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MRV Announces Fourth Quarter and Fiscal Year 2009 Financial Results

Posted by Dana in March 17th 2010

MRV COMMUNICATIONS, INC. (Pink Sheets:MRVC), announced financial results for the fourth quarter and fiscal year ended December 31, 2009.

Consolidated Results

Revenue for the fourth quarter was $124.4 million, compared with revenue of $115.1 million in the preceding quarter and $118.1 million in the fourth quarter of the prior year. All three business segments contributed to the sequential growth.

Fourth quarter 2009 gross margin was 33 percent, compared with 30 percent in the prior quarter and 25 percent reported in the fourth quarter of 2008.

The company reported a net profit attributed to MRV of $18.1 million in the fourth quarter of 2009, or $0.11 per diluted share, which included share-based compensation charges of $0.6 million, $20.5 million gain related to the settlement reached with Fiberxon shareholders, a $3.5 million gain from investment activities, and a loss of $6.5 million from discontinued operations related to the sale of EDSLan. This compares with a net loss of $0.5 million, or ($0.00) per share in the prior quarter, which included share-based compensation charges of $0.6 million and $0.4 million income from discontinued operations related to the sale of EDSLan.

For the year ended December 31, 2009 the company reported revenue of $448.1 million, compared with $466.8 million in the prior year; gross margin of 28 percent, compared with 29 percent in the prior year; and net loss attributable to MRV stockholders of $3.5 million, or ($0.02) per share.

On December 24, 2009, MRV entered into an agreement to divest its 90 percent interest in EDSLan, a communication equipment distribution company located in Milan, Italy. EDSLan was part of the Network Integration segment and the historical financial results of EDSLan have been reclassified as discontinued operations as set forth in this press release and the annual report on Form 10-K filed with the SEC. Accordingly, the related assets and liabilities of EDSLan have been classified as assets and liabilities held for sale in the balance sheet and MRV recognized a loss related to the write down of EDSLan assets to the net realizable value in 2009.

Operating Segment Results

The Network Equipment group reported revenue of $29.7 million, compared with $26.6 million in the prior quarter and $29.8 million in the fourth quarter of 2008. Network Equipment revenue for fiscal 2009 was $104.5 million, compared with $125.6 million in the same period of the prior year.

The Network Integration group reported revenue of $41.2 million, compared with $35.3 million in the third quarter of fiscal 2009, and $45.0 million in the fourth quarter of fiscal 2008. Network Integration group reported revenue of $143.3 million for fiscal 2009, compared with $153.3 million in 2008.

The Optical Components group, Source Photonics, reported revenue of $56.6 million in the fourth quarter 2009, compared with $55.9 million in the prior quarter and $46.4 million in the fourth quarter of 2008. Optical Components revenue for fiscal year 2009 was $210.6 million, compared with $201.6 million in 2008.