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 2, 2017 |
Date: August 2, 2017 | ||
MRV COMMUNICATIONS, INC. | ||
By: | /s/ Stephen G. Krulik | |
Stephen G. Krulik | ||
Chief Financial Officer |
• | Revenue was $19.7 million, compared to $21.6 million in Q2’16 and $21.2 million in Q1’17, reflecting lower European and North American product revenue slightly offset by increased service revenue. |
• | GAAP gross margin was 51.5%, compared to 46.7% in Q2’16 and 50.6% in Q1’17. Non-GAAP gross margin was 51.6%, compared to 48.3% in Q2’16 and 50.6% in Q1’17. The increase was primarily due to greater service revenue at higher margins as well as the impact of geographic and product mix. |
• | GAAP operating expenses were $12.1 million, compared to $12.1 million in Q2’16 and $11.5 million in Q1’17. Non-GAAP operating expenses were $10.5 million, compared to $11.8 million in Q2’16 and $10.9 million in Q1’17. |
• | GAAP operating loss was $1.9 million, compared to $2.1 million in Q2’16 and $0.8 million in Q1’17. Non-GAAP operating loss was to $0.3 million, compared to $1.3 million in Q2’16 and $0.2 million in Q1’17. |
• | GAAP net loss increased to $2.1 million, or $0.31 per share, compared to $2.0 million, or $0.29 per share, in Q2’16 and $1.0 million, or $0.15 per share, in Q1’17. |
• | Non-GAAP net loss was $0.4 million , or $0.07 per share, compared to $1.3 million, or $0.19 per share, in Q2’16 and $0.5 million, or $0.08 per share, in Q1’17. |
• | Revenue was $40.9 million, compared to $40.5 million. |
• | GAAP gross margin was 51.0%, compared to 49.1%. Non-GAAP gross margin was 51.1%, compared to 50.1%. |
• | GAAP net loss was $3.1 million, or $0.46 per share, compared to $5.9 million, or $0.84 per share. |
• | Non-GAAP net loss improved to $1.0 million, or $0.14 per share, from $4.8 million, or $0.68 per share. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Product revenue | $ | 16,283 | $ | 18,658 | $ | 34,408 | $ | 34,665 | |||||||
Service revenue | 3,442 | 2,926 | 6,492 | 5,801 | |||||||||||
Total revenue | 19,725 | 21,584 | 40,900 | 40,466 | |||||||||||
Cost of Revenue: | |||||||||||||||
Cost of product | 8,666 | 10,285 | 17,935 | 17,880 | |||||||||||
Cost of services | 902 | 1,228 | 2,104 | 2,712 | |||||||||||
Total cost of revenue | 9,568 | 11,513 | 20,039 | 20,592 | |||||||||||
Gross profit | 10,157 | 10,071 | 20,861 | 19,874 | |||||||||||
Operating expenses: | |||||||||||||||
Product development and engineering | 4,610 | 5,125 | 9,338 | 10,469 | |||||||||||
Selling, general and administrative | 7,455 | 7,007 | 14,223 | 15,024 | |||||||||||
Total operating expenses | 12,065 | 12,132 | 23,561 | 25,493 | |||||||||||
Operating loss | (1,908 | ) | (2,061 | ) | (2,700 | ) | (5,619 | ) | |||||||
Other income (expense), net | (155 | ) | 74 | (358 | ) | (203 | ) | ||||||||
Loss before provision for income taxes | (2,063 | ) | (1,987 | ) | (3,058 | ) | (5,822 | ) | |||||||
Provision for income taxes | 34 | 36 | 80 | 97 | |||||||||||
