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Concurrent Computer Corporation (CCUR)

NasdaqGM - NasdaqGM Real Time Price. Currency in USD
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6.75-0.07 (-0.95%)
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  • Singer now owns 14%. he's been buying big time in the $6.25 range. I'm really shocked this is not over $7/share. It's got cash of $5/share
  • I imagine TOM is disgusted at the low price of the RT biz???
  • Holy Cow - did they pull one over on you fools!Announce the sale to pump the shares, then announce #$%$ earnings after market close - classic!
  • CCUR sells the Real - time Business for 35 mill $. That's a great news
  • Concurrent Computer's (CCUR) Q3 2017 Results - Earnings Call Transcript


    Concurrent Computer's (CCUR) CEO Derek Elder on Q3 2017 Results - Earnings Call Transcript
    Concurrent Computer Corporation (NASDAQ:CCUR) Q3 2017 Earnings Conference Call May 15, 2017 08:00 AM ET Executives Davina Furnish - SVP, General Counsel and CS
  • A little life has come back into CCUR after their recent successes with their cable customers. Some positives from their Aquari line outside of their media base would wake up a few disbelievers IMO. Hopefully that scenario plays out moving forward.
  • Concurrent’s Real-Time is the Real Thing

    Disclosures, disclaimers: I own several thousand shares of CCUR. Investing in stocks involves various risks. I do not offer any investment advice. Please do your own research and due diligence.

    Concurrent’s true value is in the Real-Time business (“RT”). It is solidly profitable and it is growing. RT is worth many times the entire company’s current enterprise value (“EV”). This note is only about RT, no discussion here for Concurrent’s other business, Content Delivery & Aquari (“CDA”).

    Based on CCUR’s SEC filings and earnings conference calls data, following are observed:
    RT or the Real-Time Business revenues for the calendar 2016 year were $32.2 million, up from $25.8 million in the calendar year 2015. That is 24.8% growth year-over-year (YOY).

    RT grew every quarter last calendar year, up 18% YOY in March 2016 quarter, up 34% YOY June 2016 quarter, up 16% YOY in September quarter and up 32 percent YOY in December quarter. Consistent, good growth.

    The company started giving breakdown of operating costs and margins across business segments beginning September 2016 quarter, i.e. beginning fiscal 2017. For the six-month period, i.e. Sept and Dec. 2016 quarters, RT was highly profitable. (The company’s 10Qs give 3-way breakdown for operating costs, for CDA, for RT and for corporate. For RT’s operating costs, I have added its own expenses + half of corporate op ex, which is a fair representation of total operating costs for RT).

    For the above six-month period, RT’s revenues were $16.3 mil, and operating income was $1.85 million, i.e. GAAP operating margins of 11%. These numbers include stock comp expenses. Non-GAAP operating income would be higher. Many investors, sell-side analysts and technology companies’ CFOs prefer non-GAAP earnings.

    Another nice feature about RT’s income is that it has shown acceleration with revenues growth. This is highly desirable. For the above 6-month period, revenues rose $3.11 million YOY while RT’s income rose $882K. In other words, 28% of incremental revenues turned into operating profits. That is an indication of RT’s powerful earnings potential.

    Why is RT doing so well? There is increasing need for real-time computing, which means instantaneous response, no lag time. Imagine for example, auto-braking system on a new vehicle. When the vehicle’s image sensors see an obstacle, it must have braking action immediately. Computing in micro seconds instead of milliseconds. That is what real-time computing achieves. Concurrent’s RedHawk Linux, part of RT, is deployed for complex financial transactions, medical imaging, automotive and more. RedHawk guarantees application response of less than 5 microseconds to an external event.

    My view: As artificial intelligence (AI) becomes more popular, demand for real-time computing will grow.

    For a long time, RedHawk has been used with x86 processors. Last year, Concurrent introduced RedHawk Linux for 64-Bit ARM Processors. This will open up a whole new market segment for more RT applications. In my opinion, this is where Concurrent needs to focus its energies and resources.

