dale@lamont.ldgo.columbia.edu (02/25/90)
-------------------------------------------------------------------- This is the re-typed transcript of the recent Concurrent Press Release: (typos are mine) Dale ------------------------------------------------------------------- Press Release Concurrent Computer Corporation FOR RELEASE: CONTACT: IMMEDIATELY James P. McCloskey Concurrent Computer Corporation (201) 758-7417 ANNOUNCES RESTRUCTURED OPERATIONS TINTON FALLS, N.J., Jan. 10, 1990--- Concurrent Computer Corporation announced today a restructuring to enhance its leading position as a world class provider of real-time computing solutions. The major purpose of the restructuring is to ensure timely and through responsiveness to customer's requirements. With the computer industry being influenced by growing alternatives of powerful, commodity priced hardware, shortened product life cycles, standards based software, and requirements to reduce internal cost models, Concurrent believes that it must position itself structurally to provide its customers with specific incremental added value to produce systems and applications which solve real-time computing problems. To that end, Concurrent reduced its infrastructure to be a leaner, more flexible organization with fewer levels of management and a more concentrated focus on the customer. Resources will be realigned to consolidate worldwide sales, service and marketing operations under one organization. Concurrent also announcded the formation of two product divisions; a small systems division located in Westford, Massachusetts and a large systems division operating out of Tinton Falls, New Jersey. Each division will include its own research, developemnt and product management and planning groups. The small systems division will be responsible for the continuing developemnt of small systems prodcuts employing RTU, the leading real-time UNIX based operating system in the industry today. In addition, the division will be resoponsible for applications platform development and other areas of advanced technology. The large systems division will be responsible for enhancements to the company's proprietary OS/32 based products as well as providing a migration strategy and complimentary products that help to protect its customers' investment in computing resources. With two internal product divisions, each clearly focused on building products for specific segments of the market, the company expects to increase its flexibility and responsiveness to customer demand for innovative new products. Support functions throught the company are being relaigned to provide internal support in the most cost efficient manner. The company is also increasing its emphasis on strategic alliances and other joint efforts to supplement its own products in order to add greater value to solutions provided to real-time customers. James K. Sims, chairman, president and chief executive officer of Concurrent said, "this realignments of resouces is a continuing part of a process that began with the merger of Concurrent and MASSCOMP over a year ago. In seeking the maximum ability to serve our customers worldwide, we previously consolidated and realigned the distrubution and support chnannels of the two companies, embarked on major changes to our manufacturing strategy and continue to evolve product line strategies that will allow us to deliver the best solutions for the real-time marketplace while protecting our customers' investments in hardware an software. The restructuring we are announcing today puts us in an even better position to support our customers, and to provide effecitve migration strategies that take advantage of the latest developments in standards and technology, while giving us the appropriate amount of resources to participate in reasonable growth through the 1990's." The restructuring of Concurrent will result in a reduction in force of approximately 240 employees world wide or approximately 7% of the company's workforce. The resultant cost savings are expected to approximate $12.0 million annually. It is expected that a one-time charge for severance and other related expenses of approximately $3.0 million will be necessary. The company estimated that before the effect of this one-time charge its earnings for the fiscal second quarter ended December 31, 1989, to be reported in about two weeks, were expected to be a slight improvement over analyst estimates for the company. The one-time charge will cause the company to report a loss for the second quarter. Concurrent Computer Corporation is the leading supplier of high-performance, real-time computer systems worldwide. With systems ranging in price from $10,000 to more than $1 million, the company is focused on the real-time simulation, measurment and control, C4I, and trnasaction processing markets. Its common stock (CCUR) is traded on the NASDAQ National Market System. Articles to: concurrent@soma.bcm.tmc.edu or uunet!soma.bcm.tmc.edu!concurrent Administrative stuff: concurrent-request@soma.bcm.tmc.edu Stan Barber, Moderator