We were up .1% last week and are down 4.7% for the year. Meanwhile, the DOW was up .9% and the NASDAQ was even. For the year the DOW is up 2.1% and NASDAQ is up 5.7%.

MRVC, DXM, AVID, UNTD and EXTR  earnings last week.

Some of our stocks are just stupid cheap—compared to their net cash on hand divided by their stock price.

Check this list:

UNTD	35%
CCUR	40%
SIGM	35%
MRVC	20%
SYNC	45%
CTIG	28%
PRSS	36%

AVID, ATEC,  PRSS and SYNC,  can still be bought.

Last week we went 6 stocks up, 7 down and 2 even. Since inception we are now 68 stocks up and 20 down for a 77.3% winning percentage (80% is our target win %).  Of our closed-out positions 60 have been winners and 13 have been losers for an 82% win percentage and a 35% average net gain per position.

The model portfolio assumes $10,000 invested in each stock (unless we double-up–then it is $20,000), less $10 commission each way (TD Ameritrade rate).

Avid Technology, Inc. (NASDAQ-AVID)-Recommended 1/20/2015)

Buy Price $14.00

NEW Valuation $22.59 (Was $23.86, $28.10)

Closed down $1.15 at $15.07

AVID announced Q1 2015 earnings (quarter ended March 31, 2015) on May 7, 2015. Revenues were $120 million down from $135 million last year. They made a Non-GAAP profit of $.17 per share versus a $.38 profit last year.  Our valuation slipped to $22.59 from $23.86 last quarter. They reaffirmed their 2015 guidance of $72-$78 million of adjusted EBITDA. We are keeping this as a BUY.

http://finance.yahoo.com/news/avid-announces-financial-results-first-201100764.html

UP 8% BUY

Alphatec Holdings, Inc. (NASDAQ-ATEC)-Recommended 9/2/2014)

Buy Price $1.56

Valuation $3.11 (Was $2.95, $3.00)

Closed down $.07 at $1.35

ATEC announced Q1 2015 (March 31, 2015) earnings on April 30, 2015.

http://finance.yahoo.com/news/alphatec-holdings-announces-first-quarter-200500986.html

Revenues were $48.6 million compared to $49.2 million last year as currency headwinds knocked a 5% revenue gain into a small loss. Non-GAAP EPS was a loss of $.03 compared to a profit of $.01 last year. More significantly, EBITDA was up from $.15 million to $5.3 million. ATEC announced  product launches in the U.S. and Japan during the quarter. From their press release:

“The Company reiterates full year 2015 constant currency revenue growth guidance of approximately 4% to 7% over 2014, which represents a range of revenue in constant currency of $215 million to $222 million. Additionally, the Company reaffirms guidance expectations for annual adjusted EBITDA of $34 million to $37 million in 2015, representing a range of approximately 10% to 20% growth over 2014”.

Our valuation came in at $2.61 compared to the previous $3.11 and $2.58 a year ago.

Down 14% BUY

CafePress, Inc.  Inc. (NASDAQ-PRSS)-Recommended 5/19/2014)

Buy Price $4.01 (Was $5.40 before adding $10,000 at $3.19 on 3/2/2015)

Valuation $12.50 (Was $11.17, $12.51, $11.27)

Closed up $.67 at $4.65

Boy, where do we start here. PRSS announced Q4 2014 earnings on February 25, 2015. Rather than focus on the actual results, because they include the results of the 2 divisions they are selling, we will focus on what we think the rest of 2015 looks like on a pro-forma basis (our best guess from the press release and conference call).

The sales of their two divisions will result in approximately $40 million of cash added to the $30 million or so at 12/31/2014. This will be just under $4 a share in net cash. The stock is trading below $4. The divisional sales will result in the loss of 35% of their revenues which were $230 million. So call it $150 million after the divestures. They had about $2.5 million of adjusted EBITDA in 2014 and from their conference call will lose some EBITDA as a result of the sales. So they may lose $1 million or so, on the EBITDA level in 2015. This does not concern us as that is nothing compared to $70 million in cash.

Looking at all this our valuation on a pro-forma basis comes in about $12.50 a share, and the company is much more focused on its’ core business, has its’ original management back that know how to run this business and are looking to build shareholder value.

Lloyd Miller filed a Form 13G on October 24, 2014 disclosing a 5.1% (887,000 shares) stake in PRSS..

