- Procera operates in the deep packet inspection or DPI market. The DPI market is expected to grow rapidly over the next several years.
- Procera was able to enjoy the market's growth until Q3. In Q3, Procera had several large deals fail to close. These deals were suppose to drive revenue growth in 2014.
- 2014 revenue is now expected to range from -6.3% to 0.4%. The disappointing results have caused the stock to decline rapidly. Yet, the decline presents a nice risk reward.
- Procera's stock is trading at a low valuation. Procera only has to close those large deals in order to grow double digits. Additionally, their new product should help drive revenue.
- Procera is still a risky investment. Yet, Procera's low valuation, strong pipeline, and the DPI market's growth present an interesting opportunity for investors.