(Mark
One)
x Quarterly
Report Pursuant to Section 13 or 15(d) of
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the
Securities Exchange Act of 1934
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Delaware
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04-2735766
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(State
or other jurisdiction
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(I.R.S.
Employer Identification No.)
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of
incorporation or organization)
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Large
Accelerated Filer o
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Accelerated
Filer x
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Non-Accelerated
Filer o
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Page
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Part I – Financial
Information
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Item
1.
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2
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2
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3
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4
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5
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Item
2.
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16
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Item
3.
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26
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Item
4.
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26
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Part II – Other
Information
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Item
1.
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27
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Item
6.
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27
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EX-31.1
SECTION 302 CERTIFICATION OF CEO
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EX-31.2
SECTION 302 CERTIFICATION OF CFO
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EX-32.1
SECTION 906 CERTIFICATION OF CEO
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EX-32.2
SECTION 906 CERTIFICATION OF
CFO
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Part
I
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Financial
Information
|
Condensed
Consolidated Financial Statements
|
March
31,
|
June
30,
|
|||||||
2008
|
2007
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 24,629 | $ | 20,416 | ||||
Accounts
receivable, less allowance for doubtful accounts of $94 at March 31, 2008
and $96 at June 30, 2007
|
20,857 | 20,987 | ||||||
Inventories,
net
|
3,652 | 3,457 | ||||||
Prepaid
expenses and other current assets
|
1,272 | 934 | ||||||
Total
current assets
|
50,410 | 45,794 | ||||||
Property,
plant and equipment, net
|
3,706 | 4,303 | ||||||
Intangible
- purchased technology, net
|
4,310 | 4,996 | ||||||
Intangible
- customer relationships and trademark, net
|
2,573 | 2,703 | ||||||
Goodwill
|
15,560 | 15,560 | ||||||
Other
long-term assets, net
|
767 | 777 | ||||||
Total
assets
|
$ | 77,326 | $ | 74,133 | ||||
|
||||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable and accrued expenses
|
$ | 13,474 | $ | 15,566 | ||||
Deferred
revenue
|
10,168 | 7,996 | ||||||
Total
current liabilities
|
23,642 | 23,562 | ||||||
|
||||||||
Long-term
liabilities:
|
||||||||
Deferred
revenue
|
1,040 | 1,053 | ||||||
Revolving
bank line of credit
|
949 | 1,077 | ||||||
Pension
liability
|
1,472 | 1,190 | ||||||
Other
|
1,197 | 656 | ||||||
Total
liabilities
|
28,300 | 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 March 31, 2008 and June 30, 2007,
respectively
|