    How much should RT be worth … For comparison purposes, I look at Red Hat, a well-known provider of general-purpose Linux OS supplier. For the fiscal year ending Feb 2017: Red Hat revenues were up 18 percent YOY, GAAP operating margins were 13.8%, non-GAAP operating margins 23.1%. Red Hat is a solid cash generating business, and I think RT has potential to be one also. Red Hat trades at 6.1 times EV/ revenues and 6.5 times price/ revenues.

    With higher growth rate, lower operating margins, and potential for op margins acceleration, the RT business should be worth 4X to 5X current RT revenues. That puts RT’s enterprise value at $128 mil to $160 mil. i.e. stock price of about $15 with no value assigned to CDA. It is mind-boggling that the entire Concurrent is currently trading at EV of $25 million.

    I believe the Real-Time business is the Real Thing. Kenrick Jackson, the Head of RT, and his team have done a fine job.

    Concurrent management has done well to keep the $0.48 a share annual dividend. I like it. I have invested successfully in nearly seventy companies in the last twenty years. Returning cash to investors is never a bad idea.

    My advice to Concurrent’s Management and Board: Focus your limited resources to grow RT in the U.S., Europe and Japan. Keep good control on CDA expenditures, so we can have higher earnings. If RT continues to execute growth strategies, earnings will gain momentum and the stock will rise.

    The Board must avoid temptation of selling the RT or the whole company to any entity, especially to private equity, even with premium to the current low price. Let the RT shine to the fullest in coming quarters. The investor interest and stock price will take care of themselves. Thank you.
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    [2016-MAY] Concurrent Computer Corp NASDAQ : CCUR Correlation Histogram
    X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks May-2016 1,000 Day Parameter 2,830 NASDAQ Stocks Price Analysis This stock mode of correlation coefficient is 0.3 In other words, the correlation coefficient of the other stock
  • I also received an alert for $CCUR from http://monstastocks.com/?s=CCUR , any ideas? Close project coordination.(we should have asked someone else - or: let's spread the responsibility for this.) Investing trading stocks.

    Monsta Stocks: Trading Stocks and Making Money
    Stock alerts from the Monsta Stocks. Stock trading, making money and always looking for the next big money maker.
  • 3 days remaining if you anyone is looking to get in on next dividend
    Is buying Concurrent Computer Corporation (CCUR) for its upcoming $0.12 dividend a good choice?
    On the Tue 28 Mar 2017, Concurrent Computer (NASDAQ:CCUR) will pay shareholders of record a dividend of $0.12 per share, but investors must have settled ownership of the company's stock by the Fri 10 Mar 2017, in order to qualify.
  • How much is Concurrent (CCUR) worth?

    Concurrent is a misunderstood company. It has two distinct divisions, Content Delivery and Real-Time. Short-term weakness in Content Delivery is overshadowing bright prospects for Real-Time. Content business is lumpy, dependent on the capex spending of cable providers such as Time Warner and Cox.

    The Real-Time OS segment is the gem here. This technology allows you to do instantaneous or real-time calculations, which have many new automotive and industrial applications. Real-Time grew 32 percent year-over-year last quarter. RT has potential to be > $50 million a year sales with healthy operating margins.

    My estimate for FY 2017 is, Real-Time revenues $33 mil, Content $28 mil. Total $61 mil. Using 2X multiple for Real-Time revenues and 1X for Content, you get enterprise value of $94 mil. Concurrent has $19 mil cash and no debt. That puts the market valuation at $113 mil, i.e. share price of $12.20.

    Concurrent reports EBITDA instead of non-GAAP EPS. Most tech companies report non-GAAP earnings. Concurrent was actually profitable in the December quarter on non-GAAP basis with income of $264K (reported EBITDA less depreciation), i.e. $0.03/ share.

    Disclose: I am long CCUR and have added recently.
  • We seem to be emulating JNJ with our steady dividend policy. Now if we can just get the business growing!
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  • Reasonable results. Storage business growing steadily, albeit slowly. Cash is still solid which means our 10% dividend is solid. Hopefully we see a drop in the pps today so i can shift some more funds from ultra-low divs to CCUR.
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