Concurrent (CCUR) began breaking out big Tuesday and looks ready to explode. Their technology delivers any type of video over any network to any device. CCUR's top rival Harmonic (HLIT) rose Tuesday to a new 52-week high of $6.02 and in the evening reported a non-GAAP EPS loss of ($0.02) down $0.05 from a non-GAAP EPS profit of $0.03 in 2012. HLIT's trailing 12 month non-GAAP EPS fell from $0.25 to $0.20 and HLIT afterhours was trading at $5.89 with a P/E of 29.45.
While HLIT's non-GAAP EPS declined $0.05 year-over-year, CCUR reports on April 23rd and is expected to report GAAP EPS of $0.09 and non-GAAP EPS of $0.13 vs. GAAP EPS of $0.04 and non-GAAP EPS of $0.08 last year. CCUR's trailing non-GAAP EPS will likely rise by $0.05 from $0.35 up to $0.40, giving CCUR double the trailing EPS of HLIT! CCUR closed Tuesday at only $6.77 per share and with HLIT trading for $5.89 afterhours on Tuesday, CCUR could be ready to run to double HLIT's share price and reach $11.78 per share!
CCUR only has 8.72mm o/s, a market cap of $59.03mm, $24.6mm in cash, no debt, and an enterprise value of $34.43mm or just 0.55X its trailing revenue of $62.59mm. CCUR has enormous gross margins of 58.81%, which are 30.69% greater than HLIT's gross margins of 45%. HLIT is trading with an enterprise value/revenue ratio of 0.93 and CCUR deserves a multiple that is 30.69% higher! This would give CCUR an enterprise value/revenue ratio of 1.22 and value CCUR at $11.58 per share!
HLIT just completed the sale of their cable access business for $46mm. It was breaking even with $52.9mm in revenue. It had low gross margins of 30%, but still fetched a multiple of 0.87X revenue! CCUR's gross margins of 58.81% are close to double this and CCUR is about to report their 5th straight quarter of profitability! CCUR is about to rally to a minimum enterprise value/revenue ratio of 1, which would equal a minimum share price of $10 even! CCUR could breakout well into double digit territory in early May!