831 | 829 | ||||||
Capital
in excess of par value
|
203,602 | 202,819 | ||||||
Accumulated
deficit
|
(156,771 | ) | (157,971 | ) | ||||
Treasury
stock, at cost; 0 shares and 1,845 at March 31, 2008 and June
30, 2007, respectively
|
- | (3 | ) | |||||
Accumulated
other comprehensive income
|
1,364 | 921 | ||||||
Total
stockholders' equity
|
49,026 | 46,595 | ||||||
Total
liabilities and stockholders' equity
|
$ | 77,326 | $ | 74,133 |
Three
Months Ended
|
Nine
Months Ended
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|||||||||||||||
March
31,
|
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenues:
|
||||||||||||||||
Product
|
$ | 13,279 | $ | 10,492 | $ | 33,011 | $ | 31,509 | ||||||||
Service
|
6,095 | 5,656 | 20,196 | 16,554 | ||||||||||||
Total
revenues
|
19,374 | 16,148 | 53,207 | 48,063 | ||||||||||||
Cost
of sales:
|
||||||||||||||||
Product
|
6,022 | 5,788 | 16,384 | 17,974 | ||||||||||||
Service
|
2,753 | 2,487 | 8,210 | 7,847 | ||||||||||||
Total
cost of sales
|
8,775 | 8,275 | 24,594 | 25,821 | ||||||||||||
Gross
margin
|
10,599 | 7,873 | 28,613 | 22,242 | ||||||||||||
Operating
expenses:
|
||||||||||||||||
Sales
and marketing
|
3,923 | 3,539 | 11,437 | 11,985 | ||||||||||||
Research
and development
|
4,214 | 4,587 | 12,445 | 13,346 | ||||||||||||
General
and administrative
|
2,406 | 2,506 | 7,319 | 7,751 | ||||||||||||
Total
operating expenses
|
10,543 | 10,632 | 31,201 | 33,082 | ||||||||||||
Operating
income (loss)
|
56 | (2,759 | ) | (2,588 | ) | (10,840 | ) | |||||||||
Gain
on arbitration settlement, net
|
- | - | 1,900 | - | ||||||||||||
Recovery
of minority investment, net
|
- | - | 1,415 | - | ||||||||||||
Interest
income
|
203 | 81 | 677 | 274 | ||||||||||||
Interest
expense
|
(29 | ) | (54 | ) | (102 | ) | (305 | ) | ||||||||
Other
income (expense)
|
91 | (34 | ) | 169 | (127 | ) | ||||||||||
Income
(loss) before income taxes
|
321 | (2,766 | ) | 1,471 | (10,998 | ) | ||||||||||
Provision
for income taxes
|
20 | 310 | 195 | 461 | ||||||||||||
Net
income (loss)
|
$ | 301 | $ | (3,076 | ) | $ | 1,276 | $ | (11,459 | ) | ||||||
Net
income (loss) per share
|
||||||||||||||||
Basic
|
$ | 0.00 | $ | (0.04 | ) | $ | 0.02 | $ | (0.16 | ) | ||||||
Diluted
|
$ | 0.00 | $ | (0.04 | ) | $ | 0.02 | $ | (0.16 | ) | ||||||
Weighted
average shares outstanding - basic
|
83,056 | 71,646 | 83,002 | 71,593 | ||||||||||||
Weighted
average shares outstanding - diluted
|
83,176 | 71,646 | 83,162 | 71,593 |
Nine
Months Ended
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||||||||
March
31,
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||||||||
2008
|
2007
|
|||||||
OPERATING
ACTIVITIES
|
||||||||
Net
income (loss)
|
$ | 1,276 | $ | (11,459 | ) | |||
Adjustments
to reconcile net income (loss) to net cash
provided by (used in) operating activities:
|
||||||||
Depreciation
and amortization
|
3,056 | 4,103 | ||||||
Share-based
compensation
|
798 | 675 | ||||||
Recovery
of minority investment, net
|
(1,415 | ) | - | |||||
Other
non-cash expenses
|
(153 | ) | (6 | ) | ||||
Changes
in operating assets and liabilities:
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||||||||
Accounts
receivable
|
130 | 849 | ||||||
Inventories
|
(228 | ) | 1,422 | |||||
Prepaid
expenses and other current assets
|
(338 | ) | (329 | ) | ||||
Other
long-term assets
|
10 | 212 | ||||||
Accounts
payable and accrued expenses
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(2,092 | ) | 1,292 | |||||
Deferred
revenue
|
2,159 | (260 | ) | |||||
Other
long-term liabilities
|
668 | 243 | ||||||
Total
adjustments to net income (loss)
|
2,595 | 8,201 | ||||||
Net
cash provided by (used in) operating activities
|
3,871 | (3,258 | ) | |||||
INVESTING
ACTIVITIES
|
||||||||
Capital
expenditures
|
(1,496 | ) | (2,111 | ) | ||||
Recovery
