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MRV COMMUNICATIONS INC. ANNOUNCES THIRD QUARTER RESULTS
BUSINESS EDITORS
CHATSWORTH, Calif.--(BUSINESS WIRE)--Oct. 25, 1999--MRV
Communications Inc. (Nasdaq:MRVC.O), a leading provider of high-speed
optical network components and systems, Monday reported results for
the third quarter ended Sept. 30, 1999.
Revenues for the quarter were $71,254,000, up from $62,624,000 in
the third quarter of 1998. Net income for the third quarter of 1999
was $567,000, compared with net income of $1,348,000 in the quarter
ended Sept. 30, 1998.
Basic and diluted earnings per share for the second quarter of
1999 were $0.02, compared with basic and diluted earnings per share of
$0.05 in the third quarter of 1998.
Revenues for the nine months ended Sept. 30, 1999, were
$214,621,000, compared with $189,192,000 for the corresponding
nine-month period in 1998.
Net income for the nine months ended Sept. 30, 1999, was
$183,000, compared with net income, excluding non-recurring charges,
of $17,216,000 for the corresponding period in 1998. Including
non-recurring charges, net loss for the nine months ended Sept. 30,
1998, was $20,345,000.
Basic and diluted earnings per share for the nine months ended
Sept. 30, 1999, were $0.01, compared with basic and diluted earnings
per share of $0.65 and $0.62, respectively, excluding non-recurring
charges, for the nine months ended Sept. 30, 1998. Including
non-recurring charges, basic and diluted losses per share for the nine
months ended Sept. 30, 1998, were $0.77.
Noam Lotan, president and chief executive officer, commented:
"During the third quarter we continued to see trends evident in recent
quarters of increasing strength in the optical components business,
stability in the data networking business and outstanding execution by
our affiliates.
"One of our affiliates, New Access Communications, secured
second-round funding from Kleiner, Perkins, Caufield & Byers and from
Juniper Networks (Nasdaq:JNPR.O). This investment decision was
beneficial to the acceleration of New Access's business plan and was
clearly validated by last week's IPO by Sycamore and the recent
acquisition of Cerent by Cisco."
Lotan continued: "The launch of Hyporium by Hyperchannel within
the last two weeks was further evidence of strong progress by an
affiliate. At the launch, Hyperchannel was endorsed by major
manufacturers such as IBM, Compaq, 3Com, Oracle and Novell, as well as
major IT distributors Computer 2000 and Computacenter Distribution.
"The electronic Hyporium trading hub is dedicated to converting
the existing two-tier distribution chain for IT products in the United
Kingdom and Europe into a virtual marketplace. This is a vertical B2B
market opportunity that has not been properly addressed until now."
Lotan added: "During the third quarter, we were honored to
welcome two new board members to MRV. Professor Dan Tsui, a 1998 Nobel
Prize laureate in physics and Professor Baruch Fischer, dean of the
electrical engineering department at the Technion, Israel Institute of
Technology.
"Both board members bring to MRV, and in particular to the
Optical Access Group within MRV, an opportunity to enhance our
intellectual capital and our spirit of innovation."
MRV Communications is a world-class leader in optical access. Its
products integrate fiber-optic transmission, switching, routing and
remote access to enhance the performance of enterprise and carriers'
networks. MRV's fiber-optic transmission components send Broadband
Internet, voice, cable and cellular telephony to carriers and access
networks.
Through its NBase-Xyplex brand, the company provides network
enhancement solutions that accelerate the deployment and improve the
performance of complex data networks. For more information, visit MRV
at www.mrv.com.
This release may contain forward-looking statements that involve
risks and uncertainties. These statements may differ materially from
actual future events or results. Readers are referred to the documents
filed by MRV with the Securities and Exchange Commission, specifically
the most recent reports on Forms 10K and 10Q, which identify important
risk factors that could cause actual results to differ from those
contained in the forward-looking statements, including potential
fluctuations in operating results, dependence on new product
developments, rapid technological and market changes, manufacturing
risks, volatility of the company's stock price, financial risk
management, and future growth subject to risks.
NOTE TO EDITORS: MRV and its logos are registered trademarks of
MRV Communications Inc. All other names may be trademarks, service
marks or registered trademarks of their respective vendors.
*T
MRV Communications Inc.
