MRVC Q1 2015 Earnings Update

MRVC announced Q1 2015 (March 31, 2015) earnings on May 7, 2015. Revenues were $38.8 million down from $42.3 million last year. They stated that revenues would have been flat, but that foreign currency impacts caused the decline.

They lost $.5 million versus a $3.4 million loss last year. Net cash per share fell from last quarters $2.34 to $1.73. Our valuation was $23.19 down from $24.44 last quarter. They spent $3.6 million buying 357,000 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. They reported a per share loss of $.15 this quarter versus a loss of $.58 last year.

MRVC is trading at 36% of our valuation. Shares closed at $8.45 on 5/7/2015. This is still a HOLD as sales are at best flat on a constant exchange rate basis and not growing. They did substantially reduced their loss this quarter, but not enough to get us to buy more.



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