of minority investment, net
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1,415 | - | ||||||
Net
cash used in investing activities
|
(81 | ) | (2,111 | ) | ||||
FINANCING
ACTIVITIES
|
||||||||
Proceeds
from revolving bank line of credit
|
263 | 1,077 | ||||||
Repayment
of revolving bank line of credit
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(391 | ) | - | |||||
Repayment
of note payable to bank
|
- | (1,583 | ) | |||||
Proceeds
from short-term note payable
|
- | 690 | ||||||
Repayment
of short term note payable
|
- | (619 | ) | |||||
Sale
(purchase) of treasury stock, net
|
(10 | ) | 13 | |||||
Proceeds
from sale and issuance of common stock
|
- | 8 | ||||||
Net
cash used in financing activities
|
(138 | ) | (414 | ) | ||||
Effect
of exchange rates on cash and cash equivalents
|
561 | 110 | ||||||
Increase
(decrease) in cash and cash equivalents
|
4,213 | (5,673 | ) | |||||
Cash
and cash equivalents at beginning of period
|
20,416 | 14,423 | ||||||
Cash
and cash equivalents at end of period
|
$ | 24,629 | $ | 8,750 | ||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ | 54 | $ | 136 | ||||
Income
taxes (net of refunds)
|
$ | 174 | $ | 114 |
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
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Basic
and diluted earnings per share (EPS) calculation:
|
||||||||||||||||
Net
income (loss)
|
$ | 301 | $ | (3,076 | ) | $ | 1,276 | $ | (11,459 | ) | ||||||
Basic
weighted average number of shares outstanding Effect
of dilutive securities:
|
83,056 | 71,646 | 83,002 | 71,593 | ||||||||||||
Restricted
stock
|
120 | - | 160 | - | ||||||||||||
Employee
stock options
|
- | - | - | |||||||||||||
Warrants
|
- | - | - | - | ||||||||||||
Diluted
weighted average number of shares outstanding
|
83,176 | 71,646 | 83,162 | 71,593 | ||||||||||||
Basic
EPS
|
$ | 0.00 | $ | (0.04 | ) | $ | 0.02 | $ | (0.16 | ) | ||||||
Diluted
EPS
|
$ | 0.00 | $ | (0.04 | ) | $ | 0.02 | $ | (0.16 | ) |
4.
|
Share-Based
Compensation
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
March
31,
|
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Share-based
compensation expense included in the Statement
of Operations:
|
||||||||||||||||
Cost
of sales
|
$ | 14 | $ | 5 | $ | 24 | $ | 21 | ||||||||
Sales
and marketing
|
61 | 32 | 153 | 96 | ||||||||||||
Research
and development
|
43 | 69 | 99 | 212 | ||||||||||||
General
and administrative
|
181 | 87 | 522 | 346 | ||||||||||||
Total
|
299 | 193 | 798 | 675 | ||||||||||||
Tax
benefit
|
- | - | - | - | ||||||||||||
Share-based
compensation expense, net of taxes
|
$ | 299 | $ | 193 | $ | 798 | $ | 675 | ||||||||
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
|
March
31,
|
June
30,
|
|||||||
2008
|
2007
|
|||||||
Raw
materials, net
|
$ | 2,441 | $ | 2,054 | ||||
Work-in-process
|
468 | 935 | ||||||
Finished
goods
|
743 | 468 | ||||||
$ | 3,652 | $ | 3,457 |
6.
|
Goodwill
and Other Intangible Assets
|
March
31,
|
June
30,
|
|||||||
2008
|
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
|
(3,390 | ) | (2,704 | ) | ||||
Customer
relationships
|
(427 | ) | (297 | ) | ||||
Total
accumulated amortization
|
(3,817 | ) | (3,001 | ) | ||||
Trademark
|
1,100 | 1,100 | ||||||
Total
intangible assets, net
|
$ | 6,883 | $ | 7,699 |
7.
|
Accounts
Payable and Accrued Expenses
|
March
31,
|
June
30,
|
|||||||
2008
|
2007
|
|||||||
Accounts
payable, trade
|
$ | 7,018 | $ | 7,955 | ||||
Accrued
payroll, vacation, severance and other employee expenses
|
4,431 | 4,679 | ||||||
Warranty
accrual
|
307 | 343 | ||||||
Other
accrued expenses
|
1,718 | 2,589 | ||||||
$ | 13,474 | $ | 15,566 |
Balance
at June 30, 2007
|
$ | 343 | ||
Charged
to costs and expenses, net
|
173 | |||
Deductions
|
(209 | ) | ||
Balance
at March 31, 2008
|
$ | 307 |
8.
