MRV Communications Inc. Reports Record Third Quarter Results
Business Wire - October 27, 1997 16:03
%MRV-COMMUNICATIONS MRVC %CALIFORNIA %EARNINGS %COMED %COMPUTERS %ELECTRONICS
%TELECOMMUNICATIONS V%BW P%BW
Jump to first matched term
CHATSWORTH, Calif.--(BUSINESS WIRE)--Oct. 27, 1997--
newsalert.com
Quarterly Sales Near $42 million, EPS up 92%
MRV Communications Inc. (Nasdaq:MRVC) Monday reported record revenues and profit for the quarter ended
Sept. 30, 1997.
Revenues for the quarter rose 85% to a record $41,979,000 from $22,664,000 in the third quarter of 1996. Net
income increased 129% to $5,922,000 from $2,584,000 in the same period last year. Earnings per share were
$0.23 for the quarter, up 92% from pro-forma EPS of $0.12 in the year ago period. The 1996 results referred to
above were prior to non-recurring charges related to acquisition. After non-recurring charges in the third quarter
of 1996 the net loss for that period was $15,504,000 or $0.79 per share.
Revenues for the nine months ended Sept. 30, 1997 were $117,071,000, up 103% from revenues of
$57,779,000 for the corresponding period in 1996. Net income, excluding non-recurring charges related to
acquisition, was up 136% to $15,901,000 for the nine months ended Sept. 30, 1997 from $6,746,000 for the
nine months ended Sept. 30, 1996.
Earnings per share, excluding non-recurring charges related to acquisition, were up 103% to $0.63 from $0.31
in the year ago period. Including non recurring charges, net income and earnings per share for the nine months
ended Sept. 30, 1997 were $15,474,000 and $0.62, compared to the prior year net loss of $11,342,000 or
$0.59 per share, for the nine months ended Sept. 30, 1996.
Noam Lotan, MRV's president and CEO commented: "With a stream of new products introduced during the
quarter, MRV now has the industry's most comprehensive 10/100 Mbps product offering. Following the success
of the MegaSwitch II, we have introduced 16 port and 32 port 10/100 autosensing switches. Our intention is to
press on with additional product introductions, in the 10/100 space, during the current quarter. We aim for higher
port density, lower price per port and better features. We have started volume shipments of DirectIP, our IP
switching technology, and we are now starting to ship GFS 3012, our 12 port Gigabit Ethernet switch."
Lotan continued: "MRV is well positioned to benefit from the overall demand and growth of the LAN switching
market. Our ability to bring cost effective, state-of-the-art, technology early to market has been, and will continue
to be a critical factor for our success."
MRV is a leading manufacturer and marketer of high speed network switching and fiber optic transmission
systems which enhance the performance of existing data and telecommunications networks. The company
designs, manufactures and sells two groups of products: (i) computer networking products, primarily Ethernet
LAN switches, hubs and related equipment and (ii) fiber optic components for the transmission of voice, video
and data across enterprise, telecommunications and cable TV networks.
The company's advanced networking solutions greatly enhance the functionality of LANs by reducing network
congestion while allowing end users to preserve their legacy investments in pre-existing networks and by
providing cost-effective migration paths to next generation technologies such as Gigabit Ethernet. The
company's fiber optic components incorporate proprietary technology which delivers high performance under
demanding environmental conditions.
MRV COMMUNICATIONS INC.
Condensed Consolidated Balance Sheets
(In thousands, except share data)
Sept. 30, Dec. 31,
1997 1996
(unaudited) (audited)
ASSETS
Current Assets:
Cash & Cash Equivalents $ 10,109 $ 14,641
Short-term investments 46,767 17,659
Accounts receivable, net of
reserves of $2,534 in 1997 and
$2,404 in 1996 35,111 24,296
Inventories 23,972 18,238
Deferred income taxes 2,832 2,660
Other current assets 3,777 4,377
Total current assets 122,568 81,871
Property and Equipment - At cost,
net of depreciation and
amortization 6,099 6,248
Other Assets:
Goodwill 2,510 2,788
Investments 73,024 --
Deferred income taxes 4,284 6,036
Other 21 --
$208,506 $ 96,943
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current maturities of financing
lease obligations $ 36 $ 119
Accounts payable 17,058 11,328
Accrued liabilities 6,440 6,389
Accrued restructuring costs 253 3,549
Customer Deposits 176 1,500
Income taxes payable 2,027 2,013
Total current liabilities 25,990 24,898
Long-Term Liabilities
Convertible debentures -- 17,325
Capital lease obligations, net of
current portion 901 1,035
Other long-term liabilities 744 532
Total long term liabilities 1,645 18,892
Minority Interests 937 852
Stockholders' Equity:
Preferred stock, 1 cent par value:
no shares outstanding
Common stock, $0.0033 par value:
40 million shares authorized and
26,222,109 shares outstanding in
1997 and 21,745,481 shares
outstanding in 1996 87 72
Additional paid-in capital 172,579 60,164
Retained earnings (Deficit) 7,524 (7,950)
Cumulative translation adjustments (256) 15
Total stockholders' equity 179,934 52,301
$208,506 $ 96,943
MRV COMMUNICATIONS INC.
Condensed Consolidated Statements of Operations
(In thousands, except share data)
Nine Months Ended Three Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997 1996
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
REVENUES, net $ 117,071 $ 57,779 $ 41,979 $ 22,664
COSTS AND EXPENSES:
Cost of goods sold 66,866 33,682 23,805 13,282
Research and
development
expenses 9,094 5,787 3,305 2,111
Selling,
general and
administrative expenses 18,745 8,808 6,738 3,713
Purchased technology
in progress -- 17,795 -- 17,795
Restructuring costs -- 6,974 -- 6,974
Operating income 22,366 (15,267) 8,131 (21,211)
Interest expense
related to convertible
debentures and acquisition 427 2,236 -- 2,236
Other income, net 460 296 341 132
Provision (credit) for
income taxes 6,840 (5,982) 2,535 (7,865)
Minority interests 85 117 15 54
NET INCOME $ 15,474 $ (11,342) $ 5,922 $ (15,504)
EARNINGS PER SHARE: $ 0.62 $ (0.59) $ 0.23 $ (0.79)
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
AND COMMON SHARE
EQUIVALENTS
OUTSTANDING: 25,049,905 19,312,171 25,901,567 19,686,685
PRO FORMA INFORMATION (prior to non-recurring charges)
Nine Months Ended Three Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997 1996
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
NET INCOME PRIOR TO
NON-RECURRING CHARGES
NET OF THEIR
TAX EFFECTS $ 15,901 $ 6,746 $ 5,922 $ 2,584
EARNINGS PER SHARE PRIOR TO
NON-RECURRING CHARGES
NET OF THEIR
TAX EFFECTS $ 0.63 $ 0.31 $ 0.23 $ 0.12
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING 25,049,905 22,112,731 25,901,567 22,861,611
$0.23 for the quarter, up 92% from pro-forma EPS of $0.12 in the year ago period. The 1996 results referred to
above were prior to non-recurring charges related to acquisition. After non-recurring charges in the third quarter
of 1996 the net loss for that period was $15,504,000 or $0.79 per share.
Revenues for the nine months ended Sept. 30, 1997 were $117,071,000, up 103% from revenues of
$57,779,000 for the corresponding period in 1996. Net income, excluding non-recurring charges related to |
