MRV Communications (MRVC) 10-Q 18 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 15, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'MRV COMMUNICATIONS INC	'
Entity Central Index Key	'0000887969	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Accelerated Filer	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	7,365,381

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenue:	'	'	'	'
Product revenue	$30,671	$26,432	$62,215	$54,504
Service revenue	12,453	11,743	23,227	22,576
Total revenue	43,124	38,175	85,442	77,080
Cost of sales	28,342	24,803	57,409	50,681
Gross profit	14,782	13,372	28,033	26,399
Operating expenses:	'	'	'	'
Product development and engineering	5,392	4,454	10,970	9,102
Selling, general and administrative	10,516	9,453	22,038	21,845
Total operating expenses	15,908	13,907	33,008	30,947
Operating loss	-1,126	-535	-4,975	-4,548
Interest expense	-40	-241	-190	-373
Other expense, net	-420	-102	-387	-85
Loss before provision for income taxes	-1,586	-878	-5,552	-5,006
Provision for income taxes	681	115	932	421
Net Loss	($2,267)	($993)	($6,484)	($5,427)
Net loss per share — basic (in usd per share)	($0.31)	($0.13)	($0.89)	($0.72)
Net loss per share — diluted (in usd per share)	($0.31)	($0.13)	($0.89)	($0.72)
Weighted average number of shares:	'	'	'	'
Basic (in shares)	7,360	7,585	7,322	7,570
Diluted (in shares)	7,360	7,585	7,322	7,570

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement of Comprehensive Income [Abstract]	'	'	'	'
Net Loss	($2,267)	($993)	($6,484)	($5,427)
Other comprehensive loss, net of tax	'	'	'	'
Foreign currency translation gain (loss)	-123	440	-166	-395
Total comprehensive loss	($2,390)	($553)	($6,650)	($5,822)

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$22,320	$27,591
Restricted time deposits	250	249
Accounts receivable, net	49,122	49,990
Other receivables	10,353	8,220
Inventories	28,485	22,981
Income taxes receivable	814	1,256
Deferred income taxes	1,144	1,219
Other current assets	6,263	5,664
Total current assets	118,751	117,170
Property and equipment, net	5,248	5,555
Deferred income taxes, net of current portion	3,801	3,694
Intangible asset, net	762	873
Other assets	577	655
Total assets	129,139	127,947
Current liabilities:	'	'
Short-term debt	6,370	4,320
Deferred consideration payable	233	233
Accounts payable	27,990	23,991
Accrued liabilities	15,541	19,463
Deferred revenue	13,755	10,557
Other current liabilities	371	357
Total current liabilities	64,260	58,921
Other long-term liabilities	5,509	5,236
Commitments and contingencies	'	'
Stockholders' equity:	'	'
Preferred Stock, $0.01 par value: Authorized — 1,000 shares; no shares issued or outstanding	0	0
Common Stock, $0.0017 par value: Authorized---16,000 shares; Issued---8,222 shares in 2014 and 8,143 shares in 2013; Outstanding — 7,365 shares in 2014 and 7,286 shares in 2013	270	270
Additional paid-in capital	1,284,113	1,281,883
Accumulated deficit	-1,214,821	-1,208,337
Treasury stock — 856 shares in 2014 and 856 shares in 2013	-10,412	-10,412
Accumulated other comprehensive income	220	386
Total stockholders' equity	59,370	63,790
Total liabilities and stockholders' equity	$129,139	$127,947

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value (usd per share)	$0.01	$0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (usd per share)	$0.00	$0.00
Common stock, shares authorized	16,000,000	16,000,000
Common stock, shares issued	8,222,000	8,143,000
Common stock, shares outstanding	7,365,000	7,286,000
Treasury stock, shares	856,000	856,000

