Company Press Release
MRV Communications Inc. Announces Third Quarter
Results
CHATSWORTH, Calif.--(BUSINESS WIRE)--Oct. 25, 1999--MRV Communications
Inc. (Nasdaq:MRVC - news), 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 - news). 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. |
