Delaware
|
04-2735766
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
Large
Accelerated Filer ¨
|
Accelerated
Filer x
|
Non-Accelerated
Filer ¨
|
Page
|
|||
Part
I – Financial
Information
|
|||
Item
1.
|
2
|
||
2
|
|||
3
|
|||
4
|
|||
5
|
|||
Item
2.
|
|||
|
15
|
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Item
3.
|
25
|
||
Item
4.
|
25
|
||
Part
II – Other
Information
|
|||
Item
1.
|
26
|
||
Item
1A.
|
26
|
||
Item
4.
|
26
|
||
Item
6.
|
26
|
||
EX-31.1
SECTION 302 CERTIFICATION OF CEO
|
|||
EX-31.2
SECTION 302 CERTIFICATION OF CFO
|
|
||
EX-32.1
SECTION 906 CERTIFICATION OF CEO
|
|||
EX-32.2
SECTION 906 CERTIFICATION OF CFO
|
Part
I
|
Financial
Information
|
December
31,
|
June
30,
|
|||||||
2007
|
2007
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 23,058 | $ | 20,416 | ||||
Accounts
receivable, less allowance for doubtful accounts of $94 at December
31,
2007 and $96 at June 30, 2007
|
14,975 | 20,987 | ||||||
Inventories,
net
|
2,815 | 3,457 | ||||||
Prepaid
expenses and other current assets
|
1,001 | 934 | ||||||
Total
current assets
|
41,849 | 45,794 | ||||||
Property,
plant and equipment, net
|
3,593 | 4,303 | ||||||
Intangible
- purchased technology, net
|
4,539 | 4,996 | ||||||
Intangible
- customer relationships and trademark, net
|
2,616 | 2,703 | ||||||
Goodwill
|
15,560 | 15,560 | ||||||
Other
long-term assets, net
|
755 | 777 | ||||||
Total
assets
|
$ | 68,912 | $ | 74,133 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable and accrued expenses
|
$ | 10,343 | $ | 15,566 | ||||
Deferred
revenue
|
6,371 | 7,996 | ||||||
Total
current liabilities
|
16,714 | 23,562 | ||||||
Long-term
liabilities:
|
||||||||
Deferred
revenue
|
954 | 1,053 | ||||||
Revolving
bank line of credit
|
686 | 1,077 | ||||||
Pension
liability
|
1,335 | 1,190 | ||||||
Other
|
1,065 | 656 | ||||||
Total
liabilities
|
20,754 | 27,538 | ||||||
Commitments
and contingencies (Note 14)
|
||||||||
Stockholders'
equity:
|
||||||||
Shares
of common stock, par value $.01; 100,000,000 authorized; 83,055,884
and
82,940,528 issued and outstanding at December 31, 2007 and June 30,
2007,
respectively
|
831 | 829 | ||||||
Capital
in excess of par value
|
203,304 | 202,819 | ||||||
Accumulated
deficit
|
(157,072 | ) | (157,971 | ) | ||||
Treasury
stock, at cost; 0 shares and 1,845 at December 31, 2007 and June
30, 2007,
respectively
|
- | (3 | ) | |||||
Accumulated
other comprehensive income
|
1,095 | 921 | ||||||
Total
stockholders' equity
|
48,158 | 46,595 | ||||||
Total
liabilities and stockholders' equity
|
$ | 68,912 | $ | 74,133 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Revenues:
|
||||||||||||||||
Product
|
$ | 9,964 | $ | 11,685 | $ | 19,732 | $ | 21,017 | ||||||||
Service
|
7,614 | 5,449 | 14,101 | 10,898 | ||||||||||||
Total
revenues
|
17,578 | 17,134 | 33,833 | 31,915 | ||||||||||||
Cost
of sales:
|
||||||||||||||||
Product
|
5,309 | 6,998 | 10,362 | 12,186 | ||||||||||||
Service
|
2,810 | 2,721 | 5,457 | 5,360 | ||||||||||||
Total
cost of sales
|
8,119 | 9,719 | 15,819 | 17,546 | ||||||||||||
Gross
margin
|
9,459 | 7,415 | 18,014 | 14,369 | ||||||||||||
Operating
expenses:
|
||||||||||||||||
Sales
and marketing
|
3,721 | 4,133 | 7,514 | 8,446 | ||||||||||||
Research
and development