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (unaudited) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($6,484)	($5,427)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:	'	'
Depreciation and amortization	1,128	784
Share-based compensation expense	475	302
Provision for doubtful accounts	-43	250
Deferred income taxes	365	-164
Loss on disposition of property and equipment	0	17
Changes in operating assets and liabilities:	'	'
Accounts receivable	551	-1,593
Inventories	-4,902	2,512
Other assets	-2,773	3,281
Accounts payable	4,163	-1,818
Accrued liabilities	-1,857	1,916
Deferred revenue	3,230	973
Other current liabilities	0	172
Net cash (used in) provided by operating activities	-6,147	1,205
Cash flows from investing activities:	'	'
Purchases of property and equipment	-1,176	-2,116
Release of restricted time deposits	-1	-4
Net cash used in investing activities	-1,177	-2,120
Cash flows from financing activities:	'	'
Shares repurchased for tax withholdings on vesting of restricted stock awards	-54	0
Purchase of treasury shares	0	-1,356
Borrowings on short-term debt	12,392	3,102
Payments on short-term debt	-10,297	-5,535
Net cash provided by (used in) financing activities	2,041	-3,789
Effect of exchange rate changes on cash and cash equivalents	12	43
Net decrease in cash and cash equivalents	-5,271	-4,661
Cash and cash equivalents, beginning of period	27,591	40,609
Cash and cash equivalents, end of period	22,320	35,948
Supplemental disclosure of cash flow information:	'	'
Cash paid during period for interest	145	169
Cash paid during period for income taxes	$625	$0

Organization_and_Summary_of_si

Organization and Summary of significant accounting policies	6 Months Ended
	Jun. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Organization and Summary of significant accounting policies	'
	Organization and Summary of significant accounting policies
	Organization and nature of operations
	MRV Communications, Inc. ("MRV" or the "Company"), a Delaware corporation, is a global supplier of communications solutions to telecommunications service providers, enterprises and governments throughout the world. MRV's products enable customers to provide high-bandwidth data and video services and mobile communications services more efficiently and cost effectively. MRV markets and sells its products worldwide, through a variety of channels, which include a dedicated direct sales force, manufacturers' representatives, value-added-resellers, distributors and systems integrators. MRV conducts its business along two principal segments: the Network Equipment segment and the Network Integration segment. MRV's Network Equipment segment designs, manufactures, sells, and services equipment used by commercial customers, governments, and telecommunications service providers. Products include switches, optical transport platforms, physical layer products and out-of-band management products, and specialized networking products. The Italian Network Integration segment provides network system design, integration and distribution services that include products manufactured by third-party vendors.
	Basis of Presentation
	The consolidated financial statements include the accounts of MRV and its wholly-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated. MRV consolidates the financial results of less than majority-owned subsidiaries when it has effective control, voting control, or has provided the entity's working capital. When investment by others in these enterprises reduces the Company's voting control below 50%, MRV discontinues consolidation and uses the cost or equity method of accounting for these investments, unless otherwise required.
	The consolidated financial statements included herein have been prepared by MRV, and are unaudited, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations although MRV believes that the disclosures are adequate to make the information presented not misleading. The information included in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 (this “Form 10-Q”) should be read in conjunction with the Financial Statements and Notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”) filed with the SEC.
	Restricted time deposits represent investments that are restricted as to withdrawal. Restricted time deposits generally secure standby letters of credit, bank lines of credit, or bank loans. Investments in and releases of restricted time deposits are included in investing activities on the Company's Statement of Cash Flows unless the time deposits relate to an underlying bank loan and will be used to repay the loan, in which case the related cash flows are treated as financing activities.
	In the opinion of MRV's management, these unaudited statements contain all adjustments, which include normal recurring adjustments, necessary to present fairly the financial position of MRV as of June 30, 2014, and the results of its operations and comprehensive income (loss) for the three and six months ended June 30, 2014 and 2013, and its cash flows for the six months ended June 30, 2014 and 2013. The results reported in these financial statements should not be regarded as necessarily indicative of results that may be expected for the full year or any future periods.
	Correction of an Immaterial Error
	During the quarter ended June 30, 2014, the Company made an out-of-period adjustment to defer previously recognized revenue of $2 million, which resulted in an increase to after-tax net loss of $0.1 million for the three and six months ended June 30, 2014. The Company reduced cost of sales by $1.8 million, gross profit by $0.2 million and the provision for income taxes by $0.1 million related to prior periods to remove the effect of the previously recognized revenue. These out of period adjustments also resulted in an increase in Inventory of $1.9 million, deferred revenue of $2 million and deferred income taxes, net of current portion by $0.1 million. The impact on accumulated deficit and stockholder’s equity was a reduction by $0.1 million. The Company evaluated the effects of this adjustment on the Company’s consolidated financial statements and concluded that the error was not material to any prior annual or interim periods. Individually and in the aggregate, these out-of-period adjustments did not have a material impact on the Company’s consolidated financial statements for the quarter and year to date periods ended June 30, 2014.
	Recently Issued Accounting Standards
	In May 2014, the FASB issued Accounting Stands Update No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09"). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. MRV is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnote disclosures.

