Capex Cutbacks Color Concurrent Cash


Concurrent Computer Corp. reported revenue and earnings in its third quarter
in line with lower forecasts it issued to Wall Street one month ago.

Quarterly revenue reached $17.6 million compared with $25 million in the
year-earlier period. The company posted a net loss of $4.3 million compared with
net income of $2.3 million last year.

The vendor reported a $10.5 million noncash impairment charge related to its
investment in Thirdspace Living Ltd., an Internet-protocol video-on-demand

Cutbacks in MSO capital expenditures, including slower-than-expected VOD
rollouts, hurt the company, Concurrent said.

Xstreme division president Steve Necessary said it's "clearly a mixed
deployment environment. Many operators remain cautious and deliberate as they
manage their capital spending."

Concurrent said it expects revenue of between
$16 million and $18.5 million in the current quarter, with similar VOD revenue
in the current quarter ($7 million to $9 million) as the first quarter ($8.5

In fact, VOD is becoming a bigger wild card for Concurrent than its Real Time
Linux-multiprocessor division.

Quarterly VOD revenue fell from $14.6 million to $8.5 million year over year.
Real Time revenue, on the other hand, only dropped from $10.5 million to $9.2
million quarter over quarter.