|
4,019 | 4,107 | 8,231 | 8,759 | ||||||||||||
General
and administrative
|
2,566 | 2,502 | 4,913 | 5,245 | ||||||||||||
Total
operating expenses
|
$ | 10,306 | 10,742 | 20,658 | 22,450 | |||||||||||
Operating
loss
|
(847 | ) | (3,327 | ) | (2,644 | ) | (8,081 | ) | ||||||||
Gain
on arbitration settlement, net
|
- | - | 1,900 | - | ||||||||||||
Recovery
of minority investment, net
|
- | - | 1,415 | - | ||||||||||||
Interest
income
|
246 | 84 | 472 | 193 | ||||||||||||
Interest
expense
|
(36 | ) | (177 | ) | (72 | ) | (251 | ) | ||||||||
Other
income (expense)
|
(11 | ) | (178 | ) | 79 | (93 | ) | |||||||||
Income
(loss) before income taxes
|
(648 | ) | (3,598 | ) | 1,150 | (8,232 | ) | |||||||||
Provision
(benefit) for income taxes
|
121 | (67 | ) | 175 | 151 | |||||||||||
Net
income (loss)
|
$ | (769 | ) | $ | (3,531 | ) | $ | 975 | $ | (8,383 | ) | |||||
Net
income (loss) per share
|
||||||||||||||||
Basic
|
$ | (0.01 | ) | $ | (0.05 | ) | $ | 0.01 | $ | (0.12 | ) | |||||
Diluted
|
$ | (0.01 | ) | $ | (0.05 | ) | $ | 0.01 | $ | (0.12 | ) |
Six
Months Ended
|
||||||||
December
31,
|
||||||||
2007
|
2006
|
|||||||
OPERATING
ACTIVITIES
|
||||||||
Net
income (loss)
|
$ | 975 | $ | (8,383 | ) | |||
Adjustments
to reconcile net income (loss) to net cash provided by (used in)
operating
activities:
|
||||||||
Depreciation
and amortization
|
2,154 | 2,744 | ||||||
Share-based
compensation
|
500 | 482 | ||||||
Recovery
of minority investment, net
|
(1,415 | ) | - | |||||
Other
non-cash expenses
|
(38 | ) | 42 | |||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
6,012 | 742 | ||||||
Inventories
|
584 | 412 | ||||||
Prepaid
expenses and other current assets
|
(67 | ) | (270 | ) | ||||
Other
long-term assets
|
22 | 202 | ||||||
Accounts
payable and accrued expenses
|
(5,223 | ) | 506 | |||||
Deferred
revenue
|
(1,724 | ) | (1,064 | ) | ||||
Other
long-term liabilities
|
426 | 145 | ||||||
Total
adjustments to net income (loss)
|
1,231 | 3,941 | ||||||
Net
cash provided by (used in) operating activities
|
2,206 | (4,442 | ) | |||||
INVESTING
ACTIVITIES
|
||||||||
Capital
expenditures
|
(842 | ) | (1,478 | ) | ||||
Recovery
of minority investment, net
|
1,415 | - | ||||||
Net
cash provided by (used in) investing activities
|
573 | (1,478 | ) | |||||
FINANCING
ACTIVITIES
|
||||||||
Proceeds
from revolving bank line of credit
|
- | 1,077 | ||||||
Repayment
of revolving bank line of credit
|
(391 | ) | - | |||||
Repayment
of note payable to bank
|
- | (1,583 | ) | |||||
Proceeds
from short-term note payable
|
- | 690 | ||||||
Repayment
of short term note payable
|
- | (409 | ) | |||||
Sale
(purchase) of treasury stock, net
|
(10 | ) | (19 | ) | ||||
Proceeds
from sale and issuance of common stock
|
- | 5 | ||||||
Net
cash used in financing activities
|
(401 | ) | (239 | ) | ||||
Effect
of exchange rates on cash and cash equivalents
|
264 | 71 | ||||||
Increase
(decrease) in cash and cash equivalents
|
2,642 | (6,088 | ) | |||||
Cash
and cash equivalents at beginning of period
|
20,416 | 14,423 | ||||||
Cash
and cash equivalents at end of period
|
$ | 23,058 | $ | 8,335 | ||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ | 34 | $ | 122 | ||||
Income
taxes (net of refunds)
|
$ | 128 | $ | 13 |
1.
