Welcome!

SAP HANA Cloud Authors: Liz McMillan, Sematext Blog, Elizabeth White, Yeshim Deniz, Dana Gardner

News Feed Item

MRV Announces Third Quarter 2012 Financial Results

Network Equipment Revenue Grows 8% Sequentially

CHATSWORTH, CA -- (Marketwire) -- 11/09/12 -- MRV Communications, Inc. (OTCQB: MRVC) ("MRV" or the "Company"), a leading provider of optical communications network infrastructure equipment and integration and managed services, today announced financial results for the third quarter ended September 30, 2012.

"We have made solid progress executing on our strategic initiatives including building and investing in our optical communications system business and completing the divestitures of our Network Integration subsidiaries in France and Sweden," said Barry Gorsun, MRV's chief executive officer.

"In the third quarter, Network Equipment revenue grew 8% sequentially and we added 39 new customers. Our optical communications solutions are gaining momentum and in the quarter we won two large international Carrier Ethernet deployments with our OptiSwitch® solution, reflecting the strength of our technology. We are well positioned in the optical transport and carrier Ethernet markets and specifically in the rapidly growing mobile backhaul, data center and cloud computing verticals. We intend to leverage our strengths and continue investing in our optical communications systems to bring innovative products to the high growth segments of our market," concluded Gorsun.

Third Quarter 2012 Results
MRV reported third quarter 2012 revenue of $51.6 million, compared with revenue of $55.0 million in the second quarter of 2012 and $54.2 million in the third quarter of 2011. Sequentially, MRV's third quarter revenue was impacted by a 17% decline in Network Integration revenue that was primarily attributable to decreases in local currencies combined with lower product revenue and partially offset by 8% sequential growth in Network Equipment, which is substantially comprised of our optical communications systems business. The year-over-year decline in revenue was due to an 11% decline in Network Integration revenue related to lower product sales, delayed recognition upon acceptance of previously installed equipment and continued economic weakness in Europe. This decline was offset by 1% year-over-year growth in Network Equipment revenue driven by increased sales for the OptiSwitch and related network optical communications components.

Gross margin for the third quarter of 2012 improved to 37.3%, compared with 34.4% in the second quarter of 2012, and 37.1% in the third quarter of 2011. Increased sales of higher gross margin products in the Company's Network Equipment group primarily contributed to the year-over-year gross margin improvement, and to a lesser extent a reclassification of engineering labor to an expense. In the Network Integration group, margins declined due to highly competitive European markets that are driving increased pricing pressure, and a change in product and service revenue mix.

Operating expenses in the third quarter of 2012 were $20.3 million, or 39% of revenue, and included a $1.1 million goodwill impairment charge related to the Company's subsidiary in Italy. Excluding this charge, operating expenses in the third quarter were $19.2 million or 37% of revenue, compared with $17.9 million, or 33% of revenue in the third quarter of 2011, and excluding a $3.7 million impairment charge related to the Company's Swedish subsidiary, $18.6 million or 33% of revenue in the second quarter of 2012. The year-over-year increase in operating expenses was primarily due to an increase in corporate operating expenses of $1.2 million attributable to legal fees associated with derivative litigation, and professional fees related to the sale of the Company's Swedish and French Network Integration subsidiaries. Excluding the impairment charges in the second and third quarters of 2012, operating expenses increased sequentially also due to the aforementioned legal and professional fees.

Operating loss for the third quarter of 2012 was $1.0 million, and included a $1.1 million goodwill impairment charge related to the Company's subsidiary in Italy. Excluding this charge, the operating profit in the third quarter was $0.1 million, compared with an operating profit of $2.2 million in the third quarter of 2011. Operating income included share-based compensation expense of $0.3 million and $0.4 million in the third quarter of 2012 and 2011, respectively. Operating income for MRV's Network Equipment group was $2.2 million, a 69% increase compared with $1.3 million in the third quarter of 2011.

A more detailed discussion of MRV's 2012 third quarter financial results, including an analysis by business segment, is included in the Management Discussion and Analysis section of the Company's Form 10-Q filed today.

