MRV Reports Fourth Quarter and Year End Results for 2005
February 15, 2006 16:01:25 (ET)
CHATSWORTH, Calif., Feb 15, 2006 /PRNewswire-FirstCall via COMTEX/ -- MRV COMMUNICATIONS, INC. (MRVC, Trade), a leading provider of products and services for out-of-band networking, WDM and optical transport, optical Ethernet and optical components, today announced its results for its fourth quarter and year end 2005.
Revenues for the fourth quarter of 2005 were $91.2 million, which represents a sequential increase of 38% from last quarter and a year-over-year increase of 11%. Revenues for year end 2005 were $283.7 million compared to revenues of $271.7 million for the same period last year. Net loss for the fourth quarter of 2005 was $2.6 million, or $0.02 per share, a reduction of 18% when compared to a net loss of $3.1 million, or $0.03 per share, for the third quarter of 2005. Net income for the fourth quarter of 2004 was $918,000, or $0.01 per share. Net loss for year end 2005 was $16.3 million, or $0.16 per share, compared to a net loss of $10.7 million, or $0.10 per share, for year end 2004.
"Our strong fourth quarter results were led by an exceptional performance from our optical component group with the prospects for accelerating growth for this business in the near future," commented Noam Lotan, President & CEO of MRV. "FTTP deployment has exceeded expectations and increasing demand from end customers like Verizon and others is driving scale into our optical business, increasing gross margins and moving solidly toward profitability. Our networking business also made significant progress, as core product revenues experienced double digit growth and we added to our experienced sales team to capitalize on the opportunities in out-of-band networking and metro Ethernet. As expected, our top line also benefited from the seasonal sales of lower margin third party products from our system integration in Europe."
"The Company made significant strides in its goal of reaching sustainable profitability in the second half of 2006," added Kevin Rubin, Chief Financial Officer of MRV. "During the quarter, we increased gross profit by $6.9 million year-over-year, reduced our net loss sequentially and decreased inventories. Importantly, gross margins in our optical component business improved, highlighting the operating leverage in that business."
First Quarter 2006 Outlook
MRV currently estimates that revenues for the first quarter of 2006 will be in the range of $71 million to $75 million. Net loss per share is currently forecasted to be in the range of $0.02 to $0.03 per share on a non-GAAP basis, which excludes the effect of the adoption of Statement of Financial Accounting Standards No. 123(R) for stock-based compensation expense. On a GAAP basis, net loss per share is currently forecasted to be in the range of $0.03 to $0.04 per share.
Other Information
MRV will host a conference call to discuss its fourth quarter and fiscal year end 2005 financial results on Wednesday, February 15, 2006 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call dial-in number is (617) 801-9702, access code 48530284. A financial presentation designed to guide participants through the call will also be available. MRV will offer its live audio broadcast of the conference call, along with the financial presentation, on the MRV Investor website at ir.mrv.com. For replay information, please visit the MRV Investor website at ir.mrv.com.
The Company will hold its 2006 annual meeting of stockholders on Friday, May 19, 2006. Details of the business to be conducted at the Annual Meeting will be provided in the Notice of Annual Meeting and Proxy statement to be mailed to stockholders on or about April 19, 2006. Stockholders who wish to submit a proposal for consideration at the Annual Meeting, must do so a reasonable time before April 19, 2006 (it is suggested no later than March 1, 2006) and such proposal must be in writing and comply with the current proxy rules relating to stockholder proposals, in particular Rule 14a-8 under the Securities Exchange Act of 1934. Proposals should be delivered to MRV Communications, Inc., 20415 Nordhoff Street, Chatsworth, California 91311, Attention: Secretary. To avoid controversy and establish receipt by the Company, it is suggested that stockholders send their proposals by certified mail return receipt requested. |
