Concurrent (CCUR) could potentially triple in short-term. Ericsson (ERIC) just announced they are paying Microsoft (MSFT) nearly $200mm to acquire their Mediaroom multi-screen IPTV software in order to increase their multi-screen reach by 11 million pay-TV households to 16 million for a 25% multi-screen market share. CCUR's MediaHawk multi-screen software is superior to Mediaroom and CCUR has already signed multi-screen deals with the #1 largest cable TV companies in Japan, Germany, and the UK. These three huge CCUR multi-screen clients have a total of 14.8 million subscribers, which will put CCUR second in this space behind ERIC.
CCUR only has 8.72mm shares outstanding and is currently $6.94 with a market cap of $60.52mm. CCUR has $24.6mm in cash and no debt. This gives CCUR an enterprise value of only $35.92mm, which is just 0.54X its annualized revenue of $66.4mm and only 4X its cash flow from operations over the last 3 quarters! 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 and CCUR could lead this market just like it leads the still booming VOD market!