We were up 3.00% last week and we are now down 11.6% for the year. Meanwhile, the DOW was up 1.1% and the NASDAQ was up 2.6%. For the year the DOW is down 6.6% and NASDAQ is up 2%.

CCUR 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:

CCUR	41%
SYNC	57%
CTIG	49%
PRSS	58%

CRNT, ATEC, AVID, DAEG and SYNC, can still be bought.

Last week we went 8 stocks up and 5 down. Since inception we are now 68 stocks up and 21 down for a 75.3% winning percentage (80% is our target win %). Of our closed-out positions 63 have been winners and 13 have been losers for an 83% 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).

Ceregon Networks, Inc. (NASDAQ-CRNT)-Recommended 8/20/2015)

Buy Price $1.46

Valuation $4.84

Closed up $.06 at $1.43

Down 2%

BUY

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

Buy Price $10.25 (Was $14 before 8/15 double up at $8.08.

Valuation $22.24 (Was $22.59 $23.86, $28.10)

Closed up $.50 at $8.51

AVID announced Q2 2015 earnings (quarter ended June 30, 2015) on 8/10/2015.

http://finance.yahoo.com/news/avid-announces-financial-results-second-203852725.html

Revenues were $110 million down from $125 million last year. They made a Non-GAAP profit of $.05 per share versus a $.15 profit last year. Our valuation moved down a bit to $22.24 from $22.59 last quarter. They upped their 2015 guidance to $74-$80 million of adjusted EBITDA from $72-$78 million. Also, while the debt for the acquisition of Orad was on the balance sheet at June 30, the revenues and profits were not. You would think that AVID lost money and lowered their guidance by 50% with the way the market reacted.

Down 17% BUY

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

Buy Price $.93 ($1.56 before doubling up on 8/10/2015 at $.66)

Valuation $2.54 (Was $2.61, $3.11, $2.95, $3.00)

Closed down $.04 at $.54

ATEC announced Q2 2015 (June 30, 2015) earnings on August 4, 2015.

http://finance.yahoo.com/news/alphatec-holdings-announces-second-quarter-200500460.html

No one liked them as the stock plummeted more than 50%. Revenues were $46.6 million ($50.2 million in constant currency) compared to $53.2 million last year. EBITDA was down 50% from $7.7 to $3.8 million. Our valuation came in at $2.54 compared to the previous $2.61. We are cutting ATEC to a HOLD until they can reverse the negative trends in revenue, gross margin and EBITDA.

After the reaction to the earnings we bought more and suggest doubling up here as the selling seems over done. This will bring our average Buy price down to $.93.

Down 41% 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 $9.09 (Was $12.50, $11.17, $12.51, $11.27)

Closed up $.13 at $4.55

PRSS announced Q2 2015 (6/30/2015) earnings on 8/14/2015.

http://finance.yahoo.com/news/cafepress-reports-results-second-quarter-201500378.html

Not bad. They continue to slim down the business to its core. They are divesting their EZ print business now also. Revenues fell to $21.8 million from $29.1 million last year, but their loss from operations declined to $1.8 million from $4.4 million last year. Adjusted EBITDA was positive $.7 million versus negative $1.8 million last year. Cash fell to $46 million ($2.64 a share from $56 million due to working capital changes and the repurchase of $2.3 million worth of stock. Our valuation was $8.95 down a tad from $9.09 last quarter.

UP 13% HOLD

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

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

Valuation $9.47, (Was $6.99, $9.34, $8.24, $9.68, $8.52)

Closed down $.05 at $2.80

Extreme announced Q4 2015 (June 30, 2015) on August 6, 2015.

http://finance.yahoo.com/news/extreme-networks-reports-fourth-quarter-110000404.html

Revenues came in at $149.9 compared to $155.3 and they made $.10 a share versus $.09 a share on a Non-GAAP basis. Our valuation came in at $9.47 a share versus $9.68 last year. Based on their guidance for next quarter we estimate our valuation at $7.45 compared to $8.24 for Q3 2014. Not heading in the right direction. This is a HOLD, hovering on a Sell. They need to cut expenses and/or sell the company.

Down 18%, 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 $.04 at $1.46

SYNC announced they are buying Zimbra.

From the press release: “Zimbra connects people and information with unified collaboration software that includes email, calendaring, file sharing, activity streams, social networks and more. With technology designed for social, mobile and the cloud, Zimbra gives individuals the flexibility to work from virtually anywhere, through nearly every computer, tablet and mobile device.

Zimbra’s software is trusted globally by service providers, governments and companies, with over 200,000 accessing Zimbra in the cloud managed by our worldwide network of service providers. With customers including NTT Communications, Comcast, Dell, Rackspace, Red Hat, Mozilla, H&R Block and Vodafone, a vibrant open source community and worldwide partner network, Zimbra is the third-largest collaboration provider in the world. Zimbra’s headquarters are in Frisco, Texas, with offices in London; Tokyo; Singapore and Pune, India.

The price is $17.3 million in cash, 3 million SYNC shares and .6 million warrants and up to $2 million in earn-outs. Not much financial information disclosed about Zimbra, but it looks like they have about $20 million in sales and $2 million in EBITDA. Overall we don’t think this will affect SYNC’s current valuation very much, but maybe it will help them start growing.

SYNC announced Q2 2015 (June 30, 2015) earnings on 8/4/2015.

http://finance.yahoo.com/news/synacor-gains-ebitda-momentum-revenue-200100723.html

Revenues were $24.7 million up slightly from $24.2 million the prior year. They had a Non-GAAP loss of about $.3 million compared to a loss of $1 million last year. SYNC’s valuation fell from last quarter to $5.29, but was a tad higher than last years $5.21. SYNC is trading at 30% of our valuation.

Down 43%. 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)

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

Closed down $.05 at $.27

Q2, 2015 earnings were announced August 6, 2015.

http://finance.yahoo.com/news/dex-media-announces-second-quarter-110000263.html

Revenues were $387 million, down from $474 million last year and down from $406 million last quarter and adjusted EBITDA was $159 million up from $143 million last quarter and down from $176 million last year. Overall not a great quarter. For the year they are guiding to revenue of about $1.5 billion and $525 million of EBITDA. In their original projection for 2015 they were looking at revenue of $2.077 billion and EBITDA of $782 million. Clearly they are not making their projections. Net debt was $2.144 (their original projection was to end 2015 with $2.004 billion of debt—a goal they will likely make. Based on this performance we have lowered our valuation to $4.71 a share. DEXM is a HOLD

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 96% HOLD

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

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

Valuation $2.20 (Was $1.83, $2.83, $2.85, $3.39, $3.25, $3.42, $4.64, $4.86, $4.00)

Closed up $.03 at $.37

No reason we see for the big drop last week. Other than the nervous market. We are adding more personally at this price.