|
Comprehensive
Income (Loss)
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
income (loss)
|
$ | 301 | $ | (3,076 | ) | $ | 1,276 | $ | (11,459 | ) | ||||||
Other
comprehensive income (loss):
|
||||||||||||||||
Foreign
currency translation gain
|
290 | 95 | 503 | 182 | ||||||||||||
Amortization
of pension gain and transition amount
|
(21 | ) | - | (60 | ) | - | ||||||||||
Total
comprehensive income (loss)
|
$ | 570 | $ | (2,981 | ) | $ | 1,719 | $ | (11,277 | ) |
9.
|
Recovery
of Minority Interest Investment
|
10.
|
Arbitration
Settlement
|
11.
|
Concentration
of Credit Risk, Segment, and Geographic
Information
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
March
31,
|
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
United
States
|
$ | 14,894 | $ | 11,375 | $ | 41,845 | $ | 34,258 | ||||||||
|
||||||||||||||||
Japan
|
1,435 | 2,703 | 4,287 | 6,064 | ||||||||||||
Other
Asia Pacific countries
|
565 | 544 | 1,814 | 1,469 | ||||||||||||
Asia
Pacific
|
2,000 | 3,247 | 6,101 | 7,533 | ||||||||||||
Europe
|
2,480 | 1,526 | 5,261 | 6,272 | ||||||||||||
Total
revenue
|
$ | 19,374 | $ | 16,148 | $ | 53,207 | $ | 48,063 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
March
31,
|
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Customer
A
|
19 | % | 21 | % | 11 | % | 12 | % | ||||||||
Customer
B
|
16 | % |
<10
|
% |
<10
|
% |
<10
|
% | ||||||||
Customer
C
|
14 | % | 12 | % | 12 | % |
<10
|
% | ||||||||
Customer
D
|
<10
|
% |
<10
|
% |
<10
|
% | 12 | % |
12.
|
Revolving
Credit Facility
|
13.
|
Retirement
Plans
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
March
31,
|
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Service
cost
|
$ | 6 | $ | 8 | $ | 18 | $ | 25 | ||||||||
Interest
cost
|
55 | 59 | 158 | 176 | ||||||||||||
Expected
return on plan assets
|
(35 | ) | (23 | ) | (101 | ) | (69 | ) | ||||||||
Amortization
of net (gain) loss
|
(30 | ) | - | (87 | ) | - | ||||||||||
Amortization
of transition amount
|
9 | 8 | 27 | 25 | ||||||||||||
Net
periodic benefit cost
|
$ | 5 | $ | 52 | $ | 15 | $ | 157 |
14.
|
Commitments
and Contingencies
|
Asserting
Party
|
Jurisdiction
|
Patents
at Issue
|
||
Acacia
Media Technologies, Corp.
|
U.S.
District Court Northern
District
of California
|
U.S.
Patent Nos. 5,132,992, 5,253,275, 5,550,863,
6,002,720, and 6,144,702
|
||
U.S.A
Video Inc.
|
U.S.
District Court Eastern
District
of Texas
|
U.S.
Patent No. 5,130,792
|
||
Vtran
Media Technologies, LLC
|
U.S.
District Court Eastern
District
of Texas
|
U.S.
Patent Nos. 4,890,320 and 4,995,078
|
15.
