Research Concurrent (CCUR) right now it has the world's largest video-on-demand (VOD) market share and is now rapidly capturing a major share of the booming multi-screen video delivery solutions space! CCUR dipped on Wednesday to $6.75 after making a huge gain on Tuesday and has only 8.72mm shares outstanding. CCUR is sitting on $24.6mm in cash with no debt. CCUR has an enterprise value of only $34.26mm, which is just 0.52X its latest annualized revenues of $66.4mm and 3X its trailing nine month cash flow from operations annualized.
Ericsson (ERIC) announced last week they are paying Microsoft (MSFT) just under $200mm to buyout their Mediaroom multi-screen IP video software, which has a multi-screen reach of 11 million pay-TV households and will increase ERIC's multi-screen reach to 16 million pay-TV households. CCUR's MediaHawk multi-screen software is superior to Mediaroom and CCUR has already signed multi-screen deals with the largest cable TV companies in Germany, the UK, and Japan. These three huge CCUR multi-screen clients will give CCUR an initial multi-screen reach of 14.8 million subscribers, which will be the second largest in the industry!
CCUR spent $15mm to acquire their Media Data Intelligence business, which tracks the viewing behavior of 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 contractors as clients. This business is probably worth at least $25mm on its own.
CCUR's video business with $33.8mm in annualized revenue is not receiving any value at CCUR's current share price! CCUR is extremely profitable with its EPS doubling the past two quarters in a row! Major consolidation has been taking place in this space and a lot more is expected very soon.