Wednesday, November 5, 2014

MRV Sees Gains in Network Integration & Optical Transport

MRV Communications reported Q3 2014 revenue of $43.2 million, up 12% from $38.4 million a year earlier. Total net loss was $1.0 million or $0.14 per diluted share.

“During the third quarter of 2014, we grew total revenue 12% due to the continued strong performance of our Network Integration business, which was partially offset by a modest slowdown in our Network Equipment business,” said David Stehlin, MRV’s chief executive officer. “The soft telecommunications capital spending environment in the Americas and EMEA impacted our revenues during the quarter while, at the same time, we continue to transition from older, legacy products to a new, market-leading, packet and optical product portfolio. These new products have distinct market and technical advantages, already recognized by the market.

“OptiDriver, our new optical transport platform, continues to perform well. In the third quarter, we increased our total customer count to more than 30 by adding 15 customers, 9 of whom are new users of MRV optical transport solutions. Notably, we won our first multi-million dollar contract from a large regional North American communications service provider in the quarter."

Network Equipment revenue was $22.0 million, down 4%, primarily reflecting the current capital spending environment in the telecommunications market.  Network Integration revenue was $21.2 million, up 36% primarily due to growth in project related product sales.