Strong video-on-demand sales pushed Concurrent Computer Corp. into the black during its first quarter, but the company said it expects reduced VOD spending for the rest of the calendar year.
Revenue reached $22.1 million in the quarter ended Sept. 30, while net income totaled $620,000. That compares to $14.1 million in revenue and a $3 million loss in the year-earlier period.
Revenue at the Xtreme division jumped 281 percent to $13.4 million in the quarter. But VOD slowdowns by MSOs prompted Concurrent to project only $7 million to $8 million in revenue for Xtreme during the second quarter.
Concurrent expects VOD spending to resume in the second half of its fiscal year.
"This is a speed bump, from a VOD perspective," said Concurrent president and CEO Jack Bryant. "The short-term blip is not a concern. We believe our customers remain committed to VOD."
The metrics for simultaneous VOD usage are all over the lot, said Bryant. Some MSOs expect 3 percent of users to watch the same piece of content at the same time, while other estimates range from 8 percent to 10 percent.
And MSOs will likely increase storage and streaming capabilities next year, said Bryant, who noted that one system is looking to expand storage from 800 hours to 1,200 hours and increase its number of streams from 6,000 to 10,000.
Concurrent said it has deployed 692 servers in 48 markets with 3.4 million digital subscribers. Time Warner Cable remains its largest client, with 335 servers in 16 markets, including a recent launch in San Diego.
Elsewhere, Concurrent has deployed 120 servers in 11 Comcast Corp. markets, 89 servers in five Cox Communications Inc. territories and 87 servers in 11 Charter Communications Inc. systems.
The smarter way to stay on top of the multichannel video marketplace. Sign up below.