Click here to close now.

Welcome!

.NET Authors: Carmen Gonzalez, Elizabeth White, Liz McMillan, Greg O'Connor, Jason Bloomberg

News Feed Item

MRV Reports Fourth Quarter and Full Year 2013 Results

MRV Communications (OTC: MRVC), a global leader in converged packet and optical solutions that empower the optical edge and network integration services for communications service providers, reported financial results for the three and twelve months ended December 31, 2013.

“We have been successfully executing on a strategic plan that has returned MRV to profitability while accelerating our investment in new product development to drive our future growth,” said David Stehlin, MRV's chief executive officer. “Our initiatives to streamline operations and improve efficiencies have created both a lower cost structure and an infrastructure capable of supporting robust growth. At the same time, we have been making disciplined and focused investments in new products to support our customers’ evolving needs and broaden our reach into significant target markets key to our long-term growth.

“Launching our OptiDriver™ optical transport platform exemplifies our strategy to take advantage of the metro network transformation and capture the fast growing optical edge market segment. In late 2013, we introduced OptiDriver, the industry’s most compact, flexible and power-efficient optical transport and in February 2014, we expanded the product line to cost-effectively address bandwidth challenges and optimize 100G networks. The OptiDriver has been very well received among our customer base including communications service providers, content delivery networks and cloud services providers.

“We are proud of MRV’s recent accomplishments. In 2014, we expect continued revenue seasonality; typically revenue is the slowest in the first quarter and the strongest in the fourth quarter. Looking ahead, we believe we are well positioned to foster growth as we deliver superior communications equipment and services in a market that continues to evolve toward high capacity, packet optical networking with increasing software control and service delivery.”

Fourth Quarter Results: Three months ended Dec. 31, 2013 compared to Dec. 31, 2012

  • Total revenue grew to $50.7 million, up 10% from $46.0 million in the prior year.
    • Network Equipment revenue was $25.9 million, up 15% compared to the prior year driven by wins in the Europe and Asia Pacific regions, partially offset by a decline in North America revenue due to the softness of the US telecommunications market.
    • Network Integration revenue was $24.9 million, up 6% compared to the prior year primarily due to favorable foreign currency rates.
  • Total gross margin was 32.8%, compared to 32.2% in the prior year.
    • Network Equipment gross margins were 50.6%, compared to 48.9% in the prior year, reflecting favorable product mix.
    • Network Integration gross margins were 14.2%, down from 16.6% in the prior year as the difficult economic conditions in Italy resulted in pricing pressures that translated into lower margins on product revenues.
    • Consolidated gross margin benefitted from a higher proportion of Network Equipment revenue in the overall product mix.
  • Total operating expenses were $16.5 million, decreasing from $17.6 million in the prior year.
    • Network Equipment operating expenses were $13.5 million, up from $10.3 million in the prior year, reflecting planned investments primarily in product development and engineering.
    • Network Integration operating expenses were $1.8 million, compared to $1.9 million in the prior year.
    • Corporate operating expenses were $1.2 million, down from $5.4 million in the prior year, due to the resolution of prior liabilities and to initiatives implemented to lower legal, consulting and accounting fees. The company expects to continue to benefit from the 2013 expense reduction.
  • Total operating income was $0.1 million. The $3.0 million improvement from the prior year reflects the growth in revenue and profitable operations in both Network Equipment and Network Integration and lower corporate overhead.

Year-to-date Results: Twelve months ended Dec. 31, 2013 compared to Dec. 31, 2012

  • Total revenue grew to $166.2 million in 2013, up 10% from $151.7 million in 2012, reflecting growth in both businesses as well as an elimination of $8.1 million in discontinued intersegment sales for the prior year. If 2012 revenue was adjusted to include discontinued operations, then the total 2013 revenue would be up 4% from the prior year.
    • Network Equipment revenue grew to $90.7 million in 2013, up $3.0 million from
      $87.7 million in 2012 including the aforementioned $8.1 million from sales of subsidiaries in the fourth quarter of 2012. The growth was driven by new and existing customers in North America, partially offset by declines in Asia-Pacific and Europe.
    • Network Integration revenue increased to $75.6 million in 2013, up of $3.2 million from $72.4 million in 2012, primarily due to favorable exchange rates and modest growth in services.
  • Total operating loss was $4.4 million in 2013, an improvement of $5.4 million when compared to $9.8 million in 2012. This reflects reductions in SG&A partially offset by the planned investments in Network Equipment product development and engineering.

