Video-on-demand server provider Concurrent Computer warned that its upcoming quarterly earnings will be lower than expected and said it issued pink slips to 7% of its work force as part of a larger cost-cutting program.
The Atlanta-based company revised financial expectations for its fiscal fourth-quarter 2006 ending June 30, which it will release Aug. 11. The company expects revenues to come in at $15 million-$17 million, with a per-share loss of 5-7 cents.
In addition to pricing pressure for on-demand products, the company is blaming the dimmer quarterly results on a shortfall in international on-demand revenue stemming from timing of some deployments. Sales also took a hit because of a delay in a large order for Everstream, its on-demand advertising-measurement and reporting software subsidiary.
As part of a longer-term effort to cut costs and reposition the company, Concurrent also laid off about 7% of its employees in the past 18 months.
"Despite the disappointing results for this quarter, we remain optimistic about our business long-term," CEO Gary Trimm said. "The fundamentals for the on-demand market and our position in that market are strong.”