8-K/A 1 v86311e8vkza.txt FORM 8-K/AMENDMENT 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K/A (AMENDMENT NO. 1) CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): OCTOBER 15, 2002 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) ISSUER'S TELEPHONE NUMBER: (818) 773-0900 (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT) This Form 8-K/A supplements and completes registrant's Form 8-K filed October 23, 2002: Item 7. Financial Statements and Exhibits (a) Financial Statements of Business Acquired Not applicable. (b) Pro forma Financial Information In connection with registrant's disposition of shares of the capital stock of Fiber Optics Communications, Inc. ("FOCI") and Quantum Optec, Inc. ("QOI") as previously reported on October 23, 2002, the following pro forma financial information is filed as part of this report: Unaudited Pro Forma Consolidated Condensed Balance Sheet As of September 30, 2002; Unaudited Pro Forma Condensed Consolidated Statements of Operations For the Nine Months Ended September 30, 2002; Unaudited Pro Forma Condensed Consolidated Statements of Operations For the Year Ended December 31, 2001; and Notes to Pro Forma Condensed Consolidated Financial Information (c) Exhibits 2.1 Share Purchase Agreement dated September 30, 2002, by and amongst Luminent and Lin, Song-Fure (Steve), Chen, Chao Hsien (Goodman), Hou, Janpu Hsu and Jen Hsu (Rio) (incorporated by reference to Exhibit 2.1 filed with registrant's Form 8-K on October 23, 2002). 2 MRV Communications, Inc. Unaudited Pro Forma Consolidated Condensed Balance Sheet As of September 30, 2002
Pro Forma (000's) MRVC Adjustments Total ----------- ------------- ----------- Current assets: Cash and cash equivalents $ 80,675 $ 8,000 (1) $ 88,675 Short-term marketable securities 22,911 -- 22,911 Time deposits 3,092 -- 3,092 Accounts receivable, net 40,571 -- 40,571 Inventories 39,389 -- 39,389 Assets held for sale 36,322 (36,322)(1) -- Other current assets 8,848 2,000 (1) 10,848 ----------- ----------- ----------- Total current assets 231,808 (26,322) 205,486 Property and equipment, net 35,599 -- 35,599 Goodwill and other intangibles 29,869 -- 29,869 Long-term marketable securities 1,359 -- 1,359 Deferred income taxes 11,749 -- 11,749 Investments 5,741 2,708 (1) 8,449 Other non-current assets 5,893 -- 5,893 ----------- ----------- ----------- $ 322,018 $ (23,614) $ 298,404 =========== =========== =========== Current liabilities Current maturities of long-term debt 684 -- 684 Convertible subordinated notes 39,918 -- 39,918 Short-term obligations 1,869 -- 1,869 Accounts payable 39,997 -- 39,997 Accrued liabilities 30,552 -- 30,552 Liabilities held for sale 23,614 (23,614)(1) -- Other current liabilities 6,694 -- 6,694 ----------- ----------- ----------- Total current liabilities 143,328 (23,614) 119,714 Long-term debt 614 -- 614 Other long-term liabilities 3,792 -- 3,792 Minority interests 7,311 -- 7,311 Commitments and contingencies Stockholders' equity: Preferred stock -- -- -- Common stock 161 -- 161 Additional paid-in capital 1,148,737 -- 1,148,737 Accumulated deficit (959,998) -- (959,998) Deferred stock compensation, net (9,859) -- (9,859) Treasury stock (679) -- (679) Accumulated other comprehensive loss (11,389) -- (11,389) ----------- ----------- ----------- Total stockholders' equity 166,973 -- 166,973 ----------- ----------- ----------- $ 322,018 $ (23,614) $ 298,404 =========== =========== ===========
3 MRV Communications, Inc. Unaudited Pro Forma Condensed Consolidated Statements of Operations For the Nine Months Ended September 30, 2002
