Concurrent reported a profit of $301,000 for the third quarter of fiscal 2008 and said that it would submit a reverse stock plan to its shareholders.
Concurrent – which provides Linux software for commercial and government markets, as well as its MediaHawk video-on-demand (VOD) servers to cable operators – had revenues of $19.4 million in the third quarter, compared with revenues totaling $17.6 million in the second quarter of fiscal 2008. The Atlanta-based company’s third-quarter revenues were 20 percent higher than the same quarter a year ago.
Revenues from Concurrent’s on-demand product line totaled $12.1 million for the third quarter, compared with $9.4 million in the second quarter of fiscal 2008 – an increase of more than 27 percent.
Revenues from the company’s real-time product line totaled $7.3 million for the third quarter, compared with $8.2 million in the second quarter of fiscal 2008, for a decrease of approximately 10 percent.
Concurrent’s cash, as of March 31, totaled $24.6 million, compared with $20.4 million at the end of fiscal 2007. Concurrent said that its cash position increased by $4.2 million from the end of the prior fiscal year, as the result of improved operating results and $3.3 million in net proceeds from legal settlements in the first quarter of fiscal 2008.
Concurrent’s board is seeking to shore up the company’s flagging stock shares, which were trading at 68 cents per share around noon today, by announcing a reverse stock split.
Concurrent said that its board of directors authorized management to seek approval from Concurrent’s stockholders for a reverse split of Concurrent common stock at a ratio of 1-for-10, which means that every 10 shares of Concurrent common stock would be combined into one share of common stock. Concurrent will seek the approval of its stockholders during a special stockholders meeting that is expected to be held within the next two months.
Wednesday was CEO Gary Trimm’s last day at the company’s helm after Concurrent announced earlier this month that Trimm was being replaced by Don Mondor (story here). Trimm was Concurrent’s CEO since 2004 and will now serve as a part-time consultant for the company.
“The company delivered solid third-quarter results across the board, which reflects continued improvement in financial performance,” Mondor said. “Gary, his leadership team and every Concurrent employee have done an excellent job in establishing a strong foundation.”
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