MRV Communications Inc. Reports Second Quarter Earnings Up 158
Percent; Quarterly Sales Exceed $19.5 Million EPS At 21 Cents, Up
117 Percent
CHATSWORTH, Calif.--(BUSINESS WIRE)--July 22, 1996--MRV
Communications Inc. (Nasdaq: MRVC), a leading Local Area Network (LAN)
switching and Fiber Optic Transmission company, Monday announced
record results for its second quarter ended June 30.
Net income for the quarter increased 158 percent to $2,346,000 from
net income of $911,000, prior to non-recurring charges, in the second
quarter of 1995. Quarterly earnings per share rose from 10 cents,
prior to non-recurring charges in 1995 to 21 cents in 1996, an
increase of 117 percent, on a higher number of shares.
The weighted average common shares outstanding rose from 9,246,039
shares to 11,101,990 shares for the quarters ended June 30, 1995 and
1996, respectively. Revenue for the three month period increased 136
percent to $19,586,000 from $8,310,000 for the quarter ended June 30,
1995. Sequentially, revenue increased 26 percent from $15,529,000 in
the first quarter.
The above number of weighted average common shares outstanding
reflects adjustment for the three-for-two stock split that became
effective March 20, 1996. Last week, MRV Communications announced the
approval by its shareholders of a two-for-one stock split. The date of
record for the two-for-one split will be July 29, 1996 and the
distribution date July 31, 1996.
Noam Lotan, president and CEO, commented: "Our second quarter results
reflect a strong increase in revenue from LAN connectivity products,
including the MegaSwitch product line. Towards the end of the quarter,
MRV started shipping MegaSwitch II, an auto-configuring dual speed
Ethernet/Fast Ethernet switch with planned uplink to Gigabit Ethernet
and ATM enterprise backbone.
"Gigabit Ethernet is an emerging standard for 1,000 Mbps Ethernet,
backward compatible with current Ethernet and Fast Ethernet standards.
MegaSwitch II will provide high speed switching capability between 10
Mbps, 100 Mbps and 1,000 Mbps Ethernet. The company expects to
demonstrate this `Any Speed to Any Speed' Ethernet capability at the
upcoming Networld+Interop trade show in Atlanta. During the quarter,
MRV filed a patent application for its Gigabit Ethernet technology.
When available, this technology will improve bandwidth utilization and
extend the span of the network."
Lotan continued: "As higher speed connections are being implemented
in enterprise networks, fiber optic transmission is becoming an
essential element in computer networks. The higher the speed of the
network, and the larger its span, the more likely fibers are to be
used."
Recently, the company established a new strategic alliance in Japan
with Fujitsu Ltd. This was followed last week by Fujitsu introducing
its SH2500 Switching Hub, based on the MRV MegaSwitch II.
With manufacturing and design centers on two continents, MRV
Communications is a leading manufacturer of LAN connectivity solutions
and digital and linear fiber optic transmission products for computer
networks, telephony and cable TV communications.
MRV COMMUNICATIONS INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(unaudited) (audited)
June 30, Dec. 31,
1996 1995
ASSETS
Current Assets:
Cash $ 3,453 $ 1,951
Short-term investments -- 1,000
Restricted cash 1,778 6,272
Accounts receivable, net of reserves
of $1,518 in 1996 and $400 in 1995 19,541 10,780
Inventories 15,856 8,382
Deferred income taxes 946 804
Other current assets 2,785 608
Total current assets 44,359 29,797
Property and equipment -- at cost,
net of depreciation and amortization 4,606 2,060
Other Assets:
Deferred income taxes 850 925
Other 17 525
$ 49,832 $ 33,307
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable 12,342 4,342
Current maturities of financing
lease obligations 193 --
Accrued liabilities 2,635 2,221
Income taxes payable 1,938 1,215
Total current liabilities 17,108 7,778
Deferred rent 40 46
Deferred income taxes 85 --
Other long term debt 358 225
Financing lease obligations 1,083 --
Minority interests 744 --
Stockholders' Equity:
Preferred stock, $0.01 par value:
no shares outstanding
Common stock, $0.067 par value:
20,000,000 shares authorized and
9,644,887 shares outstanding in 1996
and 9,464,769 shares outstanding in 1995 64 63
Additional paid-in capital 24,484 23,491
Retained earnings 5,866 1,704
Total stockholders' equity 30,414 25,258
$ 49,832 $ 33,307
MRV COMMUNICATIONS INC.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per-share data)
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
Revenues, net $19,586 $ 8,310 $35,115 $15,047
Costs and expenses:
Cost of goods sold 11,411 4,835 20,400 9,095
Research and
development expenses 1,992 800 3,676 1,502
Selling, general and
administrative expenses 2,959 1,454 5,095 2,371
Purchased technology
in progress -- 6,211 -- 6,211
Restructuring costs -- 1,465 -- 1,465
Operating income (loss) 3,224 (6,455) 5,944 (5,597)
Other income 84 181 164 408
Provision (credit) for
income taxes 962 (1,567) 1,883 (1,187)
Minority interests -- -- 63 --
Net income (loss) $ 2,346 $(4,707) $ 4,162 $(4,002)
Earnings per share: $ 0.21 $ -0.51/a $ 0.38 $ -0.44/a
Weighted average number
of common shares
outstanding 11,101,990 9,246,039 11,023,369 9,062,040
(a) On a pro forma basis net income without non-recurring charges
for purchased technology in progress and restructuring costs,
which totaled $5,618,000 net of income tax effects, was
$911,000 and $1,616,000 for the three months and six months
ended June 30, 1995, respectively. On an earnings per share
basis, pro forma net income was 10 cents and 18 cents for the
three months and six months ended June 30, 1995, without the
non-recurring charges.
CONTACT: MRV Communications Inc.
818/886-MRVC
818/886-6782 |