|
Overview
of Business and Basis of Presentation
|
2.
|
Revenue
Recognition and Related Matters
|
3.
|
Basic
and Diluted Net Income (Loss) per Share
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Basic
and diluted earnings per share (EPS) calculation:
|
||||||||||||||||
Net
income (loss)
|
$ | (769 | ) | $ | (3,531 | ) | $ | 975 | $ | (8,383 | ) | |||||
Basic
weighted average number of shares outstanding
|
83,025 | 71,600 | 82,975 | 71,567 | ||||||||||||
Effect
of dilutive securities:
|
||||||||||||||||
Restricted
stock
|
- | - | 128 | - | ||||||||||||
Employee
stock options
|
- | - | 5 | - | ||||||||||||
Shares
issued upon assumed exercise of warrants
|
- | - | - | - | ||||||||||||
Diluted
weighted average number of shares outstanding
|
83,025 | 71,600 | 83,108 | 71,567 | ||||||||||||
Basic
EPS
|
$ | (0.01 | ) | $ | (0.05 | ) | $ | 0.01 | $ | (0.12 | ) | |||||
Diluted
EPS
|
$ | (0.01 | ) | $ | (0.05 | ) | $ | 0.01 | $ | (0.12 | ) |
4.
|
Share-Based
Compensation
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Share-based
compensation expense included in the
|
||||||||||||||||
Statement
of Operations:
|
||||||||||||||||
Cost
of sales
|
$ | 14 | $ | 9 | $ | 12 | $ | 16 | ||||||||
Sales
and marketing
|
60 | 42 | 92 | 64 | ||||||||||||
Research
and development
|
42 | 79 | 56 | 144 | ||||||||||||
General
and administrative
|
222 | 180 | 340 | 260 | ||||||||||||
Total
|
338 | 310 | 500 | 484 | ||||||||||||
Tax
benefit
|
- | - | - | - | ||||||||||||
Share-based
compensation expense, net of taxes
|
$ | 338 | $ | 310 | $ | 500 | $ | 484 | ||||||||
Effect
on basic net income (loss) per share
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
Effect
on basic net income (loss) per share
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) |
5.
|
Inventories
|
December
31,
|
June
30,
|
|||||||
2007
|
2007
|
|||||||
Raw
materials, net
|
$ | 1,726 | $ | 2,054 | ||||
Work-in-process
|
546 | 935 | ||||||
Finished
goods
|
543 | 468 | ||||||
$ | 2,815 | $ | 3,457 |
6.
|
Goodwill
and Other Intangible Assets
|
December
31,
|
June
30,
|
|||||||
2007
|
2007
|
|||||||
Cost
of amortizable intangibles:
|
||||||||
Purchased
technology
|
$ | 7,700 | $ | 7,700 | ||||
Customer
relationships
|
1,900 | 1,900 | ||||||
Total
cost of intangibles
|
9,600 | 9,600 | ||||||
Less
accumulated amortization:
|
||||||||
Purchased
technology
|
(3,161 | ) | (2,704 | ) | ||||
Customer
relationships
|
(384 | ) | (297 | ) | ||||
Total
accumulated amortization
|
(3,545 | ) | (3,001 | ) | ||||
Trademark
|
1,100 | 1,100 | ||||||
Total
intangible assets, net
|
$ | 7,155 | $ | 7,699 |
7.
