DELAWARE | 001-11174 | 06-1340090 | ||
(State or other jurisdiction of | (Commission file number) | (I.R.S. employer | ||
incorporation or organization) | identification number) |
Exhibit Number | Description | ||
99.1 | Press Release dated August 4, 2016 |
Date: August 4, 2016 | ||
MRV COMMUNICATIONS, INC. | ||
By: | /s/ Stephen G. Krulik | |
Stephen G. Krulik | ||
Chief Financial Officer |
• | Revenue was $21.6 million, compared to $24.5 million. The reduction reflects the impact of certain significant network project installations completed in the second quarter of 2015 as well as a reduction of sales of our legacy infrastructure management products. Sequentially, revenue grew 14% from $18.9 million in the first quarter of 2016, driven by 19% growth in packet and optical products. |
• | Gross margin was 46.7%, compared to 48.8%. The decline reflects the impact of product mix including the reduced contribution from our legacy infrastructure management products and the impact of increased revenue of 100G products that have higher average costs in current quantities. Gross margin was also negatively impacted by $325,000 of one-time costs associated with the company’s contract manufacturing consolidation. |
• | Operating expenses were $12.1 million, compared to $12.7 million, reflecting lower commission expense due to the lower revenue and careful management of all operating expenses. |
• | GAAP net loss from continuing operations was $2.0 million, or $0.29 per share, compared to $1.1 million, or $0.16 per share. |
• | Non-GAAP net loss from continuing operations was $1.3 million, or $0.19 per share, compared to $0.8 million, or $0.11 per share. |
• | Total GAAP net loss, including discontinued operations, was $2.0 million, or $0.29 per share, compared to $0.3 million, or $0.04 per share. |
• | Total revenue amounted to $40.5 million, compared to $46.7 million, primarily due to reduced sales of legacy infrastructure management products and fewer network expansion projects in the first half of 2016. |
• | Year-to-date, total gross margin was 49.1%, compared to 50.3%. |
• | GAAP net loss from continuing operations was $5.9 million, or $0.84 per share, compared to $2.4 million, or $0.34 per share. |
• | Non-GAAP net loss from continuing operations was $4.8 million, or $0.69 per share, compared $1.7 million, or $0.24 per share. |
• | Total GAAP net loss, including discontinued operations, was $5.9 million, or $0.84 per share, compared to $1.3 million, or $0.19 per share. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue: | |||||||||||||||
Product revenue | $ | 18,658 | $ | 21,495 | $ | 34,665 | $ | 40,963 | |||||||
Service revenue | 2,926 | 3,024 | 5,801 | 5,741 | |||||||||||
Total revenue | 21,584 | 24,519 | 40,466 | 46,704 | |||||||||||
Cost of Revenue: | |||||||||||||||
Cost of product | 10,285 | 11,632 | 17,880 | 21,249 | |||||||||||
Cost of services | 1,228 | 928 | 2,712 | 1,952 | |||||||||||
Total cost of revenue | 11,513 | 12,560 | 20,592 | 23,201 | |||||||||||
Gross profit | 10,071 | 11,959 | 19,874 | 23,503 | |||||||||||
Operating expenses: | |||||||||||||||
Product development and engineering | 5,125 | 5,310 | 10,469 | 10,435 | |||||||||||
Selling, general and administrative | 7,007 | 7,379 | 15,024 | 15,115 | |||||||||||
Total operating expenses | 12,132 | 12,689 | 25,493 | 25,550 | |||||||||||
