The new hottest play on the NASDAQ is about to become Concurrent (CCUR). How come? Ericsson (ERIC) just announced they are paying Microsoft (MSFT) close to $200mm to acquire their Mediaroom multi-screen video software in order to increase their multi-screen reach by 11mm pay-TV households to 16mm pay-TV households. CCUR's MediaHawk multi-screen software is superior to Mediaroom. CCUR has already signed multi-screen video delivery deals with the #1 pay-TV companies in Germany, the UK, and Japan. These three huge clients will give CCUR a total multi-screen reach of 14.8 million subscribers, larger than Mediaroom's reach, which ERIC is paying MSFT nearly $200mm for!
CCUR only has 8.72mm shares outstanding and is currently trading for $6.75 per share. CCUR has $24.6mm in cash and no debt. This gives CCUR an enterprise value of only $34.26mm, which is just 0.52X its annualized revenue of $66.4mm and only 3X its cash flow from operations over the last nine months annualized! CCUR's video business, which has also captured the #1 largest video-on-demand (VOD) market share with a reach of 50 million households, is currently receiving no value at all!
CCUR spent $15mm just to acquire their Media Data Intelligence business, which tracks 35mm pay-TV subscribers and holds a 35% market share in the markets it serves. CCUR also has a "real-time" ultra high performance computer technology business with annualized revenue of $27.6mm and 4 of the world's top 5 defense manufacturers as clients. This business is probably worth $25-30mm by itself.
CCUR's multi-screen/VOD video business with $33.8mm in annualized revenue is currently being valued at less than zero! CCUR is extremely profitable with its EPS doubling the past two quarters in a row! CCUR pays a huge 3.9% dividend. Multi-screen video delivery to tablets/smartphones will likely be the hottest investment space on Wall Street for the rest of 2013!