NIA’s current #2 ranked technology stock suggestion and #2 ranked dividend paying stock suggestion – Concurrent (CCUR), reported absolutely amazing fiscal 2014 4Q/full year results last night that blew away Wall Street’s highest expectations – causing CCUR to rally $0.56 or 8.1% on Thursday to close at $7.49 per share on strong volume of 188,219 shares or 7.2X its average daily volume!
CCUR’s 4Q 2014 revenues increased 19.7% on a year-over-year basis to $17.9 million. CCUR’s fiscal 2014 full year revenues increased 12.2% on a year-over-year basis to $71.17 million.
CCUR’s 4Q 2014 operating income of $2.107 million was up an unbelievable 1,496% vs. 4Q 2013 operating income of $0.132 million (excluding a one-time gain of $2.381 million from the sale of intellectual property).
CCUR’s 4Q 2014 net income of $1.9 million (excluding a one-time non-cash tax benefit of $13.7 million) equaled fully diluted EPS of $0.21 vs. 3Q 2014 EPS of $0.12, 2Q 2014 EPS of $0.12, and 1Q 2014 EPS of $0.08. All together, CCUR’s fiscal 2014 full year fully diluted EPS reached an incredible $0.53, up a shocking 121% from fiscal 2013 full year fully diluted EPS of $0.24.
CCUR’s 4Q 2014 gross margin of 60% compared to 56.8% in 4Q 2013 and 56.1% in 3Q 2014. It was CCUR’s highest quarterly gross margin in the last 9 quarters. CCUR’s 4Q 2014 gross profit of $10.71 million was its highest in the last 13 quarters.
CCUR’s real 4Q 2014 net income of $1.9 million was its highest quarterly net income in the last 12 years. CCUR’s 4Q 2014 revenues of $17.9 million were its highest 4Q revenues in the last 4 years. CCUR’s fiscal 2014 full year revenues of $71.17 million were its highest full year revenues in the last 5 years.
CCUR has 9 million shares outstanding and a market cap at $7.49 per share of $67.41 million. CCUR ended fiscal 2014 with $28.074 million in cash and no debt, giving CCUR a current enterprise value of only $39.34 million. This means CCUR is currently trading with an enterprise value/revenue ratio of only 0.55! CCUR’s #1 competitor Seachange (SEAC) is still trading with an enterprise value/revenue ratio of 1.05 – and SEAC‘s latest quarterly revenues were down 31.5% to $24.34 million vs. CCUR’s 4Q 2014 revenues rising 19.7% to $17.9 million.
One year ago, SEAC’s latest quarterly revenues of $35.55 million were 138% higher than CCUR’s 4Q 2013 revenues of $14.92 million. Today, SEAC’s latest quarterly revenues of $24.34 million are only 36% higher than CCUR’s 4Q 2014 revenues of $17.9 million.
While CCUR just reported its highest annual revenues in the last 5 years, SEAC recently reported its lowest annual revenues in the last 8 years.
While CCUR just reported its highest quarterly net income in the last 12 years, SEAC recently reported its largest quarterly net loss in the last 12 years.
Exactly 12 years ago, when CCUR reported a record quarterly net profit of $2.304 million vs. SEAC reporting a record quarterly net loss of $21.84 million – CCUR was trading for $28.10 per share with an enterprise value of $145.77 million and an EV/revenue ratio of 1.603 vs. SEAC trading for $6.74 per share with an enterprise value of $87.7 million and an EV/revenue ratio of 0.69. CCUR had an EV/revenue ratio that was 2.32X higher than SEAC’s EV/revenue ratio vs. SEAC currently having an EV/revenue ratio that is 1.91X higher than CCUR’s EV/revenue ratio.
Clearly, the EV/revenue ratios of CCUR and SEAC deserve to reverse. If CCUR currently traded with an EV/revenue ratio of 1.05 like SEAC, CCUR would be trading for $11.42 per share. If SEAC currently traded with an EV/revenue ratio of 0.55 like CCUR, SEAC would be trading for $5.63 per share.
Las t year when CCUR was trading at $6 per share with SEAC trading at $11 per share or $5 above CCUR, NIA predicted that CCUR would be trading with a higher share price than SEAC within the next 12 months. Today, SEAC closed at $7.69 per share or just $0.15 above CCUR’s closing price of $7.49 per share. However, CCUR paid out $0.48 per share in cash dividends over the last 12 months vs. SEAC not paying any cash dividends. Therefore, if not for CCUR’s dividend price adjustments – CCUR would currently be $7.97 per share or $0.28 above SEAC, which means NIA’s prediction has already come true!