UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q

(Mark One)

X Quarterly Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

For the Quarterly Period Ended December 31, 2004

or

Transition Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

For the Transition Period from ____ to ____

Commission File No. 0-13150

CONCURRENT COMPUTER CORPORATION
(Exact name of registrant as specified in its charter)

           Delaware                                   04-2735766
  (State or other jurisdiction            (I.R.S. Employer Identification No.)
of incorporation or organization)


4375 River Green Parkway, Suite 100, Duluth, GA 30096
(Address of principal executive offices) (Zip Code)

Telephone: (678) 258-4000
(Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No

Indicate by a check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes X No

Number of shares of the Registrant's Common Stock, par value $0.01 per share, outstanding as of January 31, 2005 was 63,801,357.


                         CONCURRENT COMPUTER CORPORATION
                                    FORM 10-Q
              FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2004
                                TABLE OF CONTENTS

                                                                                    PAGE
                                                                                    ----
                            PART I - FINANCIAL INFORMATION
                            ------------------------------

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                                    2
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
        OPERATIONS                                                                    16
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                    26
ITEM 4. CONTROLS AND PROCEDURES                                                       26
                            PART II - OTHER INFORMATION
                            ---------------------------

ITEM 1. LEGAL PROCEEDINGS                                                             26
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                           26
ITEM 6. EXHIBITS                                                                      27
  EX-10.1 LOAN AND SECURITY AGREEMENT
  EX-10.2 SCHEDULE OF OFFICERS ENTERING FORM INDEMNIFICATION
  EX-10.3 EMPLOYMENT AGREEMENT - GREG WILSON
  EX-10.4 PROTECTIVE AGREEMENT - GREG WILSON
  EX-10.5 EMPLOYMENT AGREEMENT - JOHN WELCH
  EX-10.6 PROTECTIVE AGREEMENT - JOHN WELCH
  EX-10.7 EMPLOYMENT AGREEMENT - GARY BRUST
  EX-10.8 PROTECTIVE AGREEMENT - GARY BRUST
  EX-31.1 SECTION 302 CERTIFICATION OF CEO
  EX-31.2 SECTION 302 CERTIFIACTION OF CFO
  EX-32.1 SECTION 906 CERTIFICATION OF CEO
  EX-32.1 SECTION 906 CERTIFICATION OF CFO

1

PART I     FINANCIAL INFORMATION

ITEM 1.     CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               CONCURRENT COMPUTER CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                      (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

                                                      THREE MONTHS ENDED   SIX MONTHS ENDED
                                                          DECEMBER 31,       DECEMBER 31,
                                                        2004      2003      2004      2003
                                                      --------  --------  --------  --------
Revenues:
  Product
    ISD systems                                       $ 6,162   $ 5,597   $11,695   $ 9,991
    VOD systems                                         8,559    11,568    14,613    20,715
                                                      --------  --------  --------  --------
      Total product revenues                           14,721    17,165    26,308    30,706
  Service
    ISD systems                                         3,347     4,018     6,621     8,164
    VOD systems                                         1,956     1,443     4,425     2,658
                                                      --------  --------  --------  --------
      Total service revenues                            5,303     5,461    11,046    10,822
                                                      --------  --------  --------  --------
      Total revenues                                   20,024    22,626    37,354    41,528

Cost of sales:
  Product
    ISD systems                                         2,527     2,628     4,984     3,984
    VOD systems                                         4,353     5,484     8,563     9,141
                                                      --------  --------  --------  --------
      Total product cost of sales                       6,880     8,112    13,547    13,125
  Service
    ISD systems                                         2,060     2,233     4,063     4,417
    VOD systems                                         1,188       862     2,709     1,617
                                                      --------  --------  --------  --------
      Total service cost of sales                       3,248     3,095     6,772     6,034
                                                      --------  --------  --------  --------
      Total cost of sales                              10,128    11,207    20,319    19,159
                                                      --------  --------  --------  --------

Gross margin                                            9,896    11,419    17,035    22,369

Operating expenses:
  Sales and marketing                                   4,087     4,429     8,564     8,509
  Research and development                              4,672     4,705     9,852     9,373
  General and administrative                            2,275     2,175     4,781     4,344
                                                      --------  --------  --------  --------
      Total operating expenses                         11,034    11,309    23,197    22,226
                                                      --------  --------  --------  --------

Operating income (loss)                                (1,138)      110    (6,162)      143

Recovery (impairment loss) of minority investment        (313)    1,698      (313)    2,758
Interest income - net                                      82        78       174       138
Other expense                                             (66)      (20)     (101)     (154)
                                                      --------  --------  --------  --------

Income (loss) before income taxes                      (1,435)    1,866    (6,402)    2,885

Provision for income taxes                                 12       653        66     1,060
                                                      --------  --------  --------  --------

Net income (loss)                                     $(1,447)  $ 1,213   $(6,468)  $ 1,825
                                                      ========  ========  ========  ========

Net income (loss) per share
      Basic                                           $ (0.02)  $  0.02   $ (0.10)  $  0.03
                                                      ========  ========  ========  ========
      Diluted                                         $ (0.02)  $  0.02   $ (0.10)  $  0.03
                                                      ========  ========  ========  ========
      Weighted average shares outstanding - basic      62,747    62,308    62,714    62,197
                                                      ========  ========  ========  ========
      Weighted average shares outstanding - diluted    62,747    63,461    62,714    63,251
                                                      ========  ========  ========  ========
    The accompanying notes are an integral part of the condensed consolidated financial statements.

2

                             CONCURRENT COMPUTER CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                                 (DOLLARS IN THOUSANDS)


                                                                DECEMBER 31,   JUNE 30,
                                                                   2004          2004
                                                              --------------  ----------
ASSETS
Current assets:
  Cash and cash equivalents                                   $      23,921   $  27,928
  Accounts receivable, less allowance for doubtful
    accounts of $200 at December 31, 2004 and June 30, 2004          11,940      10,192
  Inventories - net                                                   4,562       9,617
  Deferred tax asset - net                                              580         517
  Prepaid expenses and other current assets                           1,714         861
                                                              --------------  ----------
    Total current assets                                             42,717      49,115

Property, plant and equipment - net                                   9,871      11,569
Purchased developed computer software - net                             918       1,013
Goodwill                                                             10,744      10,744
Investment in minority owned company                                    140         553
Other long-term assets - net                                          1,408       1,548
                                                              --------------  ----------
    Total assets                                              $      65,798   $  74,542
                                                              ==============  ==========

    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable and accrued expenses                       $       9,970   $  12,069
  Notes payable to bank, current portion                                930           -
  Deferred revenue                                                    6,567      10,668
                                                              --------------  ----------
    Total current liabilities                                        17,467      22,737

Long-term liabilities:
  Deferred revenue                                                    3,670       4,117
  Deferred tax liability                                                313         278
  Pension liability                                                   1,603       1,372
  Notes payable to bank, less current portion                         2,070           -
  Other                                                                 288         312
                                                              --------------  ----------
    Total liabilities                                                25,411      28,816

Stockholders' equity:
  Common stock                                                          638         628
  Capital in excess of par value                                    176,376     174,338
  Accumulated deficit                                              (135,194)   (128,712)
  Treasury stock                                                          -         (42)
  Unearned compensation                                              (2,224)       (351)
  Accumulated other comprehensive income (loss)                         791        (135)
                                                              --------------  ----------
    Total stockholders' equity                                       40,387      45,726
                                                              --------------  ----------

Total liabilities and stockholders' equity                    $      65,798   $  74,542
                                                              ==============  ==========
    The accompanying notes are an integral part of the condensed consolidated
                              financial statements.

3

                             CONCURRENT COMPUTER CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                 (DOLLARS IN THOUSANDS)


                                                                     SIX MONTHS ENDED
                                                                       DECEMBER 31,
                                                                     2004        2003
                                                                  ----------  ----------
OPERATING ACTIVITIES
Net income (loss)                                                 $  (6,468)  $   1,825
Adjustments to reconcile net income (loss) to net
  cash used in operating activities:
  Reduction in accrual of non-cash warrants, net                          -        (891)
  Depreciation and amortization                                       2,819       2,618
  Provision for inventory reserves                                       12         670
  Reversal of provision for bad debts                                     -        (600)
  Non-cash income tax provision                                           -         728
  Impairment (recovery) of minority investments                         313      (2,758)
  Other non cash expenses                                                89          34
  Changes in operating assets and liabilities:
    Accounts receivable                                              (1,748)     (9,020)
    Inventories                                                       5,043      (1,551)
    Prepaid expenses and other current assets                         (782))       (608)
    Other long-term assets                                              240         (97)
    Accounts payable and accrued expenses                            (2,099)       (798)
    Deferred revenue                                                 (4,548)      4,442
    Pension liability                                                   231       1,131
    Other long-term liabilities                                          25          42
                                                                  ----------  ----------
  Total adjustments to net income (loss)                               (405)     (6,658)
                                                                  ----------  ----------
Net cash used in operating activities                                (6,873)     (4,833)

INVESTING ACTIVITIES
  Net additions to property, plant and equipment                       (887)     (2,053)
  Repayment of note receivable from minority owned company                -       2,758
                                                                  ----------  ----------
Net cash provided by (used in) investing activities                    (887)        705

FINANCING ACTIVITIES
  Proceeds from notes payable to bank, net of issuance expenses       2,930           -
  Repayment of capital lease obligation                                 (49)        (45)
  Proceeds from sale of treasury stock                                   28           -
  Proceeds from sale and issuance of common stock                        57       1,134
                                                                  ----------  ----------
  Net cash provided by financing activities                           2,966       1,089

Effect of exchange rates on cash and cash equivalents                   787        (162)
                                                                  ----------  ----------

Decrease in cash and cash equivalents                                (4,007)     (3,201)
Cash and cash equivalents at beginning of period                     27,928      30,697
                                                                  ----------  ----------
Cash and cash equivalents at end of period                        $  23,921   $  27,496
                                                                  ==========  ==========

Cash paid during the period for:
  Interest                                                        $       2   $       6
                                                                  ==========  ==========
  Income taxes (net of refunds)                                   $     212   $     191
                                                                  ==========  ==========
    The accompanying notes are an integral part of the condensed consolidated
                              financial statements.

4

CONCURRENT COMPUTER CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. OVERVIEW OF BUSINESS AND BASIS OF PRESENTATION

Concurrent Computer Corporation ("Concurrent") is a leading supplier of high-performance computer systems, software, and services and operates in two divisions, the Video-On-Demand ("VOD") division, located in Duluth, Georgia, and the Integrated Solutions Division ("ISD"), located in Pompano Beach, Florida.

Concurrent's VOD division provides VOD systems consisting of hardware and software as well as integration services, primarily to residential cable companies that have upgraded their networks to support interactive, digital services.

Concurrent's Integrated Solutions Division provides high-performance, real-time computer systems to commercial and government customers for use in applications such as simulation and data acquisition.

Concurrent provides sales and support from offices and subsidiaries throughout North America, Europe, Asia, and Australia.

The condensed, consolidated interim financial statements of Concurrent are unaudited and reflect all adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of Concurrent's financial position, results of operations and cash flows at the dates and for the periods indicated. These financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended June 30, 2004. There have been no changes to Concurrent's Significant Accounting Policies as disclosed in the Annual Report on Form 10-K for the year ended June 30, 2004, except as noted under "Application of Critical Accounting Policies" in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations". The results reported in these condensed, consolidated quarterly financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Concentration of Credit Risk

Concurrent assesses credit risk through ongoing credit evaluations of customers' financial condition and collateral is generally not required. As of both December 31, 2004 and June 30, 2004, there were two customers that each accounted for more than 10% of trade receivables. At December 31, 2004, one customer accounted for $1,870,000, or 16% of trade receivables and the other accounted for $1,560,000, or 13% of trade receivables. At June 30, 2004, one customer accounted for $2,715,000 or 26% of trade receivables and the other accounted for $1,089,000 or 10% of trade receivables.

Recently Issued Accounting Pronouncements

In March 2004, the Emerging Issues Task Force (EITF) ratified its consensus related to the application guidance within EITF Issue No. 03-1, "The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments." EITF Issue No. 03-1 applies to investments in debt and equity securities within the scope of SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities," and equity securities that are not subject to the scope of SFAS No. 115 and not accounted for under the equity method under Accounting Principles Board Opinion 18, "The Equity Method of Accounting for Investments in Common Stock" and related interpretations. In September 2004, the Financial Accounting Standards Board ("FASB") issued FASB Staff Position EITF 03-1-1, which delayed the effective date of paragraphs 10-20 of EITF Issue No. 03-1. Paragraphs 10-20 of EITF Issue No. 03-1 give guidance on how to evaluate and recognize impairment loss that is "other than temporary." EITF Issue No. 03-1 requires that a three-step model be applied in determining when an investment

5

is considered impaired, whether that impairment is other than temporary and the measurement of an impairment loss. The required recognition and measurement guidance within EITF Issue No. 03-1 has been applied by Concurrent to other-than-temporary impairment evaluations beginning July 1, 2004. See Note 6 for discussion on the impact of adoption of EITF Issue No. 03-1 on Concurrent's financial position and results of operations.

In November 2004, the FASB issued Statement of Financial Accounting Standards ("SFAS") No. 151, "Inventory Costs - an Amendment of ARB No. 43, Chapter 4 ("SFAS 151"). SFAS 151 amends ARB 43, Chapter 4, to clarify that abnormal amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage) should be recognized as current period expenses. In addition, SFAS 151 requires that allocation of fixed production overhead to the costs of conversion be based upon the normal capacity of the production facilities. The provisions of SFAS 151 are effective for inventory costs incurred during fiscal years beginning after June 15, 2005. The adoption of this Statement is not expected to have a material impact on Concurrent's financial position or results of operations.

In December 2004, the FASB issued SFAS No. 123 (revised 2004), "Share Based Payment" ("SFAS 123(R)"). SFAS 123(R) applies to all share-based payment transactions in which an entity acquires goods and services by issuing its shares, share options, or other equity instruments or by incurring liabilities to an employee or other supplier (a) in amounts based, at least in part, on the price of the entity's shares or other equity instruments or (b) that require settlement by the issuing entity's equity shares or other equity instruments. SFAS 123(R) requires that the cost resulting from all share-based payment transactions be recognized in the financial statements and requires all entities to apply a fair-value-based measurement method in accounting for share-based payment transactions with employees. SFAS 123(R) will be effective for any interim or annual period beginning after June 15, 2005. Concurrent is evaluating the impact SFAS 123(R) will have on its fiscal 2006 interim and annual financial statements, beginning with the first quarter of fiscal 2006.

2. BASIC AND DILUTED NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed in accordance with SFAS No. 128, "Earnings Per Share," by dividing net income (loss) by the weighted average number of common shares outstanding during each period. Diluted net income
(loss) per share is computed by dividing net income (loss) by the weighted average number of shares including dilutive common share equivalents. Under the treasury stock method, incremental shares representing the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued are included in the computation. Diluted earnings per common share assumes exercise of outstanding stock options and vesting of time and performance based restricted stock when the effects of such assumptions are dilutive. Common share equivalents of 6,790,000 and 5,235,000 for the three month periods ended December 31, 2004 and 2003, respectively, were excluded from the calculation as their effect was antidilutive. Common share equivalents of 6,843,000 and 5,406,000 for the six month periods ended December 31, 2004 and 2003, respectively, were excluded from the calculation as their effect was antidilutive. The following table presents a reconciliation of the numerators and denominators of basic and diluted net income (loss) per share for the periods indicated:

(DOLLARS AND SHARE DATA IN THOUSANDS,                           THREE MONTHS ENDED      SIX MONTHS ENDED
    EXCEPT PER SHARE AMOUNTS)                                      DECEMBER 31,           DECEMBER 31,
                                                                2004         2003       2004        2003
                                                             -----------  ----------  ---------  ----------
Basic and diluted earnings per share (EPS) calcuation:
  Net income (loss)                                          $   (1,447)  $    1,213  $ (6,468)  $    1,825
                                                             ===========  ==========  =========  ==========

Basic weighted average number of shares outstanding              62,747       62,308    62,714       62,197
  Effect of dilutive securities:
    Shares issued upon assumed exercise of stock options              -          894         -          795
    Shares issued upon assumed vesting of restricted stock            -          259         -          259
                                                             -----------  ----------  ---------  ----------
Diluted weighted average number of shares outstanding            62,747       63,461    62,714       63,251
                                                             ===========  ==========  =========  ==========
Basic EPS                                                    $    (0.02)  $     0.02  $  (0.10)  $     0.03
                                                             ===========  ==========  =========  ==========
Diluted EPS                                                  $    (0.02)  $     0.02  $  (0.10)  $     0.03
                                                             ===========  ==========  =========  ==========

6

3. STOCK-BASED COMPENSATION

At December 31, 2004, Concurrent had stock-based employee compensation plans which are described in Note 14 to the annual report on Form 10-K for the year ended June 30, 2004. Concurrent accounts for these plans under the recognition and measurement principles of Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations. For the three and six months ended December 31, 2004, Concurrent recognized $102,000 and $118,000, respectively, of stock compensation expense for the issuance of restricted stock awards. For the three and six months ended December 31, 2003, Concurrent recognized $34,000 and $66,000, respectively, of stock compensation expense for the issuance of restricted stock awards. There is no other expense for stock options in the reported net income (loss) for the three and six month periods ended December 31, 2004 and 2003. Concurrent issued 1,041,000 shares of restricted stock during the quarter and recorded $2,311,000 of unearned compensation as a contra-equity account, which will be amortized over the vesting period. A portion of the restricted stock vests over time and a portion vests based upon performance criteria. Because a portion of this restricted stock plan is performance based, that portion must be accounted for using variable accounting, requiring interim estimates of compensation expense. Interim measures of compensation expense are based on a combination of the fair-value of the stock as of the end of the reporting period and an assessment of whether the performance criteria will ultimately be met.

In accordance with SFAS No. 148, "Accounting for Stock Based Compensation - Transition and Disclosure - An Amendment of FASB Statement No. 123," the following table illustrates the effect on net income (loss) and earnings (loss) per share if Concurrent had applied the fair value recognition provisions of SFAS No. 123, "Accounting for Stock-Based Compensation," to stock-based employee compensation:

     (DOLLARS IN THOUSANDS, EXCEPT PER                   THREE MONTHS ENDED       SIX MONTHS ENDED
     SHARE AMOUNTS)                                         DECEMBER 31,             DECEMBER 31,
                                                         2004         2003        2004        2003
                                                      -----------  -----------  ---------  -----------
Net income (loss) as reported                         $   (1,447)  $    1,213   $ (6,468)  $    1,825

  Deduct: Total stock-based employee compensation
    expense determined under the fair value method,
    net of related taxes                                    (829)      (1,088)    (1,830)      (2,126)
                                                      -----------  -----------  ---------  -----------

Pro forma net income (loss)                           $   (2,276)  $      125   $ (8,298)  $     (301)
                                                      ===========  ===========  =========  ===========

Net income (loss) per share:

  Basic-as reported                                   $    (0.02)  $     0.02   $  (0.10)  $     0.03
                                                      ===========  ===========  =========  ===========

  Basic-pro forma                                     $    (0.04)  $        -   $  (0.13)  $        -
                                                      ===========  ===========  =========  ===========

  Diluted-as reported                                 $    (0.02)  $     0.02   $  (0.10)  $     0.03
                                                      ===========  ===========  =========  ===========

  Diluted-pro forma                                   $    (0.04)  $        -   $  (0.13)  $        -
                                                      ===========  ===========  =========  ===========

The weighted-average assumptions used for the three months ended December 31, 2004, and 2003 were: expected dividend yield of 0.0% for both periods; risk-free interest rate of 3.8% and 3.5%, respectively; expected life of 6 years for both periods; and an expected volatility of 95.9% and 111.0%, respectively. The weighted-average assumptions used for the six months ended December 31, 2004, and 2003 were: expected dividend yield of 0.0% for both periods; risk-free interest rate of 3.7% and 3.3%, respectively; expected life of 6 years for both periods; and an expected volatility of 100.3% and 111.5%, respectively.

7

Because additional option grants are expected to be made in the future and options vest over several periods, the above pro forma disclosures are not representative of pro forma effects on reported net income (loss) for future periods.

4. REVENUE RECOGNITION AND RELATED MATTERS

VOD and ISD system revenues are recognized based on the guidance in American Institute of Certified Public Accountants Statement of Position ("SOP") 97-2, "Software Revenue Recognition" ("SOP 97-2") and related amendments, SOP 98-4, "Deferral of the Effective Date of a Provision of SOP 97-2, Software Revenue Recognition" and SOP 98-9, "Modification of SOP 97-2, Software Revenue Recognition, With Respect to Certain Transactions". Concurrent recognizes revenue from VOD and ISD systems when persuasive evidence of an arrangement exists, the system has been shipped, the fee is fixed or determinable and collectibility of the fee is probable. Under multiple element arrangements, Concurrent allocates revenue to the various elements based on vendor-specific objective evidence ("VSOE") of fair value. Concurrent's VSOE of fair value is determined based on the price charged when the same element is sold separately. If evidence of fair value does not exist for all elements in a multiple element arrangement, Concurrent recognizes revenue using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement is recognized as revenue.

5. INVENTORIES

Inventories are stated at the lower of cost or market, with cost being determined by using the first-in, first-out method. Concurrent establishes excess and obsolete inventory reserves based upon historical and anticipated usage. The components of inventories are as follows (dollars in thousands):

                     DECEMBER 31,   JUNE 30,
                        2004         2004
                    -------------  ---------
Raw materials, net  $       2,948  $   7,361
Work-in-process             1,117      1,229
Finished goods                497      1,027
                    -------------  ---------
                    $       4,562  $   9,617
                    =============  =========

At December 31, 2004 and June 30, 2004, some portion of Concurrent's inventory was in excess of the current requirements based upon the planned level of sales for future years. Accordingly, Concurrent had inventory valuation allowances for raw materials of $2.1 million and $3.0 million which would reduce the value of the inventory to its estimated net realizable value at December 31, 2004 and June 30, 2004, respectively.

6. INVESTMENTS IN AND RECEIVABLE FROM MINORITY OWNED COMPANIES

In March 2002, Concurrent purchased a 14.4% equity ownership interest in Thirdspace Living Limited ("Thirdspace"). Concurrent invested $4.0 million in cash and the equivalent of $3.0 million in its common stock in exchange for 1,220,601 series C shares of Thirdspace. In addition to the equity investment, Concurrent also loaned Thirdspace $6.0 million in exchange for two $3 million long-term notes receivable. In fiscal year 2003, Concurrent recorded a $13.0 million net impairment charge due to an "other-than-temporary" decline in the market value of the investment in Thirdspace. In May 2003, Thirdspace sold the majority of its assets to Alcatel Telecom Ltd. As a result of the sale of these certain assets, Concurrent received proceeds in fiscal 2004 that were recorded as a reduction to the impairment loss in the line item "Recovery (impairment loss) of minority investment."

In the first and second quarters of fiscal 2004, Concurrent received in the aggregate, $2.8 million in proceeds as a result of the sale of certain assets of Thirdspace. During the remainder of fiscal 2004, Concurrent received an additional $300,000 in proceeds as a result of the sale of the majority of Thirdspace's remaining assets. In the quarter ended December 31, 2004, Concurrent recognized an additional $100,000 related to distributions from this sale. Thirdspace's only significant remaining asset after the sale is a right to 40% of amounts recovered by nCube Corporation, now part of C-Cor, Incorporated ("nCube"), if any, from the lawsuit brought by nCube against SeaChange International, Inc., alleging patent infringement. The likelihood of collecting this asset, and the amount and timing of such collection, is uncertain and as a result Concurrent has not

8

recorded the gain contingency. Pursuant to the sale of the assets of Thirdspace to Alcatel, Concurrent believes that it has the right to the first approximately $3.0 million of such recovery, if any. Beyond any such recovery, Concurrent does not anticipate further cash proceeds related to the liquidation of Thirdspace's remaining assets.

In April 2002, Concurrent invested cash of $553,000 in Everstream Holdings, Inc. ("Everstream") in exchange for 480,770 shares of Series C Preferred stock, giving Concurrent a 4.9% ownership interest. Everstream is a privately held company specializing in broadband advertising systems, operations and data warehousing software and related integration services. Concurrent is accounting for its investment in the Series C Preferred stock of Everstream using the cost method because Concurrent does not believe it exercises significant influence on Everstream. During the quarter ended December 31, 2004, Concurrent became aware of circumstances that provide evidence of an "other than temporary" impairment of Concurrent's investment in Everstream, in accordance with EITF 03-01. Based upon an evaluation of the investment in Everstream during this period, Concurrent recorded an impairment charge of $413,000 in the Statement of Operations, under the line item, "Recovery (impairment loss) of minority investment", and reduced its "Investment in minority owned company" to $140,000. Should there be evidence of further impairment in the future, Concurrent will record additional impairment charges related to this investment.

7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

The components of accounts payable and accrued expenses are as follows (in thousands):

                                       DECEMBER 31,   JUNE 30,
                                          2004         2004
                                      -------------  ---------
Accounts payable, trade               $       2,610  $   3,487
Accrued payroll, vacation, severance
  and other employee expenses                 4,149      5,420
Warranty accrual                                921      1,122
Other accrued expenses                        2,290      2,040
                                      -------------  ---------
                                      $       9,970  $  12,069
                                      =============  =========

Concurrent's estimate of warranty obligations is based on historical experience and expectation of future conditions. The changes in the warranty accrual during the six months ended December 31, 2004 were as follows (in thousands):

Balance at June 30, 2004       $1,122
Charged to costs and expenses     266
Deductions                       (467)
                               -------
Balance at December 31, 2004   $  921
                               =======

8. COMPREHENSIVE INCOME

Concurrent's total comprehensive income (loss) is as follows (in thousands):

                                      THREE MONTHS ENDED       SIX MONTHS ENDED
                                          DECEMBER 31,           DECEMBER 31,
                                      2004         2003        2004        2003
                                   ----------  ------------  ---------  ----------
Net income (loss)                  $  (1,447)  $     1,213   $ (6,468)  $    1,825

Other comprehensive income:
  Foreign currency translation
  income (loss)                          750           (71)       926           14
                                   ----------  ------------  ---------  ----------

Total comprehensive income (loss)  $    (697)  $     1,142   $ (5,542)  $    1,839
                                   ===========  ===========  =========  ==========

9

9. SEGMENT INFORMATION

Concurrent operates its business in two divisions: ISD and VOD, in accordance with SFAS 131, "Disclosure about Segments of an Enterprise and Related Information." Concurrent's Integrated Solutions Division is a leading provider of high-performance, real-time computer systems, solutions and software for commercial and government markets focusing on strategic market areas that include hardware-in-the-loop and man-in-the-loop simulation, data acquisition, industrial systems and software, and embedded applications. Concurrent's VOD division is a leading supplier of digital video server systems primarily to the broadband cable television market. Shared expenses are primarily allocated based on either revenues or headcount. Corporate costs include costs related to the offices of the Chief Executive Officer, Chief Financial Officer, General Counsel, Investor Relations, Human Resources, Accounting and other administrative costs including annual audit and tax fees, board of director fees and similar costs.