Net loss | $ | (2,097 | ) | $ | (2,023 | ) | $ | (3,138 | ) | $ | (5,919 | ) | |||
Net loss per share — basic | $ | (0.31 | ) | $ | (0.29 | ) | $ | (0.46 | ) | $ | (0.84 | ) | |||
Net loss per share — diluted | $ | (0.31 | ) | $ | (0.29 | ) | $ | (0.46 | ) | $ | (0.84 | ) | |||
Weighted average number of shares: | |||||||||||||||
Basic | 6,786 | 7,092 | 6,784 | 7,042 | |||||||||||
Diluted | 6,786 | 7,092 | 6,784 | 7,042 |
June 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 24,333 | $ | 25,116 | |||
Restricted cash and time deposits | 4,918 | 272 | |||||
Accounts receivable, net | 16,926 | 14,295 | |||||
Inventories | 9,374 | 9,657 | |||||
Other current assets | 2,177 | 2,378 | |||||
Total current assets | 57,728 | 51,718 | |||||
Property and equipment, net | 2,985 | 3,130 | |||||
Intangible assets, net | 893 | 1,064 | |||||
Other assets | 264 | 348 | |||||
Total assets | $ | 61,870 | $ | 56,260 | |||
Liabilities and stockholders' equity | |||||||
Current liabilities: | |||||||
Deferred consideration payable | $ | 233 | $ | 233 | |||
Accounts payable | 9,296 | 8,353 | |||||
Accrued liabilities | 9,974 | 9,195 | |||||
Deferred revenue | 7,223 | 6,146 | |||||
Other current liabilities | 4,778 | 156 | |||||
Total current liabilities | 31,504 | 24,083 | |||||
Other long-term liabilities | 3,968 | 3,478 | |||||
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 2017 and 8,425 shares in 2016 | |||||||
Outstanding — 6,812 shares in 2017 and 6,802 shares in 2016 | 270 | 270 | |||||
Additional paid-in capital | 1,288,135 | 1,287,336 | |||||
Accumulated deficit | (1,242,501 | ) | (1,239,308 | ) | |||
Treasury stock — 1,623 shares in 2017 and 2016 | (18,098 | ) | (18,098 | ) | |||
Accumulated other comprehensive loss | (1,408 | ) | (1,501 | ) | |||
Total stockholders' equity | 26,398 | 28,699 | |||||
Total liabilities and stockholders' equity | $ | 61,870 | $ | 56,260 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | ||||||||||||||||||
Revenue: | ||||||||||||||||||||||
GAAP revenue | $ | 19,725 | $ | 21,584 | $ | 40,900 | $ | 40,466 | $ | 21,175 | ||||||||||||
Cost of revenue | ||||||||||||||||||||||
GAAP cost of revenue | 9,568 | 11,513 | 20,039 | 20,592 | 10,471 | |||||||||||||||||
Stock-based charges | (21 | ) | (28 | ) | (36 | ) | (70 | ) | (15 | ) | ||||||||||||
Severance and transition costs | — | (325 | ) | — | — | (325 | ) | — | ||||||||||||||
Non-GAAP adjusted cost of revenue | 9,547 | 11,160 | 20,003 | 20,197 | 10,456 | |||||||||||||||||
Gross profit: | ||||||||||||||||||||||
GAAP gross profit | 10,157 | 10,071 | 20,861 | 19,874 | 10,704 | |||||||||||||||||
Stock-based charges | 21 | 28 | 36 | 70 | 15 | |||||||||||||||||
Severance and transition costs | — | 325 | — | 325 | — | |||||||||||||||||
Non-GAAP adjusted gross profit | 10,178 | 10,424 | 20,897 | 20,269 | 10,719 | |||||||||||||||||
Non-GAAP Gross Margin % | 51.6 | % | 48.3 | % | 51.1 | % | 50.1 | % | 50.6 | % | ||||||||||||
Operating expenses: | ||||||||||||||||||||||
GAAP Product development and engineering | 4,610 | 5,125 | 9,338 | 10,469 | 4,728 | |||||||||||||||||
