Final Results

Concurrent Technologies PLC 26 February 2002 CONCURRENT TECHNOLOGIES PLC Preliminary Results for the year to 31st December 2001 Excellent performance in difficult markets Concurrent Technologies Plc, which designs, produces and markets single board computers known as Multibus II, CompactPCI(R) and VME, announces preliminary results for the year to 31st December 2001. Key Highlights - Pre-tax profit £508,768 (2000 - £1.2m), in line with expectations - EPS 0.5p (2000 - 1.16p) - Zero gearing - £3.2 million cash at bank and in hand. Net cash inflow of £1.02 million - Broad customer base ensured continued profitability despite sharp decline in telecommunications market - New products further extend market segments Post period - US acquisition completed • Adds new product range • Diversifies technology to include Motorola processors • Gives access to US pool of specialist engineers Michael Collins, Chairman, commented: 'Unlike many other companies over the past year, Concurrent Technologies had chosen not to focus its product range on the telecommunications market .... . Whilst the downturn in the telecommunications sector clearly had a negative impact on our results for 2001, our diversified product range ensured that ...., unlike some of our competitors, we were able to remain profitable. 'With the additional products from Omnibyte, we are well positioned to exploit new opportunities throughout the next 12 months and this, combined with our increased customer base and broad product range leads us to expect our sales in 2002 to be generated from a wide variety of market sectors. We therefore look forward to the future with confidence and in particular a stronger performance in 2002 than we achieved in 2001.' 26th February 2002 ENQUIRIES: Concurrent Technologies Plc Tel: 020 7457 2020 (today) Glen Fawcett, Managing Director Tel: 01206 752 626 College Hill Tel: 020 7457 2020 Michael Padley Nicholas Nelson CHAIRMAN'S STATEMENT Financial The pre-tax profit for 2001 was £508,768 compared with £1,186,673 for 2000, which is in line with revised expectations. Turnover was £6,600,190 (2000 - £8,281,083). The turnover in the second six months of the year 2001 was £2.66 million compared with £3.94 million in the first half of the year, caused mainly by the sharp decline in the telecommunications market during the whole of 2001 and uncertainty in our markets generally in the final quarter of 2001. We have however kept our operating costs well under control and the gross profit percentage for the year increased to 48% (2000 45.7%). Earnings per share were 0.5p per share compared with 1.16p per share in 2000. We ended 2001 with cash at bank and in hand of £3,205,010, a net cash inflow during the year of £1,017,651. On 31 December 2001 we had no borrowings. Dividends Immediately after the year-end our cash reserve was reduced when we completed the purchase of Omnibyte Corporation ('Omnibyte') for $1,500,000. Bearing in mind also that the profit on ordinary activities after taxation for 2001 was £360,350 your Board does not propose to recommend a dividend in respect of 2001. We shall, however, keep the matter under review and it is quite possible that if trading during 2002 develops as planned, the Board will be in a position to recommend an interim dividend to shareholders following the announcement of the interim results for the period to 30 June 2002. The Board is keen to revert to paying dividends as soon as circumstances permit. US Acquisition The most significant event for the Company in the last 6 months was the extension of our presence in the USA by the completion in early January 2002 of the purchase of Omnibyte Corporation. The Omnibyte business is based in West Chicago, Illinois, USA and specialises in the manufacture and design of electronic micro computer circuits and systems including VME single board computers using both PowerPC(R) and 68060 processors made by Motorola(R). With Omnibyte comes a package of existing single board computer designs and design development expertise. The new engineers we have acquired have enhanced the number of engineers in the Group by 40%. There is an agreement between Omnibyte and its former parent company, Parr Instrument Company ('Parr'), which formalises the terms of inter-company trading, under which Omnibyte will continue to supply Parr with certain products that Parr incorporates into its own range of instruments. This agreement is for a minimum of 6 months from closing of the purchase. We believe that Omnibyte is a very important purchase for Concurrent Technologies. We have broadened our technology base and our product list. This has enabled us to strengthen our position in the USA. Our existing sales teams will be responsible for sales of these products, which have been designed, and will continue to be designed, by the Omnibyte design engineers. We have also already identified opportunities for the Omnibyte products through the Concurrent Technologies' worldwide sales and distribution network. The senior Omnibyte employees, including the General Manager, have entered into new employment agreements. In addition, new employee terms and conditions have been implemented throughout Omnibyte. We continue to survey the market for other possible acquisitions in the USA. Outlook We now supply products built to three principal bus standards namely: Multibus II, CompactPCI(R) and VME. With the addition of the Omnibyte product range our VME products now not only incorporate Intel(R) processors but also PowerPC and 68060 processors from Motorola. During the last year we designed two products that support the new Packet Switching Backplane standard, which is an emerging inter-board communication technology used in high-end, high performance systems. These leading-edge products have been very well received across many markets. The telecommunications sector remains subdued in terms of volume production. However, due to our many recent product releases, we are well placed to supply the