|
Accounts
Payable and Accrued Expenses
|
December
31,
|
June
30,
|
|||||||
2007
|
2007
|
|||||||
Accounts
payable, trade
|
$ | 5,185 | $ | 7,955 | ||||
Accrued
payroll, vacation, severance and other employee expenses
|
3,402 | 4,679 | ||||||
Warranty
accrual
|
274 | 343 | ||||||
Other
accrued expenses
|
1,482 | 2,589 | ||||||
$ | 10,343 | $ | 15,566 |
Balance
at June 30, 2007
|
$ | 343 | ||
Charged
to costs and expenses, net
|
78 | |||
Deductions
|
(147 | ) | ||
Balance
at December 31, 2007
|
$ | 274 |
8.
|
Comprehensive
Income (Loss)
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
income (loss)
|
$ | (769 | ) | $ | (3,531 | ) | $ | 975 | $ | (8,383 | ) | |||||
Other
comprehensive income (loss):
|
||||||||||||||||
Foreign
currency translation gain
|
80 | 140 | 213 | 88 | ||||||||||||
Amortization
of pension gain and transition amount
|
(20 | ) | - | (39 | ) | - | ||||||||||
Total
comprehensive income (loss)
|
$ | (709 | ) | $ | (3,391 | ) | $ | 1,149 | $ | (8,295 | ) |
9.
|
Recovery
of Minority Interest Investment
|
10.
|
Arbitration
Settlement
|
11.
|
Concentration
of Credit Risk, Segment, and Geographic Information
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
United
States
|
$ | 13,629 | $ | 12,469 | $ | 26,951 | $ | 22,882 | ||||||||
Japan
|
1,563 | 1,534 | 2,851 | 3,362 | ||||||||||||
Other
Asia Pacific countries
|
812 | 472 | 1,251 | 925 | ||||||||||||
Asia
Pacific
|
2,375 | 2,006 | 4,102 | 4,287 | ||||||||||||
Europe
|
1,574 | 2,659 | 2,780 | 4,746 | ||||||||||||
Total
revenue
|
$ | 17,578 | $ | 17,134 | $ | 33,833 | $ | 31,915 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||
December
31,
|
December
31,
|
|||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||
Customer
A
|
14%
|
10%
|
11% |
14%
|
||||||||
Customer
B
|
10%
|
|
10%
|
|
11%
|
<10%
|
||||||
Customer
C
|
<10%
|
<10%
|
13%
|
<10%
|
||||||||
Customer
D
|
<10%
|
10%
|
<10%
|
<10%
|
12.
|
Revolving
Credit Facility
|
13.
|
Retirement
Plans
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Service
cost
|
$ | 6 | $ | 8 | $ | 12 | $ | 16 | ||||||||
Interest
cost
|
53 | 57 | 103 | 113 | ||||||||||||
Expected
return on plan assets
|
(34 | ) | (22 | ) | (66 | ) | (44 | ) | ||||||||
Amortization
of net (gain) loss
|
(29 | ) | - | (57 | ) | - | ||||||||||
Amortization
of transition amount
|
9 | 8 | 18 | 16 | ||||||||||||
Net
periodic benefit cost
|
$ | 5 | $ | 51 | $ | 10 | $ | 101 |
14.
|
Commitments
and Contingencies
|
Asserting
Party
|
Jurisdiction
|
Patents
at Issue
|
||
Acacia
Media Technologies, Corp.
|
U.S.
District Court
|
U.S.
Patent Nos. 5,132,992, 5,253,275,
|
||
Northern
District of California
|
5,550,863,
6,002,720, and 6,144,702
|
|||
U.S.A
Video Inc.
|
U.S.