10

The following summarizes the operating income (loss) by segment for the three month periods ended December 31, 2004 and December 31, 2003, respectively (dollars in thousands):

                                    THREE MONTHS ENDED DECEMBER 31, 2004 (UNAUDITED)
                               -----------------------------------------------------------
                                INTEGRATED
                                 SOLUTIONS        VOD        CORPORATE          TOTAL
                               -------------  -----------  --------------  ---------------
Revenues:
  Product                      $       6,162  $    8,559   $           -   $       14,721
  Service                              3,347       1,956               -            5,303
                               -------------  -----------  --------------  ---------------
    Total                              9,509      10,515               -           20,024

Cost of sales:
  Product                              2,527       4,353               -            6,880
  Service                              2,060       1,188               -            3,248
                               -------------  -----------  --------------  ---------------
    Total                              4,587       5,541               -           10,128
                               -------------  -----------  --------------  ---------------

Gross margin                           4,922       4,974               -            9,896

Operating expenses:
  Sales and marketing                  1,765       2,208             114            4,087
  Research and development             1,320       3,352               -            4,672
  General and administrative             472         440           1,363            2,275
                               -------------  -----------  --------------  ---------------
    Total operating expenses           3,557       6,000           1,477           11,034
                               -------------  -----------  --------------  ---------------

Operating income (loss)        $       1,365  $   (1,026)  $      (1,477)  $       (1,138)
                               =============  ===========  ==============  ===============


                                    THREE MONTHS ENDED DECEMBER 31, 2003 (UNAUDITED)
                               -----------------------------------------------------------
                                INTEGRATED
                                 SOLUTIONS      VOD          CORPORATE         TOTAL
                               -------------  -----------  --------------  ---------------
Revenues:
  Product                      $       5,597  $   11,568   $           -   $       17,165
  Service                              4,018       1,443               -            5,461
                               -------------  -----------  --------------  ---------------
    Total                              9,615      13,011               -           22,626

Cost of sales:
  Product                              2,628       5,484               -            8,112
  Service                              2,233         862               -            3,095
                               -------------  -----------  --------------  ---------------
    Total                              4,861       6,346               -           11,207
                               -------------  -----------  --------------  ---------------
                                                                       -
Gross margin                           4,754       6,665               -           11,419

Operating expenses
  Sales and marketing                  2,000       2,320             109            4,429
  Research and development             1,391       3,314               -            4,705
  General and administrative             365         208           1,602            2,175
                               -------------  -----------  --------------  ---------------
    Total operating expenses           3,756       5,842           1,711           11,309
                               -------------  -----------  --------------  ---------------

Operating income (loss)        $         998  $      823   $      (1,711)  $          110
                               =============  ===========  ==============  ===============

11

The following summarizes the operating income (loss) by segment for the six month periods ended December 31, 2004 and December 31, 2003, respectively (dollars in thousands):

                              SIX MONTHS ENDED DECEMBER 31, 2004 (UNAUDITED)
                              ----------------------------------------------
                               INTEGRATED
                                SOLUTIONS     VOD      CORPORATE    TOTAL
                               -----------  --------  -----------  --------
Revenues:
  Product                      $    11,695  $14,613   $        -   $26,308
  Service                            6,621    4,425            -    11,046
                               -----------  --------  -----------  --------
    Total                           18,316   19,038            -    37,354

Cost of sales:
  Product                            4,984    8,563            -    13,547
  Service                            4,063    2,709            -     6,772
                               -----------  --------  -----------  --------
    Total                            9,047   11,272            -    20,319
                               -----------  --------  -----------  --------
                                                               -
Gross margin                         9,269    7,766            -    17,035

Operating expenses:
  Sales and marketing                3,700    4,637          227     8,564
  Research and development           2,895    6,957            -     9,852
  General and administrative           836      839        3,106     4,781
                               -----------  --------  -----------  --------
    Total operating expenses         7,431   12,433        3,333    23,197
                               -----------  --------  -----------  --------

Operating income (loss)        $     1,838  $(4,667)  $   (3,333)  $(6,162)
                               ===========  ========  ===========  ========

                              SIX MONTHS ENDED DECEMBER 31, 2004 (UNAUDITED)
                              ----------------------------------------------
                               INTEGRATED
                                SOLUTIONS     VOD      CORPORATE    TOTAL
                               -----------  --------  -----------  --------
Revenues:
  Product                      $     9,991  $20,715   $        -   $30,706
  Service                            8,164    2,658            -    10,822
                               -----------  --------  -----------  --------
    Total                           18,155   23,373            -    41,528

Cost of sales:
  Product                            3,984    9,141            -    13,125
  Service                            4,417    1,617            -     6,034
                               -----------  --------  -----------  --------
    Total                            8,401   10,758            -    19,159
                               -----------  --------  -----------  --------

Gross margin                         9,754   12,615            -    22,369

Operating expenses:
  Sales and marketing                3,807    4,476          226     8,509
  Research and development           2,873    6,500            -     9,373
  General and administrative           784      381        3,179     4,344
                               -----------  --------  -----------  --------
    Total operating expenses         7,464   11,357        3,405    22,226
                               -----------  --------  -----------  --------

Operating income (loss)        $     2,290  $ 1,258   $   (3,405)  $   143
                               ===========  ========  ===========  ========

12

The following summarizes the revenues by geographic locations for the three and six month periods ended December 31, 2004 and December 31, 2003, respectively (dollars in thousands):

                                   THREE MONTHS ENDED     SIX MONTHS ENDED
                                      DECEMBER 31,          DECEMBER 31,
                                   2004        2003       2004       2003
                                ----------  ----------  --------  ----------
United States                   $   14,650  $   18,713  $ 28,137  $   34,740

  Japan                              2,090       1,113     3,025       1,658
  Other Asia Pacific countries         911         784     1,659       1,634
                                ----------  ----------  --------  ----------
Asia Pacific                         3,001       1,897     4,684       3,292
                                ----------  ----------  --------  ----------

Europe                               2,237       1,888     4,274       2,999

Other foreign countries                136         128       259         497
                                ----------  ----------  --------  ----------
                                $   20,024  $   22,626  $ 37,354  $   41,528
                                ==========  ==========  ========  ==========

10. ISSUANCE AND ACCRUAL OF NON-CASH WARRANTS

Comcast Cable Communications Inc. Warrants

On March 29, 2001, Concurrent entered into a definitive purchase agreement with Comcast Cable, providing for the purchase of VOD equipment. As part of that agreement Concurrent agreed to issue warrants to purchase shares of its common stock based upon the volume of purchases of Concurrent's products.

Through March 31, 2004, the expiration date of the agreement, Comcast earned a total of 268,543 warrants, which have all been issued and expire at various dates through June 4, 2008. These warrants are exercisable over a four year term and have exercise prices between $2.62 and $15.02. All of these warrants were outstanding as of December 31, 2004.

Concurrent recognized the value of the warrants over the term of the agreement as Comcast purchased additional VOD servers from Concurrent and made the service available to its customers. As this agreement expired during fiscal 2004, Concurrent did not recognize any increase in, or reduction to, revenue during the three and six month periods ended December 31, 2004. For the three and six month periods ended December 31, 2003, Concurrent recognized $80,000 and $431,000, respectively, as a reduction in revenue for the warrants that were earned during those respective periods.

As of December 31, 2003, Concurrent determined the value of the warrants using the Black-Scholes valuation model. The weighted-average assumptions used for the three months ended December 31, 2003 were: expected dividend yield of 0.0%; risk-free interest rate of 2.8%; expected life of 4 years; and an expected volatility of 111.0%.

The exercise prices of the warrants are subject to adjustment for stock splits, combinations, stock dividends, mergers, and other similar recapitalization events. The exercise prices are also subject to adjustment for issuance of additional equity securities at a purchase price less than the then current fair market value of Concurrent's common stock. The exercise prices of the warrants issued to Comcast equaled the average closing price of Concurrent's common stock for the 30 trading days prior to the applicable warrant issuance date and will be exercisable over a four-year term. As the agreement with Comcast expired on March 31, 2004, Concurrent is no longer obligated to issue any additional warrants to Comcast. The warrants issued to Comcast did not exceed 1% of Concurrent's outstanding shares of common stock.

Scientific Atlanta, Inc. Warrants

In accordance with a five year definitive agreement with Scientific Atlanta, Inc. ("SAI") executed in August of 1998, Concurrent agreed to issue warrants to SAI upon achievement of pre-determined revenue targets. Concurrent accrued for this cost as a part of cost of sales at the time of recognition of applicable revenue. Concurrent issued warrants to purchase 261,164 of its common stock to SAI upon reaching the first $30 million

13

threshold on April 1, 2002, exercisable at $7.106 per share over a four-year term, all of which are still outstanding as of December 31, 2004. These warrants expire on April 1, 2006.

The five year definitive agreement with SAI expired on August 17, 2003, and at that time Concurrent had not reached the second $30 million threshold of revenue using the SAI platform. As a result, Concurrent was not obligated to issue warrants under the agreement regarding the second $30 million threshold, and accordingly, reversed $1.3 million of expense in the six months ended December 31, 2003, which had been previously accrued in anticipation of reaching the next $30 million threshold. This reversal was recorded in VOD product cost of sales.

11. TERM LOAN AND REVOLVING CREDIT FACILITY

On December 23, 2004, Concurrent executed a Loan and Security Agreement ("Credit Agreement") with Silicon Valley Bank ("SVB"). The Credit Agreement provides for a two year maximum of $10,000,000 revolving credit line ("Revolver") and a three year $3,000,000 term loan ("Term Loan") and is secured by substantially all of the assets of Concurrent. Based on the borrowing formula and Concurrent's financial position as of December 31, 2004, $4.7 million would have been available to Concurrent under the Revolver. The Revolver expires on December 23, 2006, unless terminated earlier in accordance with its terms, and the Term Loan expires on December 23, 2007, unless terminated earlier in accordance with its terms. As of December 31, 2004, Concurrent had no amounts drawn under the Revolver and had drawn down the entire $3,000,000 under the Term Loan.

                                    DECEMBER 31,   JUNE 30,
                                       2004         2004
                                   ------------------------
Notes payable to bank              $       3,000  $       -
                                   -------------  ---------
Less current portion                         930          -
                                   -------------  ---------
  Long-term notes payable to bank  $       2,070  $       -
                                   =============  =========

Interest on all outstanding amounts under the Revolver is payable monthly at the prime rate (5.25% at December 31, 2004) plus 3.25% per annum, and interest on all outstanding amounts under the Term Loan is payable monthly at a rate of 8.0% per annum. The Term Loan is repayable in 36 equal monthly principal and interest installments of $94,000 and the outstanding principal of the Revolver is due on December 23, 2006, unless the Revolver is terminated earlier in accordance with its terms.

In addition, the Credit Agreement contains certain financial covenants, including required financial ratios and a minimum tangible net worth, and customary restrictive covenants concerning Concurrent's operations. Concurrent was in compliance with these covenants at December 31, 2004.

14

12. RETIREMENT PLANS

The following table provides a detail of the components of net periodic benefit cost for the three and six months ended December 31, 2004 and 2003 (in thousands):

                                                           THREE MONTHS ENDED        SIX MONTHS ENDED
                                                               DECEMBER 31,            DECEMBER 31,
                                                            2004         2003       2004        2003
                                                        ------------  ----------  ---------  -----------
Service cost                                            $         7   $      88   $     13   $      176
Interest cost                                                    55         278        104          556
Expected return on plan assets                                  (23)       (191)       (44)        (384)
Amortization of unrecognized net transition obligation            8         (16)        16          (32)
Amortization of unrecognized prior service benefit                -           6          -           12
Recognized actuarial loss                                         1          94          2          188
                                                        ------------  ----------  ---------  -----------
Net periodic benefit cost                               $        48   $     259   $     91   $      516
                                                        ============  ==========  =========  ===========

Concurrent contributed $20,000 and $36,000 to its defined benefit plan during the three and six months ended December 31, 2004, respectively, and expects to make similar contributions during the remaining periods of fiscal 2005. Concurrent contributed $147,000 and $277,000 to its defined benefit plans during the three and six months ended December 31, 2003, respectively.

Concurrent maintains a retirement savings plan, available to U.S. employees, which qualifies as a defined contribution plan under Section 401(k) of the Internal Revenue Code. During the three months ended December 31, 2004 and 2003, Concurrent contributed $243,000 and $255,000 to this plan, respectively. During the six months ended December 31, 2004 and 2003, Concurrent contributed $514,000 and $497,000 to this plan, respectively.

Concurrent also maintains a defined contribution plan ("Stakeholder Plan") for its U.K. based employees. Concurrent has agreements with certain of its U.K. based employees to make supplementary contributions to the Stakeholder Plan over the next five years, contingent upon their continued employment with Concurrent. During the three months ended December 31, 2004 and 2003, Concurrent contributed $125,000 and $5,000 to the Stakeholder Plan, respectively. During the six months ended December 31, 2004 and 2003, Concurrent contributed $258,000 and $9,000 to this plan, respectively.

13. COMMITMENTS AND CONTINGENCIES

Concurrent, from time to time, is involved in litigation incidental to the conduct of its business. Concurrent believes that such pending litigation will not have a material adverse effect on its results of operations or financial condition.

15

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

The following Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Condensed Consolidated Financial Statements and the related Notes thereto which appear elsewhere herein. Except for the historical financial information, many of the matters discussed in this Item 2 may be considered "forward-looking" statements that reflect our plans, estimates and beliefs. Actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the "Cautionary Note to Forward-Looking Statements," elsewhere herein and in other filings made with the Securities and Exchange Commission.

OVERVIEW

During the six months ended December 31, 2004, we used approximately $6.9 million in cash and cash equivalents from operations, and ended the quarter with $23.9 million in cash and cash equivalents, after borrowing $3.0 million in the form of a term loan. The increased net cash usage during the six months ended December 31, 2004 compared to the six months ended December 31, 2003 is the result of the increased net loss and the recognition of revenue during the period on shipments for which the cash was received in the prior fiscal year. In an attempt to reduce the cash used in operating activities and reduce our breakeven point, we undertook actions during this fiscal year to reduce operating expenses that included the termination of approximately 12% of our workforce and employing greater discipline in our capital expenditures. For the three month period ended December 31, 2004, we generated $1.8 million of positive cash flow from operations due to increased revenues and the benefits of the actions undertaken in the quarter ended September 30, 2004. See further discussions in the "Liquidity and Capital Resources" section of this document.

Also, during the six month period ended December 31, 2004, we have begun the process of enabling Concurrent to operate more effectively as a united company by consolidating the ISD and VOD operating divisions. Over the next few months, the divisional structure will be consolidated under a functional organization with ISD and VOD product lines.

Other trends in our business are detailed in our latest Form 10-K filed September 7, 2004.

APPLICATION OF CRITICAL ACCOUNTING POLICIES

The SEC defines "critical accounting policies" as those that require application of management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods.

For a complete description of our critical accounting policies, please refer to the "Application of Critical Accounting Policies" in our most recent Form 10-K, filed on September 7, 2004. The following details an update to the critical accounting policies since the filing of our most recent Form 10-K.

Stock-Based Compensation Costs

We have stock-based employee compensation plans and account for these plans using Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees", and related interpretations. During the quarter ended December 31, 2004, we issued restricted stock awards, a portion of which are part of a multi-year restricted stock performance plan. Because a portion of this restricted stock plan is performance based, that portion must be accounted for using variable accounting, requiring interim estimates of compensation. Interim measures of compensation are based on a combination of the fair-value of the stock as of the end of the reporting period and an assessment of whether the performance criteria will ultimately be met. To the extent that the fair value of our stock fluctuates and our assessments of achieving the performance criteria change, cost of sales and operating expenses may be positively or negatively impacted.

16

SELECTED OPERATING DATA AS A PERCENTAGE OF TOTAL REVENUE

The following table sets forth selected operating data as a percentage of total revenue, unless otherwise indicated, for certain items in our consolidated statements of operations for the periods indicated.

                                                       Three Months Ended     Six Months Ended
                                                          December 31,          December 31,
                                                       2004        2003       2004       2003
                                                    ----------  ----------  --------  ----------
Revenues:
  Product
    ISD systems                                          30.8%       24.8%    31.3 %      24.0 %
    VOD systems                                          42.7        51.1      39.1        49.9
                                                    ----------  ----------  --------  ----------
      Total product revenues                             73.5        75.9      70.4        73.9
  Service
    ISD systems                                          16.7        17.7      17.8        19.7
    VOD systems                                           9.8         6.4      11.8         6.4
                                                    ----------  ----------  --------  ----------
      Total service revenues                             26.5        24.1      29.6        26.1
                                                    ----------  ----------  --------  ----------

      Total revenues                                    100.0       100.0     100.0       100.0

Cost of sales (% of respective sales category):
  Product
    ISD systems                                          41.0        47.0      42.6        39.9
    VOD systems                                          50.9        47.4      58.6        44.1
                                                    ----------  ----------  --------  ----------
      Total product cost of sales                        46.7        47.3      51.5        42.7
  Service
    ISD systems                                          61.5        55.6      61.4        54.1
    VOD systems                                          60.7        59.7      61.2        60.8
                                                    ----------  ----------  --------  ----------
      Total service cost of sales                        61.2        56.7      61.3        55.8
                                                    ----------  ----------  --------  ----------
      Total cost of sales                                50.6        49.5      54.4        46.1
                                                    ----------  ----------  --------  ----------

Gross margin                                             49.4        50.5      45.6        53.9

Operating expenses:
  Sales and marketing                                    20.4        19.6      22.9        20.5
  Research and development                               23.3        20.8      26.4        22.6
  General and administrative                             11.3         9.6      12.8        10.5
                                                    ----------  ----------  --------  ----------
      Total operating expenses                           55.0        50.0      62.1        53.6
                                                    ----------  ----------  --------  ----------

Operating income (loss)                                  (5.6)        0.5     (16.5)        0.3

Recovery (impairment loss) of minority investment        (1.6)        7.5      (0.8)        6.7
Interest income - net                                     0.4         0.3       0.5         0.3
Other expense - net                                      (0.3)       (0.1)     (0.3)       (0.4)
                                                    ----------  ----------  --------  ----------

Income (loss) before income taxes                        (7.1)        8.2     (17.1)        6.9

Provision for income taxes                                0.1         2.8       0.2         2.5
                                                    ----------  ----------  --------  ----------

Net income (loss)                                       (7.2)%        5.4%   (17.3)%        4.4%
                                                    ==========  ==========  ========  ==========

17

RESULTS OF OPERATIONS

THE THREE MONTHS ENDED DECEMBER 31, 2004 COMPARED TO THE THREE MONTHS ENDED
DECEMBER 31, 2003

                                            Three Months ended
                                               December 31,
                                         -----------------------
(Dollars in Thousands)                      2004         2003      $ Change  % Change
                                         ----------  ------------  --------  ---------

Product revenues                         $  14,721   $    17,165   $(2,444)     -14.2%
Service revenues                             5,303         5,461      (158)      -2.9%
                                         ----------  ------------  --------  ---------
    Total revenues                          20,024        22,626    (2,602)     -11.5%

Product cost of sales                        6,880         8,112    (1,232)     -15.2%
Service cost of sales                        3,248         3,095       153        4.9%
                                         ----------  ------------  --------  ---------
    Total cost of sales                     10,128        11,207    (1,079)      -9.6%
                                         ----------  ------------  --------  ---------

Product gross margin                         7,841         9,053    (1,212)     -13.4%
Service gross margin                         2,055         2,366      (311)     -13.1%
                                         ----------  ------------  --------  ---------
    Total gross margin                       9,896        11,419    (1,523)     -13.3%

Operating expenses:
  Sales and marketing                        4,087         4,429      (342)      -7.7%
  Research and development                   4,672         4,705       (33)      -0.7%
  General and administrative                 2,275         2,175       100        4.6%
                                         ----------  ------------  --------  ---------
    Total operating expenses                11,034        11,309      (275)      -2.4%
                                         ----------  ------------  --------  ---------

Operating income (loss)                     (1,138)          110    (1,248)         NM

Recovery (loss) of minority investment        (313)        1,698    (2,011)         NM
Interest income - net                           82            78         4        5.1%
Other expense                                  (66)          (20)      (46)         NM
                                         ----------  ------------  --------  ---------

Income (loss) before income taxes           (1,435)        1,866    (3,301)         NM

Provision for income taxes                      12           653      (641)     -98.2%
                                         ----------  ------------  --------  ---------

Net income (loss)                        $  (1,447)  $     1,213    (2,660)         NM
                                         ==========  ============  ========  =========

(1) NM denotes percentage is not meaningful

Product Sales. Total product sales for the three months ended December 31, 2004 were $14.7 million, a decrease of approximately $2.5 million, or 14.2%, from $17.2 million for the three months ended December 31, 2003. The decrease in product sales resulted from the $3.0 million, or 26.0%, decrease in VOD product sales to $8.6 million in the quarter ended December 31, 2004 from $11.6 million in the quarter ended December 31, 2003. The decrease in VOD product sales was due to fewer product sales in the North American market during the quarter ended December 31, 2004, as compared to the same period of the prior year. This reduction in North American domestic VOD product revenue was partially offset by an increase in international sales volume during the quarter ended December 31, 2004 that resulted in a $2.0 million increase in VOD product revenue in Asia and Europe, compared to the second quarter of the prior fiscal year. Fluctuation in VOD revenue is often due to the fact that we have a small base of large customers making periodic large purchases that account for a significant percentage of revenue. Although we have lost market share with certain customers over the past year, we believe that we will be able to maintain or increase our share of the North American cable market and also capture a meaningful share of the video-over-DSL market in both the United States and internationally in part through our partnership with Alcatel. We also anticipate that the erosion of the price per stream that has occurred over the past 5 years will not exceed the declining cost of goods sold.

Partially offsetting the decrease in VOD product sales, ISD product sales increased approximately $0.6 million, or 10.1%, to $6.2 million in the quarter ended December 31, 2004 from $5.6 million in the quarter ended

18

December 31, 2003. The increase in ISD product sales is primarily due to an increase in revenue from domestic customers. Over the past year, our Integrated Solutions Division has integrated software applications from strategic partnerships that we believe will enable it to expand beyond its traditional customer base. Based on this initiative, we expect to maintain market share in our traditional ISD markets and expect to capture market share in new markets needing ISD solutions.

Service Revenue. Service revenue decreased $0.2 million, or 2.9%, to $5.3 million for the three months ended December 31, 2004 from $5.5 million for the three months ended December 31, 2003. VOD service revenue increased approximately $0.6 million, or 35.6%, to $2.0 million in the quarter ended December 31, 2004 from $1.4 million in the quarter ended December 31, 2003, as the VOD division continues to recognize maintenance, installation, and training revenue on our expanding base of VOD market deployments. As the warranty and maintenance agreements that typically accompany the initial sale and installation of our VOD systems expire, we expect to sell new, long-term service and support agreements. Because of these anticipated new agreements, our expanding deployment base and the increasing software component of our total VOD solution, we expect sales of these VOD services to continue to increase.

The increase in VOD service revenue was partially offset by approximately a $0.7 million, or 16.7%, decrease in ISD service revenue to $3.3 million in the quarter ended December 31, 2004 from $4.0 million in the quarter ended December 31, 2003. ISD service revenue continued to decline primarily due to the cancellation of maintenance contracts as legacy machines were removed from service and, to a lesser extent, from customers purchasing our new products that produce significantly less service revenue. We expect this trend of declining ISD service revenue to continue into the foreseeable future.

Product Gross Margin. Product gross margin was $7.8 million for the three months ended December 31, 2004, a decrease of approximately $1.2 million, or 13.4%, from $9.1 million for the three months ended December 31, 2003. This decrease was due to fewer product shipments during the current quarter. Product gross margin as a percentage of product sales increased to 53.3% in the quarter ended December 31, 2004 from 52.7% in the quarter ended December 31, 2003 primarily because the ISD division's product gross margin increased to 59.0% from 53.0% of ISD product revenue for the same respective periods. The increase in ISD product gross margin is due to a more favorable product mix, as compared to the same period of the prior fiscal year. The gross margin on sales of VOD product decreased to 49.1% of VOD product revenue in the quarter ended December 31, 2004 from 52.6% of VOD product revenue in the quarter ended December 31, 2003, primarily due to $0.2 million of additional warranty reserves in the current quarter resulting from faulty parts provided to us by a third party. VOD product margins also declined due to product mix, compared to the prior year quarter.

Service Gross Margin. The gross margin on service sales decreased $0.3 million, or 13.1%, to $2.1 million, or 38.8% of service revenue in the three months ended December 31, 2004 from $2.4 million, or 43.3% of service revenue in the three months ended December 31, 2003. The decrease in overall service margins is due to the decrease in ISD service margins to 38.5% of ISD service revenues in the quarter ended December 31, 2004 from 44.4% of service revenues during the quarter ended December 31, 2003. Declining ISD margins are primarily due to declining service revenues from contractual maintenance obligations and due to an increase in severance expense during the quarter. Severance expense of $0.1 million recorded in the quarter ended December 31, 2004 resulted from a reduction in service personnel as ISD scaled down the infrastructure necessary to fulfill declining contractual obligations. The decline in contractual obligations results from the cancellation of maintenance contracts as legacy machines are removed from service and replaced with machines that are simpler to maintain. We will continue to scale down the ISD service infrastructure in response to this trend of declining ISD contractual service obligations.

The gross margin on sales of VOD service remained relatively stable, decreasing slightly to 39.3% of VOD service revenue in the quarter ended December 31, 2004 from 40.3% of VOD service revenue in the quarter ended December 31, 2003. Although our VOD service revenue continues to increase, our VOD customer service and support costs have also increased 37.8% over the prior year, as required to provide the necessary services.

