8-K 1 v27561e8vk.htm FORM 8-K e8vk
 

 
 
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
Current Report
Pursuant To Section 13 Or 15(D) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 15, 2007
MRV COMMUNICATIONS, INC.
(Name of registrant as specified in its charter)
     
DELAWARE   06-1340090
(State or other jurisdiction of   (I.R.S. Employer
Incorporation or organization)   Identification Number)
     
20415 Nordhoff Street    
Chatsworth, Ca   91311
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code: (818) 773-0900
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

 

Item 2.02 — Results of Operations and Financial Condition.
On February 15, 2007, registrant made an earnings release announcing registrant’s 2006 fourth quarter and year-end unaudited financial results, the text of which is set forth in Exhibit 99.1 attached hereto. All information in the press release is presented as of February 15, 2007, and registrant does not assume any obligation to update such information in the future.
On February 15, 2007, as previously announced, registrant held a teleconference and audio web cast to discuss its 2006 fourth quarter and year-end unaudited financial results. The transcript of, and the Financial Highlights Overview and Highlights presented at, this teleconference and web cast is furnished herewith as Exhibit 99.2. All information in the transcript and web cast is presented as of February 15, 2007, and registrant does not assume any obligation to update such information in the future.
The information included in this Item 2.02, as well as Exhibits 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

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Item 8.01. Other Events.
On February 15, 2007, MRV publicly announced its unaudited statements of operations for the three and twelve months ended December 31, 2006 and its balance sheets at December 31, 2006 (unaudited) and December 31, 2005. These financial statements, which are included herein as part of Item 8.01 of this Report, follow on pages 4 and 5 of this Report.
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MRV Communications, Inc.
Statements of Operations
(In thousands, except per share data)
                                 
    Three Months Ended     Year Ended  
    Dec. 31,     Dec. 31,     Dec. 31,     Dec. 31,  
    2006     2005 (1)     2006     2005 (1)  
    (Unaudited)  
Revenue
   $ 102,646     $ 91,169     $ 356,489     $ 283,698  
Cost of goods sold
     71,342       64,366       244,207       193,979  
 
                        
Gross profit
     31,304       26,803       112,282       89,719  
Gross margin
     30 %     29 %     31 %     32 %
 
                                
Operating costs and expenses:
                                
Product development and engineering
     7,204       7,100       28,187       26,051  
Selling, general and administrative
     24,181       20,259       87,539       72,402  
Goodwill impairment
     —       —       52       —  
 
                        
Total operating costs and expenses
     31,385       27,359       115,778       98,453  
 
                        
Operating income (loss)
     (81 )     (556 )     (3,496 )     (8,734 )
 
                                
Interest expense
     (932 )     (939 )     (3,540 )     (4,207 )
Other income, net
     2,074       583       5,386       2,416  
 
                        
 
                                
Income (loss) before taxes
     1,061       (912 )     (1,650 )     (10,525 )
Provision for taxes
     468       1,663       3,865       5,774  
 
                        
Net income (loss) (2)
   $ 593     $ (2,575 )   $ (5,515 )   $ (16,299 )
 
                        
 
                                
Net Income (loss) per share:
                                
Basic
   $ 0.00     $ (0.02 )   $ (0.05 )   $ (0.16 )
Diluted
   $ 0.00     $ (0.02 )   $ (0.05 )   $ (0.16 )
Weighted average number of shares:
                                
Basic
     125,376       104,464       120,902       104,350  
 
                        
Diluted
     128,551       104,464       120,902       104,350  
 
                        
 
(1)   Certain amounts in 2005 have been reclassified to conform to 2006 presentation.
 
(2)   Net income (loss) for the three months and year ended December 31, 2006 included share-based compensation expense related to employee stock options of $966,000 and $3.4 million, respectively, under SFAS 123(R). Net loss for the year ended December 31, 2005 included share-based compensation expense under SFAS 123 of $162,000. There was no share-based compensation expense for the three months ended December 31, 2005.

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MRV Communications, Inc.
Balance Sheets
(In thousands)
                 
    December 31,     December 31,  
    2006     2005  
    (Unaudited)          
ASSETS
                
Current assets:
                
Cash and cash equivalents
   $ 91,722     $ 67,984  
Short-term marketable securities
     25,864       —  
Time deposits
     821       1,475  
Accounts receivable, net
     95,244       92,466  
Inventories
     61,361       42,216  
Deferred income taxes
     895       873  
Other current assets
     13,607       7,828  
 
            
Total current assets
     289,514       212,842  
 
                
Property and equipment, net
     14,172       14,065  
 
                
Goodwill
     36,348       33,656  
 
                
Deferred income taxes
     1,460       136  
 
                
Other assets
     4,728       4,478  
 
            
 
   $ 346,222     $ 265,177  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
Short-term obligations
   $ 26,289     $ 30,378  
Accounts payable
     47,384       45,372  
Accrued liabilities
     29,704       29,272  
Deferred revenue
     7,624       6,076  
Other current liabilities
     5,926       2,230  
 
            
Total current liabilities
     116,927       113,328  
 
                
Convertible notes
     23,000       23,000  
 
                
Other long-term liabilities
     7,295       6,694  
 
                
Minority interest
     5,248       5,151  
 
                
Commitments and contingencies
                
 
                
Stockholders’ equity
     193,752       117,004  
 
            
 
   $ 346,222     $ 265,177  
 
            

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Item 9.01 Financial Statements and Exhibits
Exhibit 99.1   Registrant’s earnings release of February 15, 2007 announcing registrant’s 2006 fourth quarter and year-end unaudited financial results (furnished pursuant to Item 2.02)
Exhibit 99.2   The transcript of, and the Financial Highlights Overview and Highlights, presented at, registrant’s teleconference of February 15, 2007 (furnished pursuant to Item 2.02).

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February 20, 2007
         
  MRV COMMUNICATIONS, INC.
 		  
  By:   /s/ Noam Lotan  
    Noam Lotan   
    President and Chief Executive Officer   
 

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