UP 16% BUY

Extreme Networks, Inc.  Inc. (NASDAQ-UNTD)-Recommended 3/12/2014)

Buy Price $3.43 (was $3.95 before we added another $10,000)

NEW Valuation $6.99, (Was $9.34, $8.24, $9.68, $8.52)

Closed down $.03 at $2.51

Extreme announced Q3 2015 (March 31, 2015) earnings this morning.

http://finance.yahoo.com/news/extreme-networks-reports-third-quarter-200200632.html

While revenues came in a bit higher than their earnings warning a few weeks ago at $120.4 million, they were down from $143.7 last year and they lost $7.9 million on a Non-GAAP basis. This is about what we expected. Our valuation came in at $6.99 a share versus our projected $7.05 but well below our previous valuation of $9.34. This is a HOLD, hovering on a Sell. They need to cut expenses and/or sell the company.

Down 27%, HOLD

United Online Inc. (NASDAQ-UNTD)-Recommended 3/12/2014)

Buy Price $10.28

NEW Valuation $31.02 (Was $34.65, $33.50 $35.84, $32.35, $27.86)

Closed up $.28 at $15.72

UNTD announced Q1, 2015 (March 31, 2015) earnings on May 5, 2015.

http://finance.yahoo.com/news/united-online-reports-first-quarter-200100492.html

Revenues were $49.9 million, down from $55.4 million last year, and down from $54.4 million last quarter.  They lost $.9 million versus a $10.4 million loss last year. Gross margin held steady at 65%. Our valuation was $31.02 down from $34.65 last quarter. Cash per share was $5.45 (compared to $5.53 last quarter). Guidance for next quarter is $48.5-$51.5 million in revenue and bottom line profit of between a $0 million and $2.0 million.

OIBTDA (which they use instead of EBITDA) was $5.9 million compared to $3.2 million last year. UNTD continues to generate cash and trades at substantial discount to our valuation. This is now a HOLD as we are not seeing the turnaround in revenues we were hoping for.

Up 53% HOLD

Synacor Inc. (NASDAQ-SYNC)-Recommended 12/17/2013)

Buy Price $2.56

Valuation $5.71 (Was $6.61, $5.58, $5.21, $5.44, $6.67, $6.39)’

Closed down $.07 at $1.98

SYNC announced Q1 2015 (March 31, 2015) earnings ON April 30, 2015.

http://finance.yahoo.com/news/synacor-beats-revenue-adjusted-ebitda-200100823.html

Revenues were $26.7 million up 6% from $25.2 million the prior year.  They had a Non-GAAP Profit of about $330,000 million compared to breakeven last year. SYNC’s valuation fell from last quarter’s inflated $6.61 to $5.71, but was still higher than last years $5.44. From their press release:

• Q2 2015 Guidance: Revenue for the second quarter of 2015 is projected to be in the range of $24.0 million to $25.5 million. For the second quarter of 2015, the company expects to report adjusted EBITDA of $0.2 million to $1.2 million.
• Fiscal 2015 Guidance: Revenue for the full year of 2015 is projected to be in the range of $97.0 million to $102.0 million. For the full year of 2015, the company expects to report adjusted EBITDA of $2.0 million to $4.0 million.

Well the activist shareholder group lost on their bid to start changing out the Board of Directors—but not by much. Maybe this close call has lit a fire under SYNC management and Board—finally.

Down 23%. BUY

Dex Media Inc. (NASDAQ-DXM)-Recommended 5/10/2013)

Buy Price 6.46 ( Was $15.14 before adding $10,000 on 3/30/2015)

NEW Valuation $21.00 (Was $31.00, $31.00, $34.00, $37.98, $34.36, $31.50, $24.25)

Closed down $1.48 at $1.34

DXM announced Q1 2015 (March 31, 2015) on May 7, 2015.

http://finance.yahoo.com/news/dex-media-announces-first-quarter-110000895.html

Revenues were $406 million, down  from $456 million last year and down from $433 million last quarter and adjusted EBITDA was $143 million down from $173 million last quarter and down from $197 million last year. Overall not a great quarter. Our valuation fell to $21 and the market assumed it will file backruptcy as the market cap fell to $23 million.

DEXM is a HOLD despite trading at 6% of our valuation.

DEX announced a major restructuring  on December 11, 2014. They expect to incur

$70-$100 million of expenses to achieve $150 million of ongoing expense savings with $110 million of that coming in 2015. They expect to begin deleveraging their balance sheet (meaning Net Debt to adjusted EBITDA ratio) in 2016. No question that’s what they need to do.

Down 79% HOLD

Daegis Inc. (NASDAQ-DAEG)-Recommended 11/30/2012)

Buy Price $1.09 (Was $1.20 before we doubled up)

Valuation $1.83 (Was $2.83, $2.85, $3.39, $3.25, $3.42, $4.64, $4.86, $4.00)

Closed up $.06 at $.80

Third quarter (1/31/2015) earnings announced on February 24, 2015. Ouch!

