Concurrent Computer Corporation F2Q09 (Qtr End 12/31/08) Earnings Call Transcript

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2009-02-09 12:41:08.0

Tags: VoD, Concurrent Computer Corp., Call Transcript, Quarter, Earnings, Video On Demand (VoD), Tv & Home Theater, Broadband Internet, Digital Media, Personal Technology, Home Entertainment, Telecommunications, Consumer Electronics, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) The first question comes from the line of Andrew Hillman. Please proceed.

Andrew Hillman

Great quarter. Glad to see the numbers. I was wondering if you guys could discuss a little bit more on what’s going on with the Everstream business as far as Canoe’s concerned, in that realm.

Dan Mondor

It’s Dan here. We are leveraging the Everstream technology as we mentioned into the advanced advertising initiatives. We have a platform in development, in trial in a number of places. We are certainly well-engaged with Canoe but we can’t comment further relative to that engagement at this time.

Andrew Hillman

Okay, you guys are still in the Canoe?

Dan Mondor

We are certainly heavily engaged with them, yes.

Operator

Your next question comes from the line of Todd Koffman with Raymond James. Please proceed.

Todd Koffman - Raymond James

I have two questions, if I could. First, if you could just give a little more color on the strong improvement that you were able to capitalize on on the gross margin in the quarter, what was behind that? In your full-year comment on revenue being up in the current fiscal versus the prior fiscal, would you care to break out the trends you see in real-time versus VOD, if there’s any difference in trends going forward?

Dan Mondor

Emory will take that one.

Emory O. Berry

Hey, Todd. Good morning. Thanks for the call. As it relates to your question, we can provide you the overall guidance that we gave in the call which was ultimately that we certainly have seen the impact in our business, generally speaking. It’s impacted both the real-time as well as video on-demand. As far as a characterization of which of those it involves, we’re really unable to provide that. We’re rather able to continue to believe that fiscal 2009 is well-positioned over fiscal 2008. From an expense-management perspective, we have really focused on managing these expenses diligently and will continue to do so in light of the current environment. We’ve seen a number of companies and how they’ve handled it and we’ve been managing those closely. We’ve certainly looked at areas that discretionary expenses could be stopped, where needed.

As far as the margins during the quarter, we were able to continue to benefit from two main areas. One, on a real-time basis, we are able to sell in excess of $500,000 in software which gave us better margins for the second quarter as well as the first half as well as just maintaining the same levels of support personnel with additional revenue. Both of those benefitted us during the second quarter and the first half.

 

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