Concurrent (CCUR) next month is set to report their fiscal 2013 annual results and if their 4Q is a repeat of the 3Q, CCUR's GAAP EPS for the year will be $0.33 vs. a loss of ($0.34) in fiscal 2012, along with a non-GAAP EPS profit of $0.52.
Major consolidation is taking place in the pay-TV industry and CCUR is one of the largest technology vendors serving the industry. Time Warner Cable (TWC) - America's #2 cable TV operator - relies on CCUR's technology for video on demand (VOD), start-over, look-back, CDN video solutions, multi-screen video delivery, and more! CCUR just signed a huge CDN/multi-screen deal with Virgin Media, the largest cable TV operator in the UK, and revenues from Virgin will begin to show up for the first time in CCUR's earnings for the 4Q in next month's 10-K!
CCUR's top two publicly traded competitors are SEAC and HLIT. Both hit new 52-week highs last week. SEAC is now trading with an enterprise value/revenue ratio of 1.85 and HLIT has an enterprise value/revenue ratio of 1.09. Their average enterprise value/revenue ratio of 1.47 would value CCUR today at $13.17 per share. CCUR has had resistance between $8 and $8.45, but as soon as CCUR breaks through this it should explode to a minimum of $13. CCUR currently pays an industry leading dividend yield of 6.2%!
CCUR's potential non-GAAP EPS for the year of $0.52 will exceed SEAC's current trailing non-GAAP EPS of $0.44 as well as HLIT's current trailing non-GAAP EPS of $0.21! CCUR deserves to be trading well above SEAC's current share price of $12.32 and for more than double HLIT's current share price of $6.99. CCUR has almost no downside here at $7.78!