NT 10-Q 1 a09-33218_1nt10q.htm NT 10-Q

 

 

 

SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 12b-25

 

NOTIFICATION OF LATE FILING

 

 

 

 

SEC FILE NUMBER
001-11174

 

CUSIP NUMBER
553477100

 

(Check one):

 

o Form 10-K

o Form 20-F

o Form 11-K

x Form 10-Q

o Form 10-D

 

 

o Form N-SAR

o Form N-CSR

 

 

 

 

 

 

 

 

 

 

 

 

For Period Ended:

September 30, 2009

 

 

o Transition Report on Form 10-K

 

 

 

 

o Transition Report on Form 20-F

 

 

 

 

o Transition Report on Form 11-K

 

 

 

 

o Transition Report on Form 10-Q

 

 

 

 

o Transition Report on Form N-SAR

 

 

 

 

For the Transition Period Ended:

 

 

Nothing in this form shall be construed to imply that the Commission has verified any information contained herein.

 

If the notification relates to a portion of the filing checked above, identify the Item(s) to which the notification relates:  N/A


 

PART I — REGISTRANT INFORMATION

 

MRV Communications, Inc.

Full Name of Registrant

 

N/A

Former Name if Applicable

 

20415 Nordhoff Street

Address of Principal Executive Office (Street and Number)

 

Chatsworth, CA  91311

City, State and Zip Code

 

PART II — RULES 12b-25(b) AND (c)

 

If the subject report could not be filed without unreasonable effort or expense and the registrant seeks relief pursuant to Rule 12b-25(b), the following should be completed. (Check box if appropriate.)

 

 

(a)

The reasons described in reasonable detail in Part III of this form could not be eliminated without unreasonable effort or expense

x

(b)

The subject annual report, semi-annual report, transition report on Form 10-K, Form 20-F, Form 11-K, Form N-SAR or Form N-CSR, or portion thereof, will be filed on or before the fifteenth calendar day following the prescribed due date; or the subject quarterly report or transition report on Form 10-Q or subject distribution report on Form 10-D, or portion thereof, will be filed on or before the fifth calendar day following the prescribed due date; and

 

(c)

The accountant’s statement or other exhibit required by Rule 12b-25(c) has been attached if applicable.

 

PART III — NARRATIVE

 

State below in reasonable detail why Forms 10-K, 20-F, 11-K, 10-Q, 10-D, N-SAR, N-CSR, or the transition report or portion thereof, could not be filed within the prescribed time period.

 

MRV Communications, Inc. (the “Company”) filed its Annual Report on Form 10-K for the year ended December 31, 2008 on October 8, 2009 due to the restatement of its financial statements for prior periods.  It is presently finishing up the completion of its three Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and September 30, 2009.  The Company is making every effort to file the three quarterly reports as soon as practical.

 



 

PART IV — OTHER INFORMATION

 

(1)

Name and telephone number of person to contact in regard to this notification

 

Jennifer Hankes Painter

 

(818)

 

773-0900

 

(Name)

 

(Area Code)

 

(Telephone Number)

 

 

(2)

Have all other periodic reports required under Section 13 or 15(d) of the Securities Exchange Act of 1934 or Section 30 of the Investment Company Act of 1940 during the preceding 12 months or for such shorter period that the registrant was required to file such report(s) been filed? If answer is no, identify report(s).

 

 

 

 

 

 

 

o Yes    x No

 

 

 

The Company is delinquent in the filing of its quarterly reports on Form 10-Q for the quarters ended March 31 and June 30, 2009.

 

 

 

 

 

 

(3)

Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof?

 

 

 

 

 

 

 

x Yes    o No

 

 

 

 

 

 

 

If so, attach an explanation of the anticipated change, both narratively and quantitatively, and if appropriate, state the reasons why a reasonable estimate of the results cannot be made.

 

 

 

Attached as Exhibit A, please find the Company’s press release dated November 9, 2009 announcing its financial results for the three and nine months ended September 30, 2009.

 

MRV Communications, Inc.


(Name of Registrant as Specified in Charter)

 

has caused this notification to be signed on its behalf by the undersigned, hereunto duly authorized.

