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.