DAEG announced Q4 2015 earnings (quarter ended April 30, 2015) on 7/28/2015. Revenues were $6.1 million down from $7.4 million last year but up from $5.7 million last quarter. They lost $.03 per share on a GAAP basis compared to income of $.01 last year. On a Non-GAAP basis they lost $65,000 versus a profit of $1,087,000 last year. Our valuation rose to $2.20 up from $1.83 last quarter on lower net debt ($6.4 million), higher sales and lower losses.

With the discontinuance of their eDiscovery business, Daegis is now a pure play enterprise software company and is trading at only 30% of our valuation. We are changing to a cautious.

.Down 66%, BUY

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 $6.20 (Was $6.10, $5.85, $5.98 $7.55, $8.75, $8.80, $1.83, $9.15, $10.95, $11.75, $12.80, $11.20)

Closed up $.25 at $1.40

BLIN announced Q3 2015 earnings (quarter ended June 30, 2015) on 8/14/2015. Revenues were $4.9 million down from $6.2 million last year but up from $4.8 million last quarter. They lost $.20 per share on a Non-GAAP basis compared to $.24 last year. Our valuation rose to $6.20 up from $6.10 last quarter on better margins. Overall, while margins and EBITDA (adjusted) improved it was pretty much a nothing quarter. Have to wait longer here as they eke out an existence and hopefully get this little boat moving in the right direction. HOLD

http://finance.yahoo.com/news/bridgeline-digital-announces-financial-results-120000429.html

Down 65%, HOLD

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

Buy Price- $1.37

Valuation $5.78 (Was $5.43, $6.55, $6.88, $6.12, $5.99, $5.32, $6.81, $6.28, $4.89, $6.02, $6.72, $5.49)

Closed up $.04 at $3.46

TSYS announced Q2 2015 (March 31, 2015) earnings on 7/30/2015.

http://finance.yahoo.com/news/telecommunication-systems-reports-second-quarter-200500282.html

Revenues were $87.9 million, up from $81.9 million last year and adjusted EPS was $.05 compared to $.04 last year. Overall an OK quarter-again. Our valuation was $5.78 down from $6.12 last year and up from $5.43 last quarter. TSYS is trading at 64% of our valuation.

We are now waiting on the outcome of their “strategic alternatives” investigation with Lazard. Shares closed at $3.70 on 7/30/2015. This is still a HOLD. We are up 170% on TSYS

UP 153%, HOLD

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

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

NEW Valuation $11.49 (was $16.38, $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 up $.28 at $6.78 (including $1.20 of dividends)

Pays $.48 annual dividend.

Q4 2015 (6/30/2015) earnings were released on 8/25/2015.

http://finance.yahoo.com/news/concurrent-reports-fourth-quarter-fiscal-200100937.html

Disappointing. Revenues fell to $13.8 million from $17.8 million last year and they lost $993,000 pre-tax compared to a profit of $2,032,000 last year. They blamed consolidation in the service provider sector for the sales decline and indicated it won’t get better in 2015. It is obvious that CCUR should not be a stand alone company. We think it is time to get this sold.

Our valuation plummeted to $11.49 from $16.38 last quarter. Cash per share fell to $2.80 , still over 50% 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 10% dividend.

UP 48%, 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 $6.66 (was $6.47, $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 $3.54 up $.24.

Wynnefield continued their selling puting a cap on ARI’s stock price. They now own 693,000 shares down from 992,000. They are now at 4.1%.

Q3 2015 were announced on June 11, 2015. Pretty good. Revenues were $10.3 million, up 26% from last year and they made $.02 a share compared to $.01 last year. Our valuation rose to $6.66 a share.

http://finance.yahoo.com/news/ari-network-services-inc-announces-200100623.html

In addition to the 1.5 million share offering Wynnefield Capital has been selling shares-about 250,000 from 3/31/2015 to 5/12/2015 at prices from $3.20 to $3.38. They still have 992,000 shares or 6.9% of ARI. Assuming they are getting out, this will keep pressure on the price for a while.

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 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 120%, 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 $1.12 (Was $1.21, $1.39, $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 $.30 closed at $.24

CTIG announced Q2 2015 (June 30, 2015) earnings on 8/14/2015.

http://finance.yahoo.com/news/cti-group-reports-2015-second-212621737.html

Revenues came in at $3.7 million versus $4.1 million last year. They lost $323,000 compared to a loss of $296,000 last year.

Our valuation fell a bit to $1.12 a share, down from $1.21 last quarter and $1.22 last year. We will continue to HOLD CTIG.

Commenting on the results, Fred Hanuschek, CTI Group’s CEO and President, stated, “Although our first half results were not as strong as we had hoped, we are encouraged by the number of opportunities that we are actively pursuing and believe these opportunities should lead to better second half results

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 11%. HOLD

Back to “normal” again -3.8 and we are now down 14.6% for the year. Meanwhile, the DOW was down 5.8% and the NASDAQ was down 6.8%. For the year the DOW is down 7.7% and NASDAQ is down .6%.No 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:

CCUR	45%
SYNC	56%
CTIG	47%
PRSS	60%

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

Last week we went 3 stocks up and 10 down. Since inception we are now 68 stocks up and 21 down for a 75.3% winning percentage (80% is our target win %). Of our closed-out positions 63 have been winners and 13 have been losers for an 83% 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).

Ceregon Networks, Inc. (NASDAQ-CRNT)-Recommended 8/20/2015)

Buy Price $1.46

Valuation $4.84

Closed down $.09 at $1.37

Down 6% BUY

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

Buy Price $10.25 (Was $14 before 8/15 double up at $8.08.

Valuation $22.24 (Was $22.59 $23.86, $28.10)

Closed down $1.14 at $8.01

AVID announced Q2 2015 earnings (quarter ended June 30, 2015) on 8/10/2015.

http://finance.yahoo.com/news/avid-announces-financial-results-second-203852725.html

Revenues were $110 million down from $125 million last year. They made a Non-GAAP profit of $.05 per share versus a $.15 profit last year. Our valuation moved down a bit to $22.24 from $22.59 last quarter. They upped their 2015 guidance to $74-$80 million of adjusted EBITDA from $72-$78 million. Also, while the debt for the acquisition of Orad was on the balance sheet at June 30, the revenues and profits were not. You would think that AVID lost money and lowered their guidance by 50% with the way the market reacted.