Cash_and_Cash_Equivalents_and_

Cash and Cash Equivalents and Restricted Time Deposits	6 Months Ended
	Jun. 30, 2014
Cash and Cash Equivalents [Abstract]	'
Cash and Cash Equivalents and Restricted Time Deposits	'
	Cash and Cash Equivalents and Restricted Time Deposits
	MRV treats highly liquid investments with an original maturity of 90 days or less as cash equivalents. Investments with maturities of less than one year are considered short-term and are included on the balance sheet in restricted time deposits. MRV maintains cash balances and investments in qualified financial institutions, and at various times such amounts are in excess of federal insured limits.

Fair_Value_Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2014
Fair Value Disclosures [Abstract]	'
Fair Value Measurement	'
	Fair Value Measurement
	MRV's financial instruments, including cash and cash equivalents, restricted time deposits, accounts receivable, other receivables, other assets, accounts payable, accrued liabilities and short-term debt obligations, are carried at cost, which approximates their fair value due to their short term nature.
	ASC 820-10 Fair Value Measurements defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820-10 establishes a three-level hierarchy that prioritizes the use of observable inputs. The fair value hierarchy is divided into three levels based on the source of inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access; Level 2 - Valuations for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs for similar assets and liabilities; Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.
	As of June 30, 2014 and December 31, 2013, the Company had cash equivalents consisting of money market funds of $11.6 million and $14.0 million, respectively that were classified as Level 1 investments and were quoted at market price. Cash equivalents are included in the consolidated balance sheets as follows (in thousands):
		Cost		Fair Value
	31-Dec-13	$	14,001	$	14,001
	30-Jun-14	$	11,604	$	11,604
	During 2014 the Company updated the estimated fair value as of the issuance date of 250,000 warrants that were issued to plaintiffs' counsel on February 18, 2014 in a litigation matter originally recorded as a liability in 2013. In calculating the fair value, the Company used the Black Scholes option pricing model with level 2 inputs including a volatility of 41% based on the Company's historical quoted prices and peer company data, the risk free interest rate of 1.5% and the 5 years expected term of the warrants. Volatility based on both the Company's historical quoted prices and peer company data was used as the Company's stock is thinly traded. The resulting fair value was $6.59 per warrant. In relation to this revaluation, the Company recorded expense of $0.4 million for the three months ended March 31, 2014. No additional expense was recorded in the three months ended June 30, 2014. Upon issuance and revaluation, the warrants were removed from liabilities and recorded as a component of additional paid in capital.

Credit_Risk

Credit Risk	6 Months Ended
	Jun. 30, 2014
Receivables [Abstract]	'
Credit Risk	'
	Credit Risk
	Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents placed with high credit quality institutions and accounts receivable due from customers. MRV evaluates the collectability of accounts receivable based on a combination of factors. If MRV becomes aware of a customer's inability to meet its financial obligations after a sale has occurred, the Company records an allowance to reduce the net receivable to the amount that it reasonably believes to be collectable from the customer. For all other customers, the Company records allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment, and historical experience. If the financial conditions of MRV's customers were to deteriorate or if economic conditions worsen, additional allowances may be required in the future. Accounts receivable are charged off at the point they are considered uncollectible.
	The following table summarizes the changes in the allowance for doubtful accounts during the six months ended June 30, 2014 (in thousands):
		Six months ended
		June 30, 2014
	Balance at beginning of period	$	2,183
	Charged (reversed) to expense	(43		)
	Write-offs, net of amounts recovered	2
	Foreign currency translation adjustment	(9		)
	Balance at end of period	$	2,133

Inventories

Inventories	6 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	Inventories
	Inventories are stated at the lower of cost or market and consist of materials, labor and overhead. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. Inventories, net of reserves, consisted of the following (in thousands):
		June 30, 2014		December 31, 2013
	Raw materials	$	4,374	$	5,723
	Work-in process	1,381		1,121
	Finished goods	22,730		16,137
	Total	$	28,485	$	22,981

Intangible_Asset

Intangible Asset	6 Months Ended
	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Asset	'
	Intangible Asset
	The balance of the intangible asset was $0.8 million as of June 30, 2014 and $0.9 million as of December 31, 2013. This asset, which represents software license agreements, was not placed in service as of June 30, 2014, therefore amortization of intangible assets was zero for the three and six months ended June 30, 2014 and June 30, 2013. The terms of the license agreements are definite, and once placed in service, the Company plans to amortize the cost over the estimated useful life, which is approximately 5 years.

