SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 5, 2004
Concord Communications, Inc.
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(Exact Name of Registrant as Specified in Charter)
Massachusetts 0-23067 04-2710876
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
400 Nickerson Road, Marlboro, Massachusetts 01752
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (508) 460-4646
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Not applicable
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(Former Name or Former Address, if Changed Since Last Report)
Item 12. Results of Operations and Financial Condition.
On April 5, 2004, Concord issued a press release announcing its
preliminary estimated results for the quarterly period ending March 31, 2004. A
copy of the press release is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.
The following information, including the Exhibit Number 99.1 attached
hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, as amended, except as
expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
CONCORD COMMUNICATIONS, INC.
Date: April 5, 2004 By: /s/ Melissa H. Cruz
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Melissa H. Cruz
Executive Vice President of
Business Services,
Chief Financial Officer and
Treasurer
EXHIBIT INDEX
Exhibit Number Description
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99.1 Form of press release dated April 5,
2004.
Concord Announces First Quarter Estimates
MARLBORO, Mass.--April 5, 2004--Concord Communications Inc.
(Nasdaq: CCRD) today announced estimated earnings for its first quarter
ended March 31, 2004. Total revenue is expected to be between $23.5
million and $23.8 million. GAAP earnings per share is expected to be
between ($0.05) and ($0.03).
"We believed that we had sufficient pipeline entering the quarter
and were confident that estimates were achievable until the very end
of the quarter. Unfortunately, several territories significantly under
performed against expectations at the end of the quarter" said Concord
CEO Jack Blaeser.
Blaeser continued: "In Q1 Concord's pipeline included more
end-to-end, multi-million dollar eHealth(R) solutions from customers
and prospects. We believe this increased number of end-to-end deals
supports our fundamental strategy. Yet, these negotiations were more
complex than network-only deals and we were unsuccessful in completing
them in time. We are internally evaluating our ability to execute to
plan and reassessing capital spending trends by customers. We are also
committed to resuming top line growth as soon as possible."
While a full analysis of the second quarter sales pipeline is not
complete at this time and estimates are preliminary and may change,
second quarter revenue is expected to be between $25 million and $30
million. Operating expenses are expected to increase about $1 million
over the first quarter to $21 million, due to very recent hiring of
additional application overlay sales positions. Concord's anticipated
revenue number for breakeven earnings is expected to be around $26.5
million. Updated guidance and financial statements will be provided on
April 14.
Income Statement and Balance Sheet
-- Cash increased $2.2 million to $164.3 million
-- Deferred revenue increased approximately $3.0 million to $29.5
million
-- Operating expenses were approximately $20 million
-- DSOs were approximately 74 days
-- Gross margins were approximately 80%
Customer Mix
-- Concord had 35 deals over $100,000
-- International revenue was approximately $9.5 million or 42% of
revenue
-- Average deal size for new customers was approximately $126,000
-- Enterprise customer revenue was approximately 65% of quarterly
revenue. Managed service provider customer revenue was
approximately 21% of quarterly revenue and carrier revenue was
approximately 14% of quarterly revenue
Conference Call: April 5th, at 8:30 AM EDT
Concord will hold a conference call to discuss results on April
5th at 8:30AM EDT. The phone number for the call is 888-889-5345
(domestic) and 973-339-3086 (international). The call will be
available on April 5th and will be hosted for approximately two weeks
thereafter. The number for the replay is 877-519-4471 for U.S./Canada
and 973-341-3080 for international callers. The access code is
4664286. The information in this press release and call replay will be
posted at www.concord.com.
Safe Harbor
This press release contains forward-looking statements, including
statements regarding revenue and profit expectations, market
opportunities and business growth. These forward-looking statements
are neither promises nor guarantees, but involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Such risks and uncertainties
include, without limitation risks detailed in the Company's annual
report on Form 10-K for the fiscal year ended December 31, 2003. Any
forward-looking statements should be considered in light of all these
factors. The information contained in this press release is applicable
only as of today and should thereafter be considered historical and
will no longer constitute the Company's current expectations. The
company undertakes no obligation to update information contained in
this press release.
CONTACT: Concord Communications
Eric Snow, 508-486-4508
pr@concord.com
or
Ruddy, Raymond, 508-303-4350
investorrelations@concord.com