Pro Forma MRVC Adjustments(2) Total --------- -------------- --------- NET REVENUE $ 184,878 $ 16,003 $ 168,875 Cost of goods sold 127,205 14,522 112,683 --------- --------- --------- GROSS PROFIT 57,673 1,481 56,192 Operating costs and expenses: Product development and engineering 41,726 2,315 39,411 Selling, general and administrative 69,224 4,351 64,873 Amortization of intangibles 86 -- 86 Impairment loss on long-lived assets 16,516 15,878 638 Impairment loss on goodwill and other intangibles 72,697 9,302 63,395 --------- --------- --------- Total operating costs and expenses 200,249 31,846 168,403 --------- --------- --------- OPERATING LOSS (142,576) (30,365) (112,211) Other expense, net 10,328 7,975 2,353 --------- --------- --------- LOSS BEFORE MINORITY INTEREST, PROVISION FOR TAXES AND CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE (152,904) (38,340) (114,564) Minority interest 145 -- 145 Provision for taxes 12,911 323 12,588 --------- --------- --------- LOSS BEFORE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE (165,960) (38,663) (127,297) Cumulative effect of an accounting change 296,355 183,725 112,630 --------- --------- --------- NET LOSS $(462,315) $(222,388) $(239,927) ========= ========= ========= EARNINGS PER SHARE: Basic and diluted loss per share: Loss before cumulative effect of an accounting change $ (1.85) -- $ (1.42) Cumulative effect of an accounting change $ (3.30) -- $ (1.25) NET LOSS $ (5.15) -- $ (2.67) WEIGHTED AVERAGE NUMBER OF SHARES: Basic and diluted 89,800 -- 89,800 ========= ========= =========
4 MRV Communications, Inc. Unaudited Pro Forma Condensed Consolidated Statements of Operations For the Year Ended December 31, 2001
Pro Forma MRVC Adjustments(3) Total --------- -------------- --------- NET REVENUE $ 332,844 $ 29,757 $ 303,087 Cost of goods sold 267,389 28,496 238,893 --------- --------- --------- GROSS PROFIT 65,455 1,261 64,194 Operating costs and expenses: Product development and engineering 94,813 5,659 89,154 Selling, general and administrative 150,674 7,569 143,105 Amortization of goodwill and other intangibles 126,484 57,897 68,587 Restructuring costs 14,111 7,434 6,677 --------- --------- --------- Total operating costs and expenses 386,082 78,559 307,523 --------- --------- --------- OPERATING LOSS (320,627) (77,298) (243,329) Other expense, net 22,777 (337) 23,114 --------- --------- --------- LOSS BEFORE MINORITY INTEREST, PROVISION FOR TAXES AND EXTRAORDINARY GAIN (343,404) (76,961) (266,443) Minority interest (11,577) (4) (11,573) Provision for taxes 4,475 770 3,705 --------- --------- --------- LOSS BEFORE EXTRAORDINARY GAIN (336,302) (77,727) (258,575) Extraordinary gain on purchase of minority interest in Luminent, Inc., net of tax (9,949) -- (9,949) --------- --------- --------- NET LOSS $(326,353) $ (77,727) $(248,626) ========= ========= ========= EARNINGS PER SHARE: Basic and diluted loss per share: Loss before extraordinary gain $ (4.40) -- $ (3.39) Extraordinary gain $ 0.13 -- $ 0.13 NET LOSS $ (4.27) -- $ (3.26) WEIGHTED AVERAGE NUMBER OF SHARES: Basic and diluted 76,369 -- 76,369 ========= ========= =========
5 NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION (1) The pro forma adjustment is to record the sale of FOCI and QOI as follows: Consideration received: Cash $ 8,000 Future product credit 2,000 -------- 10,000 Assets and liabilities disposed of: Assets held for sale 36,322 Liabilities held for sale (23,614) -------- 12,708 -------- Remaining 19.5% ownership in FOCI classified as a cost method investment $ 2,708 ========
(2) The pro forma adjustments are to remove the operating results of FOCI and QOI as if the transaction occurred on January 1, 2002. (3) The pro forma adjustments are to remove the operating results of FOCI and QOI as if the transaction occurred on January 1, 2001. 6 SIGNATURES 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, hereunto duly authorized. Date: December 4, 2002 MRV COMMUNICATIONS, INC. By: /s/ SHAY GONEN --------------------------- Shay Gonen Chief Financial Officer 7