Down 22% BUY

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

Buy Price $.93 ($1.56 before doubling up on 8/10/2015 at $.66)

Valuation $2.54 (Was $2.61, $3.11, $2.95, $3.00)

Closed down $.11 at $.58

ATEC announced Q2 2015 (June 30, 2015) earnings on August 4, 2015.

http://finance.yahoo.com/news/alphatec-holdings-announces-second-quarter-200500460.html

No one liked them as the stock plummeted more than 50%. Revenues were $46.6 million ($50.2 million in constant currency) compared to $53.2 million last year. EBITDA was down 50% from $7.7 to $3.8 million. Our valuation came in at $2.54 compared to the previous $2.61. We are cutting ATEC to a HOLD until they can reverse the negative trends in revenue, gross margin and EBITDA.

After the reaction to the earnings we bought more and suggest doubling up here as the selling seems over done. This will bring our average Buy price down to $.93.

Down 38% 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 $9.09 (Was $12.50, $11.17, $12.51, $11.27)

Closed down $.38 at $4.42

PRSS announced Q2 2015 (6/30/2015) earnings on 8/14/2015.

http://finance.yahoo.com/news/cafepress-reports-results-second-quarter-201500378.html

Not bad. They continue to slim down the business to its core. They are divesting their EZ print business now also. Revenues fell to $21.8 million from $29.1 million last year, but their loss from operations declined to $1.8 million from $4.4 million last year. Adjusted EBITDA was positive $.7 million versus negative $1.8 million last year. Cash fell to $46 million ($2.64 a share from $56 million due to working capital changes and the repurchase of $2.3 million worth of stock. Our valuation was $8.95 down a tad from $9.09 last quarter.

UP 10% HOLD

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

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

Valuation $9.47, (Was $6.99, $9.34, $8.24, $9.68, $8.52)

Closed down $.08 at $2.85

Extreme announced Q4 2015 (June 30, 2015) on August 6, 2015.

http://finance.yahoo.com/news/extreme-networks-reports-fourth-quarter-110000404.html

Revenues came in at $149.9 compared to $155.3 and they made $.10 a share versus $.09 a share on a Non-GAAP basis. Our valuation came in at $9.47 a share versus $9.68 last year. Based on their guidance for next quarter we estimate our valuation at $7.45 compared to $8.24 for Q3 2014. Not heading in the right direction. This is a HOLD, hovering on a Sell. They need to cut expenses and/or sell the company.

Down 17%, 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 $.15 at $1.50

SYNC announced they are buying Zimbra.

From the press release: “Zimbra connects people and information with unified collaboration software that includes email, calendaring, file sharing, activity streams, social networks and more. With technology designed for social, mobile and the cloud, Zimbra gives individuals the flexibility to work from virtually anywhere, through nearly every computer, tablet and mobile device.

Zimbra’s software is trusted globally by service providers, governments and companies, with over 200,000 accessing Zimbra in the cloud managed by our worldwide network of service providers. With customers including NTT Communications, Comcast, Dell, Rackspace, Red Hat, Mozilla, H&R Block and Vodafone, a vibrant open source community and worldwide partner network, Zimbra is the third-largest collaboration provider in the world. Zimbra’s headquarters are in Frisco, Texas, with offices in London; Tokyo; Singapore and Pune, India.

The price is $17.3 million in cash, 3 million SYNC shares and .6 million warrants and up to $2 million in earn-outs. Not much financial information disclosed about Zimbra, but it looks like they have about $20 million in sales and $2 million in EBITDA. Overall we don’t think this will affect SYNC’s current valuation very much, but maybe it will help them start growing.

SYNC announced Q2 2015 (June 30, 2015) earnings on 8/4/2015.

http://finance.yahoo.com/news/synacor-gains-ebitda-momentum-revenue-200100723.html

Revenues were $24.7 million up slightly from $24.2 million the prior year. They had a Non-GAAP loss of about $.3 million compared to a loss of $1 million last year. SYNC’s valuation fell from last quarter to $5.29, but was a tad higher than last years $5.21. SYNC is trading at 30% of our valuation.

Down 41%. 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)

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

Closed up $.01 at $.32

Q2, 2015 earnings were announced August 6, 2015.

http://finance.yahoo.com/news/dex-media-announces-second-quarter-110000263.html

Revenues were $387 million, down from $474 million last year and down from $406 million last quarter and adjusted EBITDA was $159 million up from $143 million last quarter and down from $176 million last year. Overall not a great quarter. For the year they are guiding to revenue of about $1.5 billion and $525 million of EBITDA. In their original projection for 2015 they were looking at revenue of $2.077 billion and EBITDA of $782 million. Clearly they are not making their projections. Net debt was $2.144 (their original projection was to end 2015 with $2.004 billion of debt—a goal they will likely make. Based on this performance we have lowered our valuation to $4.71 a share. DEXM is a HOLD

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 95% HOLD

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

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

Valuation $2.20 (Was $1.83, $2.83, $2.85, $3.39, $3.25, $3.42, $4.64, $4.86, $4.00)

Closed down $.02 at $.34

No reason we see for the big drop last week. Other than the nervous market. We are adding more personally at this price.

DAEG announced Q4 2015 earnings (quarter ended April 30, 2015) on 7/28/2015. Revenues were $6.1 million down from $7.4 million last year but up from $5.7 million last quarter. They lost $.03 per share on a GAAP basis compared to income of $.01 last year. On a Non-GAAP basis they lost $65,000 versus a profit of $1,087,000 last year. Our valuation rose to $2.20 up from $1.83 last quarter on lower net debt ($6.4 million), higher sales and lower losses.

With the discontinuance of their eDiscovery business, Daegis is now a pure play enterprise software company and is trading at only 30% of our valuation. We are changing to a cautious.

.Down 68%, BUY

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 $6.20 (Was $6.10, $5.85, $5.98 $7.55, $8.75, $8.80, $1.83, $9.15, $10.95, $11.75, $12.80, $11.20)

Closed down $.23 at $1.15

BLIN announced Q3 2015 earnings (quarter ended June 30, 2015) on 8/14/2015. Revenues were $4.9 million down from $6.2 million last year but up from $4.8 million last quarter. They lost $.20 per share on a Non-GAAP basis compared to $.24 last year. Our valuation rose to $6.20 up from $6.10 last quarter on better margins. Overall, while margins and EBITDA (adjusted) improved it was pretty much a nothing quarter. Have to wait longer here as they eke out an existence and hopefully get this little boat moving in the right direction. HOLD

http://finance.yahoo.com/news/bridgeline-digital-announces-financial-results-120000429.html

Down 71%, HOLD

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

Buy Price- $1.37

Valuation $5.78 (Was $5.43, $6.55, $6.88, $6.12, $5.99, $5.32, $6.81, $6.28, $4.89, $6.02, $6.72, $5.49)

Closed down $.01 at $3.42

TSYS announced Q2 2015 (March 31, 2015) earnings on 7/30/2015.

http://finance.yahoo.com/news/telecommunication-systems-reports-second-quarter-200500282.html

Revenues were $87.9 million, up from $81.9 million last year and adjusted EPS was $.05 compared to $.04 last year. Overall an OK quarter-again. Our valuation was $5.78 down from $6.12 last year and up from $5.43 last quarter. TSYS is trading at 64% of our valuation.

