VOD vendor Concurrent sees lower revenue but posts Q4 profit
Michelle Clancy | 30-08-2012
Video-on-demand (VOD) vendor Concurrent has reported $14.7 million in revenue for its fiscal fourth quarter, a decline from $15.1 million a year earlier. Yet, the quarter was a profitable one for the company.
The company has been undergoing reorganization to maximize margins, and Concurrent posted a modest $209,000 profit for the quarter, which is a big improvement on a loss of $1.4 million during the fiscal fourth quarter of 2011. Concurrent reduced expenses by $1 million compared to the previous quarter and by $2 million compared to the same period last year. It posted operating expenses of $8.3 million, compared to $10.3 million last year.
"In the fourth quarter, the company achieved profitability despite a disappointing revenue level," said Dan Mondor, the company's president and CEO. "We improved our operating model by implementing a number of process improvements and made significant organization changes, which resulted in operational efficiency gains. The measures we took throughout the year and primarily in the second half resulted in operating expense reductions."
For the fiscal year, it reported $60.3 million in revenue for 2012, down $6.5 million year-over-year.
Concurrent said that decreased spending by its cable MSO customer base was to blame for the revenue shortfall.
"The competitive position of our products remains solid, however, we were significantly impacted by lower spending levels by some of our top customers in fiscal 2012," Mondor said.