Concurrent On Course10/07/2001 8:00 PM Eastern
Morgan Keegan & Co. analyst Murray Arenson maintained his outperform rating on Concurrent Computer Corp., despite the video-on-demand vendor's announcement last week that its VOD revenue would be lower than previously expected. Although Arenson was "disappointed" in the lower revenue — Concurrent said third-quarter VOD sales would be $3.5 million, instead of $6 million — he took note of the company's strong real-time computing business, which is expected to exceed revenue estimates for the period. Concurrent said the VOD shortfall was due to two orders that were smaller than originally expected and a third that was not finalized by Sept. 30. The company reaffirmed its overall revenue guidance for the period. "We do not believe this announcement calls into doubt the imminent rollout of video-on-demand," Arenson wrote.