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Major MSOs Aid Concurrent in Q4

Concurrent Computer Corp. (Nasdaq: CCUR), buoyed by rollouts of its new MediaHawk 4500 platform by major MSOs such as Cox Communications Inc. and Time Warner Cable Inc. (NYSE: TWC), said today that on-demand revenues reached $14 million in its fourth quarter, up from $10.3 million in the previous period

For its fourth quarter, which ended June 30, Concurrent posted fourth-quarter revenues of $21.1 million, up from $16.1 million reported in the previous quarter. The company also trimmed its net loss to $712,000 (1 cent per fully diluted share), compared to $3.1 million (4 cents per fully diluted share) in the third quarter. (See Concurrent Posts Q4.)

Concurrent said it shipped 84,000 streams in the quarter, 73,000 of which were for the MediaHawk 4500, which the company put into play in January 2007. (See Concurrent Adds VOD Server.) Concurrent shipped the majority of those MediaHawk 4500 streams to Cox and Time Warner.

During this morning's conference call with analysts, Concurrent president and CEO Gary Trimm said the company also shipped a "large system" to Cox for the MSO's Arizona market. Cox just launched VOD in its Florida markets but has yet to introduce it to Arizona customers. (See Cox Rolls VOD in FL.)

Trimm said the resilient streaming features of the MediaHawk 4500 are resonating with cable operators as they deploy more advanced on-demand applications.

"This is even more critical in a time-shifted TV application like Time Warner's Start Over," he said, referring to a service that lets customers restart selected programs (e.g., those with copyright clearance) that are already in progress.

Time Warner is also starting to deploy "Look Back," a next step that will allow viewers to replay shows that aired earlier in the day. The MSO initially will test it out in the South Carolina region.

"We believe this new service [Look Back] will be even more successful than Start Over," Trimm said. "Of course, we like it because it requires more streams, more storage, and more ingest."

The story was not as rosy at Everstream , a data collection and measurement firm Concurrent purchased for $15 million in 2005. (See Concurrent Acquires Everstream.)

Trimm said revenues at the subsidiary were "relatively low, at just over $1 million," citing slower than expected rollouts tied to customer scheduling issues. He also pointed out that CAPi, a new high-speed capacity measurement product from Everstream, is still in the early trial phase.

Concurrent shares were up 3 cents (2.2%) to $1.38 each in late afternoon trading Friday.

— Jeff Baumgartner, Site Editor, Cable Digital News

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