We are now waiting on the outcome of their “strategic alternatives” investigation with Lazard. Shares closed at $3.70 on 7/30/2015. This is still a HOLD. We are up 170% on TSYS

UP 150%, HOLD

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

Valuation $26.52 (Was $23.19, $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)

Sold at $19.65 for a 128% gain.

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 up $.08 at $6.50 (including $1.20 of dividends)

Pays $.48 annual dividend

Q4 2015 earnings due out Tuesday, August 25, 2015 after the market close.

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 42%, 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 $6.66 (was $6.47, $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 $3.30 down $.02.

Wynnefield continued their selling outing a cap on ARI’s stock price. They now own 693,000 shares down from 992,000. They are now at 4.1%.

Q3 2015 were announced on June 11, 2015. Pretty good. Revenues were $10.3 million, up 26% from last year and they made $.02 a share compared to $.01 last year. Our valuation rose to $6.66 a share.

http://finance.yahoo.com/news/ari-network-services-inc-announces-200100623.html

In addition to the 1.5 million share offering Wynnefield Capital has been selling shares-about 250,000 from 3/31/2015 to 5/12/2015 at prices from $3.20 to $3.38. They still have 992,000 shares or 6.9% of ARI. Assuming they are getting out, this will keep pressure on the price for a while.

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 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 105%, 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 $1.12 (Was $1.21, $1.39, $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 $.31 closed at $.30

CTIG announced Q2 2015 (June 30, 2015) earnings on 8/14/2015.

http://finance.yahoo.com/news/cti-group-reports-2015-second-212621737.html

Revenues came in at $3.7 million versus $4.1 million last year. They lost $323,000 compared to a loss of $296,000 last year.

Our valuation fell a bit to $1.12 a share, down from $1.21 last quarter and $1.22 last year. We will continue to HOLD CTIG.

Commenting on the results, Fred Hanuschek, CTI Group’s CEO and President, stated, “Although our first half results were not as strong as we had hoped, we are encouraged by the number of opportunities that we are actively pursuing and believe these opportunities should lead to better second half results

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 15%. HOLD

It may go higher, get taken over, but we are taking our profit now.

Ceregon Networks LTD (NASDAQ–CRNT)

Valuation-$4.84

Price August 17, 2015-$1.46

CRNT has been in the middle of a restructuring that looks like it might finally take hold.

Latest earnings were for the second quarter ended 6/30/2015. Revenues were up 4.8% to $94.8 million from last year and they posted a GAAP profit of $.02 a share (fully taxed) versus $.15 last year (which included a $16.8 million one-time item). On a Non-GAAP basis they made $.04 a share versus a $.10 loss last year. They had cash of $40 million, but net cash was negative $.14 a share.

Trading at only 30% of our valuation we think this is a BUY.

There are about 77 million shares outstanding and it trades about 190,000 shares a day.

About CRNT: Ceragon Networks Ltd. (CRNT) is the #1 wireless backhaul specialist. We provide innovative, flexible and cost-effective wireless backhaul solutions that enable mobile operators and other service providers to deliver 4G/LTE, 3G/2G, and other wireless broadband services to their subscribers with high quality of experience. Our solution are deployed by public utilities, government and defense organizations for delivering mission critical multimedia and other applications at high reliability and speed. Ceragon’s high-capacity solutions use microwave technology to transfer multimedia, voice and data traffic while maximizing bandwidth efficiency, to deliver more capacity over longer distances under any deployment scenario. Based on our extensive global experience, Ceragon delivers turnkey solutions that support service provider profitability at every stage of the network lifecycle enabling faster time to revenue, cost-effective operation and simple modernization to all-IP networks. As the demand for multimedia services pushes the need for ever-increasing capacity, Ceragon is committed to serve the market with unmatched technology and innovation, ensuring effective solutions for the evolving needs of the marketplace. Our solutions are deployed by more than 430 service providers in over 130 countries.

Finally an up week for us  +4.3 and we are now down 10.9% for the year. Meanwhile, the DOW was up .6% and the NASDAQ was up .1%. For the year the DOW is down 1.9% and NASDAQ is up 6.6%.

CTIG, PRSS, BLIN, MRVC and AVID 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:

CCUR	45%
SYNC	51%
CTIG	43%
PRSS	55%

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

Last week we went 7 stocks up, 5 down and 1 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 $10.25 (Was $14 before 8/15 double up at $8.08)

NEW Valuation $22.24 (Was $22.59 $23.86, $28.10)

Closed down $2.29 at $9.15

AVID announced Q2 2015 earnings (quarter ended June 30, 2015) on 8/10/2015.

http://finance.yahoo.com/news/avid-announces-financial-results-second-203852725.html

Revenues were $110 million down from $125 million last year. They made a Non-GAAP profit of $.05 per share versus a $.15 profit last year.  Our valuation moved down a bit to $22.24  from $22.59 last quarter. They upped  their 2015 guidance to $74-$80 million of adjusted EBITDA from $72-$78 million. Also, while the debt for the acquisition of Orad was on the balance sheet at June 30, the revenues and profits were not. You would think that AVID lost money and lowered their guidance by 50% with the way the market reacted.

Down 11% BUY

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

Buy Price $.93 ($1.56 before doubling up on 8/10/2015 at $.66)

Valuation $2.54 (Was $2.61, $3.11, $2.95, $3.00)

Closed up $.03 at $.69

ATEC announced Q2 2015 (June 30, 2015) earnings on August 4, 2015.

http://finance.yahoo.com/news/alphatec-holdings-announces-second-quarter-200500460.html

No one liked them as the stock plummeted more than 50%. Revenues were $46.6 million ($50.2 million in constant currency) compared to $53.2 million last year. EBITDA was down 50% from $7.7 to $3.8 million. Our valuation came in at $2.54 compared to the previous $2.61. We are cutting ATEC to a HOLD until they can reverse the negative trends in revenue, gross margin and EBITDA.

After the reaction to the earnings we bought more and suggest doubling up here as the selling seems over done. This will bring our average Buy price down to $.93.

