Concurrent Reports Lower Revenues and Profits, but Beats Wall Street Expectations

VOD and advanced advertising technology provider, Concurrent, on Tuesday released financial results for its fiscal second quarter (2010), ended December 31st:

• Revenues totaled $15 million, compared to $18.1 million for the year-ago quarter. However, the result beat Wall Street expectations: the First Call consensus had been that the company would report revenues of $12.5 million.
• Gross margins were 62%, compared to 59% for the year-ago quarter.
• Operating expenses totaled $9.1 million, compared to $9.7 million for the year-ago quarter.
• Net income totaled $89,000, or $0.01 per diluted share, compared to $530,000, or $0.06 per diluted share, for the year-ago quarter. The result again beat the Wall Street consensus, which had been that the company would post a loss of $0.13 per share.
• At the end of the quarter, the company had $31 million in cash reserves, which it says was its highest quarter-end cash balance in recent history. It generated $3.4 million in cash from operating activities during the first half of its fiscal 2010, compared to $1.8 million for the first half of fiscal 2009.

During Concurrent's earnings conference call, the company's president and CEO, Dan Mondor, revealed that it has signed a multi-year deal with Charter Communications that will see it providing the cable MSO with "a comprehensive advanced advertising, data collection and management solution across VOD, linear TV, DVR and interactive TV service platforms." Mondor, who said that Concurrent was not at liberty to provide any more details but that it would issue a press release on the deal in the near future, added that the deal "underlines the importance of anonymous, census level data collection to power new video delivery models."