Concurrent Posts Solid Q4 on VOD Growth

Orders from Time Warner Cable, Cox Communications Boost Vendor
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Video-on-demand vendor Concurrent Computer showed improved financial performance for its fiscal fourth quarter ending June 30, as it shipped more hardware and software to support VOD expansions at Time Warner Cable and Cox Communications.

The Atlanta-based company grabbed $21.1 million in total revenue, a 31% increase over the $16.1 million it recorded in the third quarter of fiscal-year 2007. VOD products made up $14 million of the total compared with $10.3 million in the third quarter, an increase of 35% (Concurrent has a separate business supplying defense and financial customers, which accounts for the rest of its revenue base).

The company’s net loss for the fourth quarter of fiscal 2007 was $712,000, or a loss of $0.01 per fully diluted share, compared with a net loss of $3.1 million ($0.04) in the third quarter of fiscal 2007.

Concurrent shipped equipment supporting some 84,000 streams of VOD in the quarter, with 73,000 of those coming from the company’s next-generation MediaHawk 4500 server platform, said president and CEO Gary Trimm on the earnings conference call.

New sales included a large system for Cox’s Arizona hub that incorporates Concurrent’s new “Media Cache” solid-state storage technology and an expansion of the storage and streaming capabilities at Time Warner Cable’s Columbus, Ohio, VOD operation.

Concurrent, which has some 50% of Time Warner’s VOD business, will also be supporting the expansion of existing Time Warner VOD systems for “Look Back,” a new feature that will allow subscribers to watch programs they’ve missed from earlier in the broadcast day. Trimm thinks Look Back -- which Time Warner is first testing in Columbia, S.C. -- will prove even more popular than “Start Over,” which lets subscribers tuning into a program late jump back to its beginning.

“Of course we like it because it means more streams, more storage and more ingest,” Trimm said.

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