Condensed Consolidated Balance Sheets
(In thousands)
Sept. 30, Dec. 31,
1999 1998
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash & cash equivalents $ 30,128 $ 20,692
Short-term investments 16,103 30,493
Accounts receivable, net of
reserves of $8,303 in 1999 and
$8,489 in 1998 57,678 54,596
Inventories 49,966 47,467
Deferred income taxes 4,876 5,035
Other current assets 6,303 5,508
Total Current Assets 165,054 163,791
PROPERTY AND EQUIPMENT - At Cost,
net of depreciation and amortization 19,962 19,357
OTHER ASSETS:
Goodwill 28,388 26,666
Investments, principally U.S. Treasuries 97,604 100,138
Deferred income taxes 5,886 5,661
Loan financing costs and other 3,457 4,579
$ 320,351 $ 320,192
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of financing
lease obligations $ 51 $ 185
Accounts payable 31,389 29,757
Accrued liabilities 13,683 13,606
Accrued restructuring costs - 82
Deferred revenue 1,646 4,398
Income taxes payable 1,130 445
Total current liabilities 47,899 48,473
LONG-TERM LIABILITIES:
Convertible debentures 90,000 90,000
Capital lease obligations,
net of current portion 1,938 1,400
Deferred income taxes 365 48
Other long-term liabilities 2,659 2,869
Total long-term liabilities 94,962 94,317
MINORITY INTERESTS 2,425 2,973
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value:
1,000 shares authorized no
shares outstanding - -
Common stock, $0.0034 par value:
80,000 shares authorized and
27,152 shares outstanding in 1999
and 26,639 shares outstanding in 1998 95 88
Additional paid-in capital 182,537 180,656
Treasury stock (133) (133)
Retained earnings (deficit) (5,285) (5,471)
Other comprehensive income (loss) (2,149) (711)
Total stockholders' equity 175,065 174,429
$ 320,351 $ 320,192
MRV Communications Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Nine Months Ended, Three Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
(Unaudited) (Unaudited) (Unaudited)(Unaudited)
REVENUES:
Data Networking $ 167,128 $ 154,753 $ 53,795 $ 50,811
Optical Access 47,493 34,439 17,459 11,813
Total Revenues 214,621 189,192 71,254 62,624
COSTS AND EXPENSES:
Cost of goods sold 138,614 109,098 44,653 38,344
Research and
development
expenses 25,513 17,337 8,476 6,812
Selling, general and
administrative
expenses 48,269 39,775 16,532 15,849
Purchased technology
in progress - 20,633 - -
Restructuring costs - 23,194 - -
Operating income
(loss) 2,225 (20,845) 1,593 1,619
Interest expense
related to
convertible notes 3,375 1,370 1,125 1,370
Other income
(expense), net 3,950 3,282 1,290 1,908
Provision
for income taxes 2,578 1,042 1,169 679
Minority interests 39 370 22 130
NET INCOME (LOSS) $ 183 $ (20,345) $ 567 $ 1,348
NET INCOME (LOSS)
PER SHARE - BASIC $ 0.01 $ (0.77) $ 0.02 $ 0.05
NET INCOME (LOSS) PER
SHARE - DILUTED $ 0.01 $ (0.77) $ 0.02 $ 0.05
SHARES USED IN
PER-SHARE
CALCULATION - BASIC 26,765 26,497 26,934 26,609
SHARES USED IN
PER-SHARE CALCULATION
- DILUTED 29,293 26,497 30,077 27,390
MRV Communications Inc.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(excluding non-recurring items)
(In thousands, except per share data)
Nine Months Ended, Three Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
(Unaudited) (Unaudited) (Unaudited)(Unaudited)
REVENUES, net $ 214,621 $ 189,192 $ 71,254 $ 62,624
COSTS AND EXPENSES:
Cost of goods sold 138,614 109,098 44,653 38,344
Research and
development
expenses 25,513 17,337 8,476 6,812
Selling, general
and administrative
expenses 48,269 39,775 16,532 15,849
Operating income 2,225 22,982 1,593 1,619
Interest expense
related to
convertible notes 3,375 1,370 1,125 1,370
Other income
(expense), net 3,950 3,282 1,290 1,908
Provision for
income taxes 2,578 7,308 1,169 679
Minority interests 39 370 22 130
NET INCOME $ 183 $ 17,216 $ 567 $ 1,348
NET INCOME
PER SHARE - BASIC $ 0.01 $ 0.65 $ 0.02 $ 0.05
NET INCOME
PER SHARE - DILUTED $ 0.01 $ 0.62 $ 0.02 $ 0.05
SHARES USED IN
PER-SHARE
CALCULATION - BASIC 26,765 26,497 26,934 26,609
SHARES USED IN
PER-SHARE CALCULATION
- DILUTED 29,293 27,771 30,077 27,390
NOTE: PRO FORMA STATEMENTS ABOVE EXsed technology
in progress - 20,633 - -
Restructuring costs - 23,194 - -
*T
--30--MRA/la* KWP/la
CONTACT: MRV Communications, Chatsworth
Diana Hayden (Investor Relations), 818/886-6782
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: NETWORKING TELECOMMUNICATIONS INTERNET EARNINGS
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Copyright 1999, Business Wire
© 1999 DLJdirect Inc. All Rights Reserved. Member SIPC and NASD. Trademarks of DLJ Long Term
Investment Corporation.
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