Product_Warranty

Product Warranty	6 Months Ended
	Jun. 30, 2014
Product Warranties Disclosures [Abstract]	'
Product Warranty	'
	Product Warranty
	As of June 30, 2014 and December 31, 2013, MRV's product warranty liability recorded in accrued liabilities was $0.6 million. MRV accrues for warranty costs as part of cost of goods sold based on associated material product costs, technical support labor costs and associated overhead. The products sold are generally covered by a warranty for periods of 90 days to three years.
	The following table summarizes the change in product warranty liability during the six months ended June 30, 2014 (in thousands):
		Six months ended
		June 30, 2014
	Beginning balance	$	578
	Cost of warranty claims	(18		)
	Accruals for product warranties	43
	Total	$	603

Net_Income_Loss_Per_Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Net Income (Loss) Per Share	'
	Net Income (Loss) Per Share
	Basic net income (loss) per share is computed using the weighted average number of shares of common stock ("Common Stock") outstanding, including restricted shares which, although they are legally outstanding and have voting rights, are subject to vesting and are treated as common stock equivalents in calculating basic income (loss) per share. Diluted net income (loss) per share is computed using the weighted average number of shares of Common Stock outstanding and dilutive potential shares of Common Stock from stock options outstanding during the period. Diluted shares outstanding include the dilutive effect of in-the-money options, which is calculated based on the average share price for each period using the treasury stock method.
	Outstanding stock options to purchase 0.4 million shares were excluded from the computation of dilutive shares for the three months ended June 30, 2014 and 2013 because of the net loss. In addition, for the three months ended June 30, 2014, there were 8,141 potentially dilutive shares excluded from the calculation of diluted net loss per share because they were anti-dilutive, and there were no potentially dilutive shares to be excluded from the calculation of diluted net loss per share for the three months ended June 30, 2013. Treasury shares are excluded from the number of shares outstanding.
	Outstanding stock options to purchase 0.3 million shares were excluded from the computation of dilutive shares for the six months ended June 30, 2014 because of the net loss. Outstanding stock options to purchase 0.4 million shares were excluded in the computation of dilutive shares for the six months ended June 30, 2013 because of the net loss. In addition, for the six months ended June 30, 2014, there were 7,206 potentially dilutive shares excluded from the calculation of diluted net loss per share because they were anti-dilutive, and there were no potentially dilutive shares to be excluded from the calculation of diluted net loss per share for the six months ended June 30, 2013. Treasury shares are excluded from the number of shares outstanding.

ShareBased_Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Share-Based Compensation	'
	Share-Based Compensation
	MRV records share-based compensation expense in accordance with ASC Topic 718 Compensation - Stock Compensation. The following table summarizes the impact on MRV's results of operations of recording share-based compensation for the three and six months ended June 30, 2014 and 2013 (in thousands):
		Three months ended						Six months ended
		June 30,						June 30,
		2014				2013		2014		2013
	Cost of goods sold	$	33			$	26	$	53	$	43
	Product development and engineering	50				15		73		25
	Selling, general and administrative	245				42		349		234
	Total share-based compensation expense (1)	$	328			$	83	$	475	$	302
	-1	Income tax benefits realized from stock option exercises and similar awards were immaterial in both periods.
	The Company granted 173,722 stock options during the three months ended June 30, 2014 and the related fair value was $7.16 per option. The Company granted 85,907 restricted shares during the three months ended June 30, 2014 and the related fair value was $14.40 per share. The Company granted 80,242 stock options during the three months ended June 30, 2013 and the related fair value was $4.89 per share. The Company granted 90,387 restricted shares during the three months ended June 30, 2013 and the related fair value was $9.99 per share. No options and restricted shares were granted during the three months ended March 31, 2014, and 2013. As of June 30, 2014, the total unrecognized share-based compensation balance for unvested securities, net of expected forfeitures, was $1.9 million, which is expected to be amortized over a weighted-average period of 2.4 years.
	Valuation Assumptions
	MRV uses the Black-Scholes option pricing model to estimate the fair value of stock option awards or related modifications. The Black-Scholes model requires the use of subjective and complex assumptions including the option's expected life and the underlying stock price volatility. MRV bases volatility on the Company's historical quoted prices and peer company data. The following weighted average assumptions were used for estimating the fair value of options granted during the six months ended June 30, 2014 and the options modified during the six months ended June 30, 2013, respectively.
	Six months ended June 30,	2014		2013
	Risk-free interest rate	2	%	1.2	%
	Dividend yield (1)	—		—
	Volatility	51	%	52	%
	Expected life (in years)	5.9		5.7
	-1	As the Company does not pay a dividend on a regular basis, and dividends paid in the past have been special in nature, a dividend rate of zero was used.