 

Date:

November 10, 2009

 

 

 

 

 

 

 

 

 

 

 

 

MRV COMMUNICATIONS, INC.

 

 

 

 

 

 

 

 

 

By:

/s/ Noam Lotan

 

 

 

 

 

Noam Lotan

 

 

 

 

 

Chief Executive Officer

 

 

ATTENTION

 

Intentional misstatements or omissions of fact constitute Federal Criminal Violations (See 18 U.S.C. 1001).

 

2



 

Exhibit A

 

MRV Announces Third Quarter and Nine Months 2009 Financial Results

Q3 Bottom Line Results Near Breakeven

 

CHATSWORTH, CA — Nov. 9, 2009 — MRV COMMUNICATIONS, INC. (Pink Sheets: MRVC), today announced financial results for the third quarter and nine months ended September 30, 2009.

 

“We are pleased to share our year-to-date results with you today. The third quarter results demonstrate improved revenue and gross margin, and reduced operating expenses. Importantly, expense reduction and gross margin improvement were realized in each of our three business units, generating near break-even results for the quarter,” commented Noam Lotan, Chief Executive Officer of MRV.

 

“Our first quarter 2009 results were significantly affected by the global economy and we believe that our markets have not yet fully recovered. However, we are encouraged by our sequential quarterly performance throughout the year,” said Lotan.

 

“MRV has focused on maintaining market share and improving efficiencies without sacrificing innovation.  Consistent profitability is very much a priority and we will continue our efforts to strike this balance. Our finance team continues its dedicated work to return the company to current filer status with the SEC and we are getting very close to achieving this. I would like to thank our management team and employees, worldwide, for their dedicated contributions,” continued Lotan.

 

Consolidated Results

 

Revenue for the third quarter was $128.9 million, compared with revenue of $119.6 million in the preceding quarter and $130.6 million in the third quarter of the prior year.  All three business segments contributed to the sequential growth. Revenue for the nine months ended September 30, 2009 was $366.8 million, compared with $403.8 million for the same period in the prior year.

 

Third quarter 2009 gross margin was 29 percent, compared with 26 percent reported in the third quarter of 2008. Gross margin for the nine months ended September 30, 2009 was 26 percent, compared with 29 percent in the same period of the prior year. The year-to-date consolidated gross margin was impacted by a decrease in Source Photonics margin in the beginning of the year, partially offset by improvements in Network Integration and Network Equipment, and began to recover in the second quarter of 2009.

 

The Company reported a net loss of $0.5 million in the third quarter of 2009, or $0.00 per share, which included share-based compensation charges of $0.6 million.  This compares with a net loss of $9.9 million, or ($0.06) per share in the comparable period of 2008, which included share-based compensation charges of $1.0 million.

 



 

For the nine months ending September 30, 2009, MRV reported a net loss of $21.6 million, or ($0.14) per share, and a net loss of $12.8 million, or ($0.08) per share in the comparable period of 2008, including $1.6 million and $3.5 million in share-based compensation charges, respectively.

 

Operating Segment Results

 

The Network Equipment group reported revenue of $24.9 million, $23.3 million and $26.6 million for the first, second and third quarters of 2009, respectively, totaling $74.8 million for the nine months ended September 30, 2009, compared with $95.7 million for the same period in the prior year.  A reduction in sales in North America negatively impacted revenue year-over-year results. Strong growth from the second quarter 2009 to the third quarter 2009 was driven by our aerospace and defense business.

 

The Network Integration group reported revenue of $47.8 million, $48.7 million and $49.3 million in the first, second and third quarters 2009, respectively, totaling $145.8 million for the nine months ended September 30, 2009, compared with $164.3 million for the same period in the prior year.  The year-over-year decrease was primarily attributed to the effect of currency exchange rates.

 

The Optical Components group reported sequential and year-over-year revenue growth in the third quarter 2009.  Revenue in the first, second and third quarters of 2009 was $48.0 million, $50.1 million and $55.9 million, respectively, totaling $154.0 million for the nine months ended 2009, compared with $155.2 million in the same period of the prior year.

