue is often derived, and from the timing of installation services.
Sales and Marketing. Sales and marketing expenses decreased approximately $0.3 million, or 6.9% to $3.9 million in the three months ended December 31, 2009 from $4.2 million in the three months ended December 31, 2008. Sales and marketing expense decreased primarily because of prior year severance charges of $0.4 million as a result of prior year changes to our sales group. Offsetting the decrease in costs, we incurred $0.1 million of additional costs to support channel partner sales. 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 $0.2 million, or 6.4%, to approximately $3.1 million in the three months ended December 31, 2009 from $3.3 million in the three months ended December 31, 2008. Lower research and development expenses were primarily attributable to a $0.3 million reduction of research and development related salaries, benefits and other employee related costs, resulting from an office shutdown during the holidays and headcount reductions in the latter half of the prior fiscal year, as part of our efforts to reduce 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 $0.1 million, or 4.4%, to approximately $2.1 million in the three months ended December 31, 2009 from $2.2 million in the three months ended December 31, 2008. General and administrative expenses decreased primarily because we incurred $0.2 million less in incentive compensation resulting primarily from lower revenue and operating results during the three months ended December 31, 2009, as compared to the same period in the prior year. Partially offsetting the decrease in costs, share-based compensation expense increased by $0.1 million as a result of additional restricted shares granted to executives in the past twelve months.
Net Income. The net income for the three months ended December 31, 2009 was $0.1 million or $0.01 per basic and diluted share, compared to net income for the three months ended December 31, 2008 of $0.5 million, or $0.06 per basic and diluted share.
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