market when it recovers and are actively working on new applications within this marketplace. Our strategy has been and will continue to be, to position ourselves to supply an extensive range of single board computer products to a broad range of market areas. There has been much sales activity over the last year in the industrial, scientific research and defence sectors, with the defence sector in particular showing signs of growth. During the period we have directed more of our design capability towards the defence market and we plan to introduce products that operate at the much wider temperatures often requested by defence customers. In addition we have established partnerships with companies providing complementary products and services that allow us to provide more complete solutions to customers, thereby reducing their time-to-market. While turnover declined during 2001 the number of customers increased by 32% as a direct result of our increased sales and marketing activities. Many of these customers are upgrading existing applications to increase performance or beginning new projects and are expected to generate a good revenue stream in the future. Unlike many other companies, Concurrent Technologies decided before the beginning of 2001 not to focus its product range on the telecommunications market, and had remained active in other markets including medical, defence, industrial and transportation. Whilst the downturn in the telecommunications sector clearly had a negative impact on our results for 2001, our diversified product range ensured that we were able to gain business in other markets and, unlike some of our competitors, remain profitable. With the additional products from Omnibyte, we are well positioned to exploit new opportunities throughout the next 12 months and this, combined with our increased customer base and broad product range leads us to expect our sales in 2002 to be generated from a wide variety of market sectors. We therefore look forward to the future with confidence and in particular a stronger performance in 2002 than we achieved in 2001. Annual General Meeting The annual general meeting this year will be held on 19 April 2002. Michael Collins Chairman PROFIT & LOSS Year to Year to Notes 31 December 31 December 2001 2000 £ £ Turnover from Continuing Operations 6,600,190 8,281,083 Cost of sales 3,434,451 4,496,865 Gross Profit 3,165,739 3,784,218 Design, development and administrative expenses 2,753,512 2,643,908 Operating profit from continuing operations 412,227 1,140,310 Net interest 96,541 46,363 Profit on ordinary activities before taxation 508,768 1,186,673 Taxation 148,418 348,856 Profit on ordinary activities after taxation 360,350 837,817 Dividends, proposed and payable:- Ordinary Shares (equity) - 363,500 Retained Profit for the Year 360,350 474,317 Earnings per Ordinary Share 3 0.50p 1.16p Statement of Total Recognised Gains & Losses Year to Year to 31 December 31 December 2001 2000 £ £ Profit for the year 360,350 837,817 Currency translation differences on foreign currency net investments 4,914 (39,250) Total gains recognised since last annual report 365,264 798,567 BALANCE SHEET 31 December 31 December 2001 2000 £ £ FIXED ASSETS Tangible assets 600,112 612,220 Investments 60 60 600,172 612,280 CURRENT ASSETS Stocks and work in progress 576,527 1,032,718 Debtors 1,725,631 2,898,250 Cash at bank and in hand 3,205,010 2,187,359 5,507,168 6,118,327 CREDITORS: amounts falling due within one year 891,031 1,879,562 NET CURRENT ASSETS 4,616,137 4,238,765 TOTAL ASSETS LESS CURRENT LIABILITIES 5,216,309 4,851,045 CREDITORS: amounts falling due after more than one year - - NET ASSETS 5,216,309 4,851,045 CAPITAL AND RESERVES Called up share capital 727,000 727,000 Share Premium account 3,405,817 3,405,817 Capital redemption reserve 256,976 256,976 Profit & Loss account 826,516 461,252 EQUITY SHAREHOLDERS' FUNDS 5,216,309 4,851,045 CASH FLOW STATEMENT 1.1.1.1 1.1.1.2 31 December 31 December 2001 2000 £ £ Net cash inflow from operating activities 1,607,770 114,973 Returns on investments and servicing of finance: Interest received 99,492 66,579 Interest paid - finance lease interest (2,951) (8,702) Interest paid - bank interest - (11,514) Net cash inflow from returns on investments and servicing of finance 96,541 46,363 Taxation: UK Corporation Tax (189,800) (145) Capital expenditure and financial investment: Payments to acquire tangible fixed assets (115,303) (61,007) Sale of tangible fixed assets - 75 Net cash outflow from capital expenditure and financial investment: (115,303) (60,932) Equity Dividends paid (363,500) - Financing: Issue of Ordinary Share Capital - 1,000,000 Expenses incurred on issue of equity share capital - (28,126) Purchase of Deferred Shares - (257) Capital element on hire purchase and finance leases (22,971) (65,381) Borrowings repaid - (399,705) Net cash (outflow)/inflow from financing (22,971) 506,531 Increase in cash 1,012,737 606,790 NOTES 1. The results for the year ended 31 December 2001 are abridged from the Financial Statements for the year, which contain an unqualified audit report and will be filed with the Registrar of Companies. 2. The consolidated Financial Statements have been prepared on a basis consistent with the Financial Statements for the year ended 31 December 2000. 3. The calculation of earnings per share is based on the weighted average number of Ordinary Shares in issue of 72,700,012 (2000 - 72,410,395), and on the profit after tax of £360,350 (2000 - Profit: £837,817). Fully diluted earnings per share (assuming full exercise of the options granted under the Share Option Scheme) is not materially different from the figures shown. Copies of the Annual Report will be sent to Shareholders and will also be available from the Company's Registered Office: C/O MSP Secretaries, 22 Melton Street, London, NW1 2BW This information is provided by RNS The company news service from the London Stock Exchange

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