Down 26% 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 $9.09 (Was $12.50, $11.17, $12.51, $11.27)

Closed up $.54 at $4.80

PRSS announced Q2 2015 (6/30/2015) earnings on 8/14/2015.

http://finance.yahoo.com/news/cafepress-reports-results-second-quarter-201500378.html

Not bad. They continue to slim down the business to its core. They are divesting their EZ print business now also. Revenues fell to $21.8 million from $29.1 million last year, but their loss from operations declined to $1.8 million from $4.4 million last year. Adjusted EBITDA was positive $.7 million versus negative $1.8 million last year. Cash fell to $46 million ($2.64 a share from $56 million due to working capital changes and the repurchase of $2.3 million worth of stock. Our valuation was $8.95 down a tad from $9.09 last quarter.

UP 20% HOLD

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

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

Valuation $9.47, (Was $6.99, $9.34, $8.24, $9.68, $8.52)

Closed up $.11 at $2.93

Extreme announced Q4 2015 (June 30, 2015) on August 6, 2015.

http://finance.yahoo.com/news/extreme-networks-reports-fourth-quarter-110000404.html

Revenues came in at $149.9 compared to $155.3 and they made $.10 a share versus $.09 a share on a Non-GAAP basis. Our valuation came in at $9.47 a share versus $9.68 last year. Based on their guidance for next quarter we estimate our valuation at $7.45 compared to $8.24 for Q3 2014. Not heading in the right direction. This is a HOLD, hovering on a Sell. They need to cut expenses and/or sell the company.

Down 15%, 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 $.05 at $1.65

SYNC announced Q2 2015 (June 30, 2015) earnings on 8/4/2015.

http://finance.yahoo.com/news/synacor-gains-ebitda-momentum-revenue-200100723.html

Revenues were $24.7 million up slightly from $24.2 million the prior year.  They had a Non-GAAP loss of about $.3 million compared to a loss of $1 million last year. SYNC’s valuation fell from last quarter to $5.29, but was a tad higher than last years $5.21. SYNC is trading at 30% of our valuation.

Down 36%. 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)

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

Closed up $.05 at $.31

Q2, 2015 earnings were announced August 6, 2015.

http://finance.yahoo.com/news/dex-media-announces-second-quarter-110000263.html

Revenues were $387 million, down  from $474 million last year and down from $406 million last quarter and adjusted EBITDA was $159 million up from $143 million last quarter and down from $176 million last year. Overall not a great quarter. For the year they are guiding to revenue of about $1.5 billion and $525 million of EBITDA. In their original projection for 2015 they were looking at revenue of $2.077 billion and EBITDA of $782 million. Clearly they are not making their projections. Net debt was $2.144 (their original projection was to end 2015 with $2.004 billion of debt—a goal they will likely make. Based on this performance we have lowered our valuation to $4.71 a share. DEXM is a HOLD

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 95% HOLD

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

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

Valuation $2.20 (Was $1.83, $2.83, $2.85, $3.39, $3.25, $3.42, $4.64, $4.86, $4.00)

Closed down $.19 at $.36

No reason we see for the big drop last week. Other than the nervous market. We are adding more personally at this price.

DAEG announced Q4 2015 earnings (quarter ended April 30, 2015) on 7/28/2015. Revenues were $6.1 million down from $7.4 million last year but up from $5.7 million last quarter. They lost $.03 per share on a GAAP basis compared to income of $.01 last year.  On a Non-GAAP basis they lost $65,000 versus a profit of $1,087,000 last year. Our valuation rose to $2.20 up from $1.83 last quarter on lower net debt ($6.4 million), higher sales and lower losses.

With the discontinuance of their eDiscovery business, Daegis is now a pure play enterprise software company and is trading at only 30% of our valuation. We are changing to a cautious.

.Down 67%, BUY

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)

NEW Valuation $6.20 (Was $6.10, $5.85, $5.98 $7.55, $8.75, $8.80, $1.83, $9.15, $10.95, $11.75, $12.80, $11.20)

Closed up $.04 at $1.38

BLIN announced Q3 2015 earnings (quarter ended June 30, 2015) on 8/14/2015. Revenues were $4.9 million down from $6.2 million last year but up from $4.8 million last quarter. They lost $.20 per share on a Non-GAAP basis compared to $.24 last year. Our valuation rose to $6.20 up from $6.10 last quarter on better margins. Overall, while margins and EBITDA (adjusted) improved it was pretty much a nothing quarter. Have to wait longer here as they eke out an existence and hopefully get this little boat moving in the right direction. HOLD

http://finance.yahoo.com/news/bridgeline-digital-announces-financial-results-120000429.html

Down 65%, HOLD

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

Buy Price- $1.37

Valuation $5.78 (Was $5.43, $6.55, $6.88, $6.12, $5.99, $5.32, $6.81, $6.28, $4.89, $6.02, $6.72, $5.49)

Closed down $.06 at $3.43

TSYS announced Q2 2015 (March 31, 2015) earnings on 7/30/2015.

http://finance.yahoo.com/news/telecommunication-systems-reports-second-quarter-200500282.html

Revenues were $87.9 million, up from $81.9 million last year and adjusted EPS was $.05 compared to $.04 last year. Overall an OK quarter-again. Our valuation was $5.78 down from $6.12 last year and up from $5.43 last quarter. TSYS is trading at 64% of our valuation.

We are now waiting on the outcome of their “strategic alternatives” investigation with Lazard. Shares closed at $3.70 on 7/30/2015. This is still a HOLD. We are up 170% on TSYS

UP 150%, HOLD

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

NEW Valuation $26.52 (Was $23.19, $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 $16.82 up $5.00

Q2 2015 earnings were announced on, August 10, 2015 and the sale of their low margin network equipment business for approximately $21.4 million or $3 per share.

http://finance.yahoo.com/news/mrv-reports-second-quarter-2015-200800453.html

Revenues were $42 7 million down from $43.1 last year. Network equipment revenues were $24.5 million up 12.4% from $21.8 million last year. GAAP net loss was $.3 million compared to a loss of $2.3 million last year. Non-GAAP income was $.2 million versus a loss of $1.6 million last year. Our valuation based on the reported results jumped to $26.52. A rough pro-forma valuation for the company post sale of network integration came in at  $25.20

Up 96%  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 down $.17 at $6.42 (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 40%, 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 $6.66 (was $6.47,  $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 $3.32 up $.14.

Wynnefield continued their selling outing a cap on ARI’s stock price. They now own 693,000 shares down from 992,000. They are now at 4.1%.