District Court
|
U.S.
Patent No. 5,130,792
|
||
Eastern
District of Texas
|
||||
Vtran
Media Technologies, LLC
|
U.S.
District Court
|
U.S.
Patent Nos. 4,890,320 and
|
||
Eastern
District of Texas
|
4,995,078
|
Management’s
Discussion and Analysis of Financial Condition and Results of Operations
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Revenues:
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
Product
|
56.7 | % | 68.2 | % | 58.3 | % | 65.9 | % | ||||||||
Service
|
43.3 | 31.8 | 41.7 | 34.1 | ||||||||||||
Total
revenues
|
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||
Cost
of sales (% of respective sales category):
|
||||||||||||||||
Product
|
53.3 | 59.9 | 52.5 | 58.0 | ||||||||||||
Service
|
36.9 | 49.9 | 38.7 | 49.2 | ||||||||||||
Total
cost of sales
|
46.2 | 56.7 | 46.8 | 55.0 | ||||||||||||
Gross
margin
|
53.8 | 43.3 | 53.2 | 45.0 | ||||||||||||
Operating
expenses:
|
||||||||||||||||
Sales
and marketing
|
21.2 | 24.1 | 22.2 | 26.5 | ||||||||||||
Research
and development
|
22.8 | 24.0 | 24.3 | 27.4 | ||||||||||||
General
and administrative
|
14.6 | 14.6 | 14.5 | 16.4 | ||||||||||||
Total
operating expenses
|
58.6 | 62.7 | 61.0 | 70.3 | ||||||||||||
Operating
loss
|
(4.8 | ) | (19.4 | ) | (7.8 | ) | (25.3 | ) | ||||||||
Gain
on arbitration settlement, net
|
- | - | 5.6 | - | ||||||||||||
Recovery
of minority investment, net
|
- | - | 4.2 | - | ||||||||||||
Interest
income (expense) - net
|
1.2 | (0.6 | ) | 1.2 | (0.2 | ) | ||||||||||
Other
income (expense) - net
|
(0.1 | ) | (1.0 | ) | 0.2 | (0.3 | ) | |||||||||
Income
(loss) before income taxes
|
(3.7 | ) | (21.0 | ) | 3.4 | (25.8 | ) | |||||||||
Provision
(benefit) for income taxes
|
0.7 | (0.4 | ) | 0.5 | 0.5 | |||||||||||
Net
income (loss)
|
(4.4 | )% | (20.6 | )% | 2.9 | % | (26.3 | )% |
Three
Months Ended
|
||||||||||||||||||
December
31,
|
||||||||||||||||||
(Dollars
in Thousands)
|
2007
|
2006
|
$
Change
|
%
Change
|
||||||||||||||
Product
revenues
|
$ | 9,964 | $ | 11,685 | $ | (1,721 | ) | (14.7 | %) | |||||||||
Service
revenues
|
7,614 | 5,449 | 2,165 | 39.7 | % | |||||||||||||
Total
revenues
|
17,578 | 17,134 | 444 | 2.6 | % | |||||||||||||
Product
cost of sales
|
5,309 | 6,998 | (1,689 | ) | (24.1 | %) | ||||||||||||
Service
cost of sales
|
2,810 | 2,721 | 89 | 3.3 | % | |||||||||||||
Total
cost of sales
|
8,119 | 9,719 | (1,600 | ) | (16.5 | %) | ||||||||||||
Product
gross margin
|
4,655 | 4,687 | (32 | ) | (0.7 | %) | ||||||||||||
Service
gross margin
|
4,804 | 2,728 | 2,076 | 76.1 | % | |||||||||||||
Total
gross margin
|
9,459 | 7,415 | 2,044 | 27.6 | % | |||||||||||||
Operating
expenses:
|
||||||||||||||||||
Sales
and marketing
|
3,721 | 4,133 | (412 | ) | (10.0 | %) | ||||||||||||
Research
and development
|
4,019 | 4,107 | (88 | ) | (2.1 | %) | ||||||||||||
General
and administrative
|
2,566 | 2,502 | 64 | 2.6 | % | |||||||||||||
Total
operating expenses
|
10,306 | 10,742 | (436 | ) | (4.1 | %) | ||||||||||||
Operating
loss
|
(847 | ) | (3,327 | ) | 2,480 | (74.5 | %) | |||||||||||
Interest
income (expense) - net