Sales and Marketing. Sales and marketing expenses increased as a percentage of sales to 20.4% in the three months ended December 31, 2004 from 19.6% in the three months ended December 31, 2003. These expenses decreased $0.3 million, or 7.7%, to $4.1 million during the three months ended December 31, 2004 from $4.4 million in the same period of the prior year, primarily due to lower salaries, wages, benefits and

19

incentive compensation resulting from the company-wide reduction in force and cost savings initiative during the current fiscal year.

Research and Development. Research and development expenses increased as a percentage of sales to 23.3% in the three months ended December 31, 2004 from 20.8% in the three months ended December 31, 2003. These expenses remained flat at $4.7 million in the second quarters of both fiscal years 2005 and 2004. The VOD division incurred an additional $0.1 million from development subcontractors to meet the increasing software development requirements for customers' business management functionality, resource management and client system monitoring as a result of increases in both our customer base and deployment base. In addition to the increase in subcontractor costs, the VOD division incurred an additional $0.1 million in fixed asset depreciation expense related to purchases of product development and testing equipment, compared to the same period of the prior year. These additional costs to the VOD division were offset by lower incentive compensation and product certification costs during the quarter ended December 31, 2004, compared to the same period of the prior year. We expect that VOD software development costs will continue to stabilize and flatten over the next few years, as we reduce our number of software platforms and improve the stability of our software in the field.

General and Administrative. General and administrative expenses increased as a percentage of sales to 11.4% in the three months ended December 31, 2004 from 9.6% in the three months ended December 31, 2003. These expenses increased $0.1 million, or 4.6%, to $2.3 million in the three months ended December 31, 2004 from $2.2 million in same period of the prior year. This increase in general and administrative expense is primarily due to a prior year $0.3 million VOD bad debt expense reversal that did not recur in the current quarter. Partially offsetting the effects of this non-recurring prior year bad debt reversal, we reduced administrative salaries, benefits, and incentive compensation by $0.2 million in the current quarter as a result of the company-wide reduction in force and cost savings initiative in the current fiscal year.

Recovery (Impairment Loss) of Minority Investment. During the quarter ended December 31, 2004, we became aware of circumstances that provide evidence of an other than temporary impairment of our investment in Everstream. Based upon an evaluation of the investment in Everstream during this period, we recorded an impairment charge of $413,000 in the Statement of Operations, and reduced our "Investment in minority owned company" to $140,000. Should there be evidence of further impairment in the future, we will record additional impairment charges related to this investment.

During the second quarter of the prior fiscal year, we received $1.7 million in cash from continued monetization of the Thirdspace assets and settlement of its liabilities for which we recorded a gain in the Statement of Operations. An additional $0.1 million recovery of Thirdspace assets was recognized in the quarter ended December 31, 2004, partially offsetting the $413,000 Everstream impairment charge.

Provision for Income Taxes. We recorded income tax expense for our domestic and foreign subsidiaries of $12,000 in the quarter ended December 31, 2004, which is related primarily to foreign withholding taxes and income earned in foreign locations, which cannot be offset by net operating loss carryforwards. For the quarter ended December 31, 2003, we recorded income tax expense for our domestic and foreign subsidiaries of $653,000. This expense was primarily attributable to U.S. federal income tax that was offset by net operating losses originating prior to our quasi-reorganization in November 1991. For accounting purposes, the benefit from the utilization of the pre quasi-reorganization net operating losses must be recognized directly in equity rather than through the income statement.

Net Income (Loss). The net loss for the three months ended December 31, 2004 was $1.4 million or $0.02 per basic and diluted share compared to net income for the three months ended December 31, 2003 of $1.2 million or $0.02 per basic and diluted share.

20

THE SIX MONTHS ENDED DECEMBER 31, 2004 COMPARED TO THE SIX MONTHS ENDED DECEMBER
31, 2003

                                            SIX MONTHS ENDED
                                              DECEMBER 31,
                                         ----------------------
       (DOLLARS IN THOUSANDS)              2004        2003      $ CHANGE   % CHANGE
                                         ---------  -----------  --------  ---------
Product revenues                         $ 26,308   $   30,706   $(4,398)     -14.3%
Service revenues                           11,046       10,822       224        2.1%
                                         ---------  -----------  --------  ---------
      Total revenues                       37,354       41,528    (4,174)     -10.1%

Product cost of sales                      13,547       13,125       422        3.2%
Service cost of sales                       6,772        6,034       738       12.2%
                                         ---------  -----------  --------  ---------
      Total cost of sales                  20,319       19,159     1,160        6.1%
                                         ---------  -----------  --------  ---------

Product gross margin                       12,761       17,581    (4,820)     -27.4%
Service gross margin                        4,274        4,788      (514)     -10.7%
                                         ---------  -----------  --------  ---------
      Total gross margin                   17,035       22,369    (5,334)     -23.8%

Operating expenses:
  Sales and marketing                       8,564        8,509        55        0.6%
  Research and development                  9,852        9,373       479        5.1%
  General and administrative                4,781        4,344       437       10.1%
                                         ---------  -----------  --------  ---------
      Total operating expenses             23,197       22,226       971        4.4%
                                         ---------  -----------  --------  ---------

Operating income (loss)                    (6,162)         143    (6,305)         NM

Recovery (loss) of minority investment       (313)       2,758    (3,071)         NM
Interest income - net                         174          138        36       26.1%
Other expense                                (101)        (154)       53          NM
                                         ---------  -----------  --------  ---------

Income (loss) before income taxes          (6,402)       2,885    (9,287)         NM

Provision for income taxes                     66        1,060      (994)     -93.8%
                                         ---------  -----------  --------  ---------

Net income (loss)                        $ (6,468)  $    1,825   $(8,293)         NM
                                         =========  ===========  ========  =========

Product Sales. Total product sales for the six months ended December 31, 2004 were $26.3 million, a decrease of approximately $4.4 million, or 14.3%, from $30.7 million for the six months ended December 31, 2003. The decrease in product sales resulted from a $6.1 million, or 29.5%, decrease in VOD product sales to $14.6 million during the six months ended December 31, 2004 from $20.7 million during the six months ended December 31, 2003. The decrease in VOD product sales was due to fewer products sold in the North American market during the six months ended December 31, 2004, as compared to the same period of the prior year. This reduction in domestic VOD product revenue was partially offset by an increase in international sales volume during the six months ended December 31, 2004 that resulted in a $2.7 million increase in VOD product revenue in Asia and Europe, compared to the six months ended December 31, 2003. Fluctuation in VOD revenue is often due to the fact that we have a small base of large customers making periodic large purchases that account for a significant percentage of revenue. Although we have lost market share with certain customers over the past year, we believe that we will be able to maintain or increase our share of the North American cable market and also capture a meaningful share of the video-over-DSL market in both the United States and internationally in part through our partnership with Alcatel. We also anticipate that the erosion of the price per stream that has occurred over the past 5 years will not be as significant going forward.

Partially offsetting the decrease in VOD product sales, ISD product sales increased approximately $1.7 million, or 17.1%, to $11.7 million during the six months ended December 31, 2004 from $10.0 million during the same period of the prior year. The increase in ISD product sales is due to an increase in revenue from both domestic and international customers. Over the past year, our Integrated Solutions Division has integrated software applications from strategic partnerships that we believe will enable it to expand beyond its traditional

21

customer base. Based on this initiative, we expect to maintain market share in our traditional ISD markets and expect to capture market share in new markets needing ISD solutions.

Service Revenue. Service revenue increased $0.2 million, or 2.1%, to $11.0 million for the six months ended December 31, 2004 from $10.8 million for the six months ended December 31, 2003. VOD service revenue increased approximately $1.7 million, or 66.5%, to $4.4 million during the six months ended December 31, 2004 from $2.7 million in the same period of the prior fiscal year, as the VOD division continues to recognize maintenance, installation, and training revenue on our expanding base of VOD market deployments. As the warranty and maintenance agreements that typically accompany the initial sale and installation of our VOD systems expire, we expect to sell new, long-term service and support agreements. Because of these anticipated new agreements, our expanding deployment base and increasing software component of our total VOD solution, we expect sales of these VOD services to continue to increase.

The increase in VOD service revenue was partially offset by approximately a $1.6 million, or 18.9%, decrease in ISD service revenue to $6.6 million during the six months ended December 31, 2004 from $8.2 million in the same period of the prior fiscal year. ISD service revenue continued to decline primarily due to the cancellation of maintenance contracts as legacy machines were removed from service and, to a lesser extent, from customers purchasing our new products that produce significantly less service revenue. We expect this trend of declining ISD service revenue to continue into the foreseeable future.

Product Gross Margin. Product gross margin was $12.8 million for the six months ended December 31, 2004, a decrease of $4.8 million, or 27.4%, from $17.6 million for the six months ended December 31, 2003. Product gross margin as a percentage of product sales decreased to 48.5% in the six months ended December 31, 2004 from 57.3% in the six months ended December 31, 2003, primarily because the VOD division's product gross margin decreased to 41.4% from 55.9% of VOD product revenue for the same respective periods. The decrease in VOD product gross margin is due to an incentive discount provided to one of our North American cable customers who upgraded its older VOD systems to our fourth generation architecture and changes in product mix. In addition, prior year VOD margins were favorably affected by approximately 9.0% due to the Scientific Atlanta, Inc. warrant expense reversal of $1.3 million.

The gross margin on sales of ISD product decreased to 57.4% of ISD product revenue in the six months ended December 31, 2004 from 60.1% of ISD product revenue in the six months ended December 31, 2003 due to a less favorable product mix, as compared to the same period of the prior fiscal year.

Service Gross Margin. The gross margin on service sales decreased $0.5 million, or 10.7%, to $4.3 million, or 38.7% of service revenue in the six months ended December 31, 2004 from $4.8 million, or 44.2% of service revenue in the six months ended December 31, 2003. The decrease in overall service margins is due to the decrease in ISD service margins to 38.6% of ISD service revenues in the six months ended December 31, 2004 from 45.9% of service revenues during the same period of the prior fiscal year. Declining ISD margins are primarily due to declining service revenues from contractual maintenance obligations and an increase in severance expense during the period. Severance expense of $0.2 million recorded in the six months ended December 31, 2004 resulted from a reduction in service personnel as ISD scaled down the infrastructure necessary to fulfill declining contractual obligations. The decline in contractual obligations results from the cancellation of maintenance contracts as legacy machines are removed from service and replaced with machines that are simpler to maintain. We will continue to scale down our service infrastructure in response to this trend of declining ISD contractual service obligations.

VOD service margins remained flat at approximately 39.0% of VOD service revenues for both the six months ended December 31, 2004 and 2003. Although our VOD service revenue continues to increase, our VOD customer service and support costs have also increased 67.5% compared to the prior year six month period, as required to provide the necessary services.

Sales and Marketing. Sales and marketing expenses increased as a percentage of sales to 22.9% in the six months ended December 31, 2004 from 20.5% in the six months ended December 31, 2003. These expenses increased $0.1 million, or 0.6%, to $8.6 million during the six months ended December 31, 2004 from $8.5 million in the same period of the prior year, primarily due to an additional $0.3 million of commissions resulting from sales growth by both divisions in Europe and Asia. In addition, we incurred $0.2 million of domestic and international severance expense related to a reduction in force initiative during the current fiscal year. The

22

increase in severance and international commission expense were partially offset by a company-wide $0.3 million decrease in salaries, wages and benefits and $0.1 million decrease in travel, both due to the reduction in force and cost savings initiative in the current fiscal year.

Research and Development. Research and development expenses increased as a percentage of sales to 26.4% in the six months ended December 31, 2004 from 22.6% in the six months ended December 31, 2003. These expenses increased $0.5 million, or 5.1%, to $9.9 million during the six months ended December 31, 2004 from $9.4 million in the same period of the prior fiscal year. The increase in research and development expense is due to a $0.4 million increase in VOD salaries and related costs resulting from new software development staff over the past year. The VOD division added development staff and subcontractors to meet the increasing software development requirements for customers' business management functionality, resource management and client system monitoring as a result of increases in both our customer base and deployment base. In addition to the increase in personnel costs, the VOD division incurred an additional $0.2 million in fixed asset depreciation expense related to purchases of product development and testing equipment, compared to the same period of the prior year. We expect that VOD software development costs will begin to stabilize and flatten over the next few years, as we reduce our number of software platforms and as we stabilize our software in the field.

General and Administrative. General and administrative expenses increased as a percentage of sales to 12.8% in the six months ended December 31, 2004 from 10.5% in the six months ended December 31, 2003. These expenses increased $0.4 million, or 10.1%, to $4.8 million during the six months ended December 31, 2004 from $4.3 million in same period of the prior fiscal year. This increase in general and administrative expense is due to prior year VOD bad debt reserve reversals of $0.6 million that did not recur in the current fiscal year. Partially offsetting the effects of this prior year bad debt reversal, we reduced administrative salaries, benefits, and incentive compensation by $0.2 million in the current quarter as a result of the company-wide reduction in force and cost savings initiative in the current fiscal year.

Recovery (Impairment Loss) of Minority Investment. During the six months ended December 31, 2004, we became aware of circumstances that provide evidence of an other than temporary impairment of our investment in Everstream. Based upon an evaluation of the investment in Everstream during this period, we recorded an impairment charge of $413,000 and reduced our "Investment in minority owned company" to $140,000. Should there be evidence of further impairment in the future, we will record additional impairment charges related to this investment.

During the six months ended December 31, 2003 we received $2.8 million in cash from continued monetization of the Thirdspace assets and settlement of its liabilities for which we recorded a gain in the Statement of Operations. An additional $0.1 million recovery of Thirdspace assets was recognized in the six months ended December 31, 2004, partially offsetting the $413,000 Everstream impairment charge.

Provision for Income Taxes. We recorded income tax expense for our domestic and foreign subsidiaries of $66,000 during the six months ended December 31, 2004, which is related primarily to foreign withholding taxes and income earned in foreign locations, which cannot be offset by net operating loss carryforwards. For the same period of the prior fiscal year, we recorded income tax expense for our domestic and foreign subsidiaries of $1,060,000. This expense was primarily attributable to U.S. federal income tax that was offset by net operating losses originating prior to our quasi-reorganization in November 1991. For accounting purposes, the benefit from the utilization of the pre quasi-reorganization net operating losses must be recognized directly in equity rather than through the income statement.

Net Income (Loss). The net loss for the six months ended December 31, 2004 was $6.5 million or $0.10 per basic and diluted share compared to net income for the six months ended December 31, 2003 of $1.8 million or $0.03 per basic and diluted share.

23

LIQUIDITY AND CAPITAL RESOURCES

Our liquidity is dependent on many factors, including sales volume, operating profit and the efficiency of asset use and turnover. Our future liquidity will be affected by, among other things:

- the rate of growth, if any, of new VOD market deployments and the pace at which domestic and international cable companies and telephone companies implement VOD technology;

- the rate of growth, if any, of expansions of previously deployed VOD systems;

- the actual versus anticipated decline in revenue from maintenance of ISD proprietary systems;

- revenues from ISD systems;

- ongoing cost control actions and expenses, including for example, research and development and capital expenditures;

- the margins on our VOD and ISD businesses;

- our ability to raise additional capital, if necessary;

- our ability to obtain additional bank financing, if necessary;

- our ability to meet the covenants contained in our Credit Agreement;

- timing of product shipments which occur primarily during the last month of the quarter;

- the percentage of sales derived from outside the United States where there are generally longer accounts receivable collection cycles; and

- the number of countries in which we operate, which may require maintenance of minimum cash levels in each country and, in certain cases, may restrict the repatriation of cash, such as cash held on deposit to secure office leases.

We used $6.9 million of cash from operating activities during the six months ended December 31, 2004 compared to using $4.8 million of cash during the same period of the prior year. The decrease in cash from operations was primarily due to changes in working capital and operating losses during the current year.

We invested $0.9 million in property, plant and equipment during the six months ended December 31, 2004 compared to $2.1 million during the six months ended December 31, 2003. Capital additions during each of these periods related primarily to product development and testing equipment, demonstration equipment and equipment loans to our customers for our VOD division. We expect a similar mix of capital additions during the remainder of this fiscal year.

In the prior fiscal year, we received $2.8 million from the continued liquidation of Thirdspace during the six months ended December 31, 2003.

During the quarter ended December 31, 2004, we executed a Loan and Credit Agreement with Silicon Valley Bank. The Credit Agreement provides for a two year $10 million revolving credit line and a three year $3 million term loan. As of December 31, 2004, we had no amounts drawn under the Revolver and had drawn down the entire $3.0 million under the Term Loan.

Interest on all outstanding amounts under the Revolver is payable monthly at the prime rate (5.25% at December 31, 2004) plus 3.25% per annum, and interest on all outstanding amounts under the Term Loan is payable monthly at a rate of 8.0% per annum. The Term Loan is repayable in 36 equal monthly principal and interest installments of $94,000 and the outstanding principal of the Revolver is due on December 23, 2006, unless the Revolver is terminated earlier in accordance with its terms.

In addition, the Credit Agreement contains certain financial covenants, including required financial ratios and a minimum tangible net worth, and customary restrictive covenants concerning our operations. We were in compliance with these covenants at December 31, 2004. The Credit Agreement is attached as Exhibit 10.1.

24

As part of our cost reduction initiative implemented during the current fiscal year, we anticipate reducing our breakeven point. If revenues do not reach these breakeven levels or our cost reduction efforts are not as successful as planned, then we will continue to use cash. Our working capital has declined from $43.5 million at June 30, 2002 to $25.2 million at December 31, 2004, which includes amounts drawn under our new Credit Agreement. If our VOD revenue does not increase and stabilize in future periods, we will continue to use cash in operating activities, which will cause working capital to further decline. If this situation continues, we may need to raise additional funds through an offering of stock or debt, in addition to our Credit Agreement with the bank. We cannot be certain that we will be able to obtain additional financing on favorable terms, if at all.

CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS

Our only significant contractual obligations and commitments relate to repayment of a three year Term Loan that was funded during the quarter ended December 31, 2004 and certain operating leases for sales, service and manufacturing facilities in the United States, Europe and Asia. The future payments required under our Term Loan and operating lease obligations, as of December 31, 2004, are as follows:

                                                        PAYMENTS DUE BY FISCAL YEAR
                                          -----------------------------------------------------
                                                          (DOLLARS IN THOUSANDS)
CONTRACTUAL OBLIGATIONS                    TOTAL    2005   2006-2007   2008-2009    THEREAFTER
----------------------------------------  -------  ------  ----------  ----------  ------------

Note payable to bank                      $ 3,000  $  463  $    1,988  $      549  $          -
Interest payments - note payable to bank      373      99         261          13             -
Operating leases                            9,141   1,351       4,585       2,474           731
                                          -------  ------  ----------  ----------  ------------
    Total contractual obligations         $12,514  $1,913  $    6,834  $    3,036  $        731
                                          =======  ======  ==========  ==========  ============

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements made or incorporated by reference in this release may constitute "forward-looking statements" within the meaning of the federal securities laws. When used or incorporated by reference in this release, the words "believes," "expects," "estimates," "anticipates," and similar expressions, are intended to identify forward-looking statements. Statements regarding future events and developments, our future performance, market share, and new market growth, as well as our expectations, beliefs, plans, estimates, or projections relating to the future, are forward-looking statements within the meaning of these laws. Examples of our forward-looking statements in this quarterly report include, but are not limited to, our pricing trends, our expected cash position, our expectations of market share and growth, and our international opportunities with Alcatel. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. The risks and uncertainties which could affect our financial condition or results of operations include, without limitation: our ability to keep our customers satisfied; availability of video-on-demand content; delays or cancellations of customer orders; changes in product demand; economic conditions; various inventory risks due to changes in market conditions; uncertainties relating to the development and ownership of intellectual property; uncertainties relating to our ability and the ability of other companies to enforce their intellectual property rights; the pricing and availability of equipment, materials and inventories; the concentration of our customers; failure to effectively manage growth; delays in testing and introductions of new products; rapid technology changes; system errors or failures; reliance on a limited number of suppliers and failure of components provided by those suppliers; uncertainties associated with international business activities, including foreign regulations, trade controls, taxes, and currency fluctuations; the highly competitive environment in which we operate and predatory pricing pressures; failure to effectively service the installed base; the entry of new well-capitalized competitors into our markets; the success of new products in both the VOD and ISD divisions; financing for working capital needs; the availability of Linux software in light of issues raised by SCO Group; capital spending patterns by a limited customer base; and customer obligations that could impact revenue recognition.

Other important risk factors are discussed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2004.

25

Our forward-looking statements are based on current expectations and speak only as of the date of such statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk from changes in interest rates and foreign currency exchange rates. We are exposed to the impact of interest rate changes on our short-term cash investments, which are backed by U.S. government obligations, and other investments in respect of institutions with the highest credit ratings, all of which have maturities of three months or less. These short-term investments carry a degree of interest rate risk. We believe that the impact of a 10% increase or decline in interest rates would not be material to our investment income. We are also exposed to fluctuations in interest rates as we seek debt to sustain our operations. At December 31, 2004, 100% of our debt was in fixed-rate instruments, as our variable rate revolving credit facility was unfunded. We consider the fair value of all financial instruments not to be materially different from their carrying value at quarter end.

We conduct business in the United States and around the world. Our most significant foreign currency transaction exposure relates to the United Kingdom, those Western European countries that use the Euro as a common currency, Australia, and Japan. We do not hedge against fluctuations in exchange rates and believe that a hypothetical 10% upward or downward fluctuation in foreign currency exchange rates relative to the United States dollar would not have a material impact on future earnings, fair values, or cash flows.

ITEM 4. CONTROLS AND PROCEDURES

As required by Securities and Exchange Commission rules, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. This evaluation was carried out under the supervision and with the participation of our management, including our principal executive officer and principal financial officer. Based on this evaluation, these officers have concluded that the design and operation of our disclosure controls and procedures are effective. There were no significant changes to our internal control over financial reporting during the period covered by this report that materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

Disclosure controls and procedures are our controls and other procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file under the Exchange Act are accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may be involved in litigation relating to claims arising out of our ordinary course of business. We are not presently involved in any material litigation, but are involved in various other legal proceedings. We believe that any liability that may arise as a result of these proceedings will not have a material adverse effect on our financial condition.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Concurrent's Annual Meeting of Stockholders was held on October 20, 2004. The results of the voting were as follows:

- The following persons were elected as directors to serve until the next annual meeting of stockholders: Alex B. Best (57,640,576 votes for, 1,972,529 votes withheld), Charles Blackmon (57,677,760 votes for, 1,935,345 votes withheld), Michael A. Brunner (56,915,020 votes for, 2,698,085 votes withheld), C. Shelton James (57,483,412 votes for, 2,129,693 votes withheld),

26

Steve G. Nussrallah (56,495,206 votes for, 3,117,899 votes withheld), and T. Gary Trimm (57,612,216 votes for, 2,000,889 votes withheld).

- The selection by the Audit Committee of Deloitte & Touch LLP as Concurrent's independent auditors for the fiscal year ending June 30, 2005 was ratified (59,169,863 votes for, 221,042 votes against, 222,200 votes abstained).

- The approval of an amendment to the Concurrent Computer Corporation 2001 Stock Option Plan to increase the number of shares authorized by 4,000,000 (20,572,488 votes for, 6,240,500 votes against, 611,063 votes abstained).

ITEM 6. EXHIBITS

3.1   -  Restated Certificate of Incorporation of the Registrant (incorporated by reference to the
         Registrant's Registration Statement on Form S-2 (No. 33-62440)).
3.2   -  Amended and Restated Bylaws of the Registrant (incorporated by reference to the
         Registrant's Quarterly report on Form 10-Q for the quarter ended March 31, 2003).
3.3   -  Certificate of Correction to Restated Certificate of Incorporation of the Registrant
         (incorporated by reference to the Registrant's Annual Report on Form 10-K for the
         fiscal year ended June 30, 2002).
3.4   -  Amended Certificate of Designations of Series A Participating Cumulative Preferred
         Stock (incorporated by reference to the Form 8-A/A, dated August 9, 2002).
3.5   -  Amendment to Amended Certificate of Designations of Series A Participating
         Cumulative Preferred Stock (incorporated by reference to the Form 8-A/A, dated
         August 9, 2002).
4.1   -  Form of Common Stock Certificate (incorporated by reference to the Registrant's
         Quarterly report on Form 10-Q for the quarter ended March 31, 2003).
4.2   -  Form of Rights Certificate (incorporated by reference to the Registrant's Current Report
         on Form 8-K/A filed August 12, 2002).
4.3   -  Amended and Restated Rights Agreement dated as of August 7, 2002 between the
         Registrant and American Stock Transfer & Trust Company, as Rights Agent
         (incorporated by reference to the Registrant's Current Report on Form 8-K/A filed on
         August 12, 2002).
10.1**-  Loan and Security Agreement.
10.2**-  Schedule of Officers who have entered into the Form Indemnification Agreement
         (Incorporated by reference to the Registrant's Quarterly report on Form 10-Q for the
         quarter ended September 30, 2003).
10.3**-  Employment Agreement dated as of February 1, 2005 between the Registrant and Greg Wilson.
10.4**-  Protective Agreement dated as of February 1, 2005 between the Registrant and Greg Wilson.
10.5**-  Employment Agreement dated as of February 4, 2005 between the Registrant and John Welch.
10.6**-  Protective Agreement dated as of February 4, 2005 between the Registrant and John Welch.
10.7**-  Employment Agreement dated as of February 4, 2005 between the Registrant and Gary Brust.
10.8**-  Protective Agreement dated as of February 4, 2005 between the Registrant and Gary Brust.
11.1* -  Statement Regarding Computation of Per Share Earnings.
31.1**-  Certification of Chief Executive Officer, pursuant to Section 302 of the Sarbanes-
         Oxley Act of 2002.
31.2**-  Certification of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-
         Oxley Act of 2002.
32.1**-  Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350,
         as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**-  Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted
         pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

* Data required by Statement of Financial Accounting Standards No. 128, "Earnings per Share," is provided in the Notes to the condensed consolidated financial statements in this report.