Segment_Reporting_and_Geograph

Segment Reporting and Geographic Information	6 Months Ended
	Jun. 30, 2014
Segment Reporting [Abstract]	'
Segment Reporting and Geographic Information	'
	Segment Reporting and Geographic Information
	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.
	The accounting policies of the segments are the same as those described in the summary of significant accounting polices disclosed in MRV's 2013 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).
	The following table summarizes revenues by segment, including intersegment revenues (in thousands):
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Network Equipment	$	21,833		$	21,100		$	44,152		$	42,046
	Network Integration	21,355			17,135			41,408			35,117
	Before intersegment adjustments	43,188			38,235			85,560			77,163
	Intersegment adjustments	(64		)	(60		)	(118		)	(83		)
	Total	$	43,124		$	38,175		$	85,442		$	77,080
	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.
	One customer accounted for $23.6 million and $22.2 million of revenue in Network Integration revenue, or 28% and 29% of total revenue, for the six months ended June 30, 2014 and 2013, respectively. Another customer accounted for $14.2 million and $9.0 million of Network Integration revenue, or 17% and 12% of total revenue, for the six months ended June 30, 2014 and 2013, respectively.
	One customer accounted for $12.6 million and $10.8 million of revenue in Network Integration revenue, or 29% of total revenue, for the three months ended June 30, 2014 and 2013, respectively. Another customer accounted for $7.7 million and $4.1 million of Network Integration revenue, or 18% and 11% of total revenue, for the three months ended June 30, 2014 and 2013, respectively.
	One customer in Network Integration accounted for 25% and 22% of total net accounts receivable as of June 30, 2014, and December 31, 2013, respectively. Another Network Integration customer accounted for 28% and 27% of total net accounts receivable as of June 30, 2014, and December 31, 2013, respectively.
	The following table summarizes external revenue by geographic region (in thousands):
		Three months ended						Six months ended
		June 30,						June 30,
		2014			2013			2014			2013
	United States	$	13,555		$	13,676		$	26,411		$	25,801
	Americas (Excluding the U.S.)	126			855			682			2,480
	Europe	26,522			21,869			53,101			45,290
	Asia Pacific	2,921			1,775			5,248			3,509
	Total	$	43,124		$	38,175		$	85,442		$	77,080
	Revenue from external customers attributed to Italy totaled $21.4 million and $17.3 million for the three months ended June 30, 2014 and June 30, 2013 respectively. Revenue from external customers attributed to Italy totaled $41.8 million and $35.4 million for the six months ended June 30, 2014 and June 30, 2013 respectively.
	The following table summarizes long-lived assets, consisting of property and equipment, by geographic region (in thousands):
		June 30, 2014			December 31, 2013
	Americas	$	3,199		$	3,326
	Europe	2,017			2,194
	Asia Pacific	32			35
	Total	$	5,248		$	5,555
	The following table provides selected Statement of Operations information by business segment (in thousands):
		Three months ended						Six months ended
		June 30,						June 30,
		2014			2013			2014			2013
	Gross profit
	Network Equipment	$	11,185		$	11,183		$	21,944		$	21,949
	Network Integration	3,598			2,187			6,088			4,444
	Total before intersegment adjustments	14,783			13,370			28,032			26,393
	Corporate unallocated and intersegment adjustments (1)	(1		)	2			1			6
	Total	$	14,782		$	13,372		$	28,033		$	26,399
	Depreciation expense
	Network Equipment	$	433		$	283		$	969		$	583
	Network Integration	51			52			100			105
	Corporate	20			48			59			96
	Total	$	504		$	383		$	1,128		$	784
	Operating income (loss)
	Network Equipment	$	(1,503	)	$	(296	)	$	(4,343	)	$	(1,415	)
	Network Integration	1,704			675			2,550			1,366
	Total before intersegment adjustments	201			379			(1,793		)	(49		)
	Corporate unallocated operating loss and adjustments (1)	(1,327		)	(914		)	(3,182		)	(4,499		)
	Total	$	(1,126	)	$	(535	)	$	(4,975	)	$	(4,548	)
	(1) Adjustments reflect the elimination of intersegment revenue and profit in inventory.
	The following tables provide selected Balance Sheet and Statement of Cash Flow information by business segment (in thousands):
		Six months ended
		June 30,
		2014			2013
	Additions to Fixed Assets
	Network Equipment	$	1,019		$	2,064
	Network Integration	74			46
	Corporate	83			6
	Total	$	1,176		$	2,116
	June 30, 2014			December 31, 2013
Total Assets
Network Equipment	$	44,798		$	48,955
Network Integration	65,288			54,625
Corporate and intersegment eliminations	19,053			24,367
Total	$	129,139		$	127,947