Liquidity at Dec. 31, 2013

During the fourth quarter, MRV repurchased 116,000 shares for $1.2 million, bringing the year-to-date buyback total to 389,000 shares for $3.9 million. Cash and cash equivalents plus restricted time deposits were $27.8 million, compared to $40.8 million at December 31, 2012. The decrease reflects $3.9 million in stock repurchases; $3.6 million for capital expenditures; a net $7.5 million increase in accounts receivable and other assets related to the move away from factoring of certain accounts receivables in Italy to lower financing costs; $1.1 million pay down in debt. These decreases in cash were partially offset by a $3.1 million increase in accounts payable and other changes in working capital.

Conference Call Information:

MRV Communications' fourth quarter 2013 financial results conference call is scheduled to take place on March 17, 2014 at 4:30 p.m. ET. The live audio webcast will be accessible at www.mrv-corporate.com in the Investor Relations section. For access via telephone, please dial 877-359-9508, and for international calls dial 224-357-2393 approximately 10 minutes prior to the start of the conference. The conference ID is 81829805#. The conference call will also be broadcast live at www.mrv.com where it will be available for replay for 90 days. In addition, a replay will be available via telephone for three business days, beginning three hours after the call. To listen to the replay, in the U.S. please dial 855-859-2056, and internationally dial 404-537-3406. The access code is 81829805#.

About MRV Communications

MRV Communications is a global leader in converged packet and optical solutions that empower the optical edge and network integration services for [leading] communications service providers. For more than two decades, the most demanding service providers, Fortune 1000 companies and governments worldwide have trusted MRV to provide best-in-class solutions and services for their mission-critical networks. We help our customers overcome the challenge of orchestrating the ever-increasing need for capacity while improving service delivery and lowering network costs for critical applications such as cloud connectivity, high-capacity business services, mobile backhaul and data center connectivity. For more information please visit 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 Financial Condition and Results of Operations" and "Risk Factors" sections of MRV's SEC filings, including, but not limited to, its quarterly reports on Form 10-Q for the quarters ended September 30, 2013, June 30, 2013, and March 31, 2013 and annual report on Form 10-K for the year ended December 31, 2013, 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 March 17, 2014 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.

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

                 

Three Months Ended

December 31,

Year Ended

December 31,

               
2013 2012 2013 2012
 
(unaudited)     (unaudited)      

 

     
 
Product revenue $ 37,356 $ 32,462 $ 118,911 $ 106,447
Service revenue   13,380     13,492     47,290     45,214  
Revenue $ 50,736 $ 45,954 $ 166,201 $ 151,661
Cost of goods sold   34,116     31,167     108,208     96,509  
Gross profit 16,620 14,787 57,993 55,152
 
Operating expenses:
Product development and engineering 5,652 4,233 19,381 15,344
Selling, general and administrative 10,840 13,391 42,993 48,599
Impairment of goodwill   -     -     -     1,056  
Total operating expenses   16,492     17,624     62,374     64,999  
Operating income (loss) 128 (2,837 ) (4,381 ) (9,847 )
 
Interest Expense (112 ) (150 ) (526 ) (601 )
Gain from settlement of deferred consideration obligation - - - 2,314
Other income (loss), net   (190 )   (117 )   (407 )   (54 )
Income (loss) from continuing operations before taxes (174 ) (3,104 ) (5,314 ) (8,188 )
       
Provision (benefit) for income taxes   1,075     1,077     1,508     (1,013 )
Net income (loss) of continuing operations (1,249

)

(4,181 ) (6,822 ) (7,175 )
 
Income (loss) from discontinued operations, net of income taxes of $0 in 2013 and $4,588 in 2012   -     10,675     -     12,839  
Net income (loss)   (1,249 )   6,494     (6,822 )   5,664  
 
Net income (loss) per share - basic:
From continuing operations: $ (0.17 ) $ (0.54 ) $ (0.91 ) $ (0.92 )
From discontinued operations: $ -   $ 1.38   $ -   $ 1.64  
Net income (loss) per share - basic (1) $ (0.17 ) $ 0.84 $ (0.91 ) $ 0.72
 
Net income (loss) per share - diluted:
From continuing operations: $ (0.17 ) $ (0.54 ) $ (0.91 ) $ (0.92 )
From discontinued operations: $ -   $ 1.38   $ -   $ 1.64  
Net income (loss) per share - diluted (1) $ (0.17 ) $ 0.84 $ (0.91 ) $ 0.72
 
Weighted average number of shares:
Basic 7,443 7,760 7,484 7,813
Diluted 7,443 7,760 7,484 7,817