** Filed herewith.

27

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: February 4, 2005              CONCURRENT COMPUTER CORPORATION




                                    By:  /s/  Greg Wilson
                                         ---------------------
                                    Greg Wilson
                                    Chief Financial Officer
                                    (Principal Financial and Accounting Officer)

28

                                                 EXHIBIT INDEX
                                                 -------------


3.1   -  Restated Certificate of Incorporation of the Registrant (incorporated by reference to the Registrant's
         Registration Statement on Form S-2 (No. 33-62440)).
3.2   -  Amended and Restated Bylaws of the Registrant (incorporated by reference to the Registrant's
         Quarterly report on Form 10-Q for the quarter ended March 31, 2003).
3.3   -  Certificate of Correction to Restated Certificate of Incorporation of the Registrant (incorporated by
         reference to the Registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 2002).
3.4   -  Amended Certificate of Designations of Series A Participating Cumulative Preferred Stock
         (incorporated by reference to the Form 8-A/A, dated August 9, 2002).
3.5   -  Amendment to Amended Certificate of Designations of Series A Participating Cumulative Preferred
         Stock (incorporated by reference to the Form 8-A/A, dated August 9, 2002).
4.1   -  Form of Common Stock Certificate (incorporated by reference to the Registrant's Quarterly report on
         Form 10-Q for the quarter ended March 31, 2003).
4.2   -  Form of Rights Certificate (incorporated by reference to the Registrant's Current Report on Form
         8-K/A filed August 12, 2002).
4.3   -  Amended and Restated Rights Agreement dated as of August 7, 2002 between the Registrant and
         American Stock Transfer & Trust Company, as Rights Agent (incorporated by reference to the
         Registrant's Current Report on Form 8-K/A filed on August 12, 2002).
11.1* -  Statement Regarding Computation of Per Share Earnings.
10.1**-  Loan and Security Agreement.
10.2**-  Schedule of Officers who have entered into the Form Indemnification Agreement (Incorporated by
         reference to the Registrant's Quarterly report on Form 10-Q for the quarter ended September 30, 2003).
10.3**-  Employment Agreement dated as of February 1, 2005 between the Registrant and Greg Wilson.
10.4**-  Protective Agreement dated as of February 1, 2005 between the Registrant and Greg Wilson.
10.5**-  Employment Agreement dated as of February 4, 2005 between the Registrant and John Welch.
10.6**-  Protective Agreement dated as of February 4, 2005 between the Registrant and John Welch.
10.7**-  Employment Agreement dated as of February 4, 2005 between the Registrant and Gary Brust.
10.8**-  Protective Agreement dated as of February 4, 2005 between the Registrant and Gary Brust.
31.1**-  Certification of Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2**-  Certification of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**-  Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
         Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**-  Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
         Section 906 of the Sarbanes-Oxley Act of 2002.

* Data required by Statement of Financial Accounting Standards No. 128, "Earnings per Share," is provided in the Notes to the condensed consolidated financial statements in this report.

** Filed herewith.

29

Exhibit 10.1

LOAN AND SECURITY AGREEMENT

BY AND BETWEEN

CONCURRENT COMPUTER CORPORATION

AS BORROWER

AND

SILICON VALLEY BANK,

AS BANK

DECEMBER 23, 2004



LOAN AND SECURITY AGREEMENT

THIS LOAN AND SECURITY AGREEMENT (this "Agreement") dated December 23, 2004, between SILICON VALLEY BANK ("Bank"), whose address is 3003 Tasman Drive, Santa Clara, California 95054 and having a loan production office at 3353 Peachtree Road, NE, M-10, Atlanta, Georgia 30326 and CONCURRENT COMPUTER CORPORATION, a corporation organized and in good standing in the State of Delaware ("Borrower"), whose address is 4375 River Green Parkway, Duluth, Georgia 30096, provides the terms on which Bank will lend to Borrower and Borrower will repay Bank. The parties agree as follows:

1. ACCOUNTING AND OTHER TERMS

Accounting terms not defined in this Agreement will be construed following GAAP. Calculations and determinations must be made following GAAP. The term "financial statements" includes the notes and schedules. The terms "including" and "includes" always mean "including (or includes) without limitation," in this or any Loan Document.

2. LOAN AND TERMS OF PAYMENT

2.1 PROMISE TO PAY.

Borrower promises to pay Bank the unpaid principal amount of all Credit Extensions and interest on the unpaid principal amount of the Credit Extensions.

2.1.1 REVOLVING ADVANCES.

(a) Bank will make Advances not exceeding (i) the lesser of (A) the Committed Revolving Line or (B) the Borrowing Base, as in effect from time to time, minus (ii) the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), minus (ii) the Cash Management Services Reserve minus (iii) the FX Reserve. Amounts borrowed under this
Section may be repaid and reborrowed during the term of this Agreement. All Advances shall be evidenced by the Revolving Promissory Note to be executed and delivered by Borrower to Bank on the Closing Date and shall be repaid in accordance with the terms of the Revolving Promissory Note.

(b) To obtain an Advance, Borrower must notify Bank by facsimile or telephone by 3:00 p.m. Eastern time on the Business Day the Advance is to be made. Borrower must promptly confirm the notification by delivering to Bank the Loan Payment/Advance Request Form attached as Exhibit B (the "Payment/Advance Form"). Bank will credit Advances to Borrower's deposit account. Bank may make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due. Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Borrower will indemnify Bank for any loss Bank suffers due to such reliance.

(c) The Committed Revolving Line terminates on the Revolving Maturity Date, when all Advances are immediately payable.

(d) Bank's obligation to lend the undisbursed portion of the Obligations will terminate if, in Bank's sole discretion, there has occurred a Material Adverse Change.

2.1.2 LETTERS OF CREDIT SUBLIMIT.

Bank will issue or have issued Letters of Credit for Borrower's account not exceeding (a) the lesser of the Committed Revolving Line or the Borrowing Base, as in effect from time to time, minus (b) the outstanding principal balance of the Advances minus the Cash Management Services Reserve, minus the FX Reserve; however, the face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) may not at any time exceed Two Million Dollars ($2,000,000). Each Letter of Credit will have an expiry date of no later than one hundred eighty (180) days after the Revolving Maturity Date, but Borrower's obligations to reimburse Bank under the Letters of Credit will be secured by cash on terms acceptable to Bank at any time after the Revolving Maturity Date if the term of this Agreement is not extended by Bank. Borrower agrees to execute any further documentation in connection with the Letters of Credit as Bank may reasonably request. Prior to or simultaneously with the


opening of each Letter of Credit, Borrower shall pay to Bank, a letter of credit fee (each a "Letter of Credit Fee" and collectively the "Letter of Credit Fees") in an amount equal to two percent (2%) per annum of the face amount of the Letter of Credit. Such Letter of Credit Fees shall be paid in advance upon the issuance of the Letter of Credit and upon each anniversary thereof, if any. In addition, Borrower shall pay to Bank any and all additional issuance, negotiation, processing, transfer or other fees to the extent and as and when customarily required by Bank.

2.1.3 FOREIGN EXCHANGE SUBLIMIT.

If there is availability under the Committed Revolving Line and the Borrowing Base, then Borrower may enter in foreign exchange forward contracts with the Bank under which Borrower commits to purchase from or sell to Bank a set amount of foreign currency more than one business day after the contract date (the "FX Forward Contract"). Bank will establish a reserve amount for each outstanding FX Forward Contract in an amount equal to ten percent (10%) of the notional amount of such FX Forward Contract up to a maximum of One Million Dollars ($1,000,000) (the "FX Reserve"). The total FX Forward Contracts at any one time may not exceed 10 times the amount of the FX Reserve. Bank may terminate the FX Forward Contracts if an Event of Default occurs and is continuing.

2.1.4 CASH MANAGEMENT SERVICES SUBLIMIT.

Borrower may use up to One Million Dollars ($1,000,000) for Bank's Cash Management Services, which may include merchant services, direct deposit of payroll, business credit card, and check cashing services identified in various cash management services agreements related to such services (the "Cash Management Services"). The aggregate amounts utilized under the Cash Management Services Sublimit will at all times reduce the amount otherwise available to be borrowed under the Committed Revolving Line (the "Cash Management Services Reserve"). Any amounts Bank pays on behalf of Borrower or any amounts that are not paid by Borrower for any Cash Management Services will be treated as Advances under the Committed Revolving Line and will accrue interest at the rate for Advances.

2.1.5    TERM  LOAN.

     (a)     Bank  will  make  a  Term  Loan  available  to  Borrower.

     (b)     Borrower  will  pay thirty-six (36) equal installments of principal

and interest of Ninety-Three Thousand Seven Hundred One and 40/100 Dollars ($93,701.40) each (the "Term Loan Payment"). Each Term Loan Payment is payable on the 1st of each month during the term of the loan. Borrower's final Term Loan Payment, due on December 1, 2007, includes all outstanding Term Loan principal and accrued interest.

2.2 OVERADVANCES.

If Borrower's Obligations under Sections 2.1.1, 2.1.2, 2.1.3 and 2.1.4 exceed the lesser of either (i) the Committed Revolving Line or (ii) the Borrowing Base, Borrower shall immediately pay Bank the excess.

2.3 INTEREST RATE, PAYMENTS.

(a) Interest Rate. Advances accrue interest on the outstanding principal balance in accordance with the LIBOR Supplement to Loan Agreement of even date herewith between Borrower and Bank, which forms a part of this Agreement. The Term Loan accrues interest at a per annum rate of eight percent (8%). After an Event of Default and during the continuation thereof, at the option of Bank upon notice to Borrower, the Obligations shall accrue interest at three percent (3%) above the rate effective immediately before the Event of Default. Interest is computed on a 360 day year for the actual number of days elapsed.

(b) Payments. Interest due on the Committed Revolving Line is payable on the first (1st) day of each month. Bank may debit any of Borrower's deposit accounts including Account Number XXXXXXXXXX for principal and interest payments owing or any amounts Borrower owes Bank. Bank will promptly notify Borrower when it debits Borrower's accounts. These debits are not a set-off. Payments received after 12:00 noon Eastern time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest accrues.

2

2.4 FEES.

(a) Commitment Fee. Borrower will pay Bank a commitment fee ("Commitment Fee") in an amount equal to $75,000, of which $55,000 shall be payable on the Closing Date and $20,000 shall be payable on the first anniversary of the Closing Date. Such Commitment Fee shall be fully earned when paid and shall not be subject to refund or rebate for any reason whatsoever.

(b) Unused Fee. Borrower will pay Bank a fee (the "Unused Line Fee") in an amount equal to one-quarter of one percent (0.25%) per annum of the average daily unused and undisbursed portion of the Committed Revolving Line accruing during each month. For purposes of this Section 2.4(b), the amount of outstanding Letters of Credit, the Cash Management Services Sublimit and the FX Reserve shall be deemed usage to the extent they reduce the availability of Advances under the Committed Revolving Line. The accrued and unpaid portion of the Unused Line Fee shall be paid by the Borrower to Bank on the first day of each month for the prior month, commencing on the first such date following the date hereof, and on the Revolving Maturity Date.

(c) Bank Expenses. Borrower will pay Bank all Bank Expenses (including reasonable attorneys' fees and reasonable expenses) incurred through and after the date of this Agreement upon demand.

3. CONDITIONS OF LOANS

3.1 CONDITIONS PRECEDENT TO INITIAL CREDIT EXTENSION.

Bank's obligation to make the initial Credit Extension is subject to the condition precedent that it receives the agreements, documents and fees it requires.

3.2 CONDITIONS PRECEDENT TO ALL CREDIT EXTENSIONS.

Bank's obligations to make each Credit Extension, including the initial Credit Extension, is subject to the following:

(a) timely receipt of any Payment/Advance Form; and

(b) the representations and warranties in Section 5 must be true on the date of the Payment/Advance Form and on the effective date of each Credit Extension (other than those representations and warranties expressly referring to another date, which representations and warranties shall be true as of such date) and no Event of Default may have occurred and be continuing, or result from the Credit Extension. Each Credit Extension is Borrower's representation and warranty on that date that matters set forth in this Section 3.2(b) are true and correct.

4. CREATION OF SECURITY INTEREST

4.1 GRANT OF SECURITY INTEREST.

Borrower grants Bank a continuing security interest in all presently existing and later acquired Collateral to secure all Obligations and performance of each of Borrower's duties under the Loan Documents. Except for Permitted Liens, any security interest will be a first priority security interest in the Collateral. Bank upon the occurrence of any Event of Default and during the continuation thereof, may place a "hold" on any deposit account of Borrower maintained with Bank. If this Agreement is terminated, Bank's lien and security interest in the Collateral will continue until Borrower fully satisfies its Obligations.

4.2 AUTHORIZATION TO FILE.

Borrower authorizes Bank to file financing statements describing the Collateral without notice to Borrower, with all appropriate jurisdictions, as Bank deems appropriate, in order to perfect or protect Bank's interest in the Collateral.

5. REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants as follows:

3

5.1 DUE ORGANIZATION AND AUTHORIZATION.

Borrower and each Subsidiary is duly existing and in good standing in the jurisdiction of its organization or formation and is qualified and licensed to do business in, and in good standing in, any state in which the conduct of its business or its ownership of property requires that it be qualified, except where the failure to do so could not reasonably be expected to cause a Material Adverse Change. Borrower exact legal name is as set forth on the first page of this Agreement. The execution, delivery and performance of the Loan Documents have been duly authorized, and do not conflict with Borrower's formation documents, nor constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which, or by which it is bound, in which the default could reasonably be expected to cause a Material Adverse Change.

5.2 COLLATERAL.

Borrower has good title to the Collateral, free of Liens except Permitted Liens. All Accounts listed by the Borrower as Eligible Accounts are bona fide, existing obligations, and the service or property has been performed or delivered to the account debtor or its agent for immediate shipment to and unconditional acceptance by the account debtor. Borrower has no notice of any actual or imminent Insolvency Proceeding of any account debtor whose accounts are an Eligible Account in any Borrowing Base Certificate. All Inventory is in all material respects of good and marketable quality, free from material defects. Except as noted on the Schedule /Perfection Certificate, Borrower is not a party to, nor is bound by, any material license or other material agreement with respect to which the Borrower is the licensee that prohibits or otherwise restricts Borrower from granting a security interest in Borrower's interest in such material license or agreement or any other property. Borrower will provide written notice to Bank within ten (10) days of entering or becoming bound by any such material license or agreement which is reasonably likely to have a material impact on Borrower's business or financial condition (other than over-the-counter software that is commercially available to the public). Borrower is the sole owner of the Intellectual Property, except for non-exclusive licenses granted to its customers in the ordinary course of business. Each Patent is valid and enforceable and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and no claim has been made that any part of the Intellectual Property violates the rights of any third party, except in any such case to the extent such invalidity, claim or unenforceability would not reasonably be expected to cause a Material Adverse Change.

5.3 LITIGATION.

There are no actions or proceedings pending or, to the knowledge of Borrower's Responsible Officers, threatened by or against Borrower or any Subsidiary in which a likely adverse decision could reasonably be expected to cause a Material Adverse Change.

5.4 NO MATERIAL ADVERSE CHANGE IN FINANCIAL STATEMENTS.

All consolidated financial statements for Borrower, and any Subsidiary, delivered to Bank fairly present in all material respects Borrower's consolidated financial condition and Borrower's consolidated results of operations. There has not been any Material Adverse Change since the date of the most recent consolidated financial statements submitted to Bank.

5.5 SOLVENCY.

The fair salable value of Borrower's assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; the Borrower is not left with unreasonably small capital after the transactions in this Agreement or any of the Loan Documents; and Borrower is able to pay its debts (including trade debts) as they mature.

5.6 REGULATORY COMPLIANCE.

Borrower is not an "investment company" or a company "controlled" by an "investment company" under the Investment Company Act. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be

4

expected to cause a Material Adverse Change. None of Borrower's or any Subsidiary's properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower's knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Borrower and each Subsidiary has timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP. Borrower and each Subsidiary has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue its business as currently conducted, except where the failure to do so could not reasonably be expected to cause a Material Adverse Change.

5.7 SUBSIDIARIES.

Borrower does not own any stock, partnership interest or other equity securities except for Permitted Investments.

5.8 FULL DISCLOSURE.

No written representation, warranty or other statement of Borrower in any certificate or written statement (other than projections and forecasts) given to Bank (taken together with all such written certificates and written statements to Bank) contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading. All projections and forecasts provided by Borrower were prepared in good faith and are based upon reasonable assumptions. Bank acknowledges that projections and forecasts are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected and forecasted results.

6. AFFIRMATIVE COVENANTS

Borrower will do all of the following for so long as Bank has an obligation to make any Credit Extension, or there are outstanding Obligations:

6.1 GOVERNMENT COMPLIANCE.

Borrower will maintain its and all Subsidiaries' legal existence and good standing as a Registered Organization in only the State of Delaware and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to cause a material adverse effect on Borrower's business or operations. Borrower will comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower's business or operations or would reasonably be expected to cause a Material Adverse Change.

6.2 FINANCIAL STATEMENTS, REPORTS, CERTIFICATES.

(a) Borrower will deliver to Bank: (i) as soon as available, but no later than thirty (30) days after the last day of each month, company prepared consolidated and consolidating financial statements, consisting of balance sheets, income statements and statements of cash flows covering Borrower's consolidated operations during the period certified by a Responsible Officer and in a form acceptable to Bank; (ii) as soon as available, but no later than one hundred twenty (120) days after the last day of Borrower's fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm reasonably acceptable to Bank;
(iii) annual operating budgets (including income statements, balance sheets and cash flow statements, by month) for the upcoming fiscal year of Borrower within ninety (90) days after the end of each fiscal year of Borrower; (iv) a prompt report of any legal action pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower or any Subsidiary of $250,000 or more; (v) budgets, sales projections, operating plans or other financial information Bank reasonably requests; and (vi) prompt notice of any material change in the composition of the Intellectual Property, including any subsequent ownership right of Borrower in or to any Copyright, Patent or Trademark not shown in any intellectual property security agreement between Borrower and Bank or knowledge of an event that materially adversely affects the value of the Intellectual Property.

5

(b) Within thirty (30) days after the last day of each month, Borrower will deliver to Bank (i) a Borrowing Base Certificate signed by a Responsible Officer in the form of Exhibit C, (ii) an aged listing of accounts receivable and (iii) an aged listing of accounts payable.

(c) Within thirty (30) days after the last day of each month, Borrower will deliver to Bank with the monthly financial statements a Compliance Certificate signed by a Responsible Officer in the form of Exhibit D.

(d) Within thirty (30) days after the last day of each month, Borrower will deliver to Bank a listing of all offices or businesses opened by Borrower since the delivery of the last such listing (or since the date hereof, if no prior listing has been provided); provided, however, that Borrower shall not be required to list any office of business location which has assets of less than $25,000 until a Responsible Officer has knowledge of such new office or business location; provided, further that the value of the assets located in all such

           --------   -------
unreported  office  or  business  locations  does  not  exceed  $75,000  in  the
aggregate.

(e) Allow Bank to audit Borrower's Collateral at Borrower's expense. Such audits will be conducted no more often than every twelve (12) months unless an Event of Default has occurred and is continuing.

6.3 INVENTORY; RETURNS.

Borrower will keep all Inventory in good and marketable condition, free from material defects. Returns and allowances between Borrower and its account debtors will follow Borrower's customary practices in all material respects as they exist at execution of this Agreement. Borrower must promptly notify Bank of all returns, recoveries, disputes and claims that involve more than $250,000 in the aggregate during any month or more than $1,000,000 in any period of six
(6) consecutive months.

6.4 TAXES.

Borrower will make, and cause each Subsidiary to make, timely payment of all material federal, state, and local taxes or assessments (other than taxes and assessments which Borrower is contesting in good faith, with adequate reserves maintained in accordance with GAAP) and will deliver to Bank, on demand, appropriate certificates attesting to the payment.

6.5 INSURANCE.

Borrower will keep its business and the Collateral insured for risks and in amounts standard for Borrower's industry, and as Bank may reasonably request. Insurance policies will be in a form, with companies, and in amounts that are satisfactory to Bank in Bank's reasonable discretion. All property policies will have a lender's loss payable endorsement showing Bank as an additional loss payee and all liability policies will show the Bank as an additional insured and provide that the insurer must give Bank at least twenty (20) days notice before canceling its policy. At Bank's request, Borrower will deliver certified copies of policies and evidence of all premium payments. Proceeds payable to Borrower or in respect of Collateral under any policy will, at Bank's option, be payable to Bank on account of the Obligations if there then exists an Event of Default.

6.6 PRIMARY ACCOUNTS.

Borrower will maintain its primary depository, investment and operating accounts with Bank or its Affiliates.

6.7 FINANCIAL COVENANTS.

Borrower will maintain as of the last day of each month (unless otherwise stated below):

(a) ADJUSTED QUICK RATIO. An Adjusted Quick Ratio of not less than (i) 1.75 to 1.00 as of the last date of each month that is also the last day of a fiscal quarter and (ii) 1.65 to 1.00 as of the last date of each month that is not also the last day of a fiscal quarter.

(b) TANGIBLE NET WORTH. A Tangible Net Worth of at least equal to the sum of (i) (A)$21,000,000 as of the last date of each month that is also the last day of a fiscal quarter and (B) $18,000,000 as of the last date of each month that is not also the last day of a fiscal quarter plus (ii) an

6

amount equal to fifty percent (50%) of (A) Borrower's positive net income for any month ending after the Closing Date; (B) the principal amount of Subordinated Debt incurred by Borrower after the Closing Date; and (C) the proceeds, net of commission and expenses, received by Borrower from the issuance of shares of its capital stock after the Closing Date.

6.8 REGISTRATION OF INTELLECTUAL PROPERTY RIGHTS.

Borrower shall not register any Copyrights or Mask Works with the United States Copyright Office unless it: (i) has given at least fifteen (15) days' prior notice to Bank of its intent to register such Copyrights or Mask Works and has provided Bank with a copy of the application it intends to file with the United States Copyright Office (excluding exhibits thereto); (ii) executes a security agreement or such other documents as Bank may reasonably request in order to maintain the perfection and priority of Bank's security interest in the proceeds of the Copyrights proposed to be registered with the United States Copyright Office, including, but not limited to, any Accounts arising out of such Copyrights; and (iii) records such security documents with the United States Copyright Office contemporaneously with filing the Copyright application(s) with the United States Copyright Office. Borrower shall promptly provide to Bank a copy of the Copyright application(s) filed with the United States Copyright Office, together with evidence of the recording of the security documents necessary for Bank to maintain the perfection and priority of its security interest in the proceeds of such Copyrights or Mask Works, including, but not limited to, any Accounts arising out of such Copyrights or Mask Works. Borrower shall provide written notice to Bank of any application filed by Borrower in the United States Patent Trademark Office for a patent or to register a trademark or service mark, in each case within thirty (30) days of any such filing

Borrower will (i) protect, defend and maintain the validity and enforceability of any material Intellectual Property and promptly advise Bank in writing of material infringements and (ii) not allow any Intellectual Property material to Borrower's business to be abandoned, forfeited or dedicated to the public without Bank's written consent.

6.9 FURTHER ASSURANCES.

Borrower will execute any further instruments and take further action as Bank reasonably requests to perfect or continue Bank's security interest in the Collateral or to effect the purposes of this Agreement.

7. NEGATIVE COVENANTS

Borrower will not do any of the following without Bank's prior written consent, for so long as Bank has an obligation to make Credit Extensions or there are any outstanding Obligations:

7.1 DISPOSITIONS.

Convey, sell, lease, transfer or otherwise dispose of (collectively "Transfer"), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (i) of Inventory in the ordinary course of business; (ii) of non-exclusive licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary course of business; (iii) of worn-out or obsolete Equipment or (iv) of Equipment or other fixed assets having a value not in excess of $500,000 in the aggregate during any fiscal year.

7.2 CHANGES IN BUSINESS, OWNERSHIP, MANAGEMENT OR BUSINESS LOCATIONS.

Engage in or permit any of its Subsidiaries to engage in any material line of business other than those lines of business conducted by Borrower and its Subsidiaries on the date hereof and any business reasonably related complementary or incidental thereto or reasonable extensions thereof. Borrower shall not change the persons holding the offices of Chief Executive Officer or Chief Financial Officer (each a "Senior Executive") unless a replacement is approved by a majority of Borrower's Board of Directors, including a majority of those members of the Board of Directors who were members of the Board of Directors and not employees of Borrower as of the date of this Agreement or who are subsequent non-employee directors designated or approved by such initial non-employee directors (the "Outside Directors"), within 90 days of the date of the termination of such Senior Executive, provided that if a majority of the Outside Directors determine that such Senior Executive shall not be replaced, then

7

Borrower shall so notify Bank within thirty (30) days of the determination. Borrower will not, without at least thirty (30) days prior written notice, change its state of formation or relocate its chief executive office.

7.3 MERGERS OR ACQUISITIONS.

Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person. A Subsidiary may merge or consolidate into, or transfer its property to, another Subsidiary or into Borrower.

7.4 INDEBTEDNESS.

Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness.

7.5 ENCUMBRANCE.

Create, incur, or allow any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted here, subject to Permitted Liens. In addition, Borrower shall not sell, transfer, assign, mortgage, pledge, lease, grant a security interest in, or encumber, or enter into any agreement, document, instrument or other arrangement (except with or in favor of the Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower from selling, transferring, assigning, mortgaging, pledging, leasing, granting a security interest in or upon, or encumbering any of Borrower's Intellectual Property, other than (i) customary restrictions and conditions contained in agreements relating to the sale of assets or property (otherwise permitted by this Agreement) pending such sale, provided that such restrictions and conditions apply only to the assets or property to be sold, and (ii) customary provisions in leases, licenses, and other contracts limiting the assignment thereof.

7.6 DISTRIBUTIONS; INVESTMENTS.

Directly or indirectly acquire or own any Person, or make any Investment in any Person, or permit any of its Subsidiaries to do so, other than Permitted Investments and Investments in Subsidiaries, net of returns on Investments received from Subsidiaries, not to exceed $500,000 during any fiscal year. Pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock, other than (i) dividends or other payments or distributions payable in shares of common stock or in options, warrants, or other rights to purchase common stock, and (ii) redemptions, retirements or purchases of any capital stock, or any options, warrants, or other rights to purchase capital stock, either from employees, officers, and directors or in market transactions for contribution to retirement plans for the benefit of employees of the Borrower and its Subsidiaries, in an aggregate amount in any fiscal year not to exceed $500,000.

