No one posted the actual earnings release, so here it is. Have not listened to the CC yet, but IMO this report is encouraging.
MRV Reports Second Quarter 2003 Financial Results
Thursday July 24, 4:01 pm ET
biz.yahoo.com
CHATSWORTH, Calif., July 24 /PRNewswire-FirstCall/ -- MRV COMMUNICATIONS, INC. (Nasdaq: MRVC - News), a leading provider of optical components and unlimited connectivity solutions for scalable networks, today reported its financial results for the second quarter ended June 30, 2003.
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Net loss for the second quarter of 2003 was $9.8 million, or $0.10 per share, compared to a net loss of $6.4 million, or $0.06 per share for the prior quarter, and a net loss of $18.8 million, or $0.21 per share, for the second quarter of 2002. Revenues for the second quarter of 2003 were $62.0 million compared to $51.1 million for the prior quarter, and $61.6 million for the second quarter last year.
Outlook
The Company expects improvement in its net loss per share for the third quarter to be in the range of $0.07 to $0.09 per share based on revenue expectations within the range of $54 million to $59 million. The third quarter is a summer quarter in Europe, where most of the Company's revenues are concentrated. The Company expects seasonally stronger results for the fourth quarter.
"We executed well this quarter. Our Balance Sheet continues to improve. We have exceeded expectations both on top and bottom line performance, and are very pleased with our continued improvements at MRV. Continuation of these trends will transition the Company towards break-even and profitability in 2004," said Noam Lotan, MRV's president and CEO.
Mr. Lotan continued, "During the quarter, MRV added significant optical capabilities to its networking products. We recently launched our Media Cross Connect, a physical layer connectivity solution with pluggable fiber optic technology to customers. We believe this solution, which includes integrated pluggable fiber optic technology, is unique and compelling for customers who want control of their network, inventory and costs. We also launched our family of Optical Ethernet termination products. These are the first products to implement the new IEEE 802.3ah standard for Ethernet in the First Mile ("EFM"). The new products are part of our Fiber Driver® product line, providing high density solutions for applications such as: media conversion, distance extension, CWDM networks, digital video multicasting, SANs, network reconfiguration and more." Mr. Lotan added, "MRV continues to strengthen its system integration and distribution capabilities to further expand and reach key customers. Most of our growth in the second quarter came from system integration activity in Europe. As the networking industry picks up more steam, our new products, coupled with our network integration and distribution activity, will be the cornerstone of our success"
Simultaneous Webcast and Teleconference Information
MRV Communications, Inc. will host a teleconference at 5:00 p.m. Eastern Time/2:00 p.m. Pacific Time on Thursday, July 24, 2003 to discuss second quarter 2003 results. To participate via telephone, the dial-in number is 617-847-3007, access code 80043770. Please call ten minutes prior to the scheduled conference call time. For live Webcasting, please go to the MRV Web site at www.mrv.com .
The conference call will be archived on the MRV Web site. A replay will be accessible by telephone after 8:00 p.m. Eastern/5:00 p.m. Pacific on July 24, 2003 through 8:00 pm Eastern Time, July 26, 2003. To replay the call, dial 617-801-6888 using the access code 94400258.
Media/Investor Relations Contact
Diana L. Hayden, 818-886-6782, ir@mrv.com
MRV Communications, Inc.
Statements of Operations
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
Net revenue $61,958 $61,627 $113,075 $124,045
Cost of goods sold 42,133 40,723 78,647 83,828
Gross profit 19,825 20,904 34,428 40,217
Operating costs and expenses:
Product development and
engineering 6,890 14,425 15,626 30,045
Selling, general and
administrative 16,695 24,320 28,600 47,859
Amortization of intangibles 3 29 16 57
Total operating costs and
expenses 23,588 38,774 44,242 77,961
Operating loss (3,763) (17,870) (9,814) (37,744)
Other income (expense), net (5,445) (76) (5,404) (9,954)
Loss before minority
interest, provision for
taxes and cumulative
effect of an accounting
change (9,208) (17,946) (15,218) (47,698)
Minority interest 66 (3) 28 102
Provision for taxes 493 856 921 1,042
Loss before cumulative
effect of an accounting
change (9,767) (18,799) (16,167) (48,842)
Cumulative effect of an
accounting change -- -- -- (296,355)
Net loss $(9,767) $(18,799) $(16,167) $(345,197)
Earnings per share:
Basic and diluted loss
per share:
Loss before cumulative
effect of an accounting
change $(0.10) $(0.21) $(0.16) $(0.56)
Cumulative effect of an
accounting change $-- $-- $-- $(3.38)
Net loss $(0.10) $(0.21) $(0.16) $(3.94)
Weighted average number
of shares:
Basic and diluted 101,383 90,319 100,163 87,570
MRV Communications, Inc.
Balance Sheets
(In thousands)
June 30, December 31,
2003 2002
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $86,608 $100,618
Short-term marketable securities 1,646 11,738
Time deposits 2,011 2,789
Accounts receivable, net 54,275 50,965
Inventories 35,934 32,695
Other current assets 6,048 11,283
Total current assets 186,522 210,088
Property and equipment, net 29,984 35,169
Goodwill 30,321 29,740
Intangibles 119 135
Long-term marketable securities 1,543 1,447
Deferred income taxes 3,151 2,637
Investments 3,063 3,063
Other assets 2,978 2,524
$257,681 $284,803
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt
and short-term obligations $3,176 $7,393
Convertible subordinated notes -- 32,418
Accounts payable 45,901 41,308
Accrued liabilities 24,157 31,542
Deferred revenue 3,693 3,950
Other current liabilities 3,248 2,289
Total current liabilities 80,175 118,900
Long-term debt 344 390
Convertible notes 23,000 --
Other long-term liabilities 4,159 3,666
Minority interest 7,237 7,371
Commitments and contingencies
Stockholders' equity 142,766 154,476
$257,681 $284,803 |
