Concurrent Sales Fall On Softer VOD Spending

Video-on-Demand Systems Vendor Cites Biggest Customers

Todd Spangler -, 8/26/2009 11:20:20 AM EDT

Video-on-demand systems vendor Concurrent posted a 9.5% decline in revenue for the quarter ended June 30 -- citing lower spending by its biggest customers -- although sales for its 2009 fiscal year were up slightly over the previous 12-month period.

For the most recent quarter, Current's total revenue was $15.9 million and net income was $245,000, or $0.03 per diluted share. Revenue in the period "was impacted by reduced spending from some of our top customers, and we expect this trend to continue" in the current quarter, Concurrent president and CEO Dan Mondor said in announcing the earnings Wednesday.
Concurrent's primary cable operator customers include Comcast, Time Warner Cable, Cox Communications, Bright House Networks, Cogeco and Mediacom Communications.
For the 2009 fiscal year ended June 30, total revenue was $71.6 million, up 1.2% versus $70.8 million for the previous fiscal year.
Concurrent posted a net loss for the year of $14.5 million, which included a noncash impairment charge of $17.1 million resulting from a decline in the company's stock price and thewrite-down of the Everstream trademark in connection with renaming of its media data and advertising solutions group.
Excluding the impairment charge and related income tax benefit, the company's net income for fiscal 2009 was $2.2 million, compared with net income of $265,000 reported in fiscal year 2008.
Concurrent in the past 12 months has "lowered our revenue breakeven point, established more efficient operations and improved cash management," Mondor said. "With more efficient operations, we are better positioned to invest in new products to address new markets consistent with our three-screen strategy."