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VTSS Investor Forum

New Board Members

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Interesting to note that Kenneth Traub is also Chairman of the Board at MRV Communications, another big investment of Raging Billy's. Like Vitesse, MRV has had their share of problems (good technology, bad management). They do about $225M/year in revenue.

MRV's website describe the company as follows:

"MRV Communications, through its business units, is a global provider of optical communications network infrastructure equipment and services to a broad range of telecom concerns, including multinational telecommunications operators, local municipalities, MSOs, corporate and consumer high speed G-Internet service providers, and data storage and cloud computing providers. As a single source provider of routing, Ethernet and optical transport equipment and services, MRV can provide its customers with integrated network management, cost effective equipment and network integration services expertise. MRV can also help its customers effectively manage all aspects of their evolving network architecture".

With Raging Billy invested heavily in both companies, and new board member Ken Traub the Chairman of the Board at MRV, we can only hope and pray that a merger might be on the horizon. From reading their website, looks like it could be a complimentary deal. Their headquarters is in Chatsworth, not all that far from Camarillo. Make it happen Billy!!!!!!!!!!

Posted by sharpinvestments - 12 years ago


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A short time ago there was a topic posted "List of nominees for 2013 BOD". I have moved a very interesting article here from that topic explaining more about BOD nominee and now member Kenneth Traub.

This article explains how Traub worked to unlock value for all shareholders. The True Hidde Value

besides being Chairman of the Board of MRV communications, Traub is also the President and CEO of Ethos Management LLC.

Below is an article showing how William Martin, Raging Capital worked to help unlock shareholder value with his stake in MRVC.

a realistic situation? VTSS + MRVC = 1 company

Posted by christ3opher - 12 years ago | Updated 12 years ago

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MRVC is more involved in the optical interface side of things and VTSS is more involved in the backplane, although there seems to be some overlap. It would make for a powerful combination of one-stop shopping.

Posted by phobos - 12 years ago

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The only thing of interest now is whether the next development with VTSS will be positive or negative. Revenue ramp would be positive. the refinance which will certainly involve further dilution will be negative. I am guessing we see the dilution before we see any revenue ramp. If you want to get some feel for this consider that the last time VTSS renegotiated debt management exchanged debt for equity using an equity price 50% of what was the extant quoted market price .

$65 million in debt needs to be renegotiated. Lets say they convert half to equity at $1 per share (50% of the current market price). That would be 32 million more shares outstanding. Add that to the current 40 million and you have 70+ million shares outstanding. That would mean the current shareholders (post that last negotiation) would own 50% of the company when before the negotiation they owned 100%.

The first debt refinance management gave away 66& of the company. Which of course meant the shareholder who owned 100% of the company before the refinance owned 33% after.

now lets put the two of them together. the stockholders, the hapless few who still own the pre-first refinance shares, end up on a post second refinance basis with a whopping 17% of the company.

all of which means if the market cap of this company ever gets back to a modest $250 million, the post second refinance shareholders will own a whopping $42 million of that where given good management they would have owned all $250 million. All of this thanks to the only thing that really matters long term - - -management.

This is already very ugly and it isn't fixed yet.

Posted by dlog - 12 years ago

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