Concurrent VOD Revenues Dip 5%
Concurrent, fresh off a new contract with Canadian MSO Vidéotron Telecom Ltd. , said company-wide revenues were in line with analyst estimates, hitting $17.6 million, up 8 percent from the previous quarter's $16.3 million, and 3 percent higher than the year-ago period. (See Videotron Plans VOD Upgrade .)
The company notched revenues of $9.4 million from its on-demand product line, down 5 percent from the $10.0 million recorded in the previous quarter. Concurrent attributed the dip in part to "timing of large customer orders within each fiscal year."
The overall rise in revenues wasn't enough to avoid a net loss of $1 million ($0.01 per basic and diluted share). Concurrent recorded net income of $1.7 million ($0.02 per basic and diluted share) in the fiscal first quarter, which included about $3.3 million in net proceeds from the settlement of two legal spats.
Concurrent did trim its operating loss to $847,000, compared with an operating loss of $1.8 million in the first quarter.
The company ended the quarter with $23.1 million in cash, up from $20.4 million at the end of fiscal 2007, again resulting from legal-related net proceeds. Consolidated gross margins in the second quarter improved one point to 54 percent.
"Given the typical challenges of a calendar year-end quarter, I am pleased that we were able to improve revenues and grow margins," said Concurrent president and CEO Gary Trimm, in a statement, noting that the company's operating loss was its lowest in more than two years.
Looking ahead, he suggested the VOD market will be "strong" in 2008, citing recent wins with Cox Communications Inc. in Arizona and with Bright House Networks in Tampa and Orlando, Fla. (See Cox Closes VOD Gap .)
"This could make quarterly revenues highly variable, but we believe the last half of our fiscal year will be the stronger," Trimm said.
In October, Concurrent secured a VOD patent license with C-COR -- now part of Arris Group Inc. (Nasdaq: ARRS) -- rekindling speculation that the Duluth, Ga.-based company could be on the block or getting closer to a deal. (See Concurrent Shores Up Patent Licenses.)
However, Trimm indicated that revenue growth is presently Concurrent's "top priority."
Trimm and other company officials were scheduled to discuss the quarter in more detail Friday morning, and shed more light on the market potential for its new "StorageMaster" product line. (See Concurrent Bows 'StorageMaster'.)
Last month, Nasdaq notified Concurrent that the company's stock was subject to delisting after the minimum bid price had fallen below $1.00 for 30 consecutive business days.
Concurrent shares were up 2 cents (2.72%), to 77 cents each in early trading Friday
— Jeff Baumgartner, Site Editor, Cable Digital News