Indemnification_Obligations

Indemnification Obligations	6 Months Ended
	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Indemnification Obligations	'
	Indemnification Obligations
	Our agreements for the sale of our Source Photonics, CES, Interdata and Alcadon businesses include customary indemnification obligations running to the respective buyers.
	We have agreements whereby our officers and directors are indemnified for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we retain directors and officers insurance that reduces our exposure and enables us to recover portions of amounts paid. As a result of our insurance coverage, we believe the estimated fair value of these indemnification agreements is minimal. Accordingly, no liabilities have been recorded for these agreements as of June 30, 2014 and December 31, 2013.

Litigation

Litigation	6 Months Ended
	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Litigation	'
	Litigation
	We are subject to legal claims and litigation in the ordinary course of business, including but not limited to product liability, employment and intellectual property claims. The outcome of any such matters is currently not determinable. In addition, we were party to the litigation set forth below.
	From June to August 2008, five purported stockholder derivative and securities class action lawsuits were filed in the U.S. District Court in the Central District of California and one derivative lawsuit was filed in the Superior Court of the State of California against the Company and certain of our former officers and directors. The five lawsuits filed in the Central District of California were consolidated. Claims were asserted under Section 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder. In November 2010, the judge overseeing the securities class action lawsuits gave final approval to a stipulated $10.0 million settlement agreement, which was covered by our director and officer insurance policies. The federal and state derivative lawsuits were not settled.
	As of January 4, 2013, all pending litigation in the federal and state derivative actions was stayed by agreement of the parties pending final Federal Court approval of a settlement between derivative plaintiffs, individual defendants and the Company. On April 8, 2013 the Federal Court preliminarily approved a Stipulation of Settlement (the "Settlement Stipulation"), which included, among other things, (a) a release of all claims relating to the derivative litigation for the Company, the individual defendants and the plaintiffs; (b) a provision that $2.5 million in cash be paid to the Company by the Company's insurance carriers; (c) payment of attorneys' fees to plaintiffs' counsel including $500,000 in cash and 250,000 warrants to purchase the Company's Common Stock, with a five-year term and strike price of the closing price of the Company's Common Stock on the date an order of the federal District Court approving the settlement becomes final; (d) the continued payment by the Company of applicable reasonable attorneys' fees for the individual defendants. On June 6, 2013, the Federal Court granted final approval of the Settlement Stipulation and on June 13, 2013 entered Judgment dismissing the federal derivative action with prejudice. On June 24, 2013, the State Court entered a dismissal with prejudice of the state derivative action. The Company was also required to undertake certain corporate governance reform actions, all of which are either in process of implementation or have been implemented.
	A majority of the costs related to the Company's and defendants' defense of these actions was paid by the Company's insurance carriers under its director and officer insurance policies, including the securities class action settlement. Insurance proceeds paid to the Company upon settlement of the derivative litigation were $1.0 million. However, MRV has paid and accrued $1.9 million in payment for services of defense counsel and other parties through December 31, 2013 above the insured amount.
	In May 2014, a former customer of Tecnonet S.p.A. filed a claim in an Italian civil court alleging that Tecnonet, and its two third-party subcontractors, breached certain supply agreements with the customer, entered into between 2009 and 2011, by failing to have performed the contracted services. The plaintiff further alleges that Tecnonet was aware, at the time of entering the supply agreements, that the customer’s managing director had a conflict of interest involving the subcontractors. The plaintiff is claiming damages and restitution from Tecnonet and the subcontractors, jointly and severally, of approximately $3.0 million in the aggregate, plus costs. While we believe that Tecnonet has valid defenses to the plaintiff's claims, we cannot provide assurance that such claims will not result in any liability to Tecnonet.
	From time to time, MRV has received notices from third parties alleging possible infringement of patents with respect to product features or manufacturing processes. Management believes such notices are common in the communications industry because of the large number of patents that have been filed on these subjects. The Company's policy is to discuss these notices with the parties in an effort to demonstrate that MRV's products and/or processes do not violate any patents. The Company has been involved in such discussions with Alcatel-Lucent SA, Apcon, Inc., Finisar Corporation, International Business Machines, Mediacom Broadband LLC, Ortel Communications, Ltd., Nortel Networks Corporation, Rockwell Automation, Inc. and The Lemelson Foundation in the past.
	MRV and its subsidiaries have been named as a defendant in other lawsuits involving matters that MRV considers routine to the nature of its business. MRV is of the opinion that the ultimate resolution of such matters will not have a material adverse effect on our business, operating results and financial condition.

