Ericsson (ERIC) announced last week they are paying Microsoft (MSFT) just under $200 million to acquire their Mediaroom multi-screen IP video software in order to increase their multi-screen video market reach by 11mm pay-TV households to 16mm total households for a 25% multi-screen video market share. Concurrent (CCUR)'s multi-screen video platform MediaHawk is superior and CCUR has multi-screen deals signed with the #1 pay-TV companies in the UK, Germany, and Japan. These clients currently have a total of 14.8mm subscribers. 2 out of the 3 have already deployed MediaHawk and once the 3rd does, CCUR will be #2 in this space after only ERIC!
CCUR has 8.72mm o/s and is trading for only $6.16 per share with a market cap of $53.72mm. CCUR has $24.6 million in cash, for an enterprise value of only $29.12mm. This is only 0.44X its annualized revenue of $66.4 million and only 3.5X its cash flow from business operations over the trailing 9 months! CCUR's video delivery solutions business also has the largest video-on-demand (VOD) market share, reaching 50mm households worldwide, and it's not receiving any value at $6.16!
CCUR paid $15 million to purchase Everstream, their Media Data Intelligence (MDI) division, which tracks the TV viewing behavior of 35 million pay-TV subscribers for a 35% pay-TV media data intelligence market share. In addition, CCUR owns a "real-time" ultra high performance business, which has been around since 1967 and powers simulator devices used in the defense, automotive, and aerospace sectors. Its annualized revenues are now $27.6 million with 4 of the world's 5 largest defense contractors as clients. This business is most likely worth $25mm+ alone!
CCUR's multi-screen business now has $33.8 million in annualized revenue, but is currently receiving zero value, when it has huge gross margins and rapidly growing EPS that doubled the last two quarters in a row!