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MRV Communications, Inc. (OTCQB: MRVC) (“MRV” or the “Company”), a leading provider of optical communications network infrastructure equipment and integration and managed services, today announced financial results for the first quarter ended March 31, 2012.
Commenting on the Company’s financial results, Barry Gorsun, MRV’s chief executive officer, stated, “We continue to focus on enhancing stockholder value and strengthening our business units. This is most recently evidenced by the sale of CES and the declaration of a special dividend to stockholders. Additionally, we continue to invest in our technology and product development and improve our operating efficiency and sales and marketing efforts to ensure that our subsidiaries are well positioned in the market. MRV remains focused on providing best-in-class products and services to the global markets we serve and in maximizing returns to stockholders.”
Gorsun continued, “Market conditions continue to remain challenging for network equipment providers as carriers and enterprises, particularly in Europe, continue to defer capital spending. MRV was not immune to this trend, and our financial results were negatively affected as a result, primarily due to softness across the Eurozone. We are working closely with our customers to ensure that we can quickly respond to their needs. Additionally, we continued to add new customers to our business in the first quarter, especially in our OCS division. We believe there is opportunity for improvement starting in the second quarter of 2012.”
MRV reported first quarter 2012 revenue of $48.4 million, compared with revenue of $65.5 million in the fourth quarter of 2011 and $53.2 million in the first quarter of 2011. The year-over-year decline was driven by a 9% decline in the Network Equipment group attributable to lower service and product revenues in the Company’s Optical Communications Systems (“OCS”) division and a 14% decline in the Network Integration group attributable to a continued weak European telecom marketplace. The consolidated revenue decline was partially offset by a decrease in intersegment sales between each of these two business units, which are eliminated in the Company’s consolidated reporting.