7.7 TRANSACTIONS WITH AFFILIATES.

Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for (a) transactions that are in the ordinary course of Borrower's business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm's length transaction with a nonaffiliated Person, (b) transactions with Subsidiaries constituting Investments permitted by Section 7.6 and (c) stock purchases from employees, officers or directors permitted by Section 7.6.

7.8 SUBORDINATED DEBT.

Make or permit any payment on any Subordinated Debt, except under the terms of the Subordinated Debt, or amend any provision in any document relating to the Subordinated Debt without Bank's prior written consent.

7.9 COMPLIANCE.

Become an "investment company" or a company controlled by an "investment company," under the Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or carry margin stock, or use the proceeds of any Credit Extension for that purpose; fail to meet

8

the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur if such Reportable Event or Prohibited Transaction would reasonably be expected to result in a Material Adverse Change; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation would reasonably be expected to cause a Material Adverse Change or permit any of its Subsidiaries to do any of the foregoing.

8. EVENTS OF DEFAULT

Any one of the following is an Event of Default:

8.1 PAYMENT DEFAULT.

If Borrower fails to pay any principal amount of the Obligations when due, or any interest, fees or other amounts of the Obligations within three (3) Business Days after the same have become due;

8.2 COVENANT DEFAULT.

(a) If Borrower fails to perform any obligation under Sections 6.2 or 6.7 or violates any of the covenants contained in Article 7 of this Agreement, or

(b) If Borrower fails or neglects to perform, keep, or observe any other material term, provision, condition, covenant, or agreement contained in this Agreement, in any of the Loan Documents, or in any other agreement between Borrower and Bank and as to any default under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure such default within twenty (20) days after the earlier of (i) a Responsible Officer of Borrower has knowledge, or should have had knowledge, of such default or (ii) receipt of written notice of such default from Bank; provided, however, that if the default cannot by its nature be cured within the twenty (20) period or cannot after diligent attempts by Borrower be cured within such twenty (20) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default (provided that no Credit Extensions will be made during such cure period);

8.3 MATERIAL ADVERSE CHANGE.

If there occurs a Material Adverse Change.

8.4 ATTACHMENT.

If any material portion of Borrower's assets is attached, seized, levied on, or comes into possession of a trustee or receiver and the attachment, seizure or levy is not removed in ten (10) days, or if Borrower is enjoined, restrained, or prevented by court order from conducting a material part of its business or if a judgment or other claim becomes a Lien on a material portion of Borrower's assets, or if a notice of lien, levy, or attachment is filed against any of Borrower's assets by any government agency and not paid within ten (10) days after Borrower receives notice. These are not Events of Default if stayed or if a bond is posted pending contest by Borrower (but no Credit Extensions will be made during the cure period);

8.5 INSOLVENCY.

If Borrower becomes insolvent or if Borrower begins an Insolvency Proceeding or an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within 30 days (but no Credit Extensions will be made before any Insolvency Proceeding is dismissed);

8.6 OTHER AGREEMENTS.

If there is a default in any agreement between Borrower and a third party that gives the third party the right to accelerate any Indebtedness exceeding $250,000 or that could cause a Material Adverse Change;

9

8.7 JUDGMENTS.

If a money judgment(s) in the aggregate of at least $250,000 is rendered against Borrower and is unsatisfied and unstayed for thirty (30) days (but no Credit Extensions will be made before the judgment is stayed or satisfied);

8.8 MISREPRESENTATIONS.

If Borrower or any Person acting for Borrower makes any material misrepresentation or material misstatement now or later in any warranty or representation in this Agreement or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document; or

8.9 GUARANTY.

Any guaranty of any Obligations ceases for any reason to be in full force or any Guarantor does not perform any obligation under any guaranty of the Obligations, or any material misrepresentation or material misstatement exists now or later in any warranty or representation in any guaranty of the Obligations or in any certificate delivered to Bank in connection with the guaranty, or any circumstance described in Sections 8.4, 8.5 or 8.7 occurs to any Guarantor.

8.10 CHANGE OF CONTROL.

Any "person" or "group" (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended) becomes the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of greater than 25% of the shares of all classes of stock then outstanding of Borrower ordinarily entitled to vote in the election of directors.

8.11 SUBSIDIARIES.

Any circumstance described in Sections 8.3, 8.4, 8.5 or 8.7 occurs to any Subsidiary of Borrower (other than Concurrent Realisations Ltd.) having assets of $250,000 or more.

9. BANK'S RIGHTS AND REMEDIES

9.1 RIGHTS AND REMEDIES.

When an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following:

(a) Declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank);

(b) Stop advancing money or extending credit for Borrower's benefit under this Agreement or under any other agreement between Borrower and Bank;

(c) Settle or adjust disputes and claims directly with account debtors for amounts, on terms and in any order that Bank considers advisable;

(d) Make any payments and do any acts it considers necessary or reasonable to protect its security interest in the Collateral. Borrower will assemble the Collateral if Bank requires and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank's rights or remedies;

(e) Apply to the Obligations any (i) balances and deposits of Borrower with Bank or its Affiliate it holds, or (ii) amount held by Bank owing to or for the credit or the account of Borrower;

(f) Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Bank is granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower's labels, Patents, Copyrights, Mask Works, rights of use of any name, trade secrets, trade names, Trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in

10

connection with Bank's exercise of its rights under this Section, Borrower's rights under all licenses and all franchise agreements inure to Bank's benefit;

(g) Bank may place a "hold" on any account maintained with Bank and deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any control agreement or similar agreements providing control of any Collateral; and

(h) Dispose of the Collateral according to the Code.

Bank agrees that unless an Event of Default has occurred and is continuing, it will not deliver a "Notice of Exclusive Control" under, and as such term is defined in, the Securities Account Control Agreement of even date herewith among Borrower, Bank, SVB Securities and Banc of America Securities LLC.

9.2 POWER OF ATTORNEY.

Effective only when an Event of Default occurs and continues, Borrower irrevocably appoints Bank as its lawful attorney to: (i) endorse Borrower's name on any checks or other forms of payment or security; (ii) sign Borrower's name on any invoice or bill of lading for any Account or drafts against account debtors, (iii) make, settle, and adjust all claims under Borrower's insurance policies; (iv) settle and adjust disputes and claims about the Accounts directly with account debtors, for amounts and on terms Bank determines reasonable; and
(v) transfer the Collateral into the name of Bank or a third party as the Code permits. Bank may exercise the power of attorney to sign Borrower's name on any documents necessary to perfect or continue the perfection of any security interest regardless of whether an Event of Default has occurred. Bank's appointment as Borrower's attorney in fact, and all of Bank's rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Bank's obligation to provide Credit Extensions terminates.

9.3 ACCOUNTS COLLECTION.

When an Event of Default occurs and continues, Bank may notify any Person owing Borrower money of Bank's security interest in the funds and verify the amount of the Account. Borrower must collect all payments in trust for Bank and, if requested by Bank, immediately deliver the payments to Bank in the form received from the account debtor, with proper endorsements for deposit.

9.4 BANK EXPENSES.

If Borrower fails to pay any amount or furnish any required proof of payment to third persons required hereunder, Bank may make all or part of the payment or obtain insurance policies required in Section 6.5, and take any action under the policies Bank deems prudent. Any amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then applicable rate and secured by the Collateral. No payments by Bank are deemed an agreement to make similar payments in the future or Bank's waiver of any Event of Default.

9.5 BANK'S LIABILITY FOR COLLATERAL.

If Bank complies with reasonable banking practices and the Code, it is not liable for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other person. Borrower bears all risk of loss, damage or destruction of the Collateral.

9.6 REMEDIES CUMULATIVE.

Bank's rights and remedies under this Agreement, the Loan Documents, and all other agreements are cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. Bank's exercise of one right or remedy is not an election, and Bank's waiver of any Event of Default is not a continuing waiver. Bank's delay is not a waiver, election, or acquiescence. No waiver is effective unless signed by Bank and then is only effective for the specific instance and purpose for which it was given.

9.7 DEMAND WAIVER.

Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of

11

accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable.

10. NOTICES

All notices or demands by any party about this Agreement or any other related agreement must be in writing and be personally delivered or sent by an overnight delivery service, by certified mail, postage prepaid, return receipt requested, or by telefacsimile to the addresses set forth at the beginning of this Agreement. A party may change its notice address by giving the other party written notice.

11. CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

Georgia law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in the State of Georgia provided, however, that if for any reason the Bank can not avail itself of the courts of the State of Georgia, the Borrower and Bank each submit to the jurisdiction of the State and Federal Courts in Santa Clara County, California.

BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

12. GENERAL PROVISIONS

12.1 SUCCESSORS AND ASSIGNS.

This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrower may not assign this Agreement or any rights under it without Bank's prior written consent which may be granted or withheld in Bank's discretion. Bank has the right, without the consent of or notice to Borrower, to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Bank's obligations, rights and benefits under this Agreement.

12.2 INDEMNIFICATION.

Borrower will indemnify, defend and hold harmless Bank and its officers, employees, and agents against: (a) all obligations, demands, claims, and liabilities asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Bank Expenses incurred, or paid by Bank arising out of or otherwise related to transactions between Bank and Borrower (including reasonable attorneys fees and expenses), except for any such amount determined in a final judgment by a court of competent jurisdiction to have been caused by Bank's gross negligence or willful misconduct.

12.3 TIME OF ESSENCE.

Time is of the essence for the performance of all obligations in this Agreement.

12.4 SEVERABILITY OF PROVISION.

Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision.

12.5 AMENDMENTS IN WRITING, INTEGRATION.

All amendments to this Agreement must be in writing and signed by Borrower and Bank. This Agreement represents the entire agreement about this subject matter, and supersedes prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement merge into this Agreement and the Loan Documents.

12

12.6 COUNTERPARTS.

This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, are an original, and all taken together, constitute one Agreement.

12.7 SURVIVAL.

All covenants, representations and warranties made in this Agreement continue in full force while any Obligations remain outstanding. The obligations of Borrower in Section 12.2 to indemnify Bank will survive until all statutes of limitations for actions that may be brought against Bank have run.

12.8 CONFIDENTIALITY.

In handling any confidential information, Bank will exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made (i) to Bank's subsidiaries or affiliates,
(ii) to prospective transferees or purchasers of any interest in the loans (provided, however, Bank shall use commercially reasonable efforts in obtaining such prospective transferee's or purchasers' agreement to the terms of this provision), (iii) as required by law, regulation, subpoena, or other order, (iv) as required in connection with Bank's examination or audit and (v) as Bank considers appropriate exercising remedies under this Agreement. Confidential information does not include information that either: (a) is in the public domain or in Bank's possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank; or (b) is disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the information.

12.9 EFFECTIVE DATE.

Notwithstanding anything set forth in this Agreement or any Loan Document to the contrary, this Agreement and all of the Loan Documents shall not be effective until the date on which the Bank executes this Agreement as indicated on the signature page to this Agreement.

12.10 ATTORNEYS' FEES, COSTS AND EXPENSES.

In any action or proceeding between Borrower and Bank arising out of the Loan Documents, the prevailing party will be entitled to recover its reasonable attorneys' fees and other reasonable costs and expenses actually incurred, in addition to any other relief to which it may be entitled.

13.     DEFINITIONS
        -----------

13.1     DEFINITIONS.

     In  this  Agreement:

     "ACCOUNTS"  has the meaning set forth in the Code and includes all existing

and later arising accounts, contract rights, and other obligations owed Borrower in connection with its sale or lease of goods (including licensing software and other technology) or provision of services, all credit insurance, guaranties, other security and all merchandise returned or reclaimed by Borrower and Borrower's Books relating to any of the foregoing.

"ADJUSTED QUICK RATIO" is, as of any date, the ratio of Quick Assets to Current Liabilities minus Deferred Maintenance Revenue, in each case as of such date, determined for Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP.

"ADVANCE" or "ADVANCES" is a loan advance (or advances) under the Committed Revolving Line.

"AFFILIATE" of a Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person's senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person's managers and members.

"BANK EXPENSES" are all audit fees and expenses and reasonable costs and expenses (including reasonable attorneys' fees and expenses) for preparing, negotiating, administering, defending and enforcing the Loan Documents (including appeals or Insolvency Proceedings).

13

"BORROWER'S BOOKS" are all Borrower's books and records including ledgers, records regarding Borrower's assets or liabilities, the Collateral, business operations or financial condition and all computer programs or discs or any equipment containing the information.

"BORROWING BASE" is the sum of (a) eighty percent (80%) of Eligible Accounts (the "Advance Ratio") as determined by Bank, in accordance with its customary credit and collateral practices and policies, from Borrower's most recent Borrowing Base Certificate; provided, however, that (i) Bank will increase the Advance Ratio for Eligible Accounts to eighty-five (85%) of Eligible Accounts after performing an audit of Borrower's Collateral if such audit shows that dilution for Borrower's Accounts, as determined by Bank, is less than four percent (4%) and (ii) Bank may, in accordance with its customary credit and collateral practices and policies, lower the Advance Ratio for Eligible Accounts after performing an audit of Borrower's Collateral; plus (b)

so long as Borrower has not less than $15,000,000 in cash on deposit with Bank or its Affiliates in which Bank has a first priority perfected security interest, $5,000,000.

"BUSINESS DAY" is any day that is not a Saturday, Sunday or a day on which the Bank is closed.

"CASH MANAGEMENT SERVICES" are defined in Section 2.1.4.

"CLOSING DATE" is the date of this Agreement.

"CODE" is the Uniform Commercial Code, in effect in the State of Georgia, as in effect from time to time.

"COLLATERAL" is the property described on Exhibit A.

"COMMITTED REVOLVING LINE" is Advances of up to Ten Million Dollars ($10,000,000).

"CONTINGENT OBLIGATION" is, for any Person, any direct or indirect liability, contingent or not, of that Person for (i) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (ii) any obligations for undrawn letters of credit for the account of that Person; and (iii) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but "Contingent Obligation" does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under the guarantee or other support arrangement. Amounts of obligations of the types described in clause (iii) above shall be determined based on the net amounts, if any, such Person would then be required to pay upon the termination thereof based on current market conditions.

"COPYRIGHTS" are all copyright rights, applications or registrations and like protections in each work or authorship or derivative work, whether published or not (whether or not it is a trade secret) now or later existing, created, acquired or held.

"CREDIT EXTENSION" is each Advance, Letter of Credit, Term Loan, FX Forward Contract or other foreign exchange contract, or any other extension of credit by Bank for Borrower's benefit.

"CURRENT ASSETS" are, on any date, amounts that under GAAP should be included on that date as current assets on Borrower's consolidated balance sheet.

"CURRENT LIABILITIES" are, on any date, the aggregate amount of Borrower's Total Liabilities which mature within one (1) year of such date.

"DEFERRED MAINTENANCE REVENUE" is all amounts received in advance of performance of maintenance or service or other project warranty-related contracts and not yet recognized as revenue.

"ELIGIBLE ACCOUNTS" are Accounts in the ordinary course of Borrower's business that meet all Borrower's representations and warranties in Section 5; but Bank may, in accordance with its customary credit and collateral practices

and policies, change eligibility standards by giving Borrower notice. Unless Bank agrees otherwise in writing, Eligible Accounts will not include:

14

(a) Accounts that the account debtor has not paid within 90 days of invoice date;

(b) Accounts for an account debtor, 50% or more of whose Accounts have not been paid within 90 days of invoice date;

(c) Credit balances over 90 days from invoice date;

(d) Accounts for an account debtor, including Affiliates of such account debtor, to the extent such Accounts exceed thirty percent (30%) of all Accounts, for the amounts that exceed that percentage, unless the Bank approves such excess amounts in writing; provided that so long as Borrower's Adjusted Quick Ratio is greater than 2.00 to 1.00, Accounts owing from any of Comcast Cable Communications, Inc., Time Warner Cable, Inc., America Online, Inc., Lockheed Martin Corporation and Cox Communications, Inc. will not be deemed Eligible Accounts to the extent the Accounts of such account debtor exceed thirty-five percent (35%) of the total Accounts outstanding;

(e) Accounts for which the account debtor does not have its principal place of business in the United States;

(f) Accounts for which the account debtor is a federal, state or local government entity or any department, agency, or instrumentality except for Accounts of the United States if the payee has assigned its payment rights to Bank and the assignment has been acknowledged under the Assignment of Claims Act of 1940 (31 U.S.C. 3727);

(g) Accounts for which Borrower owes the account debtor, but only up to the amount owed (sometimes called "contra" accounts, accounts payable, customer deposits or credit accounts);

(h) Accounts for demonstration or promotional equipment, or in which goods are consigned, sales guaranteed, sale or return, sale on approval, bill and hold, or other terms if account debtor's payment may be conditional;

(i) Accounts for which the account debtor is Borrower's Affiliate, officer, employee, or agent;

(j) Accounts in which the account debtor disputes liability or makes any claim and Bank believes there is a basis for dispute (but only up to the disputed or claimed amount), or if the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business;

(k) Accounts for which Bank reasonably determines collection to be doubtful.

"EQUIPMENT" has the meaning set forth in the Code and includes all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments in which Borrower has any interest.

"ERISA" is the Employment Retirement Income Security Act of 1974, and its regulations.

"FX FORWARD CONTRACT" is defined in Section 2.1.3.

"FX RESERVE" is defined in Section 2.1.3.

"GAAP" is generally accepted accounting principles.

"GUARANTOR" is any present or future guarantor of the Obligations.

"INDEBTEDNESS" is (a) indebtedness for borrowed money or the deferred price of property or services (excluding trade accounts payable which are not more than sixty (60) days past due), such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations and (d) Contingent Obligations.

"INSOLVENCY PROCEEDING" are proceedings by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.

"INTELLECTUAL PROPERTY" is:

15

(a) Copyrights, Trademarks and Patents, and Mask Works including amendments, renewals, extensions, and all licenses or other rights to use and all license fees and royalties from the use;

(b) Any trade secrets and any intellectual property rights in computer software and computer software products now or later existing, created, acquired or held;

(c) All design rights which may be available to Borrower now or later created, acquired or held;

(d) Any claims for damages (past, present or future) for infringement of any of the rights above, with the right, but not the obligation, to sue and collect damages for use or infringement of the intellectual property rights above;

(e) All Proceeds and products of the foregoing, including all insurance, indemnity or warranty payments.

"INVENTORY" has the meaning set forth in the Code and includes all present and future inventory in which Borrower has any interest, including merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products intended for sale or lease or to be furnished under a contract of service, of every kind and description now or later owned by or in the custody or possession, actual or constructive, of Borrower, including inventory temporarily out of its custody or possession or in transit and including returns on any accounts or other Proceeds from the sale or disposition of any of the foregoing and any documents of title.

"INVESTMENT" is, for any Person: (a) the acquisition (whether for cash, property, services or securities or otherwise) of capital stock, bonds, notes, debentures, partnership or other ownership interests or other securities of any other Person or any agreement to make any such acquisition (including, without limitation, any "short sale" or any sale of any securities at a time when such securities are now owned by the Person entering into such short sale), or (b) any deposit with, capital contribution to, or advance, loan or other extension of credit to, such Person (other than any such advance, loan or extension of credit representing the purchase price of goods, intangibles or services sold or supplied in the ordinary course of business) or Contingent Obligation incurred with respect to Indebtedness or other liability of such Person and (without duplication) any amount committed to be advanced, lent or extended to such Person.

"LETTER OF CREDIT" is defined in Section 2.1.2.

"LETTER-OF-CREDIT RIGHT" means a right to payment or performance under a letter of credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment or performance.

"LIEN" is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.

"LOAN DOCUMENTS" are, collectively, this Agreement, the Revolving Promissory Note, the Term Note, any note, or notes or guaranties executed by Borrower or Guarantor, and any other present or future agreement between Borrower and/or for the benefit of Bank in connection with this Agreement, all as amended, extended or restated.

"MASK WORKS" are all mask works or similar rights available for the protection of semiconductor chips, now owned or later acquired.

"MATERIAL ADVERSE CHANGE" means (i) a material adverse change in the general affairs, management, results or operation or financial condition of Borrower; or (ii) there has been a material impairment of the value for priority of Bank's security interests in the Collateral.

"OBLIGATIONS" are debts, principal, interest, Bank Expenses and other amounts Borrower owes Bank now or later, including cash management services, letters of credit and foreign exchange contracts, if any and including interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank.

"PATENTS" are patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

"PERMITTED INDEBTEDNESS" is:

16

(a) Borrower's indebtedness to Bank under this Agreement or any other Loan Document;

(b) Indebtedness existing on the Closing Date and shown on the Schedule;

(c) Subordinated Debt;

(d) Indebtedness secured by Permitted Liens;

(e) Indebtedness owing by a Subsidiary to Borrower or Contingent Obligations incurred by Borrower with respect to Indebtedness or other obligations of a Subsidiary, in each case to the extent constituting an Investment permitted by Section 7.6;

(f) Indebtedness incurred by Subsidiaries of the Borrower organized in jurisdictions other than the United States for working capital of such Subsidiaries in an aggregate principal amount that does not exceed, as to all such Subsidiaries, $500,000 at any one time outstanding;

(g) all extensions, renewals and refinancings of Indebtedness permitted by (b) through (d) above provided that (i) any such extension, renewal and refinancing does not increase the outstanding principal amount of Indebtedness so extended, renewed or refinanced, (ii) any such extension, renewal and refinancing does mature earlier than Indebtedness so extended, renewed or refinanced and (iii) if the Indebtedness so extended, renewed or refinanced is Subordinated Debt, such extension, renewal or refinancing Indebtedness is subordinated in right of payment to the Obligations on terms no less favorable to Bank than the Subordinated Debt so extended, renewed or refinanced.

"PERMITTED INVESTMENTS" are:

(a) Investments shown on the Schedule and existing on the Closing Date;

(b) Investments consisting of (i) marketable direct obligations issued or unconditionally guaranteed by the United States or its agency or any State maturing within 1 year from its acquisition, (ii) commercial paper maturing no more than 1 year after its creation and having the highest rating from either Standard & Poor's Corporation or Moody's Investors Service, Inc., and (iii) Bank's certificates of deposit issued maturing no more than 1 year after issue;

(c) Promissory notes received as non-cash consideration for dispositions of assets otherwise permitted by this Agreement;

(d) Investments received in connection with bankruptcies, reorganizations or settlement of delinquent accounts and disputes with customers or suppliers, in the ordinary course of business; and

(e) Investments in the forms of loans and advances made to employees of Borrower(i) that do not exceed $25,000 in principal amount at any one time outstanding or (ii) made for travel, entertainment or similar expenses incurred in the ordinary course of business.

"PERMITTED LIENS" are:

(a) Liens existing on the Closing Date and shown on the Schedule or arising under this Agreement or other Loan Documents;

(b) Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good faith and for which Borrower maintains adequate reserves on its Books, if they have no priority over

any of Bank's security interests;

(c) Purchase money Liens (i) on Equipment acquired or held by Borrower or its Subsidiaries incurred for financing the acquisition of the Equipment or incurred within one hundred twenty (120) days after such acquisitions, provided that the aggregate principal amount of Indebtedness secured by such Liens does not exceed $1,000,000 at any one time outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the

Proceeds of the Equipment;

(d) Licenses or sublicenses granted in the ordinary course of Borrower's business and any interest or title of a licensor or under any license or sublicense, if the licenses and sublicenses permit granting Bank a security

interest;

17

(e) Leases or subleases granted in the ordinary course of Borrower's business, including in connection with Borrower's leased premises or leased property;

(f) Liens on the property of Subsidiaries organized in jurisdictions other than the United States and securing Indebtedness described in clause (f) of the definition of Permitted Indebtedness; and

(g) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension,

renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase.

"PERSON" is any individual, sole proprietorship, partnership, limited liability company, joint venture, company association, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.

"PROCEEDS" has the meaning described in the Code as in effect from time to time.

"PRIME RATE" is Bank's most recently announced "prime rate," even if it is not Bank's lowest rate.

"QUICK ASSETS" is, on any date, the Borrower's consolidated, unrestricted cash, cash equivalents, net billed accounts receivable and investments with maturities of fewer than 12 months from such date determined according to GAAP.

"REGISTERED ORGANIZATION" means an organization organized solely under the law of a single state or the United States and as to which the state or the United States must maintain a public record showing the organization to have been organized.

"RESPONSIBLE OFFICER" is each of the Chief Executive Officer, the President, the Chief Financial Officer and the Controller of Borrower.

"REVOLVING MATURITY DATE" is December 23, 2006.

"REVOLVING PROMISSORY NOTE" means that certain Revolving Promissory Note of even date herewith in the maximum principal amount of Ten Million Dollars ($10,000,000) from Borrower in favor of Bank, together with all renewals, amendments, modifications and substitutions, therefor.

"SCHEDULE" is any attached schedule of exceptions.

"SUBORDINATED DEBT" is debt incurred by Borrower subordinated in right of payment to Borrower's indebtedness owed to Bank on terms satisfactory to Bank and which is reflected in a written agreement in a manner and form acceptable to Bank and approved by Bank in writing.

"SUBSIDIARY" is for any Person, or any other business entity of which more than 50% of the voting stock or other equity interests is owned or controlled, directly or indirectly, by the Person or one or more Affiliates of the Person.

"SUPPORTING OBLIGATION" means a Letter-of-credit right, secondary obligation or obligation of a secondary obligor or that supports the payment or performance of an account, chattel paper, a document, a general intangible, an instrument or investment property.

"TANGIBLE NET WORTH" is, on any date, the consolidated total assets of Borrower and its Subsidiaries plus the principal amount of Subordinated Debt of Borrower minus, (i) any amounts attributable to (a) goodwill, (b) intangible items such as unamortized debt discount and expense, Patents, trade and service marks and names, Copyrights and research and development expenses except prepaid expenses, and (c) reserves not already deducted from assets, and (ii) Total

Liabilities.

"TERM LOAN" is a loan of Three Million Dollars ($3,000,000).

"TERM LOAN MATURITY DATE" is December 23, 2007.

"TOTAL LIABILITIES" is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower's consolidated balance sheet, but excluding all Subordinated Debt other than the then-current portion of such Subordinated Debt allowed to be paid.

18

"TRADEMARKS" are trademark and service mark rights, registered or not, applications to register and registrations and like protections, and the entire goodwill of the business of Borrower connected with the trademarks.