 

Conference Call

 

MRV will host a conference call to discuss its third quarter and nine months 2009 financial results today at 5:00 p.m. Eastern time (2:00 p.m. Pacific time).  For parties in the United States and Canada, call 877-941-2321 to access the conference call.  International parties can access the call at 480-629-9714. MRV will offer its live audio broadcast of the conference call, along with the financial presentation, on the MRV Investor website at http://ir.mrv.com. For replay information, please visit the MRV Investor website.

 

The Company plans to file its Quarterly Reports on Form 10-Q for the interim periods of 2009 shortly.  These Quarterly Reports are subject to customary quarterly review procedures by the Company’s independent registered public accounting firm.  As such, these results are subject to revision until the Quarterly Reports are filed with the SEC.

 

Forward-Looking Statements

 

This press release contains statements regarding future financial and operating results of MRV, management’s assessment of business trends, specifically MRV’s position to take advantage of key emerging industry trends and management’s expectations regarding those trends, and other statements about management’s future expectations, beliefs, goals, plans or prospects and those of the market segments in which MRV is engaged that are based on management’s current expectations, estimates, forecasts and projections about MRV and its consolidated businesses and the respective market segments in which MRV’s businesses operate, in addition to managements’ assumptions. Statements in this press release regarding MRV’s future financial and operating results, and on-going efforts to become current in its filings with the Securities and Exchange Commission, which are not statements of historical facts, constitute forward- looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.  Words such as “expects,” “anticipates,” “envisions,” “estimates,” “targets,” “intends,”

 



 

“plans,” “believes,” “seeks,” “should,” “forecasts,” “projects,” variations of such words and similar expressions are intended to identify such forward-looking statements which are not statements of historical facts. These forward-looking statements are not guarantees of future performance or that the events anticipated will occur or that expected conditions will remain the same or improve.  These statements involve certain risks, uncertainties and assumptions, the likelihood of which are difficult to assess and may not occur, including risks that MRV will experience delays in becoming current with its filings with the SEC, that each of its business segments may not make the expected progress in its respective market, and that management’s long term strategy may not achieve the expected results. Other risks and uncertainties relate to potential changes in relationships with MRV’s customers and suppliers and their financial condition, MRV’s success in developing, introducing and shipping product enhancements and new products, increased competition in our market segments, market acceptance of new products, continued market acceptance of existing products and continued success in selling the products of other companies, product price discounts, the timing and amount of significant orders from customers, obsolete inventory or product returns, warranty and other claims on products, the continued ability of MRV to protect its intellectual property rights, changes in product mix, maturing product life cycles, implementation of operating cost structures that align with revenue growth, political instability in areas of the world in which MRV operates, currency fluctuations, changes in accounting rules, general economic conditions, as well as changes in such conditions specific to our market segments, risks of manufacturing and maintaining intellectual property rights in Asia, litigation related to MRV’s historical stock option granting practices and its acquisition of Fiberxon, Inc., and maintenance of our inventory and production backlog.  Therefore, actual outcomes, performance and results may differ from what is expressed or forecast in such forward-looking statements, and such differences may vary materially from current expectations.

 

All information in this release is as of November 9, 2009.  MRV undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in MRV’s expectations.

 

About MRV Communications, Inc.

 

MRV Communications, Inc. is a leading networking company with a full line of packet-optical transport (“POTS”), carrier Ethernet, 40G and out-of-band networking equipment, services and optical components for high-speed carrier and enterprise networks and specialized aerospace, defense and other communications networks. MRV’s networking business provides equipment for commercial customers, governments and telecommunications service providers. MRV markets and sells its products worldwide, with operations in Europe that provide network system design, integration and distribution. The Company’s optical components business which provides optical communications components for access and Fiber-to-the-Premises applications operates under the Source Photonics brand. For more information about MRV and its products, please call (818) 773-0900 or visit www.mrv.com and www.sourcephotonics.com.

 

Investor Relations

 

The Blueshirt Group for MRV

MRV Communications, Inc.

 

Maria Riley

Investor Relations

 

(415) 217-2631

(818) 886-MRVC (6782)

 

maria@blueshirtgroup.com

ir@mrv.com

 

 

 



 

MRV Communications, Inc.