Stock-based charges | (39 | ) | (63 | ) | (98 | ) | (139 | ) | (59 | ) | ||||||||||||
Non-GAAP Product development and engineering | 4,571 | 5,062 | 9,240 | 10,330 | 4,669 | |||||||||||||||||
GAAP Selling, general & administrative: | 7,455 | 7,007 | 14,223 | 15,024 | 6,768 | |||||||||||||||||
Stock-based charges | (329 | ) | (259 | ) | (670 | ) | (488 | ) | (341 | ) | ||||||||||||
Severance and transition costs | (167 | ) | — | (186 | ) | — | (19 | ) | ||||||||||||||
Litigation costs | 126 | (56 | ) | (8 | ) | (91 | ) | (134 | ) | |||||||||||||
Divestiture costs | — | — | (5 | ) | (68 | ) | (5 | ) | ||||||||||||||
Merger costs | (1,174 | ) | — | (1,174 | ) | — | — | |||||||||||||||
Non-GAAP Selling, general & administrative | 5,911 | 6,692 | 12,180 | 14,377 | 6,269 | |||||||||||||||||
GAAP operating expenses: | 12,065 | 12,132 | 23,561 | 25,493 | 11,496 | |||||||||||||||||
Stock-based charges | (368 | ) | (322 | ) | (768 | ) | (627 | ) | (400 | ) | ||||||||||||
Severance and transition costs | (167 | ) | — | (186 | ) | — | (19 | ) | ||||||||||||||
Litigation costs | 126 | (56 | ) | (8 | ) | (91 | ) | (134 | ) | |||||||||||||
Divestiture costs | — | — | (5 | ) | (68 | ) | (5 | ) | ||||||||||||||
Merger costs | (1,174 | ) | — | (1,174 | ) | — | — | |||||||||||||||
Non-GAAP operating expenses | $ | 10,482 | $ | 11,754 | $ | 21,420 | $ | 24,707 | $ | 10,938 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | |||||||||||||||||
GAAP operating loss: | $ | (1,908 | ) | $ | (2,061 | ) | $ | (2,700 | ) | $ | (5,619 | ) | $ | (792 | ) | ||||||
Stock-based charges | 389 | 350 | 804 | 697 | 415 | ||||||||||||||||
Severance and transition costs | 167 | 325 | 186 | 325 | 19 | ||||||||||||||||
Litigation costs | (126 | ) | 56 | 8 | 91 | 134 | |||||||||||||||
Divestiture costs | — | — | 5 | 68 | 5 | ||||||||||||||||
Merger costs | 1,174 | — | 1,174 | — | — | ||||||||||||||||
Non-GAAP operating loss | (304 | ) | (1,330 | ) | (523 | ) | (4,438 | ) | (219 | ) | |||||||||||
Net loss: | |||||||||||||||||||||
GAAP net loss | (2,097 | ) | (2,023 | ) | (3,138 | ) | (5,919 | ) | (1,041 | ) | |||||||||||
Stock-based charges | 389 | 350 | 804 | 697 | 415 | ||||||||||||||||
Severance and transition costs | 167 | 325 | 186 | 325 | 19 | ||||||||||||||||
Litigation costs | (126 | ) | 56 | 8 | 91 | 134 | |||||||||||||||
Divestiture costs | — | — | 5 | 68 | 5 | ||||||||||||||||
Income tax impact | 50 | (22 | ) | (3 | ) | (36 | ) | (54 | ) | ||||||||||||
Merger costs | 1,174 | — | 1,174 | — | — | ||||||||||||||||
Non-GAAP adjusted net loss | $ | (443 | ) | $ | (1,314 | ) | $ | (964 | ) | $ | (4,774 | ) | $ | (522 | ) | ||||||
Weighted average number of shares - Basic and Diluted | 6,786 | 7,092 | 6,784 | 7,042 | 6,802 | ||||||||||||||||
GAAP EPS - Basic and Diluted | $ | (0.31 | ) | $ | (0.29 | ) | $ | (0.46 | ) | $ | (0.84 | ) | $ | (0.15 | ) | ||||||
Non-GAAP EPS - Basic and Diluted | $ | (0.07 | ) | $ | (0.19 | ) | $ | (0.14 | ) | $ | (0.68 | ) | $ | (0.08 | ) |