Operating loss | (2,061 | ) | (730 | ) | (5,619 | ) | (2,047 | ) | |||||||
Interest expense | — | (22 | ) | — | (36 | ) | |||||||||
Other income (expense), net | 74 | (296 | ) | (203 | ) | (215 | ) | ||||||||
Loss from continuing operations before provision for income taxes | (1,987 | ) | (1,048 | ) | (5,822 | ) | (2,298 | ) | |||||||
Provision for income taxes | 36 | 77 | 97 | 127 | |||||||||||
Loss from continuing operations | (2,023 | ) | (1,125 | ) | (5,919 | ) | (2,425 | ) | |||||||
Income from discontinued operations, net of income taxes of $675 and $813 in 2015 | — | 844 | — | 1,076 | |||||||||||
Net loss | $ | (2,023 | ) | $ | (281 | ) | $ | (5,919 | ) | $ | (1,349 | ) | |||
Net income (loss) per share — basic | |||||||||||||||
From continuing operations | $ | (0.29 | ) | $ | (0.16 | ) | $ | (0.84 | ) | $ | (0.34 | ) | |||
From discontinued operations | — | 0.12 | — | 0.15 | |||||||||||
Net loss per share — basic | $ | (0.29 | ) | $ | (0.04 | ) | $ | (0.84 | ) | $ | (0.19 | ) | |||
Net income (loss) per share — diluted | |||||||||||||||
From continuing operations | $ | (0.29 | ) | $ | (0.16 | ) | $ | (0.84 | ) | $ | (0.34 | ) | |||
From discontinued operations | — | 0.12 | — | 0.15 | |||||||||||
Net loss per share — diluted | $ | (0.29 | ) | $ | (0.04 | ) | $ | (0.84 | ) | $ | (0.19 | ) | |||
Weighted average number of shares: | |||||||||||||||
Basic | 7,092 | 6,988 | 7,042 | 7,059 | |||||||||||
Diluted | 7,092 | 6,988 | 7,042 | 7,059 |
June 30, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 24,810 | $ | 26,169 | |||
Restricted time deposits | 5,168 | 5,190 | |||||
Accounts receivable, net | 15,928 | 14,837 | |||||
Inventories, net | 8,407 | 10,226 | |||||
Other current assets | 1,983 | 6,851 | |||||
Total current assets | 56,296 | 63,273 | |||||
Property and equipment, net | 3,593 | 4,050 | |||||
Intangible asset, net | 1,031 | 1,153 | |||||
Other assets | 478 | 608 | |||||
Total assets | $ | 61,398 | $ | 69,084 | |||
Liabilities and stockholders' equity | |||||||
Current liabilities: | |||||||
Deferred consideration payable | $ | 233 | $ | 233 | |||
Accounts payable | 5,959 | 5,749 | |||||
Accrued liabilities | 9,398 | 9,972 | |||||
Deferred revenue | 7,086 | 7,642 | |||||
Other current liabilities | 378 | 196 | |||||
Total current liabilities | 23,054 | 23,792 | |||||
Other long-term liabilities | 3,964 | 3,846 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred Stock, $0.01 par value: Authorized — 1,000 shares; no shares issued or outstanding | — | — | |||||
Common Stock, $0.0017 par value: | |||||||
Authorized — 16,000 shares | |||||||
Issued — 8,435 shares in 2016 and 8,341 shares in 2015 | |||||||
Outstanding — 6,887 shares in 2016 and 6,982 in 2015 | 270 | 270 | |||||
Additional paid-in capital | 1,286,475 | 1,285,787 | |||||
Accumulated deficit | (1,233,590 | ) | (1,227,671 | ) | |||
Treasury stock — 1,547 shares in 2016 and 1,359 shares in 2015 | (17,227 | ) | (15,355 | ) | |||
Accumulated other comprehensive loss | (1,548 | ) | (1,585 | ) | |||
Total stockholders' equity | 34,380 | 41,446 | |||||
Total liabilities and stockholders' equity | $ | 61,398 | $ | 69,084 |
Three Months ended June 30 | Six Months ended June 30 | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue: | ||||||||||||||||
GAAP revenue | $ | 21,584 | $ | 24,519 | $ | 40,466 | $ | 46,704 | ||||||||
