Concurrent Cuts Quarterly Outlook

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It appears that video-on-demand-systems provider Concurrent Computer Corp. is
going to be scaling down its financial picture for its current quarter.

The Atlanta-based company is dropping its estimates for the fiscal third
quarter ending March 31 from between $21 million and $23.5 million originally
projected to between $16.5 million and $18.5 million.

VOD revenue is now estimated to drop from an estimated $12 million to $14
million to between $7.5 million and $9.5 million, while its "Real-Time" product
revenue should remain at about $9 million. VOD gross margins also are expected
to be in the low 40 percent range for the quarter.

Concurrent is blaming the drop in VOD revenue on the timing of certain orders
among its cable clientele, increasing competitive pressure to drop product
prices and a continued cooling among MSOs when it comes to capital spending.

Also cited in the slowdown is ongoing integration and systems-setup work for
some rollouts and a sluggish international market.

A potentially big drag on Concurrent's quarterly earnings may stem from its
financial involvement with Thirdspace, a London-based provider of
digital-subscriber-line VOD systems. Concurrent has invested $7.3 million in the
start-up, and it has loaned the company $6 million.

Concurrent has already taken $4.4 million of that investment off the books,
and it appears that it will have to write off the remainder, boosting its
third-quarter loss estimate from 5 cents to 6 cents per share to 12 cents to 13
cents

In addition, the company is now acknowledging that there is no assurance that
Thirdspace has the funding to repay the loan.

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