MRV Reports Third Quarter 2004 Financial Results
Ramp-up in FTTP Results in 44% Sequential Increase in Optical Component Revenues
10/21/2004 4:07:44 PM
CHATSWORTH, Calif., Oct 21, 2004 (PRNewswire-FirstCall via COMTEX) -- MRV COMMUNICATIONS, INC. , a leading provider of scalable network infrastructure equipment and optical components for metro and Fiber-to-the-Premise solutions, today reported its results for the third quarter ended September 30, 2004.
Net loss for the third quarter of 2004 was $3.8 million, or $0.04 per share, compared to a net loss of $5.9 million, or $0.06 per share, for the third quarter of 2003 and a net loss of $3.1 million, or $0.03 per share, for the second quarter of 2004.
Revenues for the third quarter of 2004 were $62.9 million, compared to $56.8 million for the third quarter of 2003, an increase of 11% year-over-year. Revenues for the second quarter of 2004 were $67.2 million.
Noam Lotan, MRV's president and CEO, commented, "Q3 was a strong quarter for MRV with a 44% sequential increase in our optical component revenues. Overall revenues grew 11% for the third quarter of 2004 compared to the same quarter last year, and were at the high end of our guidance. We are very pleased with our Fiber-to-the-Premises (FTTP) components business. We expect revenues for the fourth quarter to be within the range of $72 to $76 million, reflecting approximately 7% year-over-year growth, and a further improvement in the bottom line."
Financial Highlight Presentation
A financial highlight and overview will be available in conjunction with the third quarter 2004 Teleconference and webcast discussed below. This presentation can be downloaded at mrv.com after 4:00 p.m. Eastern Time /1:00 p.m. Pacific Time on Thursday, October 21, 2004.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by that section. These forward-looking statements include statements by Mr. Lotan, Mr. Margalit and Mr. Gonen relating to the competitive environment in 2004 and the Company's expectations of future success in achieving its objectives. Any forward-looking statements in this press release are subject to a number of risks and uncertainties, including the strength of the overall economy and the high-technology market in particular, competition, product development efforts, and acceptance of MRV Communications' current and future products. Actual results could differ materially from those projected in our forward-looking statements. Investors should review the risk factors described in more detail in our most recent SEC reports available free of charge from MRV Communications at mrv.com or from the SEC at sec.gov. MRV Communications assumes no obligation to update the forward-looking statements contained in this press release.
Simultaneous Teleconference and Webcast Information
MRV Communications will host a teleconference at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time on Thursday, October 21, 2004 to discuss the third quarter of 2004 results. To participate via telephone, the dial-in number is 617-801-9702, access code 66856588. Please call ten minutes prior to the scheduled conference call time. MRV Communications will offer its live and replay audio broadcast of the conference call at mrv.com.
Replay Information
A replay of the call will be available on MRV's website, beginning on Thursday, October 21, 2004, at 8:00 p.m. Eastern Time/5:00 p.m. Pacific Time, at mrv.com . In addition, a replay will be available by telephone from 6:30 p.m. Eastern Time, October 21, 2004 to 6:30 p.m. Eastern Time, October 23, 2004 at 617-801-6888, access code 87311223.
Transcript of the MRV Teleconference Discussion
A transcript of the MRV Teleconference discussion will be available on MRV's website at mrv.com , beginning at 8:00 p.m. Eastern Time/5:00 p.m. Pacific Time on Thursday, October 21, 2004.
About MRV Communications, Inc.
MRV provides optical ethernet access equipment and services, and optical components. MRV conducts its business along three principal segments: the networking group, the optical components group and development stage enterprises. MRV's networking group provides equipment used by commercial customers, governments and telecommunications service providers, and include switches, routers, network physical infrastructure equipment and console server equipment as well as specialized networking products for defense and aerospace applications. MRV's optical components group designs, manufactures and sells optical communications components, primarily through its wholly owned subsidiary LuminentOIC, Inc. These components include components for Fiber-to-the-Premise, or FTTP, applications, fiber optic transceivers, and CWDM applications. MRV markets and sells its products worldwide, through a variety of channels, which include a dedicated direct sales force, manufacturers' representatives, value-added-resellers, distributors and systems integrators. MRV has operations in Europe that provide network system design, integration and distribution services that include products manufactured by third-party vendors, as well as MRV products. Such specialization enhances access to customers and allows MRV to penetrate targeted vertical and regional markets. For more information, call MRV at 818-773-0900 or visit our websites at mrv.com and luminentoic.com.
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 Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
(Unaudited)
Net revenue $ 62,941 $ 56,817 $ 189,786 $ 169,892
Cost of goods sold 42,807 38,397 125,665 117,044
Gross profit 20,134 18,420 64,121 52,848
Operating costs and expenses:
Product development and
engineering 6,373 8,088 18,516 23,714
Selling, general and 16,855 16,841 53,681 45,457
administrative
Impairment of goodwill and
other intangibles -- 356 -- 356
Total operating costs and
expenses 23,228 25,285 72,197 69,527
Operating loss (3,094) (6,865) (8,076) (16,679)
Other income (expense), net 81 (577) (1,134) (6,009)
Loss before provision for
taxes and extraordinary
gain (3,013) (7,442) (9,210) (22,688)
Provision for taxes 739 412 2,388 1,333
Loss before extraordinary
gain (3,752) (7,854) (11,598) (24,021)
Extraordinary gain,
net of tax -- 1,950 -- 1,950
Net loss $ (3,752) $ (5,904) $(11,598) $(22,071)
Earnings per share:
Loss before extraordinary
gain $ (0.04) $ (0.08) $ (0.11) $ (0.24)
Extraordinary gain,
net of tax $ -- $ 0.02 $ -- $ 0.02
Basic and diluted
loss per share $ (0.04) $ (0.06) $ (0.11) $ (0.22)
Weighted average
number of shares:
Basic and diluted 104,114 103,097 105,068 101,152
MRV Communications, Inc.
Balance Sheets
(In thousands)
September 30, December 31,
2004 2003
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 66,401 $ 88,706
Short-term marketable securities 6,531 5,221
Time deposits 1,124 1,411
Accounts receivable, net 56,449 53,464
Inventories 45,569 35,799
Other current assets 4,323 5,379
Total current assets 180,397 189,980
Property and equipment, net 20,099 25,416
Goodwill 29,965 29,965
Long-term marketable securities 1,676 1,705
Deferred income taxes 1,778 2,594
Investments 3,063 3,063
Other assets 1,651 2,040
$238,629 $254,763
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt
and short-term obligations $ 5,178 $ 2,905
Accounts payable 39,826 46,811
Accrued liabilities 25,630 25,523
Deferred revenue 3,288 3,754
Other current liabilities 2,280 2,936
Total current liabilities 76,202 81,929
Long-term debt 122 200
Convertible notes 23,000 23,000
Other long-term liabilities 4,442 4,215
Minority interest 5,164 5,291
Commitments and contingencies -- --
Stockholders' equity 129,699 140,128
$238, 629 $254,763
SOURCE MRV Communications, Inc.
Investor Relations, Diana L. Hayden of MRV Communications, Inc., +1-818-886-6782,ir@mrv.com
luminentoic.com
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