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MRV reports Q2 revenue of $38.2m, up 1.5% yr/yr, net loss of $1.0m
Announced Date: 8/9/2013 Published Date: 8/12/2013

MRV Communications, a provider of optical communications network solutions as well as integration and managed services, announced the following results for its second quarter ended June 30, 2013:

US$ ThousandsQ2Q1%Q2%
 Jun 30 2013Mar 31 2013changeJun 30 2012change
Revenue38,17538,905-1.9 37,6261.5
Network equipment21,10020,9460.7 21,519-1.9
Network integration17,13517,982-4.7 19,560-12.4
Intersegment adjustments-60-23 -3,453 
Americas14,53113,7505.7 13,03511.5
Europe21,86923,421-6.6 23,277-6.0
Asia Pacific1,7751,7342.4 1,31435.1
Gross profit13,37213,0272.6 13,3120.5
% revenue35.0 33.5  35.4  
Development + engineering4,4544,648-4.2 3,38931.4
% revenue11.7 11.9  9.0  
SG&A expenditure9,45312,392-23.7 11,167-15.3
% revenue24.8 31.9  29.7  
Total operating expenditure13,90717,040-18.4 14,556-4.5
% revenue36.4 43.8  38.7  
Net profit/loss-993-4,434 -2,114

Additional results and notes

  1. In the Americas and Asia-Pacific regions, mobile backhaul, data centre, content provider and business Ethernet sectors performed well, offset by challenging market conditions in Europe.

  2. Network Integration revenue decreased from the second quarter of 2012, reflecting continued macroeconomic and political conditions in Italy.

  3. Network Equipment gross margin increased to 53.0% from 46.4% in the second quarter of 2012, while Network Integration gross margin of 12.8%, compared with 16.2% in the second quarter of 2012, was primarily driven by competitive pressure in the Italian markets, partially offset by a higher proportion of service revenue in the sales mix.

  4. Network Equipment operating loss was $0.3 million, compared with a loss of $0.3 million in the second quarter of 2012, while operating income for Network Integration was $0.7 million, compared with operating income of $1.6 million in the second quarter of 2012.

  5. Cash and cash equivalents totalling $35.9 million, compared to $40.6 million six months earlier.

David Stehlin, MRV's CEO, commented:

  • "We are continuing to make progress on our strategic initiatives to build a strong foundation and grow the company".

  • "Optical Communications Systems continues to grow its customer base and added 37 new customers in the second quarter... leading the way was a significant win with another multi-national, tier one content delivery network provider".

  • "Our strategy of developing optical edge solutions that combine packet optical and sophisticated network management software technologies will provide our global customers with the advantages they need for key segments such as data centre connectivity, 4G mobile backhaul, cloud computing and business Ethernet services".

  • "In the year since we announced our plan to make significant investments in these growing markets, we have added 138 new customers, won major deals in critical market segments, earned industry recognition and awards for our innovation all while starting to roll out key new products and improving the efficiency of the company".