Cost of revenue | ||||||||||||||||
GAAP cost of revenue | 11,513 | 12,560 | 20,592 | 23,201 | ||||||||||||
Stock-based charges | (28 | ) | (25 | ) | (70 | ) | (55 | ) | ||||||||
Severance & transition costs | (325 | ) | — | (325 | ) | — | ||||||||||
Non-GAAP adjusted cost of revenue | 11,160 | 12,535 | 20,197 | 23,146 | ||||||||||||
Gross profit: | ||||||||||||||||
GAAP gross profit | 10,071 | 11,959 | 19,874 | 23,503 | ||||||||||||
Stock-based charges | 28 | 25 | 70 | 55 | ||||||||||||
Severance & transition costs | 325 | — | 325 | — | ||||||||||||
Non-GAAP adjusted gross profit | 10,424 | 11,984 | 20,269 | 23,558 | ||||||||||||
Gross Margin % | 48.3 | % | 48.9 | % | 50.1 | % | 50.4 | % | ||||||||
Operating expenses: | ||||||||||||||||
GAAP Product development and engineering | 5,125 | 5,310 | 10,469 | 10,435 | ||||||||||||
Stock-based charges | (63 | ) | (44 | ) | (139 | ) | (93 | ) | ||||||||
Non-GAAP Product development and engineering | 5,062 | 5,266 | 10,330 | 10,342 | ||||||||||||
GAAP Selling, general & administrative: | 7,007 | 7,379 | 15,024 | 15,115 | ||||||||||||
Stock-based charges | (259 | ) | (167 | ) | (488 | ) | (294 | ) | ||||||||
Severance | — | (130 | ) | — | (286 | ) | ||||||||||
Divestiture costs | — | — | (68 | ) | — | |||||||||||
Non-GAAP Selling, general & administrative | 6,748 | 7,082 | 14,468 | 14,535 | ||||||||||||
GAAP operating expenses: | 12,132 | 12,689 | 25,493 | 25,550 | ||||||||||||
Stock-based charges | (322 | ) | (211 | ) | (627 | ) | (387 | ) | ||||||||
Severance | — | (130 | ) | — | (286 | ) | ||||||||||
Divestiture costs | — | — | (68 | ) | — | |||||||||||
Non-GAAP operating expenses | $ | 11,810 | $ | 12,348 | $ | 24,798 | $ | 24,877 |
Three Months ended June 30 | Six Months ended June 30 | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
GAAP operating loss: | $ | (2,061 | ) | $ | (730 | ) | $ | (5,619 | ) | $ | (2,047 | ) | ||||
Stock-based charges | 350 | 236 | 697 | 442 | ||||||||||||
Severance & transition costs | 325 | 130 | 325 | 286 | ||||||||||||
Divestiture costs | — | — | 68 | — | ||||||||||||
Non-GAAP operating loss | (1,386 | ) | (364 | ) | (4,529 | ) | (1,319 | ) | ||||||||
Net loss: | ||||||||||||||||
GAAP net loss | (2,023 | ) | (1,125 | ) | (5,919 | ) | (2,425 | ) | ||||||||
Stock-based charges | 350 | 236 | 697 | 442 | ||||||||||||
Severance & transition costs | 325 | 130 | 325 | 286 | ||||||||||||
Divestiture costs | — | — | 68 | — | ||||||||||||
Non-GAAP adjusted net loss | (1,348 | ) | (759 | ) | (4,829 | ) | (1,697 | ) | ||||||||
Tecnonet discontinued operations | — | 844 | — | 1,076 | ||||||||||||
Non-GAAP adjusted net income (loss) including Tecnonet Discontinued operations | $ | (1,348 | ) | $ | 85 | $ | (4,829 | ) | $ | (621 | ) | |||||
Weighted average number of shares - Basic | 7,092 | 6,988 | 7,042 | 7,059 | ||||||||||||
GAAP EPS - Continuing operations | $ | (0.29 | ) | $ | (0.16 | ) | $ | (0.84 | ) | $ | (0.34 | ) | ||||
Non-GAAP EPS - Continuing operations | $ | (0.19 | ) | $ | (0.11 | ) | $ | (0.69 | ) | $ | (0.24 | ) | ||||
Weighted average number of shares - Diluted | 7,092 | 6,988 | 7,042 | 7,059 | ||||||||||||
GAAP EPS - Discontinued operations | $ | — | $ | 0.12 | $ | — | $ | 0.15 | ||||||||
Non-GAAP EPS - Discontinued operations | $ | — | $ | 0.12 | $ | — | $ | 0.15 |