Accounts_Receivable_Factoring

Accounts Receivable Factoring	6 Months Ended
	Jun. 30, 2014
Receivables [Abstract]	'
Accounts Receivable Factoring	'
	Accounts Receivable Factoring
	The Company's Italian subsidiary has agreements with unrelated third-parties for the factoring of specific accounts receivable in Italy in order to reduce the amount of working capital required to fund such receivables. At June 30, 2014, Tecnonet's factoring facility agreements permitted the factoring of up to €10.0 million, or $13.7 million, worth of receivables in operations outside of the United States. The factoring of accounts receivable under these agreements is accounted for as a sale in accordance with ASC 860 Transfers and Servicing. The Company has no retained interests or servicing liabilities related to the accounts receivable that have been sold in Italy.
	At June 30, 2014, and December 31, 2013, the face amount of total outstanding accounts receivable pursuant to these agreements was $12.7 million and $17.2 million, respectively. Receivables transferred to the factor are derecognized at the date of sale and the proceeds are recorded at fair value. Proceeds consist of a receivable due from the factor. Cash received from the factor is recorded as a reduction of the receivable due from the factor. The related outstanding balances due from the factor were $10.0 million and $7.7 million as of June 30, 2014 and December 31, 2013, respectively, and are included in other receivables on the accompanying balance sheets. The related losses on sale were $0.07 million and $0.05 million for the three months ended June 30, 2014 and June 30, 2013, respectively and $0.11 million and $0.13 million for the six months ended June 30, 2014 and June 30, 2013, respectively and are included in interest expense on the accompanying consolidated statements of operations.

Share_Repurchase

Share Repurchase	6 Months Ended
	Jun. 30, 2014
Equity [Abstract]	'
Share Repurchase	'
	Share Repurchase
	On December 3, 2012, the Company Board of Directors approved a repurchase of shares of Common Stock of the Company in an amount up to $10.0 million under a stock repurchase program that was scheduled to expire on December 31, 2013. Under this program the Company purchased 141,412 shares at a total cost of approximately $1.4 million during the six months ended June 30, 2013. Since December 3, 2012, the Company purchased 181,717 shares at a total cost of approximately $1.8 million through June 30, 2013. No additional shares were repurchased during the three and six months ended June 30, 2013 under this plan.
	On August 15, 2013, the Company Board of Directors terminated the Company's existing    stock repurchase plan and approved a replacement repurchase plan on substantially the same terms in an amount up to $7.0 million that expired on May 14, 2014. Since August 15, 2013 the Company has purchased 127,510 shares at a total cost of approximately $1.3 million through December 31, 2013. No additional shares were repurchased during the three and six months ended June 30, 2014 under this plan.