|
210 | (93 | ) | 303 |
NM
|
(1) | ||||||||||||
Other
expense - net
|
(11 | ) | (178 | ) | 167 | (93.8 | %) | |||||||||||
Loss
before income taxes
|
(648 | ) | (3,598 | ) | 2,950 | (82.0 | %) | |||||||||||
Provision
(benefit) for income taxes
|
121 | (67 | ) | 188 |
NM
|
(1) | ||||||||||||
Net
loss
|
$ | (769 | ) | $ | (3,531 | ) | $ | 2,762 | (78.2 | %) |
Six
Months Ended
|
||||||||||||||||||
December
31,
|
||||||||||||||||||
(Dollars
in Thousands)
|
2007
|
2006
|
$
Change
|
%
Change
|
||||||||||||||
Product
revenues
|
$ | 19,732 | $ | 21,017 | $ | (1,285 | ) | (6.1 | %) | |||||||||
Service
revenues
|
14,101 | 10,898 | 3,203 | 29.4 | % | |||||||||||||
Total
revenues
|
33,833 | 31,915 | 1,918 | 6.0 | % | |||||||||||||
Product
cost of sales
|
10,362 | 12,186 | (1,824 | ) | (15.0 | %) | ||||||||||||
Service
cost of sales
|
5,457 | 5,360 | 97 | 1.8 | % | |||||||||||||
Total
cost of sales
|
15,819 | 17,546 | (1,727 | ) | (9.8 | %) | ||||||||||||
Product
gross margin
|
9,370 | 8,831 | 539 | 6.1 | % | |||||||||||||
Service
gross margin
|
8,644 | 5,538 | 3,106 | 56.1 | % | |||||||||||||
Total
gross margin
|
18,014 | 14,369 | 3,645 | 25.4 | % | |||||||||||||
Operating
expenses:
|
||||||||||||||||||
Sales
and marketing
|
7,514 | 8,446 | (932 | ) | (11.0 | %) | ||||||||||||
Research
and development
|
8,231 | 8,759 | (528 | ) | (6.0 | %) | ||||||||||||
General
and administrative
|
4,913 | 5,245 | (332 | ) | (6.3 | %) | ||||||||||||
Total
operating expenses
|
20,658 | 22,450 | (1,792 | ) | (8.0 | %) | ||||||||||||
Operating
loss
|
(2,644 | ) | (8,081 | ) | 5,437 | (67.3 | %) | |||||||||||
Gain
on arbitration settlement, net
|
1,900 | - | 1,900 |
NM
|
(1) | |||||||||||||
Recovery
of minority investment, net
|
1,415 | - | 1,415 |
NM
|
(1) | |||||||||||||
Interest
income (expense) - net
|
400 | (58 | ) | 458 |
NM
|
(1) | ||||||||||||
Other
income (expense) - net
|
79 | (93 | ) | 172 |
NM
|
(1) | ||||||||||||
Income
(loss) before income taxes
|
1,150 | (8,232 | ) | 9,382 |
NM
|
(1) | ||||||||||||
Provision
for income taxes
|
175 | 151 | 24 | 15.9 | % | |||||||||||||
Net
income (loss)
|
$ | 975 | $ | (8,383 | ) | $ | 9,358 |
NM
|
(1) |
|
|
·
|
the
rate of growth or decline, if any, of on-demand market expansions
and the
pace at which domestic and international cable companies and telephone
companies implement on-demand technology;
|
|
·
|
the
rate of growth, if any, of deployment of our real-time operating
systems
and tools;
|
|
·
|
the
actual versus anticipated decline in revenue from maintenance and
product
sales of real-time proprietary systems;
|
|
·
|
ongoing
cost control actions and expenses, including capital expenditures;
|
|
·
|
the
margins on our product lines;
|
|
·
|
our
ability to leverage the potential of Everstream;
|
|
·
|
our
ability to raise additional capital, if necessary;
|
|
·
|
our
ability to obtain additional bank financing, if necessary;
|
|
·
|
our
ability to meet the covenants contained in our Credit Agreement;
|
|
·
|
timing
of product shipments, which typically occur during the last month