________________________________________
(1) Amounts may not add due to rounding.

           
 

MRV Communications, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except par values)

 
December 31, December 31,
  2013     2012  
Assets

 

Current assets:
Cash and cash equivalents $ 27,591 $ 40,609
Restricted time deposits 249 240
Accounts receivable, net 49,990 32,237
Other receivables 8,220 18,287
Inventories 22,981 22,444
Income taxes receivable 1,256
Deferred income taxes 1,219 1,145
Other current assets   5,664     4,629  
Total current assets 117,170 119,591
Property and equipment, net 5,555 3,735
Deferred income taxes, net of current portion 3,694 3,711
Intangibles, net 873 400
Other assets   655     1,128  
Total assets $ 127,947   $ 128,565  
 
Liabilities and stockholders' equity
Current liabilities:
Short-term debt $ 4,320 $ 5,267
Deferred consideration payable 233 233
Accounts payable 23,991 20,478
Accrued liabilities 19,463 16,652
Deferred revenue 10,557 7,290
Other current liabilities   357     560  
Total current liabilities 58,921 50,480
Other long-term liabilities 5,236 5,184
Commitments and contingencies
 
Stockholders' equity:
Issued — 8,143 shares in 2013 and 8,061 shares in 2012
Outstanding — 7,286 shares in 2013 and 7,594 shares in 2012 270 270
Additional paid-in capital 1,281,883 1,281,170
Accumulated deficit (1,208,337 ) (1,201,515 )
Treasury stock — 856 shares in 2013 and 467 shares in 2012 (10,412 ) (6,528 )
Accumulated other comprehensive income   386     (496 )
Total stockholders' equity   63,790     72,901  
Total liabilities and stockholders' equity $ 127,947   $ 128,565  
 
         
 

MRV Communications, Inc.

Segmented Operating Data

(In thousands, except par values)

 
Three Months Ended

December 31,

Year Ended

December 31,

 
  2013         2012     2013         2012  
 
Revenue
Network Equipment $ 25,859 $ 22,479 $ 90,711 $ 87,727
Network Integration   24,935     23,529     75,636     72,421  
Before intersegment adjustments   50,794     46,008     166,347     160,148  
Intersegment adjustments   (58 )   (54 )   (146 )   (8,487 )
Total $ 50,736   $ 45,954   $ 166,201   $ 151,661  
 
 
Gross Profit
Network Equipment $ 13,079 $ 10,983 $ 47,069 $ 43,325
Network Integration   3,539     3,909     10,917     11,832  
Before intersegment adjustments   16,618     14,892     57,986     55,157  
Intersegment adjustments   2     (105 )   7     (5 )
Total $ 16,620   $ 14,787   $ 57,993   $ 55,152  
 
 
Operating Expenses
Network Equipment $ 13,450 $ 10,282 $ 48,768 $ 42,228
Network Integration   1,811     1,904     6,297     7,318  
Before intersegment adjustments   15,261     12,186     55,065     49,546  
Intersegment adjustments   1,231     5,438     7,309     15,453  
Total $ 16,492   $ 17,624   $ 62,374   $ 64,999  
 
Operating Income
Network Equipment ($371 ) $ 700 ($1,699 ) $ 1,096
Network Integration   1,729     2,005     4,620     4,514  
Before intersegment adjustments   1,358     2,705     2,921     5,610  
Intersegment adjustments   (1,230 )   (5,542 )   (7,302 )   (15,457 )
Total $ 128     ($2,837 )   ($4,381 )   ($9,847 )

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and easy to use. MangoApps has been named a "Market Leader" by Ovum Research and a "Cool Vendor" by Gartner...
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in the future, data and analytics will be pervasive, embedded into every workflow, application and infra...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, and for ARM and x86 devices on several IoT boards. It’s a Trend! This announcement comes just as...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust I...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? Join this panel of experts as they peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you’ll have no problem filling in your buzzword bingo cards.
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and Care Packs. As a trusted supplier, CBS guarantees quality controlled stock levels thanks to an Auto...
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microservices, and more.
GENBAND introduced its Real Time Communications (RTC) Client for Lync* to seamlessly combine real-time communications with Lync Instant Messaging (IM) and Presence. “We’re shaking up the economics of delivering Unified Communications (UC) and offering a compelling way to integrate previously bespoke communications technologies,” said Carl Baptiste, GENBAND’s Senior Vice President, Enterprise Solutions. “We’re offering enterprises the best of both worlds by combining our own high availability voice, video and collaboration with Lync’s IM and Presence; creating a single, web centric, client. O...