NEW YORK ( TheStreet) -- Concurrent Computer Corporation (Nasdaq: CCUR) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Computers & Peripherals industry and the overall market, CONCURRENT COMPUTER CP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CONCURRENT COMPUTER CP is rather high; currently it is at 59.80%. Regardless of CCUR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CCUR's net profit margin of 2.70% is significantly lower than the same period one year prior.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The revenue growth significantly trails the industry average of 72.2%. Since the same quarter one year prior, revenues rose by 25.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 151.1% when compared to the same quarter one year prior, rising from -$0.97 million to $0.50 million.

Concurrent Computer Corporation provides solutions that enable the seamless delivery, management, and monetization of video on any screen worldwide. Its screen-independent video delivery solutions create a holistic, 360 view of the consumer video experience. Concurrent Computer has a market cap of $56.2 million and is part of the technology sector and computer hardware industry. Shares are up 20.4% year to date as of the close of trading on Friday.

You can view the full Concurrent Computer Ratings Report or get investment ideas from our investment research center.
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