of the
quarter;
|
|
·
|
the
percentage of sales derived from outside the United States where
there are
generally longer accounts receivable collection cycles; and
|
|
·
|
the
number of countries in which we operate, which may require maintenance
of
minimum cash levels in each country and, in certain cases, may restrict
the repatriation of cash, such as cash held on deposit to secure
office
leases.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
Controls
and Procedures
|
Part
II
|
Other
Information
|
Legal
Proceedings
|
Risk
Factors
|
Submission
of Matters to a Vote of Security Holders
|
|
-
|
The
following persons were elected as directors to serve until the next
annual
meeting of stockholders: Alex B. Best (63,259,047 votes for, 3,953,948
votes withheld), Charles Blackmon (63,112,127 votes for, 4,100,868
votes
withheld), Larry L. Enterline (63,395,512 votes for, 3,817,483 votes
withheld), C. Shelton James (63,163,253 votes for, 4,049,742 votes
withheld), Steve G. Nussrallah (62,773,737 votes for, 4,439,258 votes
withheld), and T. Gary Trimm (63,321,763 votes for, 3,891,232 votes
withheld).
|
|
-
|
The
selection of Deloitte & Touche LLP as Concurrent’s independent
registered public accountants for the fiscal year ending June 30,
2008 was
ratified (65,490,496 votes for, 1,592,164 votes against, 130,333
votes
abstained).
|
Exhibits
|
3.1
|
Restated
Certificate of Incorporation of the Registrant (incorporated by reference
to the Registrant's Registration Statement on Form S-2 (No. 33-62440)).
|
3.2
|
Amended
and Restated Bylaws of the Registrant (incorporated by reference
to the
Registrant’s Quarterly Report on Form 10-Q for the period ended March 31,
2003 (No. 000-13150)).
|
3.3
|
Certificate
of Correction to Restated Certificate of Incorporation of the Registrant
(incorporated by reference to the Registrant’s Annual Report on Form 10-K
for the fiscal year ended June 30, 2002 (No. 000-13150)).
|
3.4
|
Amended
Certificate of Designations of Series A Participating Cumulative
Preferred
Stock (incorporated by reference to the Form 8-A/A, dated August
9, 2002
(No. 000-13150)).
|
3.5
|
Amendment
to Amended Certificate of Designations of Series A Participating
Cumulative Preferred Stock (incorporated by reference to the Form
8-A/A,
dated August 9, 2002 (No. 000-13150)).
|
4.1
|
Form
of Common Stock Certificate (incorporated by reference to the Registrant’s
Quarterly Report on Form 10-Q for the period ended March 31, 2003
(No.
000-13150)).
|
4.2
|
Form
of Rights Certificate (incorporated by reference to the Registrant’s
Current Report on Form 8-K/A filed on August 12, 2002 (No. 000-13150)).
|
4.3
|
Amended
and Restated Rights Agreement dated as of August 7, 2002 between
the
Registrant and American Stock Transfer & Trust Company, as Rights
Agent (incorporated by reference to the Registrant’s Current Report on
Form 8-K/A filed on August 12, 2002 (No. 000-13150)).
|
4.4
|
Form
of Warrant (filed as Exhibit 4.1 to the Registrant’s Current Report on
Form 8-K dated May 15, 2007 and incorporated herein by reference(No.
