MRV Communications (MRVC) earnings update-3/11/2015

MRVC announced Q4 2014 (December 31, 2014) earnings after the close last night. Revenues were $43.4 million, up $200,000 from last quarter but down 14% from $50.7 million last year. They lost $2 million pre-tax versus a $.174 million loss last year. Net cash per share fell from last quarters $2.63 to $2.34 last quarter Our valuation was $24.44 up from $25.52 last quarter. They spent $3.2 million buying 307,000- shares in their share buyback program. Again, not sure this is the best use of their cash in that it just makes their loss per share bigger.

MRVC is trading at 40% of our valuation. Shares closed at $9.80 on 3/10/2015. We are moving this to a HOLD as sales growth has slowed, and losses have risen. Still cheap, but we are a bit wary.



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