Q3 2015 were announced on June 11, 2015. Pretty good. Revenues were $10.3 million, up 26% from last year and they made $.02 a share compared to $.01 last year. Our valuation rose to $6.66 a share.

http://finance.yahoo.com/news/ari-network-services-inc-announces-200100623.html

In addition to the 1.5 million share offering Wynnefield Capital has been selling shares-about 250,000 from 3/31/2015 to 5/12/2015 at prices from $3.20 to $3.38. They still have 992,000 shares or 6.9% of ARI. Assuming they are getting out, this will keep pressure on the price for a while.

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 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 106%, 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,

NEW Valuation $1.12 (Was $1.21, $1.39, $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 $.34 closed at $.31

CTIG announced Q2 2015 (June 30, 2015) earnings on 8/14/2015.

http://finance.yahoo.com/news/cti-group-reports-2015-second-212621737.html

Revenues came in at $3.7 million versus $4.1 million last year. They lost $323,000 compared to a loss of $296,000 last year.

Our valuation fell a bit to $1.12 a share, down from $1.21 last quarter and $1.22 last year. We will continue to HOLD CTIG.

Commenting on the results, Fred Hanuschek, CTI Group’s CEO and President, stated, “Although our first half results were not as strong as we had hoped, we are encouraged by the number of opportunities that we are actively pursuing and believe these opportunities should lead to better second half results

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 26%. HOLD

 

BLIN announced Q3 2015 earnings (quarter ended June 30, 2015) today. Revenues were $4.9 million down from $6.2 million last year but up from $4.8 million last quarter. They lost $.20 per share on a Non-GAAP basis compared to $.24 last year. Our valuation rose to $6.20 up from $6.10 last quarter on better margins. Overall, while margins and EBITDA (adjusted) improved it was pretty much a nothing quarter. Have to wait longer here as they eke out an existence and hopefully get this little boat moving in the right direction. HOLD.

PRSS announced Q2 2015 (6/30/2015) earnings last night. Not bad. They continue to slim down the business to its core. They are divesting their EZ print business now also. Revenues fell to $21.8 million from $29.1 million last year, but their loss from operations declined to $1.8 million from $4.4 million last year. Adjusted EBITDA was positive $.7 million versus negative $1.8 million last year. Cash fell to $46 million ($2.64 a share) from $56 million due to working capital changes and the repurchase of $2.3 million worth of stock. Our valuation was $8.95 down a tad from $9.09 last quarter. BUY

AVID announced Q2 2015 earnings (quarter ended June 30, 2015) after the close last night. Revenues were $110 million down from $125 million last year. They made a Non-GAAP profit of $.05 per share versus a $.15 profit last year. Our valuation moved down a bit to $22.24 from $22.59 last quarter. They upped their 2015 guidance of $74-$80 million of adjusted EBITDA from $72-$78 million. Also, while the debt for the acquisition of Orad was on the balance sheet at June 30, the revenues and profits were not. You would think that AVID lost money and lowered their guidance by 50% with the way the market reacted afterhours last night and this morning. We are doubling up here. The new Buy Price will be approximately $11.30.

http://finance.yahoo.com/news/avid-announces-financial-results-second-203852725.html

Another down week -1.7 and are now down 15.2% for the year. Meanwhile, the DOW was down 1.8% and the NASDAQ was down 1.7%. For the year the DOW is down 2.5% and NASDAQ is up 6.5%.

DEX, ATEC, SYNC 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:

CCUR	45%
SYNC	49%
CTIG	43%
PRSS	75%

ATEC, and SYNC, can still be bought. We are doubling up on ATEC

Last week we went 4 stock up, 8 down and 1 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

Valuation $22.59 (Was $23.86, $28.10)

Closed down $.82 at $11.44

AVID announced a convertible bond offering in June and the stock tanked. We can’t figure it out. Proceeds to be used to pay for their recent acquisition, and a $20 million stock buyback.

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

Down 12% HOLD

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

NEW Buy Price $.93 ($1.56 before doubling up on 8/10/2015 at $.66)

NEW Valuation $2.54 (Was $2.61, $3.11, $2.95, $3.00)

Closed down $.71 at $.66

ATEC announced Q2 2015 (June 30, 2015) earnings on August 4, 2015.

http://finance.yahoo.com/news/alphatec-holdings-announces-second-quarter-200500460.html

No one liked them as the stock plummeted more than 50%. Revenues were $46.6 million ($50.2 million in constant currency) compared to $53.2 million last year. EBITDA was down 50% from $7.7 to $3.8 million. Our valuation came in at $2.54 compared to the previous $2.61. We are cutting ATEC to a HOLD until they can reverse the negative trends in revenue, gross margin and EBITDA.

After the reaction to the earnings we bought more and suggest doubling up here as the selling seems over done. This will bring our average Buy price down to $.93.

Down 58%

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 $9.09 (Was $12.50, $11.17, $12.51, $11.27)

Closed down $.10 at $4.26

Q2 2015 earnings due out Thursday, August 13, 2015 after the market close.

PRSS announced Q1 2015 (3/31/2015) earnings on 5/12/2015.

http://finance.yahoo.com/news/cafepress-reports-first-quarter-2015-201500608.html

Again, this is a complex period for the company with the recent divestitures of two of their operating entities. We had estimated a valuation of $12.51 based on their reported annual results, but it came in at $9.09 a share—which is still more than double the current price. Cash from the divestitures ballooned the balance to $51.4 million or $3.21 a share. Operating performance fell short though. Revenues were $27.4 versus $30.9 million last year. On a Non-GAAP basis they lost$ 2 million versus a loss of $3.1 million last year from continuing operations. We continue to rate PRSS a BUY.

From their press release:

“We are taking proactive steps toward optimizing our business and operating as a leaner company focused on generating higher quality revenues. We believe that our data-driven approach to understanding opportunities with customers and partners will result in an increased ability to capture the very substantial opportunities within the personalized e-commerce market. We still have substantial work ahead of us as we continue to look for operational efficiencies while keeping a sharp focus on expense management. While these strategic moves may create near term pressure on revenue, we are extremely excited by the long-term prospects for CafePress,” concluded Mr. Durham.

UP 6% 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 $9.47, (Was $6.99, $9.34, $8.24, $9.68, $8.52)

Closed up $.51 at $2.83

Extreme announced Q4 2015 (June 30, 2015) on August 6, 2015.

http://finance.yahoo.com/news/extreme-networks-reports-fourth-quarter-110000404.html

Revenues came in at $149.9 compared to $155.3 and they made $.10 a share versus $.09 a share on a Non-GAAP basis. Our valuation came in at $9.47 a share versus $9.68 last year. Based on their guidance for next quarter we estimate our valuation at $7.45 compared to $8.24 for Q3 2014. Not heading in the right direction. This is a HOLD, hovering on a Sell. They need to cut expenses and/or sell the company.