000-13150) ).
|
4.5
|
Form
of Warrant (filed as Exhibit 4.1 to the Registrant’s Current Report on
Form 8-K dated May 15, 2007 and incorporated herein by reference
(No.
000-13150)).
|
10.1
|
First
Amendment to Amended and Restated Loan and Security Agreement
(incorporated by reference to the Registrant’s Current Report on Form 8-K
filed on December 20, 2007(No. 000-13150)).
|
11.1*
|
Statement
Regarding Computation of Per Share Earnings.
|
31.1**
|
Certification
of Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
31.2**
|
Certification
of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
32.1**
|
Certification
of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as
adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2**
|
Certification
of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as
adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
*
|
Data
required by Statement of Financial Accounting Standards No. 128,
“Earnings
per Share,” is provided in the Notes to the condensed consolidated
financial statements in this report.
|
**
|
Filed
herewith.
|
Date: February
1, 2007
|
CONCURRENT
COMPUTER CORPORATION
|
||
By:
|
/s/
Emory O. Berry
|
||
Emory
O. Berry
|
|||
Chief
Financial Officer
|
|||
(Principal
Financial and Accounting Officer)
|
3.1
|
Restated
Certificate of Incorporation of the Registrant (incorporated by reference
to the Registrant's Registration Statement on Form S-2 (No. 33-62440)).
|
3.2
|
Amended
and Restated Bylaws of the Registrant (incorporated by reference
to the
Registrant’s Quarterly Report on Form 10-Q for the period ended March 31,
2003 (No. 000-13150)).
|
3.3
|
Certificate
of Correction to Restated Certificate of Incorporation of the Registrant
(incorporated by reference to the Registrant’s Annual Report on Form 10-K
for the fiscal year ended June 30, 2002 (No. 000-13150)).
|
3.4
|
Amended
Certificate of Designations of Series A Participating Cumulative
Preferred
Stock (incorporated by reference to the Form 8-A/A, dated August
9, 2002
(No. 000-13150)).
|
3.5
|
Amendment
to Amended Certificate of Designations of Series A Participating
Cumulative Preferred Stock (incorporated by reference to the Form
8-A/A,
dated August 9, 2002 (No. 000-13150)).
|
4.1
|
Form
of Common Stock Certificate (incorporated by reference to the Registrant’s
Quarterly Report on Form 10-Q for the period ended March 31, 2003
(No.
000-13150)).
|
4.2
|
Form
of Rights Certificate (incorporated by reference to the Registrant’s
Current Report on Form 8-K/A filed on August 12, 2002).
|
4.3
|
Amended
and Restated Rights Agreement dated as of August 7, 2002 between
the
Registrant and American Stock Transfer & Trust Company, as Rights
Agent (incorporated by reference to the Registrant’s Current Report on
Form 8-K/A filed on August 12, 2002 (No. 000-13150)).
|
4.4
|
Form
of Warrant (filed as Exhibit 4.1 to the Registrant’s Current Report on
Form 8-K dated May 15, 2007 and incorporated herein by reference
(No.
000-13150)).
|
4.5
|
Form
of Warrant (filed as Exhibit 4.1 to the Registrant’s Current Report on
Form 8-K dated May 15, 2007 and incorporated herein by reference
(No.
000-13150)).
|
10.1
|
First
Amendment to Amended and Restated Loan and Security Agreement
(incorporated by reference to the Registrant’s Current Report on Form 8-K
filed on December 20, 2007(No. 000-13150)).
|
11.1*
|
Statement
Regarding Computation of Per Share Earnings.
|
Certification
of Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
Certification
of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
Certification
of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as
adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
Certification
of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as
adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
*
|
Data
required by Statement of Financial Accounting Standards No. 128,
“Earnings
per Share,” is provided in the Notes to the condensed consolidated
financial statements in this report.
|
**
|
Filed
herewith.
|