Interim Results

Concurrent Technologies PLC 15 September 2000 Concurrent Technologies Plc Interim Results Announcement Concurrent Technologies strengthens position in telecommunications sector Concurrent Technologies Plc, which designs, produces and markets single board computers known as Multibus II, CompactPCI and VME, announces its Interim Results for the six months ended 30 June 2000. * Turnover for the period was £3.6 million (1999H1:£1.9m, 1999:£5.5m) * Pre-tax profit for the period £311,837 (1999H1:£331,636 loss, 1999:£177,065 profit), EPS 0.32p * Strong balance sheet * 8 new products introduced in H1 * Substantial forward order book, at end of August * Positive sales indications from Europe and USA for second half of 2000 and into 2001 and 2002 * CompactPCI and VME products being evaluated by customers * Confident of a further significant improvement of financial results in 2001 Michael Collins, Chairman, commented: 'The Company has made very meaningful progress during the last 6 months. Our marketing activities have been increased in Europe and the USA... . 'Seven new products, three currently under development, will be released during the second half of the year. These products are custom designs for specific customers and products using the latest in new CPU technology. 'The current order book and customer indications of sales not only put the Company in a strong position for 2000, but also mean we can look forward to a continued period of growth through 2001.' 15 September 2000 Enquiries: Concurrent Technologies Plc Tel.No.02074572020 (today) Glen Fawcett, Managing Director Tel.No.01206 752 626 College Hill Tel.No.020 7457 2020 Michael Padley / Nick Nelson THE CHAIRMAN'S STATEMENT Financial The turnover for the group for the six month period ended 30 June 2000 was £3,648,557. This was well ahead of the turnover for the same period in 1999. Our continuing support for Multibus II, while at the same time expanding our product portfolio into CompactPCI and VME, is paying off. Sales in the first half of 2000 were biased towards Multibus II. The pre-tax profit for the period was £311,837 compared to a loss of £331,636 in the comparable period in 1999. Our balance sheet continues to remain strong. As at 30 June 2000 our management figures indicated that our current assets (including cash of £1.6m) exceeded our current liabilities by over £4m and our total assets exceeded our total liabilities by over £4.6m. Our investment in new product design and human resources has reduced profitability in the short term and the intangible benefit thereof is not reflected in our balance sheet. Our Markets The main markets for our single board computers ('SBCs') continue to be telecommunications, radar systems, aerospace, defence and medical. The majority of sales in 2000 will be for digital mobile telecommunications systems. We see the continued explosive growth and development of the use of mobile cellular phones as a key part of our future growth. The majority of the goods we are shipping this year are being used in cellular telephone voicemail systems and call integrity systems. We are achieving continued success with the Multibus II product range where we have been particularly successful of late in achieving sales in respect of projects involving telecommunications, medical imaging and air traffic control. During the first half of this year design wins achieved earlier turned into production orders, including one for a substantial telecommunications application. Although in the immediate future our sales will continue to be dominated by Multibus II projects, the key to significant expansion lies with the increased acceptance by the market of our broadening product range including CompactPCI and VME architecture based SBCs and ancillary products. All our SBCs, are based primarily on the Intel Pentium, Pentium II, Pentium III and successor processors which continue to be the processors of choice for many system builders. We believe there is a continuing trend to the use of these processors and operating systems such as Microsoft's Windows NT and Linux which work well with them. We have migrated our Multibus II products to CompactPCI and VME as well as developing new products for these bus architectures. The range of products we can offer to system integrators has been significantly increased and new products will continue to be introduced as higher performance processors become available. Dividends The Board does not propose to pay an interim dividend. Deferred Shares We are about to complete the purchase of the outstanding Deferred Shares at nominal cost (under £300). As a result the process of simplifying our share capital structure will shortly be complete and we will have only Ordinary Shares in issue. Outlook The Company has made very meaningful progress during the last 6 months. Our marketing activities have been increased in Europe and the USA through advertising and press activity within focussed publications; as a result of this, and our enhanced sales presence through distributors and manufacturers representatives, many new sales opportunities are becoming available to us. We anticipate that this activity will increase still further over the next 6 months, resulting in strong sales prospects for 2001. Seven new products, three currently under development, will be released during the second half of the year. These products are custom designs for specific customers and products using the latest in new CPU technology. The current order book and customer indications of sales not only put the Company in a strong position for 2000, but also mean we can look forward to a continued period of growth through 2001. MICHAEL COLLINS CHAIRMAN 15 September 2000 All companies and product names are trademarks of their respective organisations. CONSOLIDATED TRADING RESULTS Unaudited Unaudited Audited Six Six Year Months months Ended to to 31/12/99 30/6/00 30/6/99 £'000 £'000 £'000 Turnover 3,648,557 1,914,259 5,547,633 Profit/(Loss) on ordinary 311,837 (331,636) 177,065 activities before taxation Taxation 80,680 - 15,229 Profit/(Loss) on ordinary activities after taxation 231,157 (331,636) 161,836 retained for the period Earnings/(Loss) Per Equity 0.32p (0.47)p 0.23p Share Notes for accounts 1. The results for the year ended 31 December 1999 are abridged from the Financial Statements for the year which contain an unqualified audit report and have been filed with the Registrar of Companies. 2. The Consolidated Trading Results have been prepared on a basis consistent with the Financial Statements for the year ended 31 December 1999. 3. In February 2000, the Company's Issued Ordinary Share Capital was increased by 2,000,000 Ordinary Shares. There are currently 72,700,000 Ordinary Shares in issue. 4. A taxation charge arises on the profit on ordinary activities since previously available corporation tax losses have been fully utilised during the period. 5. Copies of this report will be sent to shareholders and are available at the Company's Registered Office.
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