Recent Highlights

  • MRV's OptiSwitch solution was selected by CyC S.A., the telecommunications subsidiary for Argentina's largest electricity company, to launch a Carrier Ethernet network capable of supporting wholesale mobile backhaul and other revenue-generating data services.
  • MRV's OptiSwitch and ProVision® products were selected for an international metro-Ethernet deployment in Asia.
  • MRV expanded the award-winning OptiSwitch Carrier Ethernet Access portfolio with the introduction of a complete demarcation-to-aggregation solution, which comprises of the OptiSwitch 906G and OptiSwitch 9244-1210G models.
  • MRV's Fiber Driver® High Density 10G Transport Solution was recognized by TMC, a global, integrated media company, for exceptional innovation in advancing communications.
  • MRV successfully completed the stockholder-approved divestitures of MRV's Network Integration subsidiaries Alcadon-MRV AB and Interdata.

About MRV Communications, Inc.

MRV Communications, Inc. is a leading global provider of carrier Ethernet, wavelength division multiplexing optical transport, infrastructure management equipment and solutions, as well as network integration and managed services. MRV's solutions enable the delivery and provisioning of next-generation optical transport and carrier Ethernet services over any fiber infrastructure. MRV provides equipment and services worldwide to telecommunications service providers, enterprises and governments, enabling network evolution and increasing efficiency, while reducing complexity and costs. Through its subsidiaries, MRV operates development centers in North America and Europe, along with support centers and sales offices around the world. For more information about MRV, visit http://www.mrv.com.

Forward Looking Statements

This press release may contain statements regarding future financial and operating results of MRV, management's assessment of business trends, and other statements about management's future expectations, beliefs, goals, plans or prospects and those of the market segments in which MRV is engaged that are based on management's current expectations, estimates, forecasts and projections about MRV and its consolidated businesses and the respective market segments in which MRV's businesses operate, in addition to management's assumptions. Statements in this press release regarding MRV's future financial and operating results, which are not statements of historical facts, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "envisions," "estimates," "targets," "intends," "plans," "believes," "seeks," "should," "could," "forecasts," "projects," variations of such words and similar expressions, are intended to identify such forward-looking statements which are not statements of historical facts. These forward-looking statements are not guarantees of future performance nor guarantees that the events anticipated will occur or expected conditions will remain the same or improve. These statements involve certain risks, uncertainties and assumptions, the likelihood of which are difficult to assess and may not occur, including risks that each of its business segments may not make the expected progress in its respective market, or that management's long-term strategy may not achieve the expected results. Therefore, actual outcomes, performance and results may differ from what is expressed or forecast in such forward-looking statements, and such differences may vary materially from current expectations.

For further information regarding risks and uncertainties associated with MRV's businesses, please refer to the "Management's Discussion and Analysis of Results of Operations and Financial Condition" and "Risk Factors" sections of MRV's SEC filings, including, but not limited to, its annual report on Form 10-K for the year ended December 31, 2011, and its quarterly report on Form 10-Q for the quarter ended September 30, 2012, copies of which may be obtained by contacting MRV's investor relations department or by visiting MRV's website at http://www.mrv-corporate.com or the SEC's EDGAR website at http://www.sec.gov.

All information in this release is as of September 30, 2012 unless otherwise stated. MRV undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in MRV's expectations.


                          MRV Communications, Inc
                          Statement of Operations
                   (In thousands, except per share data)

                            Three Months Ended         Nine months ended
                               September 30,             September 30,
                         ------------------------  ------------------------

                             2012         2011         2012         2011
                         (unaudited)  (unaudited)  (unaudited)  (unaudited)
                         -----------  -----------  -----------  -----------

                         -----------  -----------  -----------  -----------
Revenue                  $    51,613  $    54,193  $   155,004  $   166,596
Cost of goods sold            32,387       34,081       99,665      103,124
                         -----------  -----------  -----------  -----------
Gross profit                  19,226       20,112       55,339       63,472
Operating expenses:
  Product development
   and engineering             4,052        3,325       11,226       10,766
  Selling, general and
   administrative             15,169       14,583       47,453       49,011
  Impairment of goodwill       1,055            -        4,689            -
                         -----------  -----------  -----------  -----------
Total operating expenses      20,276       17,908       63,368       59,777
                         -----------  -----------  -----------  -----------
Operating income (loss)       (1,050)       2,204       (8,029)       3,695
  Interest Expense               (82)        (216)        (540)        (653)
  Gain from settlement
   of deferred
   Consideration
   obligation                      -            -        2,314            -
  Other income (loss),
   net                            57          (48)          24         (260)
                         -----------  -----------  -----------  -----------
Income (loss) from
 continuing operations
 before taxes                 (1,075)       1,939       (6,231)       2,781
  Provision (benefit)
   for income taxes            1,252         (295)       2,573        2,217
                         -----------  -----------  -----------  -----------
Net income (loss) of
 continuing operations        (2,327)       2,234       (8,804)         565

