Monday February 10 7:15 AM EDT
MRV Communications, Inc. Reports Record Fourth Quarter and Year-End Results
Quarterly Sales Exceed $31 million; EPS at record $0.16 up 100%
CHATSWORTH, Calif.--(BUSINESS WIRE)--Feb. 10, 1997--MRV Communications, Inc. (Nasdaq MRVC) today reported record revenues and profit for the quarter ended December 31, 1996. Revenues for the quarter rose 138% to $31,036,000 from $13,020,000 in the fourth quarter of 1995. Net income for the quarter increased 142% to $3,809,000 from $1,574,000 in the same period last year. Earnings per share for the quarter were $0.16, up 100% from $0.08 in the year ago period.
For the year 1996 Revenues increased to $88,815,000 up 127% from $39,202,000 in 1995. Excluding non-recurring charges related to acquisitions, net income was $10,555,000 for the current year compared to $4,345,000 in the prior year, an increase of 143%. Including non-recurring charges for acquisitions net losses were $5,297,000 and $1,273,000 in 1996 and 1995, respectively. Excluding non-recurring charges, earnings per share were $0.46 compared to $.23 for the years ended December 31, 1996 and 1995 respectively, representing growth of 100%. Including non-recurring charges, losses per share were $0.27 versus $0.07 in 1996 and 1995, respectively.
Noam Lotan, President and CEO commented: "The switching product line was the main driving engine in our strong sequential growth. Our goal is to lead in High Speed Networks, and MegaSwitch II, which provides high speed 10,100 and 1,000 Mb Ethernet capability, is clearly the best in its class Fast Ethernet/ Gigabit Ethernet switch. We have recently announced DirectIP switching, which offers Router functionality with the performance and low cost of Switching. As users contemplate upgrading to higher speed networks, including Gigabit Ethernet, Routers cannot keep up. The Scalability of DirectIP Switching to any switching speed, coupled with our current high speed Switching products is a very compelling message."
With manufacturing and design centers on two continents, MRV Communications, Inc. is a leading manufacturer of LAN connectivity solutions and digital and linear fiber optic transmission products for computer networks, telephony and cable TV communications.
For more information contact: Investor Relations at MRV Communications, Inc. Tel: 818 886-MRVC .
MRV COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
(audited)
December 31, December 31,
1996 1995
ASSETS
CURRENT ASSETS:
Cash & Cash Equivalents $ 14,641 $ 1,951
Restricted cash - 6,272
Short-term investments 17,659 1,000
Accounts receivable, net of
reserves of $ 2,404 in 1996
and $ 825 in 1995 24,296 10,780
Inventories 18,238 8,382
Deferred income taxes 2,660 804
Due from Elbit 2,154 -
Other current assets 2,232 83
Total current assets 81,880 29,272
PROPERTY AND EQUIPMENT - At cost,
net of depreciation and amortization 6,248 2,060
OTHER ASSETS:
U.S. Treasury notes 0 -
Goodwill 2,759 525
Deferred income taxes 6,057 925
Other 20 525
$ 96,964 $ 33,307
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 11,328 4,342
Current maturities of
financing lease obligations 119 -
Accrued liabilities 9,937 2,221
Customer Deposits 1,501 -
Income taxes payable 2,013 1,215
Total current liabilities 24,898 7,778
DEFERRED RENT - 46
DEFERRED INCOME TAXES 21 -
OTHER LONG TERM DEBT 1,567 225
FINANCING LEASE OBLIGATIONS 0 -
CONVERTIBLE DEBENTURES 17,325 -
MINORITY INTERESTS 852 -
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value:
no shares outstanding
Common stock, $0.0033 par value:
40,000,000 shares authorized and
21,745,481 shares outstanding in 1996
and 18,929,538 shares outstanding in 1995 72 63
Additional paid-in capital 55,807 23,491
(Deficit) Retained earnings (3,593) 1,704
Adjustment for foreign currency translation 15 -
Total stockholders' equity 52,301 25,258
$ 96,964 $ 33,307
MRV COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
Unaudited Audited
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1996 1995 1996 1995
REVENUES, net $ 31,036 $ 13,020 $ 88,815 $ 39,202
COSTS AND EXPENSES:
Cost of goods sold 17,796 7,204 51,478 22,608
Research and development
expenses 2,414 1,382 8,201 4,044
Selling, general and
administrative
expenses 5,217 2,407 14,025 6,799
Purchased technology
in progress - - 17,795 6,211
Restructuring costs - - 6,974 1,465
Operating (loss)
income 5,609 2,027 (9,658) (1,925)
Other (loss) income,
net of interest
expense (143) 128 153 65
Provision (Credit) for
income taxes 1,578 581 (4,404) 2
Minority interests 79 - 196 -
NET INCOME (LOSS) $ 3809 $ 1574 $ (5297) $ (1273)
EARNINGS (LOSS)
PER SHARE: $ 0.16 $ 0.08 $ (0.27) $ (0.07)
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES AND
COMMON SHARE
EQUIVALENTS
OUTSTANDING: 24,593 20,447 19,739 18,377
PRO FORMA INFORMATION (prior to non-recurring charges)
UNAUDITED
Year Ended
Dec. 31, Dec. 31,
1996 1995
NET INCOME PRIOR TO
NON-RECURRING CHARGES
NET OF THEIR TAX EFFECTS $ 10,555 $ 4,345
EARNINGS PER SHARE PRIOR TO
NON-RECURRING CHARGES
NET OF THEIR TAX EFFECTS $ 0.46 $ 0.23
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES AND COMMON SHARE
EQUIVALENTS OUTSTANDING: 23,286 19,236
Note: EPS for the three months and pro forma EPS for the year
ended Decmber 31, 1996 reflect the add back of interest expense on
debentures outstanding at December 31, 1996 and the weighted average
number of common shares outstanding for those periods includes the
common stock equivalent of those debentures.
CONTACT: MRV Communications, Inc.
Investor Relations, 818/886-MRVC |
