Concurrent Computer Corp. (CCUR, Financial) filed Quarterly Report for the period ended 2010-03-31.
Concurrent Computer Corp. has a market cap of $47.9 million; its shares were traded at around $5.75 with a P/E ratio of 71.9 and P/S ratio of 0.7. CCUR is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Sales and Marketing. Sales and marketing expenses decreased approximately $0.4 million, or 9.9% to $3.8 million in the three months ended March 31, 2010 from $4.2 million in the three months ended March 31, 2009. Lower sales and marketing expenses were primarily attributable to a $0.2 million reduction of sales and marketing related salaries and benefits, and a $0.2 million decrease in severance charges as a result of prior year changes to our sales group. Sales and marketing expenses also decreased $0.2 million due to prior year expenses from our strategic marketing launch during the three months ended March 31, 2009. Partially offsetting the decreases in costs, we incurred $0.1 million of additional costs to support channel partner sales.
Research and Development. Research and development expenses decreased approximately $0.3 million, or 7.2%, to approximately $3.3 million in the three months ended March 31, 2010 from $3.5 million in the three months ended March 31, 2009. During the three months ended March 31, 2010, we incurred $0.3 million less in severance charges as a result of prior year reductions to our real-time research and development group. In addition, research and development expenses decreased because we incurred $0.1 million less in incentive compensation resulting primarily from lower revenue and operating results during the three months ended March 31, 2010, as compared to the same period in the prior year. Partially offsetting these decreases in costs, we incurred an additional $0.2 million of salaries and benefits to execute the development of our multi-screen strategy.
General and Administrative. General and administrative expenses decreased approximately $0.2 million, or 10.3%, to approximately $2.0 million in the three months ended March 31, 2010 from $2.2 million in the three months ended March 31, 2009. General and administrative expenses decreased primarily because we incurred $0.2 million less in incentive compensation resulting from lower revenue and operating results during the three months ended March 31, 2010, as compared to the same period in the prior year.
Goodwill and Trademark Impairment. As of March 31, 2010 and 2009, we had net goodwill and trademark balances of $0 due to the fact that we recorded total goodwill and trademark impairment charges of $17.1 million during the three months ended March 31, 2009. We recorded a $16.0 million goodwill impairment charge due to the sustained decline in our stock price and the estimated effect of the economic downturn on our weighted average cost of capital, which reflects the market s presumed risk on our ability to generate estimated future cash flows. Additionally, as a result of our strategic planning process for the period ended March 31, 2009, we rebranded our product lines to better reflect our strategic direction and no longer intend to use the Everstream trademark. Consequently, we recorded a $1.1 million impairment of our Everstream trademark for the three months ended March 31, 2009.
Net Income. The net loss for the three months ended March 31, 2010 was $1.0 million or $0.12 per basic and diluted share, compared to net loss for the three months ended March 31, 2009 of $15.3 million, or $1.85 per basic and diluted share.
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Concurrent Computer Corp. has a market cap of $47.9 million; its shares were traded at around $5.75 with a P/E ratio of 71.9 and P/S ratio of 0.7. CCUR is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Product Revenue. Total product revenue for the three months ended March 31, 2010 was $9.2 million, a decrease of $3.5 million, or 27.4%, from approximately $12.7 million for the three months ended March 31, 2009. The decrease in product revenue resulted from a $3.0 million, or 36.9%, decrease in video product sales during the three months ended March 31, 2010, compared to the same period in the prior year. Video product sales decreased by $3.2 million in the United States primarily due to 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 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.Sales and Marketing. Sales and marketing expenses decreased approximately $0.4 million, or 9.9% to $3.8 million in the three months ended March 31, 2010 from $4.2 million in the three months ended March 31, 2009. Lower sales and marketing expenses were primarily attributable to a $0.2 million reduction of sales and marketing related salaries and benefits, and a $0.2 million decrease in severance charges as a result of prior year changes to our sales group. Sales and marketing expenses also decreased $0.2 million due to prior year expenses from our strategic marketing launch during the three months ended March 31, 2009. Partially offsetting the decreases in costs, we incurred $0.1 million of additional costs to support channel partner sales.
Research and Development. Research and development expenses decreased approximately $0.3 million, or 7.2%, to approximately $3.3 million in the three months ended March 31, 2010 from $3.5 million in the three months ended March 31, 2009. During the three months ended March 31, 2010, we incurred $0.3 million less in severance charges as a result of prior year reductions to our real-time research and development group. In addition, research and development expenses decreased because we incurred $0.1 million less in incentive compensation resulting primarily from lower revenue and operating results during the three months ended March 31, 2010, as compared to the same period in the prior year. Partially offsetting these decreases in costs, we incurred an additional $0.2 million of salaries and benefits to execute the development of our multi-screen strategy.
General and Administrative. General and administrative expenses decreased approximately $0.2 million, or 10.3%, to approximately $2.0 million in the three months ended March 31, 2010 from $2.2 million in the three months ended March 31, 2009. General and administrative expenses decreased primarily because we incurred $0.2 million less in incentive compensation resulting from lower revenue and operating results during the three months ended March 31, 2010, as compared to the same period in the prior year.
Goodwill and Trademark Impairment. As of March 31, 2010 and 2009, we had net goodwill and trademark balances of $0 due to the fact that we recorded total goodwill and trademark impairment charges of $17.1 million during the three months ended March 31, 2009. We recorded a $16.0 million goodwill impairment charge due to the sustained decline in our stock price and the estimated effect of the economic downturn on our weighted average cost of capital, which reflects the market s presumed risk on our ability to generate estimated future cash flows. Additionally, as a result of our strategic planning process for the period ended March 31, 2009, we rebranded our product lines to better reflect our strategic direction and no longer intend to use the Everstream trademark. Consequently, we recorded a $1.1 million impairment of our Everstream trademark for the three months ended March 31, 2009.
Net Income. The net loss for the three months ended March 31, 2010 was $1.0 million or $0.12 per basic and diluted share, compared to net loss for the three months ended March 31, 2009 of $15.3 million, or $1.85 per basic and diluted share.
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