[Signatures appear on the following page]

19

IN WITNESS WHEREOF, Borrower and Bank have caused their duly authorized officers to set their hands and seals as of the day and year first above written

BORROWER:

CONCURRENT COMPUTER CORPORATION

By: ___________________________________ Name:
Title:

BANK:

SILICON VALLEY BANK

By: ____________________________________ Name:
Title:

Effective as of December 23, 2004


EXHIBIT A

The Collateral consists of all of Borrower's right, title and interest in and to the following:

All goods and equipment now owned or hereafter acquired, including, without limitation, all machinery, fixtures, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing, wherever located;

All inventory, now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products including such inventory as is temporarily out of Borrower's custody or possession or in transit and including any returns upon any accounts or other Proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above;

All contract rights and general intangibles now owned or hereafter acquired, including, without limitation, goodwill, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, computer programs, computer discs, computer tapes, literature, reports, catalogs, design rights, income tax refunds, payments of insurance and rights to payment of any kind;

All now existing and hereafter arising accounts, contract rights, royalties, license rights and all other forms of obligations owing to Borrower arising out of the sale or lease of goods, the licensing of technology or the rendering of services by Borrower, whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower;

All Letter-Of-Credit Rights (whether or not the letter of credit is evidenced by a writing);

All documents, cash, deposit accounts, securities, securities entitlements, securities accounts, investment property, financial assets, letters of credit, certificates of deposit, instruments and chattel paper now owned or hereafter acquired and Borrower's Books relating to the foregoing;

All Supporting Obligations and all Borrower's Books relating to the foregoing and any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and Proceeds thereof.

Borrower has further agreed, among other things, not to sell, transfer, assign, mortgage, pledge, lease grant a security interest in, or encumber any of its Intellectual Property or enter into any agreement, document, instrument or other arrangement (except with or in favor of the Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower from selling, transferring, assigning, mortgaging, pledging, leasing, granting a security interest in, or encumbering any of its Intellectual Property, without Bank's prior written consent.

Notwithstanding the foregoing, the Collateral shall not be deemed to include any copyrights, copyright applications, copyright registration and like protection in each work of authorship and derivative work thereof, whether published or unpublished, now owned or hereafter acquired; any patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same, trademarks, service marks and applications therefor, whether registered or not, and the goodwill of the business of Borrower connected with and symbolized by such trademarks, any trade secret rights, including any rights to unpatented inventions, know-how, operating manuals, license rights and agreements and confidential information, now owned or hereafter acquired; or any claims for damage by way of any past, present and future infringement of any of the foregoing (collectively, the "Intellectual Property"), except that the Collateral shall include the Proceeds of all the Intellectual Property that are accounts, (i.e. accounts receivable) of Borrower or general intangibles consisting of rights to payment, and if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in such accounts and general intangibles of Borrower that are Proceeds of the Intellectual Property, then the Collateral shall automatically, and effective as of the Closing Date, include the Intellectual Property to the extent necessary to permit perfection of Bank's security interest in such accounts and general intangibles of Borrower that are Proceeds of the Intellectual Property.


EXHIBIT B

LOAN PAYMENT/ADVANCE REQUEST FORM
Deadline for same day processing is 3:00 E.S.T.

FAX TO:  (404) 467-1471       DATE:
                                   ------------

--------------------------------------------------------------------------------
[_] Loan  Payment:     _______________  Client  Name  (Borrower)

    From  Account #                            To  Account #
                   -------------------                      --------------------
                   (Deposit Account #)                       (Loan Account #)

    Principal  $                     and/or  Interest  $
                ---------------------                   ------------------------

All Borrower's representations and warranties in the Loan and Security Agreement are true, correct and complete in all material respects to on the date of the telephone transfer request for and advance, but those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of the date:

AUTHORIZED  SIGNATURE:                               Phone  Number:
                      -----------------------------                -------------


[_] LOAN ADVANCE:

COMPLETE OUTGOING WIRE REQUEST SECTION BELOW IF ALL OR A PORTION OF THE FUNDS FROM THIS LOAN ADVANCE ARE FOR AN OUTGOING WIRE.

From Account #                                  To Account #
               -------------------                          --------------------
               (Deposit Account #)                           (Loan Account #)

Amount of Advance $

All Borrower's representations and warranties in the Loan and Security Agreement are true, correct and complete in all material respects to on the date of the telephone transfer request for and advance, but those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of the date:

AUTHORIZED SIGNATURE: Phone Number:


OUTGOING WIRE REQUEST
COMPLETE ONLY IF ALL OR A PORTION OF FUNDS FROM THE LOAN ADVANCE ABOVE ARE TO
BE WIRED.

Deadline for same day processing is 12:00 p.m., E.S.T.

Beneficiary  Name:                         Amount  of  Wire:  $
                  -----------------------                      -----------------
Beneficiary  Bank:                         Account  Number:
                  -----------------------                      -----------------
City  and  State:
                  -----------------------

Beneficiary  Bank  Transit  (ABA) #: __ __ __ __ __ __ __ __  Beneficiary Bank Code
                                                              (Swift, Sort, Chip, etc.):
                                                              (FOR INTERNATIONAL WIRE ONLY)

Intermediary Bank: Transit (ABA) #:

For Further Credit to:

Special Instruction:

By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me (us).

Authorized Signature:              2nd Signature (If Required):
                     ------------                              -----------------

Print  Name/Title:                              Print  Name/Title:
                  --------------                                    ------------

Telephone  #                                   Telephone  #
            --------------------                           ---------------------



EXHIBIT C
BORROWING BASE CERTIFICATE

--------------------------------------------------------------------------------
Borrower:  Concurrent Computer Corporation          Bank: Silicon Valley Bank
                                                          3003 Tasman  Drive
                                                          Santa Clara, CA 95054
Commitment Amount: $10,000,000
--------------------------------------------------------------------------------

ACCOUNTS RECEIVABLE
1.                   Accounts Receivable Book Value as of                                 $
                                                                                           -------------
2.                   Additions (please explain on reverse)                                $
                                                                                           -------------
3.                   TOTAL ACCOUNTS RECEIVABLE                                            $
                                                                                           -------------

ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
4.                   Amounts over 90 days due                              $
                                                                            ------------
5.                   Balance of 50% over 90 day accounts                   $
                                                                            ------------
6.                   Credit balances over 90 days                          $
                                                                            ------------
7.                   Concentration Limits*                                 $
                                                                            ------------
8.                   Foreign Accounts                                      $
                                                                            ------------
9.                   Governmental Accounts                                 $
                                                                            ------------
10.                  Contra Accounts                                       $
                                                                            ------------
11.                  Promotion or Demo Accounts                            $
                                                                            ------------
12.                  Intercompany/Employee Accounts                        $
                                                                            ------------
13.                  Other (please explain on reverse)                     $
                                                                            ------------
14.                  TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS                                 $
                                                                                           -------------
15.                  Eligible Accounts (#3 minus #14)                                     $
                                                                                           -------------
16.                  LOAN VALUE OF ACCOUNTS (#15 times the Advance Ratio)                 $
                                                                                           -------------
      * [__% FOR _______]

BALANCES
17.                  Maximum Loan Amount                                   $
                                                                            ------------
18.                  Total Funds Available [Lesser of #17 or #16]                         $
                                                                                           -------------
19.                  Present balance owing on Line of Credit               $
                                                                            ------------
20.                  Outstanding under Sublimits (LC or FX)                $
                                                                            ------------
21.                  RESERVE POSITION (#18 minus #19 and #20)                             $
                                                                                           -------------

The undersigned represents and warrants that this is true, complete and correct, and that the information in this Borrowing Base Certificate complies with the representations and warranties in the Loan and Security Agreement between the undersigned and Silicon Valley Bank.

                                                   -----------------------------
COMMENTS:                                              BANK  USE  ONLY
                                                       ----  ---  ----

                                                   Rec'd  By:
                                                             -------------
                                                             Auth.  Signer
By:                                                Date:
   -------------------------------------                ------------------
            Authorized  Signer
                                                   Verified:
                                                             -------------
                                                             Auth.  Signer

                                                   Date:
                                                        ------------------

                                                   -----------------------

                                                   -----------------------------


EXHIBIT D
COMPLIANCE CERTIFICATE

TO: SILICON VALLEY BANK

          3003 Tasman Drive
          Santa Clara,  CA  95054

FROM:     Concurrent Computer Corporation


          The  undersigned authorized officer of Concurrent Computer Corporation

("Borrower") certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the "Agreement"), (i) Borrower is in complete compliance for the period ending _______________, 200__ with all required covenants except as noted below and (ii) all representations and warranties in the Agreement are true and correct in all material respects on this date (other than those representations and warranties expressly referring to another date, which representations and warranties shall be true as of such date). In addition, the undersigned certifies that (1) Borrower and each Subsidiary has timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP and (ii) no liens has been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits which Borrower has not previously notified in writing to Bank. Attached are the required documents supporting the certification. The Officer certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The Officer acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered.

PLEASE INDICATE COMPLIANCE STATUS BY CIRCLING YES/NO UNDER "COMPLIES" COLUMN.

REPORTING COVENANT                    REQUIRED                 COMPLIES
----------------------------------    -----------------------  ---------
Monthly financial statements + CC     Monthly within 30 days   Yes   No
Annual (Audited)                      FYE within 120 days      Yes   No
A/R & A/P Agings                      Monthly within 30 days   Yes   No
A/R Audit                             Initial and Semi-Annual  Yes   No
Projections and Business Plan         FYE within 90 days       Yes   No
Borrowing Base Certificate            Monthly within 30 days   Yes   No

FINANCIAL COVENANT                        REQUIRED            ACTUAL      COMPLIES
----------------------------      ------------------------  -----------  ---------
Maintain on a Monthly Basis:
Minimum Adjusted Quick Ratio      1.75:1.00                  _____:1.00  Yes   No
Minimum Tangible Net Worth        $21,000,000               $  ________  Yes   No

   Profitability:                 Quarterly    $__________               Yes   No


(1) Plus 50% of (a) monthly positive net income after the Closing Date, (b) Subordinated Debt incurred after the Closing Date and (c) gross proceeds received from the issuance of shares of capital stock after the Closing Date.

Borrower only has deposit accounts located at the following institutions:
___________________.

Has Borrower filed any new Trademark, Patent or Copyright applications? Yes/ No

(If "yes", please list below and complete the attached Addendum to Intellectual Property Security Agreement)

Trademarks: ___________________________________________________

Patents: _______________________________________________________

Copyrights: _______________________________________________________

Has Borrower opened new office or business locations with assets in excess of $25,000? Yes/No

(If "yes," please provide the location or locations)


Has a Responsible Officer become aware of unreported new offices or business locations with assets of less than $25,000 each or $75,000 in the aggregate? Yes/No

(If "yes," please provide the location or locations)


                                                   -----------------------------
COMMENTS  REGARDING  EXCEPTIONS:  See  Attached.           BANK  USE  ONLY
                                                           ----  ---  ----

                                                   Received By:
------------------------                                       -----------------
                                                               Authorized Signer
Sincerely,                                         Date:
                                                        ------------------------
--------------------
                                                   Verified:
                                                             -------------------
--------------------------------------------                   Authorized Signer
Signature
                                                   Date:
--------------------------------------------            ------------------------
Title

Compliance Status: Yes No
Date

Schedule to Loan and Security Agreement

The exact correct corporate name of Borrower is (attach a copy of the formation documents, e.g., articles, partnership agreement):______________________________

Borrower's State of formation: _________________________________

Borrower has operated under only the following other names (if none, so state):

All other addresses at which the Borrower does business are as follows (attach additional sheets if necessary and include all warehouse addresses):

Borrower has deposit accounts and/or investment accounts located only at the following institutions:

List Acct. Numbers:

Liens existing on the Closing Date and disclosed to and accepted by Bank in writing:

Investments existing on the Closing Date and disclosed to and accepted by Bank in writing:

SUBORDINATED DEBT:

Indebtedness on the Closing Date and disclosed to and consented to by Bank in writing:

The following is a list of the Borrower's copyrights (including copyrights of software) which are registered with the United States Copyright Office. (Please include name of the copyright and registration number and attach a copy of the registration):

The following is a list of all software which the Borrower sells, distributes or licenses to others, which is not registered with the United States Copyright

Office. (Please include versions which are not registered:

The following is a list of all of the Borrower's patents which are registered with the United States Patent Office. (Please include name of the patent and registration number and attach a copy of the registration.):


The following is a list of all of the Borrower's patents which are pending with the United States Patent Office. (Please include name of the patent and a copy of the application.):

The following is a list of all of the Borrower's registered trademarks. (Please include name of the trademark and a copy of the registration.):

Borrower is not subject to litigation which would have a material adverse effect on the Borrower's financial condition, except the following (attach additional comments, if needed):

Tax ID Number ___________________________________________ Organizational Number, if any:___________________________


EXHIBIT 10.2

The following officers have entered into the Form Indemnification Agreement filed by the Company with its Quarterly Report on Form 10-Q for the quarter ended September 30, 2003, as of the date indicated below:

OFFICER                 DATE
----------------  -----------------

T. Gary Trimm     September 5, 2004
Warren Neuburger  September 5, 2004
Greg Wilson       February 1, 2005


EXHIBIT 10.3

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT, made and entered into as of the 1st day of February 2005 by and between CONCURRENT COMPUTER CORPORATION, a Delaware corporation ("Concurrent" or the "Company"), and Greg Wilson (the "Employee").

W I T N E S S E T H :

WHEREAS, the Company desires to employ the Employee and the Employee desires to accept such employment with the Company;

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the parties agree as follows:

1. Employment

The Company hereby employs the Employee and the Employee hereby accepts employment with the Company for the term set forth in Section 2 below, in the position and with the duties and responsibilities set forth in Section 3 below, and upon other terms and conditions hereinafter stated.

2. Term

The term of employment hereunder shall commence on the date hereof and shall continue until otherwise terminated by either party at any time in accordance with the terms hereof.

3. Position; Duties; Responsibilities

3.1 It is intended that at all times during the term of employment hereunder, the Employee shall serve as Chief Financial Officer reporting to the Chief Executive Officer of the Company. The Employee agrees to perform such senior executive and managerial services customary to such position as are necessary to the operations of the Company and as may be assigned to him from time to time by the Chief Executive Officer or by the Company's Board of Directors (the "Board of Directors").

3.2 Throughout the term of employment hereunder, the Employee shall devote his full time and undivided attention during normal business hours to the business and affairs of the Company, as appropriate to his responsibilities and duties hereunder, except for reasonable vacations and illness or other disability, but nothing in this Agreement shall preclude the Employee from devoting reasonable periods required for serving as a director or member of any advisory committee of not more than two (at any time) "for profit" organizations involving no conflict of interest with the interests of the Company (subject to approval by the Chief Executive Officer, which approval shall not be unreasonably withheld), or from engaging in charitable and community activities, or from managing his personal investments, provided such activities do not materially interfere with the performance of his duties and responsibilities under this Agreement.

4. Compensation

4.1 Salary

For services rendered by the Employee during the term of employment hereunder, the Employee shall be paid a salary, payable in equal biweekly installments (or, if different, payable in accordance with the then existing applicable payroll policy of the Company, but in no event less frequently than equal monthly installments) at an annualized rate of no less than $175,000, such salary to be reviewed for increase annually with such increases, if any, as shall be awarded taking into account such factors as corporate and individual performance and general business conditions.

4.2 Annual Bonus Opportunity

1

During the term of employment hereunder, the Employee will be provided an annual bonus opportunity in a target amount of 50% of base compensation (pro-rated based on the Employee's start date). The objectives for each year and other terms and conditions of the bonus opportunity shall be established by the Chief Executive Officer and shall be reasonably consistent with the business plan of the Company for such year established in advance.

4.3 Employee Benefit Plans

During the term of employment hereunder, the Employee will be eligible to participate in all employee benefit programs of the Company now or hereafter made available to senior executives, in accordance with the provisions thereof as in effect from time to time. In any event, the Employee shall be entitled to vacation days at the rate of three weeks per calendar year or such greater amount as may be provided by Company policies in effect from time to time.

4.4 Business Expense Reimbursements

During the term of employment hereunder, the Employee will be entitled to receive reimbursement by the Company for all reasonable out-of-pocket expenses incurred by him (in accordance with the policies and procedures established by the Company for its senior level executives), in connection with his performing services hereunder.

5. Consequences of Termination of Employment

5.1 Death

In the event of the death of the Employee during the term of employment hereunder, the estate or other legal representatives of the Employee shall be entitled to continuation of the salary provided for in Section 4.1 for a period of 6 months from the date of the Employee's death, at the rate in effect at such date.

5.2 Continuing Disability

Notwithstanding anything in this Agreement to the contrary, the Company is hereby given the option to terminate the Employee's employment in the event of the Employee's Continuing Disability. Such option shall be exercised by the Company by giving notice to the Employee of the Company's intention to terminate his employment due to Continuing Disability not earlier than 15 days from the receipt of such notice.

In the event of the termination of the Employee's employment due to Continuing Disability, the Employee shall be entitled to compensation in accordance with the terms of all disability plan(s) made available to the Employee in which he is a participant at the time of such termination, if any; provided, however, that for a period of 6 months from such date of termination, the Employee shall receive an amount at least equal to the salary provided for in Section 4.1 above, at the rate in effect at the time of such termination, to the extent not provided under any such disability plan. Other rights and benefits under employee benefit plans and programs of the Company, generally, will be determined in accordance with the terms and provisions of such plans and programs.

For purposes hereof, Continuing Disability shall mean the inability to perform the essential functions connected with the Employee's duties hereunder, with or without reasonable accommodation, which inability shall have existed for a period of 250 days, even though not consecutive, in any 24 month period. In the event the Employee does not agree with the Company that his inability may reasonably be expected to exist for such period, the opinion of a qualified medical doctor selected by the Employee and reasonably satisfactory to the Company shall be determinative.

If, following a termination of employment hereunder due to Continuing Disability, the Employee becomes otherwise employed (whether as an employee, consultant or otherwise, but not solely as a member of a board of directors), any salary or other benefits earned by him from such employment shall be offset against any disability compensation or salary continuation due hereunder.

2

5.3 Termination by the Company for Due Cause

Nothing herein shall prevent the Company from terminating the employment of the Employee for Due Cause. The Employee shall continue to receive salary and any accrued and due bonus payments provided for herein only through the period ending with the date of such termination and any other rights and benefits he may have under employee benefit plans and programs of the Company, generally, shall be determined in accordance with the terms of such plans and programs. The term "Due Cause", as used herein, shall mean that (a) the Employee has committed a willful serious act, such as embezzlement, against the Company intended to enrich himself at the expense of the Company or has been convicted of a felony involving moral turpitude or (b) the Employee has (i) willfully and grossly neglected his duties hereunder or (ii) intentionally failed to observe specific directives or policies of Employee's immediate superior, the Chief Executive Officer or Board of Directors, which directives or policies were consistent with his positions, duties and responsibilities hereunder, and which failure had, or continuing failure will have, a material adverse effect on the Company. Prior to any such termination, the Employee shall be given written notice by the Chief Executive Officer that the Company intends to terminate his employment for Due Cause under this Section 5.3, which written notice shall specify the particular acts or omissions on the basis of which the Company intends to so terminate the Employee's employment, and the Employee (with his counsel, if he so chooses) shall be given the opportunity, within 15 days of his receipt of such notice, to have a meeting with the Board of Directors to discuss such acts or omissions and given reasonable time to remedy the situation, if it is deemed by the Board of Directors, in their good faith business judgment, to be remediable. In the event of such termination, the Employee shall be promptly furnished written specification of the basis therefore in reasonable detail.

5.4 Termination by the Company other than for Due Cause

The foregoing notwithstanding, the Company may terminate the Employee's employment for whatever reason it deems appropriate; provided, however, that in the event such termination is not based on death or disability as provided in Sections 5.1 or 5.2, above, or on Due Cause as provided in
Section 5.3 above, the Employee will be entitled to receive Severance Compensation (as defined below).

For purposes of the foregoing, Severance Compensation shall consist of salary continuation for a period of six (6) months from the date of termination (the "Salary Continuation Period"), payable in equal biweekly installments (or, if different, payable in accordance with the then existing applicable payroll policy of the Company, but in no event less frequently than equal monthly installments), at the rate in effect, pursuant to Section 4.1 above, immediately prior to such termination.

During the period beginning with the Employee's termination and continuing through the Salary Continuation Period, the Company will use its reasonable best efforts to continue the Employee's eligibility under its group life insurance, hospitalization, medical and dental plans. In order to obtain such benefits, the Employee will have to pay the amount that would be the Employee's responsibility if he were still employed. To the extent Employee is not eligible under the terms of one or more of such plans and programs, the Company will provide the Employee with the economic equivalent for the Salary Continuation Period. For this purpose, "economic equivalent" shall mean the cost the Employee would incur if he were to provide himself with a benefit comparable to the reduced or eliminated benefit. The amount paid to the Employee as the economic equivalent, less the amount of the premium payment which is the Employee's responsibility in accordance with the Company benefit plan, will be "grossed-up", if taxable (that is, the amount necessary to make the Employee whole after taking into account (i) the cost of the benefit and
(ii) additional income taxes, if any, incurred by the Employee on amounts paid to him pursuant to this sentence).

The foregoing notwithstanding, upon a termination triggering Severance Compensation payments hereunder the Company shall be under no obligation to continue the Employee's coverage under any long term disability plan or program; and the date of such termination shall be considered a termination for purposes of participation in the Company's Retirement Savings Plan.

Except as specifically set forth in this Section 5.4, the Employee shall not be entitled to any other compensation or benefits following a termination of employment by the Company as provided in this Section 5.4.

3

5.5 Constructive Termination of Employment by the Company without

Due Cause

Anything herein to the contrary notwithstanding, if the Company:

(A) demotes or otherwise elects or appoints the Employee to a lesser office than set forth in Section 3.1 or fails to elect or appoint him to such position;

(B) causes a material change in the nature or scope of the authorities, powers, functions, duties or responsibilities attached to the Employee's position as described in Section 3.1;

(C) decreases the Employee's salary or annual bonus opportunity below the levels provided for by the terms of Sections 4.1 and 4.2 (taking into account any salary increases made from time to time in accordance with Section 4.1);

(D) materially reduces the Employee's benefits under any employee benefit plan, program, or arrangement of the Company (other than a change that affects all employees similarly situated) from the level in effect upon the Employee's commencement of participation; or

(E) commits any other material breach of this Agreement,

then such action (or inaction) by the Company, unless consented to in writing by the Employee, shall constitute a termination of the Employee's employment by the Company other than for Due Cause pursuant to Section 5.4 above. If, within thirty (30) days of learning of the action (or inaction) described herein as a basis for a constructive termination of employment, the Employee (unless he has given written consent thereto) notifies the Company in writing that he wishes to effect a constructive termination of his employment pursuant to this Section 5.5, and such action (or inaction) is not reversed or otherwise remedied by the Company within 30 days following receipt by the Company of such written notice, then effective at the end of such second 30 day period, the employment of the Employee hereunder shall be deemed to have terminated pursuant to Section 5.4 above.

5.6 Voluntary Termination by Employee

In the event the Employee terminates his employment of his own volition (other than as provided in Section 5.5 above), such termination shall constitute a voluntary termination and in such event the Employee shall be limited to the same rights and benefits as provided in connection with termination for Due Cause under the second sentence of Section 5.3 above. For the purposes hereof, a decision by the Employee to voluntarily retire shall constitute a voluntary termination.

6. Protective Agreement

Employee agrees that, following any termination of employment with Company, Employee will not, directly or indirectly, for the Salary Continuation Period, plus one (1) year, (a) engage in or provide any services substantially similar to the services that Employee provided to the Company at any time during the last twelve (12) months of Employee's employment to or on behalf of any person or entity offering products or services competitive with the Company Business (defined below) anywhere in the continental United States. The Employee acknowledges and agrees the continental United States is the primary geographic area in which the Company competes in its business and thus, by virtue of Employee's senior executive position and responsibilities with the Company, also the primary geographic area of Employee's employment with the Company. "Business" means the sale of products and services that enable (1) broadband providers to stream video to customers, and (2) high performance computing designed to acquire, process, store, analyze, and display large amounts of rapidly changing information with microsecond response as changes occur.

7. Successors and Assigns

7.1 Assignment by the Company

4

This Agreement shall be binding upon and inure to the benefit of the Company or any corporation or other entity to which the Company may transfer all or substantially all its assets and business and to which the Company may assign this Agreement, in which case "Company" as used herein shall mean such corporation or other entity.

7.2 Assignment by the Employee

The Employee may not assign this Agreement or any part thereof without the prior written consent of the Company, which consent may be withheld by the Company for any reason it deems appropriate; provided, however, nothing herein shall preclude the Employee from designating one or more beneficiaries to receive any amount that may be payable following the occurrence of his legal incompetency or his death and shall not preclude the legal representative of his estate from assigning any right hereunder to the person or persons entitled thereto under his will or, in the case of intestacy, to the person or persons entitled thereto under the laws of intestacy applicable to his estate. The term "beneficiaries", as used in this Agreement, shall mean a beneficiary or beneficiaries so designated to receive any such amount or if no beneficiary has been so designated the legal representative of the Employee (in the event of his incompetency) or the Employee's estate.

8. Arbitration

Any dispute or controversy arising out of, in connection with, or relating to this Agreement or the Employee's employment by the Company or its termination shall be settled exclusively by arbitration in Atlanta, Georgia by one arbitrator in accordance with the employment arbitration rules of the American Arbitration Association then in effect; provided, however, that this arbitration agreement shall not preclude the Company from seeking to enforce the Protective Agreement in any court of competent jurisdiction without resort to arbitration. The arbitrator's award may include the manner in which fees of counsel and other expenses in connection with the dispute or controversy are to be borne by the parties. The arbitrator's authority and jurisdiction is limited to interpreting and applying the express provisions of this Agreement and the arbitrator shall not have the authority to alter or add to the provisions of this Agreement. Judgment may be entered upon the arbitrator's award in any court of competent jurisdiction.

Employee's Initials__________________ Company's Initials__________________

As a condition precedent to any arbitration hereunder, prior to the commencement of any formal arbitration proceeding, the parties shall participate in a one-day mediation session in an attempt to amicably resolve the disagreement that is to be the subject matter of the arbitration proceeding.

9. Governing Law

This Agreement shall be deemed a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of Georgia (without reference to the principles of conflicts of law).