Revenues were $5.7 million down from $7.9 million last year and down from $6.7 million last quarter. They lost $.06 on a GAAP basis compared to a $.05 loss last year.  On a Non-GAAP basis they lost $.04 a share versus a profit of $.02 last year. Our valuation plunged to $1.83 from $2.83 last quarter. Net debt declined a bit to $7.6 million from $8.7 million last quarter and declined from $11.3 million a year ago. It will be a longer wait to see some action here. Still trading at less than 50% of our valuation but they need to get this company moving in the right direction-soon, or sell it.

Down 26%, HOLD

Bridgeline Digital Inc. (NASDAQ-BLIN)-Recommended 8/24/2012)

Buy Price $3.95 ($ 5.85, $6.20 before 12/15/2014 and 2/14/2014 $10,000 adders)

Valuation $5.85 (Was $7.55, $8.75, $8.80, $1.83, $9.15, $10.95, $11.75, $12.80, $11.20)

Closed down $.20 at $2.19

BLIN did a reverse 5 for 1 stock split on 5/8/2015. All numbers have been adjusted for the split.

BLIN announced earnings on February 12, 2015 for Q4 2014. Not good. Revenues were down to $5 million from $6.5 million last year. They lost $2.1 million versus $.8 million last year. Looks like they were too occupied with their expense reductions in Q4.They did announce that they did not anticipate any more equity issuance in 2015, which is a good step. They reaffirmed their $800,000 a quarter expense reduction in 2015 also. All our hope is they can execute going forward on their record backlog going into 2015. Our valuation dropped to $5.85, still more than double the current trading price, but about 50% from where we started here. This is now a Hold—they need to show progress.

Down 49%, HOLD

Telecommunications Systems Inc. (NASDAQ-TSYS)-Recommended 6/14/2012)

Buy Price- $1.37

Valuation $5.43 (Was $6.55, $6.88, $6.12, $5.99, $5.32, $6.81, $6.28, $4.89, $6.02, $6.72, $5.49)

Closed down $.05 at $3.18

In addition to earnings in April, Cannell Capital issued a press release with the first 6 of 50 pages criticizing TSYS for the destruction of value caused by the current board of directors and management. Cannell also disclosed that they sold TSYS shares from 4/8/2015 to 4/16/2015 reducing their stake to 5.59% from 6.48% and that they had dissolved their joint filing agreement with several other individuals.

TSYS announced Q1 2015 (March 31, 2015) earnings on April 30,2015 night.http://finance.yahoo.com/news/telecommunication-systems-reports-first-quarter-200500722.html

Revenues were $81.9 million, down from $85.1 million last year and adjusted EPS was $.04 the same as last year. Overall an OK quarter-again. Our valuation was $5.43 down from $5.99 last year and $6.55 last quarter.

They also reached a settlement with Becker Drapkin in February. BD gets two Board seats in exchange for not buying more than 12% of TSYS stock prior to 12/31/2016.

Becker Drapkin filed a 13D on November 24, 2014 disclosing a 6.7% stake. They had the standard 13D language about their intentions to discuss various options with management. Good news that someone is paying attention to this undervalued company.

We will continue to hold TSYS despite our over 100% gain. Maybe this will turn into another MITL and be trading at $10+ in the next year. .

UP 132%, HOLD

MRV Communications (Pink Sheets-MRVC.pk)-Recommended 10//10/2011

NEW Valuation $23.19 (Was $24.44, $25.52, $24.58, $23.19, $25.50, $28.98, $24.01 $23.06, $27.15, $31.80, $34.60, $28.60, $41.20, $43.20 (after $9.50, $6.00 and $1.40 special dividends), $52.40, $55.80)

Buy Price October 7, 2011- $8.50 ($25.40 before special dividends)

Closed at $8.80 up $.06

MRVC announced Q1 2015 (March 31, 2015) earnings on May 7, 2015.

http://finance.yahoo.com/news/mrv-reports-first-quarter-2015-200100767.html

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.

This is still a HOLD as sales are at best flat on a constant exchange rate basis and not growing. They did substantially reduce their loss this quarter, but not enough to get us to buy more.

http://finance.yahoo.com/news/mrv-reports-first-quarter-2015-200100767.html

Up 2%  HOLD

Sigma Designs Inc. (NASDAQ-SIGM)-Recommended 7/11/2011)

Buy Price-$8.49

Valuation $12.14 (Was $12.17, $9.60, $8.24, $9.16, $12.30, $11.86, $8.24, $13.05, $10.67, $8.41 $12.10, $13.40, $16.02)

Closed down $.25 at $7.86

SIGM announced Q4 2015 earnings (quarter ended January 31, 2015)  on April 1, 2015.

https://finance.yahoo.com/news/sigma-designs-inc-reports-financial-201500975.html

Revenues were $54.8 million up 42% from $38.5 million last year. GAAP net loss was $.10 a share, compared to a profit of $.04 per share last year (all from a tax credit). Non-GAAP profit was $.04 per share compared to a $.13 loss last year.  Our valuation was $12.14 down from $12.17 last quarter. Net cash per share was $2.58.