Statement of Operations

(In thousands, except per share data)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

March 31,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

(in thousands, except share and per share data)

 

2009

 

2009

 

2009

 

2009

 

2008

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Revenue

 

$

118,308

 

$

119,632

 

$

128,871

 

$

366,811

 

$

403,790

 

Cost of goods sold

 

94,622

 

86,590

 

91,095

 

272,307

 

287,248

 

Gross profit

 

23,686

 

33,042

 

37,776

 

94,504

 

116,542

 

Gross margin

 

20

%

28

%

29

%

26

%

29

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Product development and engineering

 

9,145

 

8,433

 

9,261

 

26,839

 

30,106

 

Selling, general and administrative

 

28,365

 

25,465

 

25,087

 

78,917

 

95,534

 

Amortization of intangibles

 

564

 

564

 

564

 

1,692

 

1,870

 

Total operating costs and expenses

 

38,074

 

34,462

 

34,912

 

107,448

 

127,510

 

Operating income (loss)

 

(14,388

)

(1,420

)

2,864

 

(12,944

)

(10,968

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(897

)

(775

)

(689

)

(2,361

)

(3,047

)

Other income (expense), net

 

2,502

 

(1,219

)

(195

)

1,088

 

3,620

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before taxes

 

(12,783

)

(3,414

)

1,980

 

(14,217

)

(10,395

)

Provision for income taxes

 

2,008

 

1,737

 

2,179

 

5,924

 

2,413

 

Net loss

 

$

(14,791

)

$

(5,151

)

$

(199

)

$

(20,141

)

$

(12,808

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interest

 

547

 

581

 

338

 

1,466

 

6

 

Net loss attributable to MRV stockholders

 

$

(15,338

)

$

(5,732

)

$

(537

)

$

(21,607

)

$

(12,814

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.10

)

$

(0.04

)

$

(0.00

)

$

(0.14

)

$

(0.08

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

157,447

 

157,530

 

157,584

 

157,521

 

157,284

 

 



 

MRV Communications, Inc.

Balance Sheet

(In Thousands)

 

 

 

March 31,

 

June 30,

 

September 30,

 

 

 

2009

 

2009

 

2009

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

59,628

 

$

65,367

 

$

67,888

 

Short-term marketable securities

 

10,052

 

6,527

 

8,598

 

Time deposits and restricted cash

 

1,712

 

1,771

 

14,025

 

Accounts receivable, net

 

121,752

 

123,781

 

128,748

 

Inventories

 

78,461

 

78,293

 

80,206

 

Deferred income taxes

 

1,391

 

1,782

 

1,517

 

Other current assets

 

36,988

 

38,060

 

43,913

 

Total current assets

 

309,984

 

315,581

 

344,895

 

Property and equipment, net

 

25,058

 

25,816

 

26,535

 

Goodwill

 

25,023

 

26,642

 

28,446

 

Other intangible assets

 

8,995

 

8,431

 

7,867

 

Deferred income taxes

 

1,912

 

2,029

 

1,969

 

Other assets

 

5,542

 

5,653

 

5,757

 

Total assets

 

$

376,514

 

$

384,152

 

$

415,469

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Short-term obligations

 

$

43,268

 

$

58,329

 

$

77,979

 

Deferred consideration payable for Fiberxon

 

30,036

 

30,036

 

30,036

 

Accounts payable

 

89,409

 

78,858

 

82,326

 

Accrued liabilities

 

37,156

 

36,091

 

39,364

 

Deferred revenue

 

12,565

 

16,100

 

15,524

 

Other current liabilities

 

4,149

 

4,751

 

5,424

 

Total current liabilities

 

216,583

 

224,165

 

250,653

 

Other long-term liabilities

 

8,407

 

9,164

 

9,238

 

Commitments and contingencies

 

 

 

 

 

 

 

MRV stockholders’ equity

 

146,069

 

144,976

 

149,142

 

Noncontrolling interests

 

5,455

 

5,847

 

6,436

 

Total liabilities and stockholders’ equity

 

$

376,514

 

$

384,152

 

$

415,469