MRV Posts Q4 Revenue of $124 Million, Sees Markets Recovering

MRV Communications reported Q4 2009 revenue of $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 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. 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. 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.


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.


"We see positive signs that our markets are recovering, yet, the environment remains challenging, competitive, and uncertain. While we believe we are well positioned to emerge from the downturn with renewed strength and opportunity, it is a pivotal time for MRV as we execute upon our strategy and focus each business segment on delivering profit, innovation and technology leadership," said Noam Lotan, chief executive officer of MRV.
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