… After Poor 2FQ16 Financial Results

 Concurrent Computer Corp., provider of high-performance Linux and storage solutions, announced financial results for the second quarter ended December 31, 2015.

“In the second quarter we achieved a number of milestones in the business, including field deployment of our new Aquari scale-out storage platform with multiple customers, setting a new high water mark for gross margins, and expansion of our footprint in each of our target markets,” said Derek Elder, CEO and president. “While we are encouraged by our progress, some customer spending decisions continue to delay and we are therefore revising our full year revenue expectations to a range of $58 to $60 million.“

Second Quarter Financial Highlights
Revenue for the second quarter of fiscal 2016 was $14.9 million, compared with $16.0 million for the same period in fiscal 2015 and $13.4 million in the first quarter of fiscal 2016. Revenue for the second quarter of fiscal 2016 does not include any revenue from our multi-screen video analytics product line, which was sold in September 2015, whereas there was $1.0 million included in the same period last year and $0.5 million included in the first quarter of fiscal 2016 for this product line.

Gross margin for the second quarter of fiscal 2016 was 62.9%, compared with 55.1% for the same period in fiscal 2015 and 58.8% in the first quarter of fiscal 2016.

Operating loss for the second quarter of fiscal 2016 was $(0.3) million, compared to an operating loss of $(0.6) million for the same period in fiscal 2015 and operating income of $3.0 million in the first quarter of fiscal 2016. Operating income during the first fiscal quarter of 2016 included a gain of $4.1 million related to the sale of the company’s multi-screen video analytics product line.

Adjusted EBITDA rose to $0.3 million in the second quarter of fiscal 2016, compared with breakeven Adjusted EBITDA in the same period in fiscal 2015 and Adjusted EBITDA of $(0.6) million in the first quarter of fiscal 2016.

The company reported a net loss of $(0.3) million, or $(0.03) loss per diluted share, in the second quarter of fiscal 2016, compared with a net loss of $(0.6) million, or $(0.06) loss per diluted share, in the same period in fiscal 2015 and net income of $3.2 million, or $0.35 income per diluted share, in the first quarter of fiscal 2016.

The company continued to pay a quarterly dividend of $0.12 per share in the second quarter of fiscal 2016. At December 31, 2015, Concurrent had working capital of $26.5 million including cash and cash equivalents of $21.3 million. The company has no debt.

Recent company Highlights

• A major service provider customer selected Concurrent’s Unified Content Delivery Solution to displace an incumbent vendor’s product at multiple sites
• A large European automotive manufacturer selected Concurrent’s Real-Time Linux solutions for automotive simulation and testing
• Concurrent was awarded new business with a major government contractor and an international government agency for aerospace and defense programs
• A tier 1 European cable operator chose Concurrent’s Aquari scale-out storage solution to support their next generation video services and Aquari is also being lab trialed by multiple service providers, both domestic and international.