MRV Communications Inc. Reports Record Fourth-Quarter and Year-end Results; Quarterly Sales Exceed $48 Million; EPS at Record 25 Cents
Business Wire via Dow Jones
CHATSWORTH, Calif.--(BUSINESS WIRE)--Feb. 23, 1998--MRV Communications Inc.
(Nasdaq:MRVC) Monday reported record revenues and profit for the quarter ended
Dec. 31, 1997.
Revenues for the quarter rose 56 percent to $48,400,000 from $31,036,000 in
the fourth quarter of 1996. Net income for the quarter increased 87 percent to
$7,111,000 from $3,809,000, excluding nonrecurring charges related to
acquisitions, in the same period last year.
Net income for the quarter ended Dec. 31, 1996, including nonrecurring charges
related to acquisitions, was $1,688,000. Diluted earnings per share for the
quarter were 25 cents, up 56 percent from 16 cents, excluding nonrecurring
charges related to acquisitions, in the year-ago period.
Including nonrecurring charges related to acquisitions, earnings per share
were 7 cents in the fourth quarter of 1996.
For the year 1997, revenues increased to $165,471,000 up 86 percent from
$88,815,000 in 1996. Net income, excluding nonrecurring charges related to
acquisitions, was $23,012,000 for the current year, compared with $10,555,000 in
the prior year, an increase of 118 percent.
Including nonrecurring charges for acquisitions, net income was $22,585,000 in
1997, compared with a net loss in 1996 of $9,654,000. Diluted earnings per
share, excluding nonrecurring charges related to acquisitions, were 89 cents,
compared with 46 cents, for the years ended Dec. 31, 1997 and 1996,
respectively, representing growth of 93 percent.
Including nonrecurring charges related to acquisitions, diluted earnings per
share were 88 cents in 1997, compared with a loss per share of 49 cents in 1996.
All earnings-per-share amounts represent diluted earnings per share as defined
within Statement of Financial Accounting Standards No. 128 (SFAS 128).
Noam Lotan, president and chief executive officer, commented: ''As in previous
quarters, our networking business was the main engine for growth. Once again,
our relentless pace of new-product introduction continued unabated -- from
10/100 desktop switches, priced at $99 per port, to award-winning Gigabit
Ethernet layer 2 and layer 3 Gigabit Ethernet switching products, and the new,
chassis-based Megaswitch 5000.
''With the recently announced acquisition of Xyplex Networks, MRV is one of
the most attractive vendors of end-to-end LAN and WAN solutions for the
enterprise.''
Lotan continued, ''As we enter 1998, MRV Communications is ready to shape the
future of global networking by providing technology- driven networks with an
unprecedented level of service and value to our customers.''
MRV is a leading provider of high-speed end-to-end systems that enhance the
performance of data and telecommunications networks. The company's advanced
networking solutions greatly enhance the functionality of LANs and WANs by
reducing network congestion while providing cost-effective migration paths to
next-generation technologies such as Gigabit Ethernet.
The company also manufactures and markets fiber-optic transmission modules and
subsystems that deliver high performance under demanding environmental
conditions.
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 Form
10-K and 10-Q, which identify important risk factors that could cause actual
results to differ from those contained in the forward-looking statements,
including potential fluctuations in quarterly results, dependence on new-product
development, rapid technological and market change, manufacturing risks,
volatility of stock price, financial-risk management and future growth subject
to risks.
MRV COMMUNICATIONS INC.
Condensed Consolidated Balance Sheets
(In thousands, except share data)
Dec. 31, Dec. 31,
1997 1996
(Audited) (Audited)
ASSETS
CURRENT ASSETS:
Cash & cash equivalents $19,428 $14,641
Short-term investments 36,413 17,659
Accounts receivable, net of
reserves of $4,252 in 1997
and $2,468 in 1996 47,258 24,296
Inventories 41,689 18,238
Deferred income taxes 2,280 2,660
Other current assets 7,248 4,377
Total current assets 154,316 81,871
PROPERTY AND EQUIPMENT -- At cost,
net of depreciation and amortization 8,183 6,248
OTHER ASSETS:
Goodwill 5,077 2,788
Investments 62,382 --
Deferred income taxes 6,231 6,036
Other 47 --
$236,236 $96,943
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of financing
lease obligations $ 111 $ 119
Accounts payable 30,439 11,328
Accrued liabilities 8,429 6,389
Accrued restructuring costs -- 3,549
Customer deposits 293 1,500
Income taxes payable 3,485 2,013
Total current liabilities 42,757 24,898
LONG-TERM LIABILITIES:
Convertible debentures -- 17,325
Capital lease obligations, net of
current portion 788 1,035
Other long-term liabilities 2,065 532
Total long-term liabilities 2,853 18,892
MINORITY INTERESTS 657 852
COMMON STOCK ISSUED IN CONNECTION
WITH ACQUISITION -- 10,530
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value:
1 million shares authorized, no shares
outstanding -- --
Common stock, $0.0034 par value:
40 million shares authorized and
26,359,806 shares outstanding in 1997
and 21,149,185 shares outstanding in 1996 88 70
Additional paid-in capital 175,874 49,636
Retained earnings (deficit) 14,635 (7,950)
Cumulative translation adjustments (628) 15
Total stockholders' equity 189,969 41,771
$236,236 $96,943
MRV COMMUNICATIONS INC.
Condensed Consolidated Statements of Operations
(In thousands, except share data)
Year ended
Dec. 31,
1997 1996
(Audited) (Audited)
REVENUES, net $165,471 $88,815
COSTS AND EXPENSES:
Cost of goods sold 94,709 51,478
Research and development expenses 13,093 8,201
Selling, general and administrative
expenses 27,365 14,025
Purchased technology in progress -- 17,795
Restructuring costs -- 6,974
Operating income 30,304 (9,658)
Interest expense related to convertible
debentures and acquisition 427 4,357
Other income (expense), net 2,328 153
Provision (credit) for income taxes 9,474 (4,404)
Minority interests 146 196
NET INCOME (LOSS) $ 22,585 $(9,654)
NET INCOME (LOSS) PER SHARE -- BASIC $ 0.95 $ (0.49)
NET INCOME (LOSS) PER SHARE -- DILUTED $ 0.88 $ (0.49)
SHARES USED IN PER-SHARE CALCULATION --
BASIC 23,670,370 19,739,350
SHARES USED IN PER-SHARE CALCULATION --
DILUTED 25,733,784 19,739,350
Three months ended
Dec. 31,
1997 1996
(Unaudited) (Unaudited)
REVENUES, net $ 48,400 $31,036
COSTS AND EXPENSES:
Cost of goods sold 27,843 17,796
Research and development expenses 3,999 2,414
Selling, general and administrative
expenses 8,620 5,217
Purchased technology in progress -- --
Restructuring costs -- --
Operating income 7,938 5,609
Interest expense related to convertible
debentures and acquisition -- 2,121
Other income (expense), net 1,868 (143)
Provision (credit) for income taxes 2,634 1,578
Minority interests 61 79
NET INCOME (LOSS) $ 7,111 $ 1,688
NET INCOME (LOSS) PER SHARE -- BASIC $ 0.27 $ 0.08
NET INCOME (LOSS) PER SHARE -- DILUTED $ 0.25 $ 0.07
SHARES USED IN PER-SHARE CALCULATION --
BASIC 26,314,971 21,011,628
SHARES USED IN PER-SHARE CALCULATION --
BW0366 FEB 23,1998 13:35 PACIFIC 16:35 EASTERN |
