Espial spikes after winning third RDK contract

Shares of Espial (Espial Stock Quote, Chart, News: TSX:ESP) are up today after the company announced it had landed an unnamed European cable operator as a client for its Reference Design Kit (RDK).

Espial says the “major” cable operator serves 1.5-million households and will license its G4 client software for DVB/IP set-top boxes, user experience and Espial’s back-office service management platform.

“Once again after a rigorous evaluation process, Espial was chosen by another of Europe’s leading cable operators to bring an immersive, new video service environment to their subscribers,” said CEO Jaison Dolvane. “We’re excited to be selected for this project, further confirming the value-add of Espial’s solutions and services.”

Today’s win is the second major European cable operator to select Espial’s RDK and HTML5-based solution and its third overall.

Late last month, portfolio manager Peter Imhof told BNN viewers Espial was one of his top picks, in part because he thinks the company is a potential takeover target, with players like Cisco rumoured to be looking to get into the set top box space.

Imhof also likes the company’s management style.

“The management team underpromises and overdelivers,” he said. “Every time they reported quarters, the quarters were much better than expected.”

At press time, shares of Espial were up 24.3% to $3.43.

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