Concurrent Seeks Reverse Stock Split
Concurrent, which specializes in video-on-demand servers and software, said it will seek approval of the split from its stockholders via a special meeting "expected to be scheduled in the next two months." If approved, every 10 shares of Concurrent stock will be fused into one share of common stock.
Concurrent's stock needs some serious resuscitation, as shares have been trading below the $1 mark since Nov. 16, 2007. Concurrent shares were virtually unchanged, at 73 cents each (up 0.69 percent), in early trading Friday.
A possible reverse split is just one major change on Concurrent's docket. Earlier this month, the company announced that CEO Gary Trimm is retiring, and is being replaced by Dan Mondor. Trimm, however, will stay on as a consultant for an undetermined length of time. (See Concurrent CEO Quits.)
Concurrent announced the intended stock move in concert with the release of its fiscal third quarter results, which produced company-wide revenues of $19.4 million, 20 percent better than year-ago results. Revenues for its on-demand product line totaled $12.1 million, versus $9.4 million in the previous quarter. (See Concurrent Reports Q3.)
Those numbers helped the company swing to a small profit of $301,000 in the first quarter, versus a net loss of $769,000 in the fiscal second quarter. The company ended the quarter with $24.6 million in cash, up from $20.4 million at the end of fiscal 2007.
— Jeff Baumgartner, Site Editor, Cable Digital News