It is interesting to see the progress of digital security specialist SerVision in the past year – with the stock up almost two-thirds in that time.
It’s a healthy performance, but one that still leaves the company on a very modest valuation of US$6.3mln (£4mln).
This is a business whose revenues jumped 20% last year to US$4.24mln and which is nearing break-even (it posted a modest profit in the second half of 2014).
The current year has seen it bag a number of contracts, each an endorsement of the technology, as well as putting it well on the road to commercial success.
Valuing SerVision on a multiple of sales at the formative stage of its development perhaps ignores the innate value of the business and its technology, for it has created a ground-breaking system that allows closed-circuit television (CCTV) to be streamed directly and live from moving vehicles.
In Israel its devices are installed on buses and it is understood there is to be a trial in the UK with FirstGroup, one of the nation’s largest transport companies.
However, the applications are endless: SerVision's video recording and transmission systems could be used by grocery delivery firms to combat shrinkage (a euphemism for stealing), or for security purposes when carrying high value cargoes such as tobacco.
The portability of CCTV systems has been limited, not by a device’s size, but by the ability to transmit over cellular networks using mobile phones.
Digital video streams typically require extensive bandwidth provided by office LANs (local area networks) or home broadband connections.
So, one of the key challenges SerVision was faced with was how to transmit high-quality video over all types of Internet protocol (IP) networks.
It has done this by developing advanced video handling technologies.
Without getting too technical, this requires innovative compression techniques that make it possible to transmit very high-quality video recordings over narrow bandwidths.
As a result, video gateways can stream smooth video over cellular network links, so remote users can view live feeds in real-time via their PC, laptop or smart phone.
Noa TV Technologies, a research firm that specialises in analysing cutting-edge Israeli companies, reckons this bundle of IP is worth around US$92mln.
In the 37-page report, Noa founder Effi Shuv takes a good look at the company’s ‘unique’ mobile video platform and its potential applications.
Shuv reckons the video compression is better than anything currently out there, citing recent bench-testing against its nearest competitor HeiTel Digital Video.
Its MVG400 mobile video gateway was about “four times more efficient than the competing solution” Shuv pointed out.
Likewise, its trans-coding technology is unique and best in class, according to the analyst.
Shuv reckons it would cost US$91.7mln to recreate SerVision’s technology. This figure covers the design, architecture, system engineering, programming, debugging and stabilising the product.
That puts the company’s current market capitalisation into perspective.