Segment Reporting and Geographic Information | 9 Months Ended |
Sep. 30, 2013 |
Segment Reporting [Abstract] | ' |
Segment Reporting and Geographic Information | ' |
Segment Reporting and Geographic Information |
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MRV operates its business in two segments: Network Equipment and Network Integration. Network Equipment designs, manufactures, distributes and services optical networking solutions and Internet infrastructure products, and Network Integration distributes network solutions and Internet infrastructure products and provides value-added integration and support services for customers' networks. |
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The accounting policies of the segments are the same as those described in the summary of significant accounting polices disclosed in MRV's 2012 Form 10-K. MRV evaluates segment performance based on revenues, gross profit and operating income (loss) of each segment. As such, there are no separately identifiable Statements of Operations data below operating income (loss). |
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The following table summarizes revenues by segment, including intersegment revenues (in thousands): |
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| Three Months Ended | | Nine Months Ended |
September 30, | September 30, |
| 2013 | | 2012 | | 2013 | | 2012 |
Network Equipment | | $22,806 | | | | $23,310 | | | | $64,852 | | | | $65,248 | |
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Network Integration | 15,585 | | | 13,816 | | | 50,701 | | | 48,892 | |
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Before intersegment adjustments | 38,391 | | | 37,126 | | | 115,553 | | | 114,140 | |
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Intersegment adjustments | (6 | ) | | (2,460 | ) | | (88 | ) | | (8,433 | ) |
Total | | $38,385 | | | | $34,666 | | | | $115,465 | | | | $105,707 | |
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Network Equipment revenue primarily consists of optical communication systems that include Metro Ethernet equipment, optical transport equipment, lab automation equipment, out-of-band network equipment, and the related service revenue and fiber optic components sold as part of system solutions. Network Integration revenue primarily consists of value-added integration and support service revenue, related third-party product sales (including third-party product sales through distribution) and fiber optic components sold as part of system solutions. All Network Integration's sales are within Italy. |
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One customer accounted for $32.5 million and $25.6 million of revenue in Network Integration revenue, or 28% and 24% of total revenue, for the nine months ended September 30, 2013 and 2012, respectively. Another customer accounted for $12.9 million and $11.7 million of revenue in Network Integration revenue, or 11% of total revenue, for both the nine months ended September 30, 2013 and 2012, respectively. |
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The same customer in Network Integration accounted for 12% and 21% of net accounts receivable as of September 30, 2013, and December 31, 2012, respectively. Another Network Integration customer accounted for 16% and 9% of accounts receivable as of September 30, 2013, and December 31, 2012, respectively. |
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The following table summarizes external revenue by geographic region (in thousands): |
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| Three months ended | | Nine months ended |
| September 30, | | September 30, |
| 2013 | | 2012 | | 2013 | | 2012 |
United States | | $15,010 | | | | $10,223 | | | | $40,811 | | | | $33,042 | |
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Americas (Excluding the U.S.) | 972 | | | 1,638 | | | 3,452 | | | 4,702 | |
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Europe | 21,276 | | | 17,234 | | | 66,565 | | | 60,140 | |
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Asia Pacific | 1,127 | | | 5,571 | | | 4,637 | | | 7,823 | |
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Total | | $38,385 | | | | $34,666 | | | | $115,465 | | | | $105,707 | |
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Revenue from external customers attributed to Italy totaled $16.0 million and $13.9 million for the three months ended September 30, 2013 and September 30, 2012 respectively, and $51.5 million and $49.5 million for the nine months ended September 30, 2013 and September 30, 2012 respectively. |
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The following table summarizes long-lived assets, consisting of property and equipment, by geographic region (in thousands): |
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| September 30, 2013 | | December 31, 2012 | | | | | | | | |
Americas | | $3,007 | | | | $2,099 | | | | | | | | | |
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Europe | 2,132 | | | 1,590 | | | | | | | | | |
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Asia Pacific | 38 | | | 46 | | | | | | | | | |
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Total | | $5,177 | | | | $3,735 | | | | | | | | | |
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The following table provides selected Statement of Operations information by business segment (in thousands): |
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| Three months ended | | Nine months ended |
| September 30, | | September 30, |
| 2013 | | 2012 | | 2013 | | 2012 |
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Gross profit | | | | | | | |
Network Equipment | $ | 12,041 | | | $ | 12,306 | | | $ | 33,990 | | | $ | 32,342 | |
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Network Integration | 2,934 | | | 2,261 | | | 7,378 | | | 7,923 | |
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Total before intersegment adjustments | 14,975 | | | 14,567 | | | 41,368 | | | 40,265 | |
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Corporate unallocated and intersegment adjustments (1) | (1 | ) | | (195 | ) | | 5 | | | 100 | |
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Total | $ | 14,974 | | | $ | 14,372 | | | $ | 41,373 | | | $ | 40,365 | |
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Depreciation expense | | | | | | | |
Network Equipment | $ | 406 | | | $ | 286 | | | $ | 988 | | | $ | 745 | |
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Network Integration | 54 | | | 57 | | | 159 | | | 173 | |
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Corporate | 45 | | | 48 | | | 141 | | | 143 | |
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Total | $ | 505 | | | $ | 391 | | | $ | 1,288 | | | $ | 1,061 | |
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Operating income (loss) | | | | | | | |
Network Equipment | $ | 87 | | | $ | 2,163 | | | $ | (1,328 | ) | | $ | 396 | |
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Network Integration (1) | 1,525 | | | (168 | ) | | 2,891 | | | 2,509 | |
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Total before intersegment adjustments | 1,612 | | | 1,995 | | | 1,563 | | | 2,905 | |
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Corporate unallocated operating loss and adjustments (2) | (1,573 | ) | | (4,115 | ) | | (6,072 | ) | | (9,914 | ) |
Total | $ | 39 | | | $ | (2,120 | ) | | $ | (4,509 | ) | | $ | (7,009 | ) |
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(1) Includes a write-down of goodwill for the three and nine months ended September 30, 2012. |
(2) Adjustments reflect the elimination of intersegment revenue and profit in inventory. |
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The following tables provide selected Balance Sheet and Statement of Cash Flow information by business segment (in thousands): |
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| Nine months ended | | | | | | | | |
| September 30, | | | | | | | | |
| 2013 | | 2012 | | | | | | | | |
Additions to Fixed Assets | | | | | | | | | | | |
Network Equipment | $ | 2,679 | | | $ | 542 | | | | | | | | | |
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Network Integration | 53 | | | 58 | | | | | | | | | |
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Corporate | 6 | | | 81 | | | | | | | | | |
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Discontinued operations | — | | | 1,425 | | | | | | | | | |
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Total | $ | 2,738 | | | $ | 2,106 | | | | | | | | | |
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| September 30, 2013 | | December 31, 2012 | | | | | | | | |
Total Assets | | | | | | | | | | | |
Network Equipment | | $51,301 | | | | $44,445 | | | | | | | | | |
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Network Integration | 49,458 | | | 47,400 | | | | | | | | | |
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Corporate and intersegment eliminations | 25,390 | | | 36,720 | | | | | | | | | |
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Total | | $126,149 | | | | $128,565 | | | | | | | | | |
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