10. Entire Agreement

This Agreement, including the Protective Agreement, contains all the understandings and representations between the parties hereto pertaining to the subject matter hereof and supersedes all undertakings and agreements, whether oral or in writing, if any there be, previously entered into by them with respect thereto.

11. Amendment or Modification; Waiver

No provision in this Agreement may be amended or waived unless such amendment or waiver is agreed to in writing, signed by the Employee and the Chief Executive Officer of the Company. Except as otherwise specifically provided in the Agreement, no waiver by any party hereto of any breach by another party hereto of any condition or provision of the Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar provision or condition at the same or any prior or subsequent time.

5

12. Notices

Any notice to be given hereunder shall be in writing and delivered personally or sent by certified mail, postage prepaid, return receipt requested, addressed to the party concerned at the address indicated below or to such other address as such party may subsequently give notice of hereunder in writing:

COMPANY:       Concurrent Computer Corporation
               4375 River  Green Parkway
               Duluth, GA 30096
               Attn: Suzanne Smith, VP - Human Resources &
               Administrative Services

With a copy to:

                    King & Spalding
                    191 Peachtree Street
                    Atlanta, GA 30303-1763
                    ATTN: Jack Capers

     EMPLOYEE:      Greg Wilson
                    285 Nesbit Entry Drive
                    Roswell, GA 30076

13.     Severability
        ------------

In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, the remaining provisions or portions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law.

14. Withholding

Anything to the contrary notwithstanding, all payments required to be made by the Company hereunder to the Employee or his estate or beneficiaries, shall be subject to withholding of such amounts relating to taxes as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provision for payment of taxes as required by law, provided it is satisfied that all requirements of law affecting its responsibilities to withhold such taxes have been satisfied.

15. Survivorship

The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations.

16. References

In the event of the Employee's death or judicial determination of his incompetence, reference in this Agreement to the Employee shall be deemed, where appropriate, to refer to his legal representatives, or, where appropriate, to his beneficiary or beneficiaries.

17. Titles

Titles to the sections in this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the title of any section.

18. Counterparts

This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

6

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

CONCURRENT COMPUTER CORPORATION

By:  /s/ T. Gary Trimm
   --------------------------------
     T. Gary Trimm
     Chief Executive Officer

EMPLOYEE

/s/ Greg Wilson
-----------------------------------
 Greg  Wilson

7

EXHIBIT 10.4

PROTECTIVE AGREEMENT

I, the undersigned, in consideration of and as a condition to my employment by Concurrent Computer Corporation (the "Company), do hereby agree with the Company as follows:

1. Noncompete and Nonsolicitation of Customers or Employees. During my employment by the Company, I will devote my full time and best efforts to the business of the Company and I will not, directly or indirectly, alone or as a partner, officer, director, employee or holder of more than 5% of the common stock of any other organization, engage in any business activity which competes directly or indirectly with the products or services being developed, manufactured or sold by the Company. I also agree that, following any termination of such employment, I will not, directly or indirectly, for any period in which I receive severance payments from the Company, plus one (1) year, (a) solicit or attempt to solicit, for the purpose of providing any products or services competitive with the Company in its Business (defined below), any customers or active prospects of the Company with which I had any material business contact for or on behalf of the Company at any time during the last twelve (12) months of my employment, or (b) solicit, recruit, or otherwise seek to induce any employees of the Company to terminate their employment or violate any agreement with the Company to work for any person or entity engaged in the Business. "Business" means the sale of products and services that enable
(1) broadband providers to stream video to customers, and (2) high performance computing designed to acquire, process, store, analyze, and display large amounts of rapidly changing information with microsecond response as changes occur.

2. Trade Secrets and Other Confidential Information. Except as may be required in the performance of my duties with the Company, or as may be required by law, I will not, whether during or after termination of my employment with the Company, reveal to any person or entity or use any of the trade secrets of the Company for as long as they remain trade secrets. I also agree to these same restrictions, during my employment with the Company and for a period of three (3) years thereafter, with respect to all other confidential information of the Company, including its technical, financial and business information, unless such confidential information becomes publicly available through no fault of mine or unless it is disclosed by the Company to third parties without similar restrictions.

Further, I agree that any and all documents, disks, databases, notes, or memoranda prepared by me or others and containing trade secrets or confidential information of the Company shall be and remain the sole and exclusive property of the Company, and that upon termination of my employment or prior request of the Company I will immediately deliver all of such documents, disks, databases, notes or memoranda, including all copies, to the Company at its main office.

3. Inventions and Copyrights. If at any time or times during my employment (or within six (6) months thereafter if based on trade secrets or confidential information within the meaning of Paragraph 2 above), I make or discover, either alone or with others, any invention, modification, development, improvement, process or secret, whether or not patented or patentable (collectively, "Inventions") based on work done for the Company, I will disclose in reasonable detail the nature of such Invention to the Company in writing, and if it relates to the business of the Company or any of the products or services being developed, manufactured or sold by the Company, such Invention and the benefits thereof shall immediately become the sole and absolute property of the Company provided the Company notifies me in reasonable detail within ninety (90) days after receipt of my disclosure of such Invention that it believes such Invention relates to the business of the Company or any of the products or services being developed, manufactured or sold by the Company. I also agree to transfer such Inventions and benefits and rights resulting from such Inventions to the Company without compensation and will communicate without cost, delay or prior publications all available information relating to the Inventions to the Company. At the Company's expense I will also, whether before or after termination of my employment, sign all documents (including patent applications) and do all acts and things that the Company may deem necessary or desirable to effect the full assignment to the Company of my right and title to the Inventions or necessary to defend any opposition thereto. I also agree to assign to the Company all copyrights and reproduction rights to any materials prepared by me in connection with my employment.

4. Conflicting Agreements. I represent that I have attached to this Agreement a copy of any written agreement, or a summary of any oral agreement, which presently affects my ability to comply with the

1

terms of this Agreement, and that to the best of my knowledge my employment with the Company will not conflict with any agreement to which I am subject. I have returned all documents and materials belonging to any of my former employers. I will not disclose to the Company or induce any of the Company's employees to use trade secrets or confidential information of any of my former employers.

5. Nondisparagement Clause. I specifically agree and promise that I will not directly or indirectly disparage the Company, or any of Company's parent, sister, subsidiary or affiliated companies or entities or any of its or their officers, board of directors, committee members, agents, supervisors, employees, contractors, attorneys, representatives, or any of the Company's products or services in any manner, at any time, to any person or entity.

"Disparage" is defined as but not limited to any utterance whatsoever either verbal, in writing, by gesture or any behavior of any kind that might tend to or actually harm or injure Company whether or not intended.

Should any question exist as to the meaning of this clause or the type of utterance or conduct that might cause it to be broken or violated, it should be referred to the Company's General Counsel or designee.

6. Miscellaneous.
(a) I hereby give the Company permission to use photographs of me, during my employment, with or without using my name, for any purposes the Company deems necessary or desirable.
(b) The Company shall have, in addition to any and all remedies of law, the right to an injunction, specific performance and other equitable relief as may be appropriate to prevent the violation of my obligations hereunder.
(c) I understand that this Agreement does not create an obligation on the Company or any other person to continue my employment for any period of time.
(d) This Agreement shall be construed in accordance with the laws of the State of Georgia. I agree that each provision of this Agreement shall be treated as a separate and independent clause, and the unenforceability of any clause shall in no way impair the enforceability of any of the other clauses. Moreover, if one or more of the provisions contained in this Agreement shall for any reason be held to be extensively broad as to scope, activity, time, geographical area or subject so as to be unenforceable at law, such provision or provisions shall be construed by the appropriate judicial body by limiting and reducing it or them so as to be enforceable to the maximum extent compatible with applicable law as it shall then appear.
(e) My obligations under this Agreement shall survive the termination of my employment regardless of the manner of such termination for the time periods set forth in this Agreement, and shall be binding upon my heirs, executors and administrators.
(f) The term "Company" as used in this Agreement includes Concurrent Computer Corporation and any of its subdivisions or affiliates. The Company shall have the right to assign this Agreement to its successors and assigns.
(g) The foregoing is the entire agreement between the Company and me with regard to its subject matter, and may not be amended or supplemented except by a written instrument signed by both the Company and me. The section headings are inserted for convenience only, and are not intended to affect the meaning of this Agreement.

  /s/ Greg Wilson             2-1-05
------------------------------------------
Signature                          Date

Greg Wilson

Printed Name

2

EXHIBIT 10.5

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT, made and entered into as of the 4th day of February 2005 by and between CONCURRENT COMPUTER CORPORATION, a Delaware corporation ("Concurrent" or the "Company"), and John Welch (the "Employee").

W I T N E S S E T H :

WHEREAS, the Company desires to employ the Employee and the Employee desires to accept such employment with the Company;

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the parties agree as follows:

1. Employment

The Company hereby employs the Employee and the Employee hereby accepts employment with the Company for the term set forth in Section 2 below, in the position and with the duties and responsibilities set forth in Section 3 below, and upon other terms and conditions hereinafter stated.

2. Term

The term of employment hereunder shall commence on the date hereof and shall continue until otherwise terminated by either party at any time in accordance with the terms hereof.

3. Position; Duties; Responsibilities

3.1 It is intended that at all times during the term of employment hereunder, the Employee shall serve as Vice President - Research & Development reporting to the Chief Operating Officer of the Company. The Employee agrees to perform such senior executive and managerial services customary to such position as are necessary to the operations of the Company and as may be assigned to him from time to time by the Chief Operating Officer or Chief Executive Officer or by the Company's Board of Directors (the "Board of Directors").

3.2 Throughout the term of employment hereunder, the Employee shall devote his full time and undivided attention during normal business hours to the business and affairs of the Company, as appropriate to his responsibilities and duties hereunder, except for reasonable vacations and illness or other disability, but nothing in this Agreement shall preclude the Employee from devoting reasonable periods required for serving as a director or member of any advisory committee of not more than two (at any time) "for profit" organizations involving no conflict of interest with the interests of the Company (subject to approval by the Chief Executive Officer, which approval shall not be unreasonably withheld), or from engaging in charitable and community activities, or from managing his personal investments, provided such activities do not materially interfere with the performance of his duties and responsibilities under this Agreement.

4. Compensation

4.1 Salary

For services rendered by the Employee during the term of employment hereunder, the Employee shall be paid a salary, payable in equal biweekly installments (or, if different, payable in accordance with the then existing applicable payroll policy of the Company, but in no event less frequently than equal monthly installments) at an annualized rate of no less than $215,000, such salary to be reviewed for increase annually with such increases, if any, as shall be awarded taking into account such factors as corporate and individual performance and general business conditions.

4.2 Annual Bonus Opportunity

1

During the term of employment hereunder, the Employee will be provided an annual bonus opportunity in a target amount of 40% of base compensation (pro-rated based on the Employee's start date). The objectives for each year and other terms and conditions of the bonus opportunity shall be established by the Chief Executive Officer and shall be reasonably consistent with the business plan of the Company for such year established in advance.

4.3 Employee Benefit Plans

During the term of employment hereunder, the Employee will be eligible to participate in all employee benefit programs of the Company now or hereafter made available to senior executives, in accordance with the provisions thereof as in effect from time to time. In any event, the Employee shall be entitled to vacation days at the rate of four weeks per calendar year or such greater amount as may be provided by Company policies in effect from time to time.

4.4 Business Expense Reimbursements

During the term of employment hereunder, the Employee will be entitled to receive reimbursement by the Company for all reasonable out-of-pocket expenses incurred by him (in accordance with the policies and procedures established by the Company for its senior level executives), in connection with his performing services hereunder.

5. Consequences of Termination of Employment

5.1 Death

In the event of the death of the Employee during the term of employment hereunder, the estate or other legal representatives of the Employee shall be entitled to continuation of the salary provided for in Section 4.1 for a period of 6 months from the date of the Employee's death, at the rate in effect at such date.

5.2 Continuing Disability

Notwithstanding anything in this Agreement to the contrary, the Company is hereby given the option to terminate the Employee's employment in the event of the Employee's Continuing Disability. Such option shall be exercised by the Company by giving notice to the Employee of the Company's intention to terminate his employment due to Continuing Disability not earlier than 15 days from the receipt of such notice.

In the event of the termination of the Employee's employment due to Continuing Disability, the Employee shall be entitled to compensation in accordance with the terms of all disability plan(s) made available to the Employee in which he is a participant at the time of such termination, if any; provided, however, that for a period of 6 months from such date of termination, the Employee shall receive an amount at least equal to the salary provided for in Section 4.1 above, at the rate in effect at the time of such termination, to the extent not provided under any such disability plan. Other rights and benefits under employee benefit plans and programs of the Company, generally, will be determined in accordance with the terms and provisions of such plans and programs.

For purposes hereof, Continuing Disability shall mean the inability to perform the essential functions connected with the Employee's duties hereunder, with or without reasonable accommodation, which inability shall have existed for a period of 250 days, even though not consecutive, in any 24 month period. In the event the Employee does not agree with the Company that his inability may reasonably be expected to exist for such period, the opinion of a qualified medical doctor selected by the Employee and reasonably satisfactory to the Company shall be determinative.

If, following a termination of employment hereunder due to Continuing Disability, the Employee becomes otherwise employed (whether as an employee, consultant or otherwise, but not solely as a member of a board of directors), any salary or other benefits earned by him from such employment shall be offset against any disability compensation or salary continuation due hereunder.

2

5.3 Termination by the Company for Due Cause

Nothing herein shall prevent the Company from terminating the employment of the Employee for Due Cause. The Employee shall continue to receive salary and any accrued and due bonus payments provided for herein only through the period ending with the date of such termination and any other rights and benefits he may have under employee benefit plans and programs of the Company, generally, shall be determined in accordance with the terms of such plans and programs. The term "Due Cause", as used herein, shall mean that (a) the Employee has committed a willful serious act, such as embezzlement, against the Company intended to enrich himself at the expense of the Company or has been convicted of a felony involving moral turpitude or (b) the Employee has (i) willfully and grossly neglected his duties hereunder or (ii) intentionally failed to observe specific directives or policies of Employee's immediate superior, the Chief Executive Officer or Board of Directors, which directives or policies were consistent with his positions, duties and responsibilities hereunder, and which failure had, or continuing failure will have, a material adverse effect on the Company. Prior to any such termination, the Employee shall be given written notice by the Chief Executive Officer that the Company intends to terminate his employment for Due Cause under this Section 5.3, which written notice shall specify the particular acts or omissions on the basis of which the Company intends to so terminate the Employee's employment, and the Employee (with his counsel, if he so chooses) shall be given the opportunity, within 15 days of his receipt of such notice, to have a meeting with the Board of Directors to discuss such acts or omissions and given reasonable time to remedy the situation, if it is deemed by the Board of Directors, in their good faith business judgment, to be remediable. In the event of such termination, the Employee shall be promptly furnished written specification of the basis therefore in reasonable detail.

5.4 Termination by the Company other than for Due Cause

The foregoing notwithstanding, the Company may terminate the Employee's employment for whatever reason it deems appropriate; provided, however, that in the event such termination is not based on death or disability as provided in Sections 5.1 or 5.2, above, or on Due Cause as provided in
Section 5.3 above, the Employee will be entitled to receive Severance Compensation (as defined below).

For purposes of the foregoing, Severance Compensation shall consist of salary continuation for a period of six (6) months from the date of termination (the "Salary Continuation Period"), payable in equal biweekly installments (or, if different, payable in accordance with the then existing applicable payroll policy of the Company, but in no event less frequently than equal monthly installments), at the rate in effect, pursuant to Section 4.1 above, immediately prior to such termination.

During the period beginning with the Employee's termination and continuing through the Salary Continuation Period, the Company will use its reasonable best efforts to continue the Employee's eligibility under its group life insurance, hospitalization, medical and dental plans. In order to obtain such benefits, the Employee will have to pay the amount that would be the Employee's responsibility if he were still employed. To the extent Employee is not eligible under the terms of one or more of such plans and programs, the Company will provide the Employee with the economic equivalent for the Salary Continuation Period. For this purpose, "economic equivalent" shall mean the cost the Employee would incur if he were to provide himself with a benefit comparable to the reduced or eliminated benefit. The amount paid to the Employee as the economic equivalent, less the amount of the premium payment which is the Employee's responsibility in accordance with the Company benefit plan, will be "grossed-up", if taxable (that is, the amount necessary to make the Employee whole after taking into account (i) the cost of the benefit and
(ii) additional income taxes, if any, incurred by the Employee on amounts paid to him pursuant to this sentence).

The foregoing notwithstanding, upon a termination triggering Severance Compensation payments hereunder the Company shall be under no obligation to continue the Employee's coverage under any long term disability plan or program; and the date of such termination shall be considered a termination for purposes of participation in the Company's Retirement Savings Plan.

Except as specifically set forth in this Section 5.4, the Employee shall not be entitled to any other compensation or benefits following a termination of employment by the Company as provided in this Section 5.4.

3

5.5 Constructive Termination of Employment by the Company without

Due Cause

Anything herein to the contrary notwithstanding, if the Company:

(A) demotes or otherwise elects or appoints the Employee to a lesser office than set forth in Section 3.1 or fails to elect or appoint him to such position;

(B) causes a material change in the nature or scope of the authorities, powers, functions, duties or responsibilities attached to the Employee's position as described in Section 3.1;

(C) decreases the Employee's salary or annual bonus opportunity below the levels provided for by the terms of Sections 4.1 and 4.2 (taking into account any salary increases made from time to time in accordance with Section 4.1);

(D) materially reduces the Employee's benefits under any employee benefit plan, program, or arrangement of the Company (other than a change that affects all employees similarly situated) from the level in effect upon the Employee's commencement of participation; or

(F) commits any other material breach of this Agreement,

then such action (or inaction) by the Company, unless consented to in writing by the Employee, shall constitute a termination of the Employee's employment by the Company other than for Due Cause pursuant to Section 5.4 above. If, within thirty (30) days of learning of the action (or inaction) described herein as a basis for a constructive termination of employment, the Employee (unless he has given written consent thereto) notifies the Company in writing that he wishes to effect a constructive termination of his employment pursuant to this Section 5.5, and such action (or inaction) is not reversed or otherwise remedied by the Company within 30 days following receipt by the Company of such written notice, then effective at the end of such second 30 day period, the employment of the Employee hereunder shall be deemed to have terminated pursuant to Section 5.4 above.

5.6 Voluntary Termination by Employee

In the event the Employee terminates his employment of his own volition (other than as provided in Section 5.5 above), such termination shall constitute a voluntary termination and in such event the Employee shall be limited to the same rights and benefits as provided in connection with termination for Due Cause under the second sentence of Section 5.3 above. For the purposes hereof, a decision by the Employee to voluntarily retire shall constitute a voluntary termination.

6. Protective Agreement

Employee agrees that, following any termination of employment with Company, Employee will not, directly or indirectly, for the Salary Continuation Period, plus one (1) year, (a) engage in or provide any services substantially similar to the services that Employee provided to the Company at any time during the last twelve (12) months of Employee's employment to or on behalf of any person or entity offering products or services competitive with the Company Business (defined below) anywhere in the continental United States. The Employee acknowledges and agrees the continental United States is the primary geographic area in which the Company competes in its business and thus, by virtue of Employee's senior executive position and responsibilities with the Company, also the primary geographic area of Employee's employment with the Company. "Business" means the sale of products and services that enable (1) broadband providers to stream video to customers, and (2) high performance computing designed to acquire, process, store, analyze, and display large amounts of rapidly changing information with microsecond response as changes occur.

7. Successors and Assigns

7.1 Assignment by the Company

4

This Agreement shall be binding upon and inure to the benefit of the Company or any corporation or other entity to which the Company may transfer all or substantially all its assets and business and to which the Company may assign this Agreement, in which case "Company" as used herein shall mean such corporation or other entity.

7.2 Assignment by the Employee

The Employee may not assign this Agreement or any part thereof without the prior written consent of the Company, which consent may be withheld by the Company for any reason it deems appropriate; provided, however, nothing herein shall preclude the Employee from designating one or more beneficiaries to receive any amount that may be payable following the occurrence of his legal incompetency or his death and shall not preclude the legal representative of his estate from assigning any right hereunder to the person or persons entitled thereto under his will or, in the case of intestacy, to the person or persons entitled thereto under the laws of intestacy applicable to his estate. The term "beneficiaries", as used in this Agreement, shall mean a beneficiary or beneficiaries so designated to receive any such amount or if no beneficiary has been so designated the legal representative of the Employee (in the event of his incompetency) or the Employee's estate.

8. Arbitration

Any dispute or controversy arising out of, in connection with, or relating to this Agreement or the Employee's employment by the Company or its termination shall be settled exclusively by arbitration in Atlanta, Georgia by one arbitrator in accordance with the employment arbitration rules of the American Arbitration Association then in effect; provided, however, that this arbitration agreement shall not preclude the Company from seeking to enforce the Protective Agreement in any court of competent jurisdiction without resort to arbitration. The arbitrator's award may include the manner in which fees of counsel and other expenses in connection with the dispute or controversy are to be borne by the parties. The arbitrator's authority and jurisdiction is limited to interpreting and applying the express provisions of this Agreement and the arbitrator shall not have the authority to alter or add to the provisions of this Agreement. Judgment may be entered upon the arbitrator's award in any court of competent jurisdiction.

Employee's Initials_______________ Company's Initials_________________________

As a condition precedent to any arbitration hereunder, prior to the commencement of any formal arbitration proceeding, the parties shall participate in a one-day mediation session in an attempt to amicably resolve the disagreement that is to be the subject matter of the arbitration proceeding.

9. Governing Law

This Agreement shall be deemed a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of Georgia (without reference to the principles of conflicts of law).

10. Entire Agreement

This Agreement, including the Protective Agreement, contains all the understandings and representations between the parties hereto pertaining to the subject matter hereof and supersedes all undertakings and agreements, whether oral or in writing, if any there be, previously entered into by them with respect thereto.

11. Amendment or Modification; Waiver

No provision in this Agreement may be amended or waived unless such amendment or waiver is agreed to in writing, signed by the Employee and the Chief Executive Officer of the Company. Except as otherwise specifically provided in the Agreement, no waiver by any party hereto of any breach by another party hereto of any condition or provision of the Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar provision or condition at the same or any prior or subsequent time.

12. Notices

5

Any notice to be given hereunder shall be in writing and delivered personally or sent by certified mail, postage prepaid, return receipt requested, addressed to the party concerned at the address indicated below or to such other address as such party may subsequently give notice of hereunder in writing:

COMPANY:       Concurrent Computer Corporation
               4375 River Green Parkway
               Duluth, GA 30096
               Attn: Suzanne Smith, VP - Human Resources &
               Administrative Services

With a copy to:

                    King & Spalding
                    191 Peachtree Street
                    Atlanta, GA 30303-1763
                    ATTN: Jack Capers

     EMPLOYEE:      John Welch
                    4495 Burgess Hill Lane
                    Alpharetta, GA 30022

13.     Severability
        ------------

In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, the remaining provisions or portions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law.

14. Withholding

Anything to the contrary notwithstanding, all payments required to be made by the Company hereunder to the Employee or his estate or beneficiaries, shall be subject to withholding of such amounts relating to taxes as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provision for payment of taxes as required by law, provided it is satisfied that all requirements of law affecting its responsibilities to withhold such taxes have been satisfied.

15. Survivorship

The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations.

16. References

In the event of the Employee's death or judicial determination of his incompetence, reference in this Agreement to the Employee shall be deemed, where appropriate, to refer to his legal representatives, or, where appropriate, to his beneficiary or beneficiaries.

17. Titles

Titles to the sections in this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the title of any section.

18. Counterparts

6

This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

CONCURRENT COMPUTER CORPORATION

By: /s/ T. Gary Trimm
   ------------------------------
    T. Gary Trimm
    Chief Executive Officer

EMPLOYEE

    /s/ John Welch
---------------------------------
    John Welch

7

EXHIBIT 10.6

PROTECTIVE AGREEMENT

I, the undersigned, in consideration of and as a condition to my employment by Concurrent Computer Corporation (the "Company), do hereby agree with the Company as follows:

1. Noncompete and Nonsolicitation of Customers or Employees. During my employment by the Company, I will devote my full time and best efforts to the business of the Company and I will not, directly or indirectly, alone or as a partner, officer, director, employee or holder of more than 5% of the common stock of any other organization, engage in any business activity which competes directly or indirectly with the products or services being developed, manufactured or sold by the Company. I also agree that, following any termination of such employment, I will not, directly or indirectly, for any period in which I receive severance payments from the Company, plus one (1) year, (a) solicit or attempt to solicit, for the purpose of providing any products or services competitive with the Company in its Business (defined below), any customers or active prospects of the Company with which I had any material business contact for or on behalf of the Company at any time during the last twelve (12) months of my employment, or (b) solicit, recruit, or otherwise seek to induce any employees of the Company to terminate their employment or violate any agreement with the Company to work for any person or entity engaged in the Business. "Business" means the sale of products and services that enable
(1) broadband providers to stream video to customers, and (2) high performance computing designed to acquire, process, store, analyze, and display large amounts of rapidly changing information with microsecond response as changes occur.

2. Trade Secrets and Other Confidential Information. Except as may be required in the performance of my duties with the Company, or as may be required by law, I will not, whether during or after termination of my employment with the Company, reveal to any person or entity or use any of the trade secrets of the Company for as long as they remain trade secrets. I also agree to these same restrictions, during my employment with the Company and for a period of three (3) years thereafter, with respect to all other confidential information of the Company, including its technical, financial and business information, unless such confidential information becomes publicly available through no fault of mine or unless it is disclosed by the Company to third parties without similar restrictions.

Further, I agree that any and all documents, disks, databases, notes, or memoranda prepared by me or others and containing trade secrets or confidential information of the Company shall be and remain the sole and exclusive property of the Company, and that upon termination of my employment or prior request of the Company I will immediately deliver all of such documents, disks, databases, notes or memoranda, including all copies, to the Company at its main office.