|
Subsequent
Event
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
March
31,
|
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenues:
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
Product
|
68.5 | % | 65.0 | % | 62.0 | % | 65.6 | % | ||||||||
Service
|
31.5 | 35.0 | 38.0 | 34.4 | ||||||||||||
Total
revenues
|
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||
Cost
of sales (% of respective sales category):
|
||||||||||||||||
Product
|
45.3 | 55.2 | 49.6 | 57.0 | ||||||||||||
Service
|
45.2 | 44.0 | 40.7 | 47.4 | ||||||||||||
Total
cost of sales
|
45.3 | 51.2 | 46.2 | 53.7 | ||||||||||||
Gross
margin
|
54.7 | 48.8 | 53.8 | 46.3 | ||||||||||||
Operating
expenses:
|
||||||||||||||||
Sales
and marketing
|
20.2 | 21.9 | 21.5 | 24.9 | ||||||||||||
Research
and development
|
21.8 | 28.4 | 23.4 | 27.8 | ||||||||||||
General
and administrative
|
12.4 | 15.5 | 13.8 | 16.1 | ||||||||||||
Total
operating expenses
|
54.4 | 65.8 | 58.7 | 68.8 | ||||||||||||
Operating
income (loss)
|
0.3 | (17.0 | ) | (4.9 | ) | (22.5 | ) | |||||||||
Gain
on arbitration settlement, net
|
- | - | 3.6 | - | ||||||||||||
Recovery
of minority investment, net
|
- | - | 2.7 | - | ||||||||||||
Interest
income (expense) - net
|
0.9 | 0.2 | 1.1 | (0.1 | ) | |||||||||||
Other
income (expense) - net
|
0.5 | (0.2 | ) | 0.3 | (0.3 | ) | ||||||||||
Income
(loss) before income taxes
|
1.7 | (17.0 | ) | 2.8 | (22.9 | ) | ||||||||||
Provision
(benefit) for income taxes
|
0.1 | 1.9 | 0.4 | 1.0 | ||||||||||||
Net
income (loss)
|
1.6 | % | (18.9 | )% | 2.4 | % | (23.9 | )% |
Three
Months Ended
|
||||||||||||||||||
March
31,
|
||||||||||||||||||
(Dollars
in Thousands)
|
2008
|
2007
|
$
Change
|
%
Change
|
||||||||||||||
Product
revenues
|
$ | 13,279 | $ | 10,492 | $ | 2,787 | 26.6 | % | ||||||||||
Service
revenues
|
6,095 | 5,656 | 439 | 7.8 | % | |||||||||||||
Total
revenues
|
19,374 | 16,148 | 3,226 | 20.0 | % | |||||||||||||
Product
cost of sales
|
6,022 | 5,788 | 234 | 4.0 | % | |||||||||||||
Service
cost of sales
|
2,753 | 2,487 | 266 | 10.7 | % | |||||||||||||
Total
cost of sales
|
8,775 | 8,275 | 500 | 6.0 | % | |||||||||||||
Product
gross margin
|
7,257 | 4,704 | 2,553 | 54.3 | % | |||||||||||||
Service
gross margin
|
3,342 | 3,169 | 173 | 5.5 | % | |||||||||||||
Total
gross margin
|
10,599 | 7,873 | 2,726 | 34.6 | % | |||||||||||||
Operating
expenses:
|
||||||||||||||||||
Sales
and marketing
|
3,923 | 3,539 | 384 | 10.9 | % | |||||||||||||
Research
and development
|
4,214 | 4,587 | (373 | ) | (8.1 | %) | ||||||||||||
General
and administrative
|
2,406 | 2,506 | (100 | ) | (4.0 | %) | ||||||||||||
Total
operating expenses
|
10,543 | 10,632 | (89 | ) | (0.8 | %) | ||||||||||||
Operating
income (loss)
|
56 | (2,759 | ) | 2,815 |
NM
|
(1
|
) | |||||||||||
Interest
income - net
|
174 | 27 | 147 | 544.4 | % | |||||||||||||
Other
income (expense) - net
|
91 | (34 | ) | 125 |
NM
|
(1
|
) | |||||||||||
Income
(loss) before income taxes
|
321 | (2,766 | ) | 3,087 |
NM
|
(1
|
) | |||||||||||
Provision
for income taxes
|
20 | 310 | (290 | ) | (93.5 | %) |
(1
|
) | ||||||||||
|
||||||||||||||||||
Net
income (loss)
|
$ | 301 | $ | (3,076 | ) | $ | 3,377 |
NM
|
(1
|
) | ||||||||
(1)
NM denotes percentage is not meaningful
