Exerpts of 10k filing
March 31, 1999 12:34
MRV COMMUNICATIONS INC files 12/31/98 10-K. Reports $264 mil tot rev, $-20.1 mil NI, $-0.76 EPS,
2.7 mil extraord..
Excerpted from 10-K405 filed on 03/31 by MRV COMMUNICATIONS INC:
MRV COMMUNICATIONS INC files 12/31/98 10-K. Reports $264 mil tot rev, $-20.1 mil NI, $-0.76 EPS, 2.7 mil extraord..
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, statements of
operations data of the Company expressed as a percentage of revenues.
TABLE
CAPTION
Year ended December 31,
1996 1997 1998
S C C C
Revenues, net ........................................... 100.0% 100.0% 100.0%
Cost of goods sold ...................................... 58.0 57.2 61.5
Write-down of discontinued products ..................... -- -- 1.2
Research and development expenses ....................... 9.2 7.9 9.8
Selling, general and administrative expenses ............ 15.8 16.5 21.5
Operating income before purchased technology in
progress and restructuring costs ...................... 17.0 18.3 6.1
Purchased technology in progress ........................ 20.0 -- 7.8
Restructuring costs ..................................... 7.9 -- 5.9
Operating income (loss) ................................. (10.9) 18.3 (7.6)
Other income (expense), net ............................. 0.2 1.7 2.6
Interest expense related to convertible debentures/notes (4.9) (0.5) (0.9)
Income (loss) before provision for income taxes, minority
interests and extraordinary item ...................... (15.6) 19.5 (6.0)
Provision (credit) for income taxes ..................... (5.0) 5.7 2.2
Minority interests ...................................... 0.2 0.1 0.5
Gain on repurchase of convertible notes, net of tax ..... -- -- 1.1
Net income (loss) ....................................... (10.9)% 13.6% (7.6)%
====== ====== ======
TABLE
Years ended December 31, 1998 and 1997
Revenues. Revenues for the year ended December 31, 1998 were
$264,075,000, compared to $165,471,000 for the year ended December 31, 1997, an
increase of 59.6%. Revenues from sales of networking products and optical
transmission products were 81.5% and 18.5%, respectively, of total revenues
during the year ended December 31, 1998 as compared to 76.1% and 23.9%,
respectively, of total revenues during the year ended December 31, 1997.
Revenues increased as a result of a larger sales force, greater marketing
efforts and greater market acceptance of the Company's products, both
domestically and internationally. The increase in sales of networking products
during the year ended December 31, 1998 over 1997 was the result of an
increased number of networking products available for sale and a larger sales,
marketing and customer support organization to support such sales. International
sales accounted for approximately 59.3% of revenues for year ended December 31,
1998, as compared to 59.8% of revenues for year ended December 31, 1997.
Gross Profit; Write-down of Discontinued Products. Gross profit for the
year ended December 31, 1998 was $101,791,000 compared to $70,762,000 for the
year ended December 31, 1997. The changes represented an increase of $31,029,000
or 43.8% for the year ended December 31, 1997. Gross Profit as a percentage of
revenues decreased from 42.8% during the year ended December 31, 1997 to 38.5%
for the year ended December 31, 1998 as a result of intense price competition
from competitors. The Company had planned to compensate for such price
competition by introducing new lower cost products during the latter half of
1998. However, while the Company did begin shipping such products during the
last quarter of 1998, they were introduced too late in the year to make
meaningful contributions to revenue.
During the last quarter of 1998, the Company determined to discontinue
some of its low-end networking products that were not sufficiently profitable
and this resulted in a one time write-down of $3,101,000.
(End of item excerpt.)
----------FINANCIAL DATA SCHEDULE--------
MULTIPLIER 1,000
CURRENCY U.S. DOLLARS
PERIOD-TYPE YEAR
FISCAL-YEAR-END DEC-31-1998
PERIOD-START JAN-01-1998
PERIOD-END DEC-31-1998
EXCHANGE-RATE 1.00
CASH 20,692
SECURITIES 127,201
RECEIVABLES 63,083
ALLOWANCES 8,487
INVENTORY 47,467
CURRENT-ASSETS 163,791
DEPRECIATION 9,201
TOTAL-ASSETS 320,192
CURRENT-LIABILITIES 48,473
BONDS 90,000
PREFERRED-MANDATORY 0
PREFERRED 0
COMMON 88
OTHER-SE 174,341
TOTAL-LIABILITY-AND-EQUITY 320,192
SALES 264,075
TOTAL-REVENUES 264,075
CGS 165,385
TOTAL-COSTS 118,874
OTHER-EXPENSES 1,345
LOSS-PROVISION 2,591
INTEREST-EXPENSE 3,180
INCOME-PRETAX (17,190)
INCOME-TAX 5,707
INCOME-CONTINUING (22,897)
DISCONTINUED 0
EXTRAORDINARY 2,791
CHANGES 0
NET-INCOME (20,106)
EPS-PRIMARY (0.76)
EPS-DILUTED (0.76)
.
MRVC at this time.
Current Consensus Opinion
Analysts' Opinion No. of Ratings
Buy 2
Buy/Hold 1
Hold 1
Weak Hold 0
Sell 0
No Opinion 0
Total 4
Current Consensus Opinion displays analysts' recommendations. Because analysts tend to be
overly bullish, the overall rating is compared to ratings for other companies, and normalized to
adjust for this positive bias. Historical Consensus Opinion shows this adjusted overall rating.
Historical Consensus Opinion
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