Down 18%, 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 up $.07 at $1.70

SYNC announced Q2 2015 (June 30, 2015) earnings on 8/4/2015.

http://finance.yahoo.com/news/synacor-gains-ebitda-momentum-revenue-200100723.html

Revenues were $24.7 million up slightly from $24.2 million the prior year. They had a Non-GAAP loss of about $.3 million compared to a loss of $1 million last year. SYNC’s valuation fell from last quarter to $5.29, but was a tad higher than last years $5.21. SYNC is trading at 30% of our valuation.

Down 34%. 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)

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

Closed down $.10 at $.26

Q2, 2015 earnings were announced August 6, 2015.

http://finance.yahoo.com/news/dex-media-announces-second-quarter-110000263.html

Revenues were $387 million, down from $474 million last year and down from $406 million last quarter and adjusted EBITDA was $159 million up from $143 million last quarter and down from $176 million last year. Overall not a great quarter. For the year they are guiding to revenue of about $1.5 billion and $525 million of EBITDA. In their original projection for 2015 they were looking at revenue of $2.077 billion and EBITDA of $782 million. Clearly they are not making their projections. Net debt was $2.144 (their original projection was to end 2015 with $2.004 billion of debt—a goal they will likely make. Based on this performance we have lowered our valuation to $4.71 a share. DEXM is a HOLD

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 96% HOLD

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

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

Valuation $2.20 (Was $1.83, $2.83, $2.85, $3.39, $3.25, $3.42, $4.64, $4.86, $4.00)

Closed up $.01 at $.55

DAEG announced Q4 2015 earnings (quarter ended April 30, 2015) on 7/28/2015. Revenues were $6.1 million down from $7.4 million last year but up from $5.7 million last quarter. They lost $.03 per share on a GAAP basis compared to income of $.01 last year. On a Non-GAAP basis they lost $65,000 versus a profit of $1,087,000 last year. Our valuation rose to $2.20 up from $1.83 last quarter on lower net debt ($6.4 million), higher sales and lower losses.

With the discontinuance of their eDiscovery business, Daegis is now a pure play enterprise software company and is trading at only 30% of our valuation. We are changing to a cautious BUY.

.Down 50%, 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 $1.34

BLIN announced Q2 2015 (March 31, 2015) earnings on May 14, 2015.

http://finance.yahoo.com/news/bridgeline-digital-announces-financial-results-202247641.html

Another very disappointing quarter. Revenues fell to $4.8 million from $5.3 million last year. They lost $2.1 million compared to $2.3 million last year, showing the improvement in spending as a result of their cost curtailment efforts. On a Non-GAAP basis they lost $1.2 million versus $1.3 million last year. Our valuation fell to $5.85 (adjusted for the 5 for 1 split in May 2015, down from $7.53 last quarter and $8.82 last year.

Down 66%, HOLD

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

Buy Price- $1.37

Valuation $5.78 (Was $5.43, $6.55, $6.88, $6.12, $5.99, $5.32, $6.81, $6.28, $4.89, $6.02, $6.72, $5.49)

Closed down $.18 at $3.49

TSYS announced Q2 2015 (March 31, 2015) earnings on 7/30/2015.

http://finance.yahoo.com/news/telecommunication-systems-reports-second-quarter-200500282.html

Revenues were $87.9 million, up from $81.9 million last year and adjusted EPS was $.05 compared to $.04 last year. Overall an OK quarter-again. Our valuation was $5.78 down from $6.12 last year and up from $5.43 last quarter. TSYS is trading at 64% of our valuation.

We are now waiting on the outcome of their “strategic alternatives” investigation with Lazard. Shares closed at $3.70 on 7/30/2015. This is still a HOLD. We are up 170% on TSYS

UP 155%, HOLD

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

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 $11.82 down $.17

Q2 2015 earnings due out Monday, August 10, 2015 after the market close.

Raging Capital added 601,000 shares in June bringing their holdings to 2,137,000 or 30.6% of the company.

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 37% 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 down $.08 at $6.59 (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 44%, 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 $6.66 (was $6.47, $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 $3.18, unchanged.

Wynnefield continued their selling outing a cap on ARI’s stock price. They now own 693,000 shares down from 992,000. They are now at 4.1%.

Q3 2015 were announced on June 11, 2015. Pretty good. Revenues were $10.3 million, up 26% from last year and they made $.02 a share compared to $.01 last year. Our valuation rose to $6.66 a share.

http://finance.yahoo.com/news/ari-network-services-inc-announces-200100623.html

In addition to the 1.5 million share offering Wynnefield Capital has been selling shares-about 250,000 from 3/31/2015 to 5/12/2015 at prices from $3.20 to $3.38. They still have 992,000 shares or 6.9% of ARI. Assuming they are getting out, this will keep pressure on the price for a while.

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 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 97%, 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 $1.21 (Was $1.39, $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 $.34 closed at $.31

CTIG announced Q1 2015 (March 31, 2015) earnings on 5/14/2015.

http://finance.yahoo.com/news/cti-group-reports-2015-first-203932720.html

After the huge Q4 2014 quarter this quarter’s results were more in-line with their previous run-rate. Revenues were $4.1 million, compared to $3.95 million in 2014. They also made $10,000 for the quarter.

Our valuation fell a bit to $1.21 a share, down from $1.39 last quarter, but up 20% from $.99 last year. We will continue to HOLD CTIG.

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 26%. HOLD

Alphatec Holdings (ATEC) earnings update

ATEC announced Q2 2015 (June 30, 2015) earnings after the close last night. Revenues were $46.6 million ($50.2 million in constant currency) compared to $53.2 million last year. EBITDA was down 50% from $7.7 to $3.8 million. Our valuation came in at $2.54 compared to the previous $2.61. ATEC closed at $1.36 on 8/4/2015. ATEC is trading at 54% of our valuation. We are cutting ATEC to a HOLD until they can reverse the negative trends in revenue, gross margin and EBITDA..

Synacor (SYNC) earnings update

SYNC announced Q2 2015 (June 30, 2015) earnings after the close last night. Revenues were $24.7 million up slightly from $24.2 million the prior year. They had a Non-GAAP loss of about $.3 million compared to a loss of $1 million last year. SYNC’s valuation fell from last quarter to $5.29, but was a tad higher than last years $5.21. Shares closed at $1.59 on 8/4/2015. SYNC is trading at 30% of our valuation. SYNC is still a BUY.

We were down another  2.4% last week and are now down 13.4% for the year. Meanwhile, the DOW was up .7% and the NASDAQ was up .8%. For the year the DOW is down .8% and NASDAQ is up 8.3%.

DAEG and TSYS 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:

CCUR	44%
SYNC	54%
CTIG	48%
PRSS	74%

ATEC, AVID and SYNC, can still be bought.