|
Nine
Months Ended
|
||||||||||||||||||
March
31,
|
||||||||||||||||||
(Dollars
in Thousands)
|
2008
|
2007
|
$
Change
|
%
Change
|
||||||||||||||
Product
revenues
|
$ | 33,011 | $ | 31,509 | $ | 1,502 | 4.8 | % | ||||||||||
Service
revenues
|
20,196 | 16,554 | 3,642 | 22.0 | % | |||||||||||||
Total
revenues
|
53,207 | 48,063 | 5,144 | 10.7 | % | |||||||||||||
Product
cost of sales
|
16,384 | 17,974 | (1,590 | ) | (8.8 | %) | ||||||||||||
Service
cost of sales
|
8,210 | 7,847 | 363 | 4.6 | % | |||||||||||||
Total
cost of sales
|
24,594 | 25,821 | (1,227 | ) | (4.8 | %) | ||||||||||||
Product
gross margin
|
16,627 | 13,535 | 3,092 | 22.8 | % | |||||||||||||
Service
gross margin
|
11,986 | 8,707 | 3,279 | 37.7 | % | |||||||||||||
Total
gross margin
|
28,613 | 22,242 | 6,371 | 28.6 | % | |||||||||||||
Operating
expenses:
|
||||||||||||||||||
Sales
and marketing
|
11,437 | 11,985 | (548 | ) | (4.6 | %) | ||||||||||||
Research
and development
|
12,445 | 13,346 | (901 | ) | (6.8 | %) | ||||||||||||
General
and administrative
|
7,319 | 7,751 | (432 | ) | (5.6 | %) | ||||||||||||
Total
operating expenses
|
31,201 | 33,082 | (1,881 | ) | (5.7 | %) | ||||||||||||
Operating
loss
|
(2,588 | ) | (10,840 | ) | 8,252 | (76.1 | %) | |||||||||||
Gain
on arbitration settlement, net
|
1,900 | - | 1,900 |
NM
|
(1
|
) | ||||||||||||
Recovery
of minority investment, net
|
1,415 | - | 1,415 |
NM
|
(1
|
) | ||||||||||||
Interest
income - net
|
575 | (31 | ) | 606 |
NM
|
(1
|
) | |||||||||||
Other
expense - net
|
169 | (127 | ) | 296 |
NM
|
(1
|
) | |||||||||||
Income
(loss) before income taxes
|
1,471 | (10,998 | ) | 12,469 |
NM
|
(1
|
) | |||||||||||
Provision
for income taxes
|
195 | 461 | (266 | ) | (57.7 | %) | ||||||||||||
Net
income (loss)
|
$ | 1,276 | $ | (11,459 | ) | $ | 12,735 |
NM
|
(1
|
) | ||||||||
(1)
NM denotes percentage is not meaningful
|
|
·
|
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 or decline, 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, including advanced
advertising and other to be identified
initiatives;
|
|
·
|
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
|
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)).
|
10.2
|
Separation
Agreement, dated April 8, 2008, between Concurrent Computer Corporation
and T. Gary Trimm (incorporated by reference to the Registrant’s Current
Report on Form 8-K filed on April 9, 2008 (No.
000-13150)).
|
10.3
|
Employment
Agreement, dated April 8, 2008, between Concurrent Computer Corporation
and Dan Mondor (incorporated by reference to the Registrant’s Current
Report on Form 8-K filed on April 9, 2008 (No.
000-13150)).
|
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: May
2, 2008
|
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)).
|
10.2
|
Separation
Agreement, dated April 8, 2008, between Concurrent Computer Corporation
and T. Gary Trimm (incorporated by reference to the Registrant’s Current
Report on Form 8-K filed on April 9, 2008 (No.
000-13150)).
|
10.3
|
Employment
Agreement, dated April 8, 2008, between Concurrent Computer Corporation
and Dan Mondor (incorporated by reference to the Registrant’s Current
Report on Form 8-K filed on April 9, 2008 (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.
|