Concurrent (CCUR) has potential to triple in the short-term. Ericsson (ERIC) just announced they are paying Microsoft (MSFT) almost $200mm to acquire their Mediaroom multi-screen video software in order to increase their multi-screen video reach by 11mm pay-TV households to 16mm for a 25% multi-screen market share. CCUR's MediaHawk multi-screen video delivery platform is superior to Mediaroom and CCUR multi-screen deals already signed with the #1 largest cable TV companies in Germany, Japan, and the UK. CCUR's huge multi-screen clients have a total of 14.8 million subscribers, which will make CCUR #2 in this space behind ERIC.
CCUR only has 8.72mm o/s and is trading for only $6.94 with a market cap of $60.52 million. CCUR has $24.6 million in cash, giving CCUR an enterprise value of only $35.92 million, which is only 0.54X its annualized revenue of $66.4 million and only 4X its cash flow from operations over the last 3 quarters alone! CCUR's video business, which also has the #1 largest video-on-demand (VOD) market share with a global reach of 50mm households, is currently receiving zero value!
CCUR spent $15 million to acquire their Media Data Intelligence (MDI) business, which tracks the viewing behavior of 35mm pay-TV subscribers for a 35% market share in its space. CCUR also owns a "real-time" high performance computer processor business that powers many simulator devices in the defense and aerospace industry. It has annualized revenue of $27.6 million with 4 of the top 5 defense contractors as clients. The value of these two businesses alone, most likely well exceed CCUR's current enterprise value!
CCUR's multi-screen video delivery business with $33.8 million in annualized revenue is currently receiving no value, when it could potentially be worth anywhere from $50-$200 million based on what ERIC paid for Mediaroom! CCUR could soon gain 100% to 200% from current share price.