Last week we went 4 stock up, 8 down and 1 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

Valuation $22.59 (Was $23.86, $28.10)

Closed down $.34 at $12.26

AVID announced a convertible bond offering in June and the stock tanked. We can’t figure it out. Proceeds to be used to pay for their recent acquisition, and a $20 million stock buyback.

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

Down 12% BUY

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

Buy Price $1.56

Valuation $3.11 (Was $2.95, $3.00)

Closed unchanged at $1.36

Q2 2015 earnings due out Tuesday, August 4, 2015 after the market close.

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 13% 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 $9.09 (Was $12.50, $11.17, $12.51, $11.27)

Closed up $.01 at $4.36

Q2 2015 earnings due out Thursday, August 13, 2015 after the market close.

PRSS announced Q1 2015 (3/31/2015) earnings on 5/12/2015.

http://finance.yahoo.com/news/cafepress-reports-first-quarter-2015-201500608.html

Again, this is a complex period for the company with the recent divestitures of two of their operating entities. We had estimated a valuation of $12.51 based on their reported annual results, but it came in at $9.09 a share—which is still more than double the current price. Cash from the divestitures ballooned the balance to $51.4 million or $3.21 a share. Operating performance fell short though. Revenues were $27.4 versus $30.9 million last year. On a Non-GAAP basis they lost$ 2 million versus a loss of $3.1 million last year from continuing operations. We continue to rate PRSS a BUY.

From their press release:

“We are taking proactive steps toward optimizing our business and operating as a leaner company focused on generating higher quality revenues. We believe that our data-driven approach to understanding opportunities with customers and partners will result in an increased ability to capture the very substantial opportunities within the personalized e-commerce market. We still have substantial work ahead of us as we continue to look for operational efficiencies while keeping a sharp focus on expense management. While these strategic moves may create near term pressure on revenue, we are extremely excited by the long-term prospects for CafePress,” concluded Mr. Durham.

UP 9% BUY

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

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

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

Closed up $.15 at $2.32

Q4 2015 earnings due out before the market open on Thursday, August 6, 2015.

Extreme announced Q3 2015 (March 31, 2015) on May 6, 2015.

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 32%, 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 up $.09 at $1.63

Q2, 2015 earnings due out Tuesday, August 4, 2015.

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. Management crowed about how they won, but I have never seen so many shares not voted for the incumbent Board and they still survive.

Down 36%. 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)

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

Closed down $.03 at $.36

Q2, 2015 earnings due out Thursday, August 6, 2015 before the market opens.

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 assumes it will file bankruptcy as the market cap fell to $10 million.

DEXM is a HOLD despite trading at 5% 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 94% HOLD

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

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

NEW Valuation $2.20 (Was $1.83, $2.83, $2.85, $3.39, $3.25, $3.42, $4.64, $4.86, $4.00)

Closed down $.16 at $.54

DAEG announced Q4 2015 earnings (quarter ended April 30, 2015) on 7/28/2015. Revenues were $6.1 million down from $7.4 million last year but up from $5.7 million last quarter. They lost $.03 per share on a GAAP basis compared to income of $.01 last year.  On a Non-GAAP basis they lost $65,000 versus a profit of $1,087,000 last year. Our valuation rose to $2.20 up from $1.83 last quarter on lower net debt ($6.4 million), higher sales and lower losses.

With the discontinuance of their eDiscovery business, Daegis is now a pure play enterprise software company and is trading at only 30% of our valuation. We are changing to a cautious BUY.

.Down 50%, 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 $.14 at $1.54

BLIN announced Q2 2015 (March 31, 2015) earnings on May 14, 2015.

http://finance.yahoo.com/news/bridgeline-digital-announces-financial-results-202247641.html

Another very disappointing quarter. Revenues fell to $4.8 million from $5.3 million last year. They lost $2.1 million compared to $2.3 million last year, showing the improvement in spending as a result of their cost curtailment efforts. On a Non-GAAP basis they lost $1.2 million versus $1.3 million last year. Our valuation fell to $5.85 (adjusted for the 5 for 1 split in May 2015, down from $7.53 last quarter and $8.82 last year.

Down 61%, HOLD

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

Buy Price- $1.37

Valuation $5.78 (Was $5.43, $6.55, $6.88, $6.12, $5.99, $5.32, $6.81, $6.28, $4.89, $6.02, $6.72, $5.49)

Closed down $.13 at $3.67

TSYS announced Q2 2015 (March 31, 2015) earnings on 7/30/2015.

http://finance.yahoo.com/news/telecommunication-systems-reports-second-quarter-200500282.html

Revenues were $87.9 million, up from $81.9 million last year and adjusted EPS was $.05 compared to $.04 last year. Overall an OK quarter-again. Our valuation was $5.78 down from $6.12 last year and up from $5.43 last quarter. TSYS is trading at 64% of our valuation.

We are now waiting on the outcome of their “strategic alternatives” investigation with Lazard. Shares closed at $3.70 on 7/30/2015. This is still a HOLD. We are up 170% on TSYS

UP 168%, HOLD

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

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 $11.99 up $.25

Raging Capital added 601,000 shares in June bringing their holdings to 2,137,000 or 30.6% of the company.

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 39%  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 down $.76 at $6.67 (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 46%, 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 $6.66 (was $6.47,  $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 $3.18, down $.01.

Wynnefield continued their selling outing a cap on ARI’s stock price. They now own 693,000 shares down from 992,000. They are now at 4.1%.

Q3 2015 were announced on June 11, 2015. Pretty good. Revenues were $10.3 million, up 26% from last year and they made $.02 a share compared to $.01 last year. Our valuation rose to $6.66 a share.

http://finance.yahoo.com/news/ari-network-services-inc-announces-200100623.html

In addition to the 1.5 million share offering Wynnefield Capital has been selling shares-about 250,000 from 3/31/2015 to 5/12/2015 at prices from $3.20 to $3.38. They still have 992,000 shares or 6.9% of ARI. Assuming they are getting out, this will keep pressure on the price for a while.

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 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 97%, 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 $1.21 (Was $1.39, $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 $.31 closed at $.28

CTIG announced Q1 2015 (March 31, 2015) earnings on 5/14/2015.

http://finance.yahoo.com/news/cti-group-reports-2015-first-203932720.html

After the huge Q4 2014 quarter this quarter’s results were more in-line with their previous run-rate. Revenues were $4.1 million, compared to $3.95 million in 2014. They also made $10,000 for the quarter.

Our valuation fell a bit to $1.21 a share, down from $1.39 last quarter, but up 20% from $.99 last year. We will continue to HOLD CTIG.

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 15%. HOLD