Income (loss) from
 discontinued
 operations, net of
 income taxes of $0 in
 2012 and $841 in 2011             -         (153)       7,975         (894)
                         -----------  -----------  -----------  -----------
Net income (loss)             (2,327)       2,081         (829)        (329)
                         ===========  ===========  ===========  ===========

Net income (loss) per
 share - basic:
  From continuing
   operations:           $     (0.01) $      0.01  $     (0.06) $      0.00
  From discontinued
   operations:           $         -  $     (0.00) $      0.05  $      0.01
                         -----------  -----------  -----------  -----------
Net income (loss) per
 share - basic (1)       $     (0.01) $      0.01  $     (0.01) $      0.01

Net income (loss) per
 share - diluted:
  From continuing
   operations:           $     (0.01) $      0.01  $     (0.06) $      0.00
  From discontinued
   operations:           $         -  $     (0.00) $      0.05  $      0.01
                         -----------  -----------  -----------  -----------
Net income (loss) per
 share - diluted (1)     $     (0.01) $      0.01  $     (0.01) $      0.01

Weighted average number
 of shares:
  Basic                      155,314      157,535      156,939      157,518
  Diluted                    155,314      158,601      156,939      157,518

(1) Amounts may not add due to rounding.



                          MRV Communications, Inc
                               Balance Sheet
                               (In thousands)

                                               September 30,   December 31,
                                                    2012           2011

                                               -------------  -------------
Assets                                          (unaudited)
Current assets:
  Cash and cash equivalents                    $      39,036  $      71,352
  Short-term marketable securities                         -              -
  Restricted time deposits                               326            380
  Accounts receivable, net                            50,057         55,654
  Other recievables                                    9,040         11,604
  Inventories                                         30,873         28,134
  Deferred income taxes                                1,662          1,660
  Other current assets                                 7,657          5,168
  Current assets from discontinued operations
   held for sale                                           -         24,810
                                               -------------  -------------
Total current assets                                 138,651        198,762
Property and equipment, net                            6,442          6,789
Goodwill                                                 324          5,156
Deferred income taxes, net of current portion          3,732          4,113
Intangibles, net                                         400              0
Other assets                                             749            574
Noncurrent assets from discontinued operations             -         15,295
                                               -------------  -------------
Total assets                                   $     150,298  $     230,689
                                               =============  =============

Liabilities and stockholders' equity
Current liabilities:
  Short-term debt                              $       7,227  $       8,987
  Deferred consideration payable                         233          4,615
  Accounts payable                                    21,900         31,359
  Accrued liabilities                                 22,341         20,924
  Deferred revenue                                    11,741         10,985
  Other current liabilities                              236          1,693
  Current liabilities from discontinued
   operations held for sale                                -          3,236
                                               -------------  -------------
Total current liabilities                             63,678         81,799
Other long-term liabilities                            6,230          6,209
Long-term liabilities from discontinued
 operations                                                -            467
Commitments and contingencies

Stockholders' equity:
  Issued - 161,285 shares in 2012 and 160,609
   shares in 2011
  Outstanding - 151,925 shares in 2012 and
   157,704 in 2011                                       271            270
  Additional paid-in capital                       1,291,450      1,337,935
  Accumulated deficit                             (1,208,008)    (1,207,178)
  Treasury stock - 8,535 shares in 2012 and
   2,692 shares in 2011                               (6,076)        (3,271)
  Accumulated other comprehensive income               2,753         14,458
                                               -------------  -------------
Total stockholders' equity                            80,390        142,214
                                               -------------  -------------
Total liabilities and stockholders' equity     $     150,298  $     230,689
                                               =============  =============


Contact:

Investor Relations:
MRV Communications, Inc.
(818) 886-MRVC (6782)
Email Contact

or

Media Relations:
MRV Communications, Inc.
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...