NEWSWIRE) DJ: MRV Communications Reports Revenues and Earnings for Sec
DJ: MRV Communications Reports Revenues and Earnings for Second Quarter 1998
CHATSWORTH, Calif.--(BUSINESS WIRE)--July 27, 1998--MRV Communications
(Nasdaq: MRVC) today reported financial results for the second quarter ended
June 30, 1998.
Revenues for the second quarter of 1998 were $65.7 million, up 66 percent
from $39.5 million in revenues reported in the second quarter of 1997.
Net income for the second quarter of 1998 was $8.7 million, or $0.31 per
share. This compares with net income of $5.2 million or $0.21 per share for
the second quarter of 1997.
"We are pleased to announce our 34th quarter of consecutive revenue growth,"
said Noam Lotan, president and CEO of MRV Communications. "Over the last
eighteen months, MRV has transitioned from a small niche player in the
10/100 space, to an emerging full-service networking vendor with strong
backbone and WAN product capability. As more and more opportunities emerge
in metro-access networks, we believe that our expertise in fiber optics will
increasingly differentiate MRV from other vendors," added Lotan.
The statements in this news release, other than the historical financial
information, may contain forward-looking statements that involve risks and
uncertainties that could cause actual results to differ from anticipated
results. Further information on risk factors that could affect the company's
results is detailed in the company's Annual Report on Form 10-K for the year
ended December 31, 1997, as filed with the Securities and Exchange
Commission, as well as the Form 10-Q for the quarter ended March 31, 1998,
to be filed with the Securities and Exchange Commission.
About MRV Communications Inc.
MRV Communications Inc. is a leading provider of high-speed optical networks
integrating switching, routing, remote access and fiber optic transmission
systems that enhance the performance of existing telecommunications
networks. The Company's advanced networking solutions enhance the
functionality of LANs and WANs by reducing network congestion and provide
cost-effective migration paths to next generation Converged Networks with
technologies such as Gigabit Ethernet, Remote Access and Voice over IP. The
Company's fiber optic transmission products deliver voice, data and video
traffic, under demanding environmental conditions, to carriers, enterprise
customers and residential networks.
MRV COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
REVENUES, net $ 126,568 $ 75,092 $ 65,742 $ 39,528
COSTS AND EXPENSES:
Cost of goods sold 70,754 43,061 36,749 22,885
Research and development
expenses 10,525 5,789 5,282 3,041
Selling, general and
administrative expenses 23,581 12,007 12,119 6,232
Purchased technology
in progress 30,571 -- -- --
Restructuring costs 23,194 -- -- --
Operating (loss) income (32,057) 14,235 11,592 7,370
Interest expense related to
convertible debentures and
acquisition -- 427 -- 19
Other income
(expense), net 1,374 119 690 285
(Credit) Provision for
income taxes 363 4,305 3,530 2,367
Minority interests 240 70 16 60
NET INCOME (LOSS) $ (31,286) $ 9,552 $ 8,735 $ 5,209
NET INCOME (LOSS)
PER SHARE - BASIC $ (1.18) $ 0.42 $ 0.33 $ 0.23
NET INCOME (LOSS)
PER SHARE - DILUTED $ (1.18) $ 0.38 $ 0.31 $ 0.21
SHARES USED IN PER -
SHARE CALCULATION -
BASIC 26,440 22,501 26,492 22,812
SHARES USED IN PER -
SHARE CALCULATION -
DILUTED 26,440 24,892 28,536 25,206
SELECTED PRO FORMA INFORMATION (prior to non-recurring charges)
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
OPERATING INCOME $ 21,708 $ 14,235 $ 11,592 $ 7,370
NET INCOME $ 16,213 $ 9,552 $ 8,735 $ 5,209
NET INCOME PER SHARE
- BASIC $ 0.61 $ 0.42 $ 0.33 $ 0.23
NET INCOME PER SHARE
- DILUTED $ 0.57 $ 0.38 $ 0.31 $ 0.21
SHARES USED IN PER
- SHARE CALCULATION
- BASIC 26,440 22,501 26,492 22,812
SHARES USED IN PER
- SHARE CALCULATION
- DILUTED 28,493 24,892 28,536 25,206
MRV COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
June 30, December 31,
1998 1997
(unaudited) (audited)
ASSETS
CURRENT ASSETS:
Cash & cash equivalents $116,971 $ 19,428
Short-term investments 21,651 36,413
Accounts receivable, net of
reserves of $6,337 in 1998
and $4,252 in 1997 60,636 47,258
Inventories 45,389 41,689
Deferred income taxes 8,567 2,280
Other current assets 7,570 7,248
Total current assets 260,784 154,316
PROPERTY AND EQUIPMENT -
At cost, net of
depreciation and amortization 19,470 8,183
OTHER ASSETS:
Goodwill 21,533 5,077
Investments 16,971 62,382
Deferred income taxes 6,112 6,231
Loan acquisition
costs and other 4,409 47
------- -------
$329,279 $236,236
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of
financing lease obligations $ 141 $ 111
Accounts payable 27,406 30,439
Accrued liabilities 11,700 8,429
Accrued restructuring costs 8,713 --
Deferred revenue 4,876 293
Income taxes payable 4,723 3,484
Total current liabilities 57,559 42,756
LONG-TERM LIABILITIES
Convertible debentures 100,000 --
Capital lease obligations,
net of current portion 882 788
Deferred income taxes 425 --
Other long-term liabilities 1,579 2,065
Total long term liabilities 102,886 2,853
MINORITY INTERESTS 2,633 657
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value:
1,000 shares authorized
no shares outstanding -- --
Common stock, $0.0034 par value:
40,000,000 shares authorized and
26,520 shares outstanding in 1998
and 26,360 shares outstanding in 1997 90 88
Additional paid-in capital 183,323 175,874
Retained earnings (deficit) (16,650) 14,636
Cumulative translation adjustments (562) (628)
Total stockholders' equity 166,201 189,970
------- -------
$ 329,279 $ 236,236
CONTACT: Stapleton Communications Inc.
Willa Patch, 650/470 4230
willa@stapleton.com
16:10 EDT JULY 27, 1998
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