3. Inventions and Copyrights. If at any time or times during my employment (or within six (6) months thereafter if based on trade secrets or confidential information within the meaning of Paragraph 2 above), I make or discover, either alone or with others, any invention, modification, development, improvement, process or secret, whether or not patented or patentable (collectively, "Inventions") based on work done for the Company, I will disclose in reasonable detail the nature of such Invention to the Company in writing, and if it relates to the business of the Company or any of the products or services being developed, manufactured or sold by the Company, such Invention and the benefits thereof shall immediately become the sole and absolute property of the Company provided the Company notifies me in reasonable detail within ninety (90) days after receipt of my disclosure of such Invention that it believes such Invention relates to the business of the Company or any of the products or services being developed, manufactured or sold by the Company. I also agree to transfer such Inventions and benefits and rights resulting from such Inventions to the Company without compensation and will communicate without cost, delay or prior publications all available information relating to the Inventions to the Company. At the Company's expense I will also, whether before or after termination of my employment, sign all documents (including patent applications) and do all acts and things that the Company may deem necessary or desirable to effect the full assignment to the Company of my right and title to the Inventions or necessary to defend any opposition thereto. I also agree to assign to the Company all copyrights and reproduction rights to any materials prepared by me in connection with my employment.

1

4. Conflicting Agreements. I represent that I have attached to this Agreement a copy of any written agreement, or a summary of any oral agreement, which presently affects my ability to comply with the terms of this Agreement, and that to the best of my knowledge my employment with the Company will not conflict with any agreement to which I am subject. I have returned all documents and materials belonging to any of my former employers. I will not disclose to the Company or induce any of the Company's employees to use trade secrets or confidential information of any of my former employers.

5. Nondisparagement Clause. I specifically agree and promise that I will not directly or indirectly disparage the Company, or any of Company's parent, sister, subsidiary or affiliated companies or entities or any of its or their officers, board of directors, committee members, agents, supervisors, employees, contractors, attorneys, representatives, or any of the Company's products or services in any manner, at any time, to any person or entity.

"Disparage" is defined as but not limited to any utterance whatsoever either verbal, in writing, by gesture or any behavior of any kind that might tend to or actually harm or injure Company whether or not intended.

Should any question exist as to the meaning of this clause or the type of utterance or conduct that might cause it to be broken or violated, it should be referred to the Company's General Counsel or designee.

6. Miscellaneous.
(a) I hereby give the Company permission to use photographs of me, during my employment, with or without using my name, for any purposes the Company deems necessary or desirable.
(b) The Company shall have, in addition to any and all remedies of law, the right to an injunction, specific performance and other equitable relief as may be appropriate to prevent the violation of my obligations hereunder.
(c) I understand that this Agreement does not create an obligation on the Company or any other person to continue my employment for any period of time.
(d) This Agreement shall be construed in accordance with the laws of the State of Georgia. I agree that each provision of this Agreement shall be treated as a separate and independent clause, and the unenforceability of any clause shall in no way impair the enforceability of any of the other clauses. Moreover, if one or more of the provisions contained in this Agreement shall for any reason be held to be extensively broad as to scope, activity, time, geographical area or subject so as to be unenforceable at law, such provision or provisions shall be construed by the appropriate judicial body by limiting and reducing it or them so as to be enforceable to the maximum extent compatible with applicable law as it shall then appear.
(e) My obligations under this Agreement shall survive the termination of my employment regardless of the manner of such termination for the time periods set forth in this Agreement, and shall be binding upon my heirs, executors and administrators.
(f) The term "Company" as used in this Agreement includes Concurrent Computer Corporation and any of its subdivisions or affiliates. The Company shall have the right to assign this Agreement to its successors and assigns.
(g) The foregoing is the entire agreement between the Company and me with regard to its subject matter, and may not be amended or supplemented except by a written instrument signed by both the Company and me. The section headings are inserted for convenience only, and are not intended to affect the meaning of this Agreement.

 /s/ John Welch          2-4-05
--------------------------------------
Signature                     Date

John Welch

Printed Name

2

EXHIBIT 10.7

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT, made and entered into as of the 4th day of February 2005 by and between CONCURRENT COMPUTER CORPORATION, a Delaware corporation ("Concurrent" or the "Company"), and Gary Brust (the "Employee").

W I T N E S S E T H :

WHEREAS, the Company desires to employ the Employee and the Employee desires to accept such employment with the Company;

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the parties agree as follows:

1. Employment

The Company hereby employs the Employee and the Employee hereby accepts employment with the Company for the term set forth in Section 2 below, in the position and with the duties and responsibilities set forth in Section 3 below, and upon other terms and conditions hereinafter stated.

2. Term

The term of employment hereunder shall commence on the date hereof and shall continue until otherwise terminated by either party at any time in accordance with the terms hereof.

3. Position; Duties; Responsibilities

3.1 It is intended that at all times during the term of employment hereunder, the Employee shall serve as Vice President - Sales & Marketing reporting to the Chief Operating Officer of the Company. The Employee agrees to perform such senior executive and managerial services customary to such position as are necessary to the operations of the Company and as may be assigned to him from time to time by the Chief Operating Officer or Chief Executive Officer or by the Company's Board of Directors (the "Board of Directors").

3.2 Throughout the term of employment hereunder, the Employee shall devote his full time and undivided attention during normal business hours to the business and affairs of the Company, as appropriate to his responsibilities and duties hereunder, except for reasonable vacations and illness or other disability, but nothing in this Agreement shall preclude the Employee from devoting reasonable periods required for serving as a director or member of any advisory committee of not more than two (at any time) "for profit" organizations involving no conflict of interest with the interests of the Company (subject to approval by the Chief Executive Officer, which approval shall not be unreasonably withheld), or from engaging in activities outlined in the Potential Conflict of Interest Disclosure dated September 13, 2004, or from engaging in charitable and community activities, or from managing his personal investments, provided such activities do not materially interfere with the performance of his duties and responsibilities under this Agreement.

4. Compensation

4.1 Salary

For services rendered by the Employee during the term of employment hereunder, the Employee shall be paid a salary, payable in equal biweekly installments (or, if different, payable in accordance with the then existing applicable payroll policy of the Company, but in no event less frequently than equal monthly installments) at an annualized rate of no less than $190,000, such salary to be reviewed for increase annually with such increases, if any, as shall be awarded taking into account such factors as corporate and individual performance and general business conditions.

4.2 Annual Commission Opportunity

1

During the term of employment hereunder, the Employee will be provided an annual commission opportunity in a target amount of $95,000 (pro-rated based on the Employee's start date). The objectives for each year and other terms and conditions of the commission opportunity shall be established by the Chief Executive Officer and shall be reasonably consistent with the business plan of the Company for such year established in advance.

4.3 Employee Benefit Plans

During the term of employment hereunder, the Employee will be eligible to participate in all employee benefit programs of the Company now or hereafter made available to senior executives, in accordance with the provisions thereof as in effect from time to time. In any event, the Employee shall be entitled to vacation days at the rate of three weeks per calendar year or such greater amount as may be provided by Company policies in effect from time to time.

4.4 Business Expense Reimbursements

During the term of employment hereunder, the Employee will be entitled to receive reimbursement by the Company for all reasonable out-of-pocket expenses incurred by him (in accordance with the policies and procedures established by the Company for its senior level executives), in connection with his performing services hereunder.

5. Consequences of Termination of Employment

5.1 Death

In the event of the death of the Employee during the term of employment hereunder, the estate or other legal representatives of the Employee shall be entitled to continuation of the salary provided for in Section 4.1 for a period of 6 months from the date of the Employee's death, at the rate in effect at such date.

5.2 Continuing Disability

Notwithstanding anything in this Agreement to the contrary, the Company is hereby given the option to terminate the Employee's employment in the event of the Employee's Continuing Disability. Such option shall be exercised by the Company by giving notice to the Employee of the Company's intention to terminate his employment due to Continuing Disability not earlier than 15 days from the receipt of such notice.

In the event of the termination of the Employee's employment due to Continuing Disability, the Employee shall be entitled to compensation in accordance with the terms of all disability plan(s) made available to the Employee in which he is a participant at the time of such termination, if any; provided, however, that for a period of 6 months from such date of termination, the Employee shall receive an amount at least equal to the salary provided for in Section 4.1 above, at the rate in effect at the time of such termination, to the extent not provided under any such disability plan. Other rights and benefits under employee benefit plans and programs of the Company, generally, will be determined in accordance with the terms and provisions of such plans and programs.

For purposes hereof, Continuing Disability shall mean the inability to perform the essential functions connected with the Employee's duties hereunder, with or without reasonable accommodation, which inability shall have existed for a period of 250 days, even though not consecutive, in any 24 month period. In the event the Employee does not agree with the Company that his inability may reasonably be expected to exist for such period, the opinion of a qualified medical doctor selected by the Employee and reasonably satisfactory to the Company shall be determinative.

If, following a termination of employment hereunder due to Continuing Disability, the Employee becomes otherwise employed (whether as an employee, consultant or otherwise, but not solely as a member of a board of directors), any salary or other benefits earned by him from such employment shall be offset against any disability compensation or salary continuation due hereunder.

2

5.3 Termination by the Company for Due Cause

Nothing herein shall prevent the Company from terminating the employment of the Employee for Due Cause. The Employee shall continue to receive salary and any accrued and due bonus payments provided for herein only through the period ending with the date of such termination and any other rights and benefits he may have under employee benefit plans and programs of the Company, generally, shall be determined in accordance with the terms of such plans and programs. The term "Due Cause", as used herein, shall mean that (a) the Employee has committed a willful serious act, such as embezzlement, against the Company intended to enrich himself at the expense of the Company or has been convicted of a felony involving moral turpitude or (b) the Employee has (i) willfully and grossly neglected his duties hereunder or (ii) intentionally failed to observe specific directives or policies of Employee's immediate superior, the Chief Executive Officer or Board of Directors, which directives or policies were consistent with his positions, duties and responsibilities hereunder, and which failure had, or continuing failure will have, a material adverse effect on the Company. Prior to any such termination, the Employee shall be given written notice by the Chief Executive Officer that the Company intends to terminate his employment for Due Cause under this Section 5.3, which written notice shall specify the particular acts or omissions on the basis of which the Company intends to so terminate the Employee's employment, and the Employee (with his counsel, if he so chooses) shall be given the opportunity, within 15 days of his receipt of such notice, to have a meeting with the Board of Directors to discuss such acts or omissions and given reasonable time to remedy the situation, if it is deemed by the Board of Directors, in their good faith business judgment, to be remediable. In the event of such termination, the Employee shall be promptly furnished written specification of the basis therefore in reasonable detail.

5.4 Termination by the Company other than for Due Cause

The foregoing notwithstanding, the Company may terminate the Employee's employment for whatever reason it deems appropriate; provided, however, that in the event such termination is not based on death or disability as provided in Sections 5.1 or 5.2, above, or on Due Cause as provided in
Section 5.3 above, the Employee will be entitled to receive Severance Compensation (as defined below).

For purposes of the foregoing, Severance Compensation shall consist of salary continuation for a period of six (6) months from the date of termination (the "Salary Continuation Period"), payable in equal biweekly installments (or, if different, payable in accordance with the then existing applicable payroll policy of the Company, but in no event less frequently than equal monthly installments), at the rate in effect, pursuant to Section 4.1 above, immediately prior to such termination.

During the period beginning with the Employee's termination and continuing through the Salary Continuation Period, the Company will use its reasonable best efforts to continue the Employee's eligibility under its group life insurance, hospitalization, medical and dental plans. In order to obtain such benefits, the Employee will have to pay the amount that would be the Employee's responsibility if he were still employed. To the extent Employee is not eligible under the terms of one or more of such plans and programs, the Company will provide the Employee with the economic equivalent for the Salary Continuation Period. For this purpose, "economic equivalent" shall mean the cost the Employee would incur if he were to provide himself with a benefit comparable to the reduced or eliminated benefit. The amount paid to the Employee as the economic equivalent, less the amount of the premium payment which is the Employee's responsibility in accordance with the Company benefit plan, will be "grossed-up", if taxable (that is, the amount necessary to make the Employee whole after taking into account (i) the cost of the benefit and
(ii) additional income taxes, if any, incurred by the Employee on amounts paid to him pursuant to this sentence).

The foregoing notwithstanding, upon a termination triggering Severance Compensation payments hereunder the Company shall be under no obligation to continue the Employee's coverage under any long term disability plan or program; and the date of such termination shall be considered a termination for purposes of participation in the Company's Retirement Savings Plan.

Except as specifically set forth in this Section 5.4, the Employee shall not be entitled to any other compensation or benefits following a termination of employment by the Company as provided in this Section 5.4.

3

5.5 Constructive Termination of Employment by the Company without

Due Cause

Anything herein to the contrary notwithstanding, if the Company:

(A) demotes or otherwise elects or appoints the Employee to a lesser office than set forth in Section 3.1 or fails to elect or appoint him to such position;

(B) causes a material change in the nature or scope of the authorities, powers, functions, duties or responsibilities attached to the Employee's position as described in Section 3.1;

(C) decreases the Employee's salary or annual bonus opportunity below the levels provided for by the terms of Sections 4.1 and 4.2 (taking into account any salary increases made from time to time in accordance with Section 4.1);

(D) materially reduces the Employee's benefits under any employee benefit plan, program, or arrangement of the Company (other than a change that affects all employees similarly situated) from the level in effect upon the Employee's commencement of participation; or

(G) commits any other material breach of this Agreement,

then such action (or inaction) by the Company, unless consented to in writing by the Employee, shall constitute a termination of the Employee's employment by the Company other than for Due Cause pursuant to Section 5.4 above. If, within thirty (30) days of learning of the action (or inaction) described herein as a basis for a constructive termination of employment, the Employee (unless he has given written consent thereto) notifies the Company in writing that he wishes to effect a constructive termination of his employment pursuant to this Section 5.5, and such action (or inaction) is not reversed or otherwise remedied by the Company within 30 days following receipt by the Company of such written notice, then effective at the end of such second 30 day period, the employment of the Employee hereunder shall be deemed to have terminated pursuant to Section 5.4 above.

5.6 Voluntary Termination by Employee

In the event the Employee terminates his employment of his own volition (other than as provided in Section 5.5 above), such termination shall constitute a voluntary termination and in such event the Employee shall be limited to the same rights and benefits as provided in connection with termination for Due Cause under the second sentence of Section 5.3 above. For the purposes hereof, a decision by the Employee to voluntarily retire shall constitute a voluntary termination.

6. Protective Agreement

Employee agrees that, following any termination of employment with Company, Employee will not, directly or indirectly, for the Salary Continuation Period, plus one (1) year, (a) engage in or provide any services substantially similar to the services that Employee provided to the Company at any time during the last twelve (12) months of Employee's employment to or on behalf of any person or entity offering products or services competitive with the Company Business (defined below) anywhere in the continental United States. The Employee acknowledges and agrees the continental United States is the primary geographic area in which the Company competes in its business and thus, by virtue of Employee's senior executive position and responsibilities with the Company, also the primary geographic area of Employee's employment with the Company. "Business" means the sale of products and services that enable (1) broadband providers to stream video to customers, and (2) high performance computing designed to acquire, process, store, analyze, and display large amounts of rapidly changing information with microsecond response as changes occur.

7. Successors and Assigns

7.1 Assignment by the Company

4

This Agreement shall be binding upon and inure to the benefit of the Company or any corporation or other entity to which the Company may transfer all or substantially all its assets and business and to which the Company may assign this Agreement, in which case "Company" as used herein shall mean such corporation or other entity.

7.2 Assignment by the Employee

The Employee may not assign this Agreement or any part thereof without the prior written consent of the Company, which consent may be withheld by the Company for any reason it deems appropriate; provided, however, nothing herein shall preclude the Employee from designating one or more beneficiaries to receive any amount that may be payable following the occurrence of his legal incompetency or his death and shall not preclude the legal representative of his estate from assigning any right hereunder to the person or persons entitled thereto under his will or, in the case of intestacy, to the person or persons entitled thereto under the laws of intestacy applicable to his estate. The term "beneficiaries", as used in this Agreement, shall mean a beneficiary or beneficiaries so designated to receive any such amount or if no beneficiary has been so designated the legal representative of the Employee (in the event of his incompetency) or the Employee's estate.

8. Arbitration

Any dispute or controversy arising out of, in connection with, or relating to this Agreement or the Employee's employment by the Company or its termination shall be settled exclusively by arbitration in Atlanta, Georgia by one arbitrator in accordance with the employment arbitration rules of the American Arbitration Association then in effect; provided, however, that this arbitration agreement shall not preclude the Company from seeking to enforce the Protective Agreement in any court of competent jurisdiction without resort to arbitration. The arbitrator's award may include the manner in which fees of counsel and other expenses in connection with the dispute or controversy are to be borne by the parties. The arbitrator's authority and jurisdiction is limited to interpreting and applying the express provisions of this Agreement and the arbitrator shall not have the authority to alter or add to the provisions of this Agreement. Judgment may be entered upon the arbitrator's award in any court of competent jurisdiction.

Employee's Initials________________ Company's Initials_______________________

As a condition precedent to any arbitration hereunder, prior to the commencement of any formal arbitration proceeding, the parties shall participate in a one-day mediation session in an attempt to amicably resolve the disagreement that is to be the subject matter of the arbitration proceeding.

9. Governing Law

This Agreement shall be deemed a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of Georgia (without reference to the principles of conflicts of law).

10. Entire Agreement

This Agreement, including the Protective Agreement, contains all the understandings and representations between the parties hereto pertaining to the subject matter hereof and supersedes all undertakings and agreements, whether oral or in writing, if any there be, previously entered into by them with respect thereto.

11. Amendment or Modification; Waiver

No provision in this Agreement may be amended or waived unless such amendment or waiver is agreed to in writing, signed by the Employee and the Chief Executive Officer of the Company. Except as otherwise specifically provided in the Agreement, no waiver by any party hereto of any breach by another party hereto of any condition or provision of the Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar provision or condition at the same or any prior or subsequent time.

5

12. Notices

Any notice to be given hereunder shall be in writing and delivered personally or sent by certified mail, postage prepaid, return receipt requested, addressed to the party concerned at the address indicated below or to such other address as such party may subsequently give notice of hereunder in writing:

COMPANY:       Concurrent Computer Corporation
               4375 River Green Parkway
               Duluth, GA 30096
               Attn: Suzanne Smith, VP - Human Resources &
               Administrative Services

With a copy to:

                    King & Spalding
                    191 Peachtree Street
                    Atlanta, GA 30303-1763
                    ATTN: Jack Capers

     EMPLOYEE:      Gary Brust
                    720 Cottonfield Trail
                    Alpharetta, GA 30022

13.     Severability
        ------------

In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, the remaining provisions or portions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law.

14. Withholding

Anything to the contrary notwithstanding, all payments required to be made by the Company hereunder to the Employee or his estate or beneficiaries, shall be subject to withholding of such amounts relating to taxes as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provision for payment of taxes as required by law, provided it is satisfied that all requirements of law affecting its responsibilities to withhold such taxes have been satisfied.

15. Survivorship

The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations.

16. References

In the event of the Employee's death or judicial determination of his incompetence, reference in this Agreement to the Employee shall be deemed, where appropriate, to refer to his legal representatives, or, where appropriate, to his beneficiary or beneficiaries.

17. Titles

Titles to the sections in this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the title of any section.

18. Counterparts

6

This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

CONCURRENT COMPUTER CORPORATION

By: /s/ T. Gary Trimm
   ----------------------------
    T. Gary Trimm
    Chief Executive Officer

EMPLOYEE

    /s/ Gary Brust
-------------------------------

7

EXHIBIT 10.8

PROTECTIVE AGREEMENT

I, the undersigned, in consideration of and as a condition to my employment by Concurrent Computer Corporation (the "Company), do hereby agree with the Company as follows:

1. Noncompete and Nonsolicitation of Customers or Employees. During my employment by the Company, I will devote my full time and best efforts to the business of the Company and I will not, directly or indirectly, alone or as a partner, officer, director, employee or holder of more than 5% of the common stock of any other organization, engage in any business activity which competes directly or indirectly with the products or services being developed, manufactured or sold by the Company. I also agree that, following any termination of such employment, I will not, directly or indirectly, for any period in which I receive severance payments from the Company, plus one (1) year, (a) solicit or attempt to solicit, for the purpose of providing any products or services competitive with the Company in its Business (defined below), any customers or active prospects of the Company with which I had any material business contact for or on behalf of the Company at any time during the last twelve (12) months of my employment, or (b) solicit, recruit, or otherwise seek to induce any employees of the Company to terminate their employment or violate any agreement with the Company to work for any person or entity engaged in the Business. "Business" means the sale of products and services that enable
(1) broadband providers to stream video to customers, and (2) high performance computing designed to acquire, process, store, analyze, and display large amounts of rapidly changing information with microsecond response as changes occur.

2. Trade Secrets and Other Confidential Information. Except as may be required in the performance of my duties with the Company, or as may be required by law, I will not, whether during or after termination of my employment with the Company, reveal to any person or entity or use any of the trade secrets of the Company for as long as they remain trade secrets. I also agree to these same restrictions, during my employment with the Company and for a period of three (3) years thereafter, with respect to all other confidential information of the Company, including its technical, financial and business information, unless such confidential information becomes publicly available through no fault of mine or unless it is disclosed by the Company to third parties without similar restrictions.

Further, I agree that any and all documents, disks, databases, notes, or memoranda prepared by me or others and containing trade secrets or confidential information of the Company shall be and remain the sole and exclusive property of the Company, and that upon termination of my employment or prior request of the Company I will immediately deliver all of such documents, disks, databases, notes or memoranda, including all copies, to the Company at its main office.

3. Inventions and Copyrights. If at any time or times during my employment (or within six (6) months thereafter if based on trade secrets or confidential information within the meaning of Paragraph 2 above), I make or discover, either alone or with others, any invention, modification, development, improvement, process or secret, whether or not patented or patentable (collectively, "Inventions") based on work done for the Company, I will disclose in reasonable detail the nature of such Invention to the Company in writing, and if it relates to the business of the Company or any of the products or services being developed, manufactured or sold by the Company, such Invention and the benefits thereof shall immediately become the sole and absolute property of the Company provided the Company notifies me in reasonable detail within ninety (90) days after receipt of my disclosure of such Invention that it believes such Invention relates to the business of the Company or any of the products or services being developed, manufactured or sold by the Company. I also agree to transfer such Inventions and benefits and rights resulting from such Inventions to the Company without compensation and will communicate without cost, delay or prior publications all available information relating to the Inventions to the Company. At the Company's expense I will also, whether before or after termination of my employment, sign all documents (including patent applications) and do all acts and things that the Company may deem necessary or desirable to effect the full assignment to the Company of my right and title to the Inventions or necessary to defend any opposition thereto. I also agree to assign to the Company all copyrights and reproduction rights to any materials prepared by me in connection with my employment.

1

4. Conflicting Agreements. I represent that I have attached to this Agreement a copy of any written agreement, or a summary of any oral agreement, which presently affects my ability to comply with the terms of this Agreement, and that to the best of my knowledge my employment with the Company will not conflict with any agreement to which I am subject. I have returned all documents and materials belonging to any of my former employers. I will not disclose to the Company or induce any of the Company's employees to use trade secrets or confidential information of any of my former employers.

5. Nondisparagement Clause. I specifically agree and promise that I will not directly or indirectly disparage the Company, or any of Company's parent, sister, subsidiary or affiliated companies or entities or any of its or their officers, board of directors, committee members, agents, supervisors, employees, contractors, attorneys, representatives, or any of the Company's products or services in any manner, at any time, to any person or entity.

"Disparage" is defined as but not limited to any utterance whatsoever either verbal, in writing, by gesture or any behavior of any kind that might tend to or actually harm or injure Company whether or not intended.

Should any question exist as to the meaning of this clause or the type of utterance or conduct that might cause it to be broken or violated, it should be referred to the Company's General Counsel or designee.

6. Miscellaneous.
(a) I hereby give the Company permission to use photographs of me, during my employment, with or without using my name, for any purposes the Company deems necessary or desirable.
(b) The Company shall have, in addition to any and all remedies of law, the right to an injunction, specific performance and other equitable relief as may be appropriate to prevent the violation of my obligations hereunder.
(c) I understand that this Agreement does not create an obligation on the Company or any other person to continue my employment for any period of time.
(d) This Agreement shall be construed in accordance with the laws of the State of Georgia. I agree that each provision of this Agreement shall be treated as a separate and independent clause, and the unenforceability of any clause shall in no way impair the enforceability of any of the other clauses. Moreover, if one or more of the provisions contained in this Agreement shall for any reason be held to be extensively broad as to scope, activity, time, geographical area or subject so as to be unenforceable at law, such provision or provisions shall be construed by the appropriate judicial body by limiting and reducing it or them so as to be enforceable to the maximum extent compatible with applicable law as it shall then appear.
(e) My obligations under this Agreement shall survive the termination of my employment regardless of the manner of such termination for the time periods set forth in this Agreement, and shall be binding upon my heirs, executors and administrators.
(f) The term "Company" as used in this Agreement includes Concurrent Computer Corporation and any of its subdivisions or affiliates. The Company shall have the right to assign this Agreement to its successors and assigns.
(g) The foregoing is the entire agreement between the Company and me with regard to its subject matter, and may not be amended or supplemented except by a written instrument signed by both the Company and me. The section headings are inserted for convenience only, and are not intended to affect the meaning of this Agreement.

  /s/ Gary Brust            2-4-05
---------------------------------------
Signature                          Date

Gary Brust

Printed Name

2

EXHIBIT 31.1

CERTIFICATION

I, T. Gary Trimm, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Concurrent Computer Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

c) Disclosed in this report any changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 4, 2005


                                     /s/  T. Gary Trimm
                                    ------------------------
                                    Name: T. Gary Trimm
                                    Title: President and Chief Executive Officer
                                    (Principal Executive Officer)


EXHIBIT 31.2

CERTIFICATION

I, Greg Wilson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Concurrent Computer Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

c) Disclosed in this report any changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 4, 2005


                                     /s/ Greg Wilson
                                    ----------------------
                                    Name: Greg Wilson
                                    Title: Chief Financial Officer
                                    (Principal Financial and Accounting Officer)


EXHIBIT 32.1

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Concurrent Computer Corporation (the "Corporation") for the quarter ended December 31, 2004, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, the President and Chief Executive Officer of the Corporation certifies that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Corporation.

February 4, 2005

 /s/ T. Gary Trimm
------------------------
Name: T. Gary Trimm
Title: President and Chief Executive Officer
(Principal Executive Officer)


EXHIBIT 32.2

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Concurrent Computer Corporation (the "Corporation") for the quarter ended December 31, 2004, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, the Chief Financial Officer of the Corporation certifies that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Corporation.

February 4, 2005

 /s/ Greg Wilson
---------------------------
Name: Greg Wilson
Title: Chief Financial Officer
(Principal Financial and Accounting Officer)