Guidance for next quarter looks much the same as this just reported quarter, but they gave indications that recent design wins in the telco sector should kick in later this year. We think there is still some upside here if they can demonstrate some revenue/profit growth later this year as they hinted.

Down 7%, HOLD

Concurrent Computer (NASDAQ-CCUR)-Recommended 2/4/2011)

Buy Price-$4.58 (Was $5.08 before $.50 special dividend)

Valuation $16.38 (was $13.07, $14.80, $17.72, $15.01, $15.10,  $14.55, $14.77, $16.26, $16.20, $15.37, $13.53, $15.85, $14.13, $11.38, $14.04, $18.54, $15.99)

Closed unchanged at $7.32 (including $1.20 of dividends)

Pays $.48 annual dividend

CCUR announced Q3 2015 (December 31, 2014) earnings on April 28,2015. Revenues were $17.1 million, down 7% from $18.3 million last year but up from $16 million last quarter. They made $.780,000 profit versus a loss of $.6 million last quarter and a $1.1 million profit last year. Gross margin held steady at 59%. Our valuation jumped back up to $16.38 from $13.07 last quarter. Cash per share rose  to $2.93 or 49% of the market cap. We will keep a HOLD on CCUR until we see what the new CEO can do and they get revenue growth back. We continue to collect the 7% dividend.

UP 60%, HOLD

ARI Networks (ARIS.ob-Recommended 8/19/2006)

Buy price $1.61 (Was $1.78 before another $10,000 added, was $2.06 before double up),

Valuation $6.47 (was $5.96, $6.02, $5.67, $5.57, $5.70, $6.71, $6.41, $6.14, $5.97, $6.21, $6.13, $5.82, $5.81, $5.72, $5.65, $5.39, $4.86, $5.60, $5.73, $5.54, $5.74, $5.96, $4.72, $5.19, $5.66, $5.63, $5.61, $5.71, $5.49, $5.34, $5.03, $5.28, $5.28, $5.21)

Closed at $3.20, unchanged.

ARI announced on May 7, 2015 that they had priced a 1.53 million share offering for expected net proceeds of about $4.7 million which they will use to pay off the $1.75 of debt they incurred on their recent acquisition of TASCO and for future acquisitions. They also announced preliminary Q3 2015 results. Revenues are expected to be between $10.1 and $10.3 million and EPS is expected to be $.01 to $.02—about the same as last quarter. We think this stock offering explains the recent price weakness in the stock

ARI announced another acquisition last week. No financial details were disclosed.

ARI announced Q2 2015 earnings (quarter ended January 31, 2015) on March 5^th. Revenues were $10.1 million up a whopping 25% over last year. They made a profit of $.02 per share versus a $.03 loss last year.  Our valuation rose to $6.47 up from $5.96 last quarter. Recurring revenue was $9.1 million or 90% of total revenue. All in all, a very nice quarter.

They are doing a good job positioning the company to be acquired. Hopefully this will soon happen with a $5+ price like we got for XRS in September 2014.

UP 99%, HOLD, Still a large valuation gap here and the Company is executing well.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)

Buy price $.27 ask,

Valuation $1.39 (Was $1.34, $1.22, $.99, $1.02, $1.05,  $1.07, $1.14, $1.17, $1.34, $1.34, $1.37, $1.36, $1.23,  $.91, $1.21, $.71, $.83, $.88 $.96, $.93, $.75, $.85, $1.57, $1.40, $1.29, $1.38, $1.31, $1.38, $1.29, $1.42, $1.28 $1.13, $1.05, $.82)

Ask price $.59 closed at $.59

CTIG announced Q4 2014 (December 31, 2014) on March 30, 2015.

http://finance.yahoo.com/news/cti-group-reports-2014-financial-211145797.html

They had a HUGE Q4. Revenues were $6.1 million, which was 50% of their first nine months revenues. They also made $1.7 million or $.05 for the quarter. For the year they did $18.3 million in revenues and made $2.2 million or $.07 per share versus a $.04 loss last year. We did our valuation on 2014 year numbers and our valuation rose to $1.39 from $1.34 last quarter. If we used the quarter’s numbers, the valuation would have soared to $2.14. But since there is no guidance, not even a breakout of quarterly numbers, we are going to assume that this is a very positive “blip”. Still way undervalued, but no light as to when or how this will ever be properly valued.

John Birbeck announced his departure in October 2014. He was one of the group trying to take CTIG private for $.40 a share. Birbeck will remain a Director of the company. He owns about 7% of CTIG (about 2.3 million shares).

They need to get an investment banker and sell the company. Probably get at least $.75 a share for it from someone.

UP 119%. HOLD