Income_Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	Income Taxes
	The following table provides details of income taxes (in thousands, except percentages):
		Three months ended						Six months ended
		June 30,						June 30,
		2014			2013			2014			2013
	Loss before provision for income taxes	$	(1,586	)	$	(878	)	$	(5,552	)	$	(5,006	)
	Provision for income taxes	681			115			932			421
	Effective tax rate	(43		)%	(13		)%	(17		)%	(8		)%
	The effective tax rate fluctuates based on the amount of pre-tax income or loss generated in the various jurisdictions where we conduct operations and pay income tax. The income tax expense on an operating loss of $1.6 million in the second quarter of 2014 is due to income tax associated with our foreign subsidiaries that do not benefit from our federal net operating loss carryforwards and from the accrual of an income tax liability including interest and penalties of $0.3 million on a settlement of a tax audit of a foreign subsidiary. The interest and penalties related to the income tax liability are recognized in the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties are included in the income tax liability in the consolidated balance sheet.
	As of December 31, 2013, we had net operating losses ("NOLs") of $172.3 million, $93.1 million, and $95.8 million for federal, state, and foreign income tax purposes, respectively. Additionally, the Company has capital loss carryforwards of $110.5 million and $24.0 million for federal and state tax purposes, respectively. The capital loss carry forwards, which were generated by the sale of Source Photonics, expire in 2015. Under the Internal Revenue Code, if a corporation undergoes an "ownership change," the corporation's ability to use its pre-change NOLs, capital loss carry forwards and other pre-change tax attributes to offset its post-change income may be limited. An ownership change is generally defined as a greater than 50% change in its equity ownership by value over a three-year period. We may experience an ownership change in the future as a result of subsequent shifts in our stock ownership. If we were to trigger an ownership change in the future, our ability to use any NOLs and capital loss carry forwards existing at that time could be limited. As of June 30, 2014, the US federal and state NOLs had a full valuation allowance.

Organization_and_Summary_of_si1

Organization and Summary of significant accounting policies (Policies)	6 Months Ended
	Jun. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Basis of Presentation	'
	The consolidated financial statements include the accounts of MRV and its wholly-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated. MRV consolidates the financial results of less than majority-owned subsidiaries when it has effective control, voting control, or has provided the entity's working capital. When investment by others in these enterprises reduces the Company's voting control below 50%, MRV discontinues consolidation and uses the cost or equity method of accounting for these investments, unless otherwise required.
	The consolidated financial statements included herein have been prepared by MRV, and are unaudited, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations although MRV believes that the disclosures are adequate to make the information presented not misleading. The information included in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 (this “Form 10-Q”) should be read in conjunction with the Financial Statements and Notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”) filed with the SEC.
Restricted Time Deposits	'
	Restricted time deposits represent investments that are restricted as to withdrawal. Restricted time deposits generally secure standby letters of credit, bank lines of credit, or bank loans. Investments in and releases of restricted time deposits are included in investing activities on the Company's Statement of Cash Flows unless the time deposits relate to an underlying bank loan and will be used to repay the loan, in which case the related cash flows are treated as financing activities.
Recently Issued Accounting Standards	'
	Recently Issued Accounting Standards
	In May 2014, the FASB issued Accounting Stands Update No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09"). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. MRV is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnote disclosures.
Allowance for Doubtful Accounts Policy	'
	Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents placed with high credit quality institutions and accounts receivable due from customers. MRV evaluates the collectability of accounts receivable based on a combination of factors. If MRV becomes aware of a customer's inability to meet its financial obligations after a sale has occurred, the Company records an allowance to reduce the net receivable to the amount that it reasonably believes to be collectable from the customer. For all other customers, the Company records allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment, and historical experience. If the financial conditions of MRV's customers were to deteriorate or if economic conditions worsen, additional allowances may be required in the future. Accounts receivable are charged off at the point they are considered uncollectible.

Fair_Value_Measurement_Tables

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2014
Fair Value Disclosures [Abstract]	'
Fair Value, by Balance Sheet Grouping	'
	Cash equivalents are included in the consolidated balance sheets as follows (in thousands):
		Cost		Fair Value
	31-Dec-13	$	14,001	$	14,001
	30-Jun-14	$	11,604	$	11,604

Credit_Risk_Tables

Credit Risk (Tables)	6 Months Ended
	Jun. 30, 2014
Receivables [Abstract]	'
Schedule of Allowance for Doubtful Accounts	'
	The following table summarizes the changes in the allowance for doubtful accounts during the six months ended June 30, 2014 (in thousands):
		Six months ended
		June 30, 2014
	Balance at beginning of period	$	2,183
	Charged (reversed) to expense	(43		)
	Write-offs, net of amounts recovered	2
	Foreign currency translation adjustment	(9		)
	Balance at end of period	$	2,133

Inventories_Tables

Inventories (Tables)	6 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Schedule of Inventory, Current	'
	Inventories, net of reserves, consisted of the following (in thousands):
		June 30, 2014		December 31, 2013
	Raw materials	$	4,374	$	5,723
	Work-in process	1,381		1,121
	Finished goods	22,730		16,137
	Total	$	28,485	$	22,981

Product_Warranty_Tables

Product Warranty (Tables)	6 Months Ended
	Jun. 30, 2014
Product Warranties Disclosures [Abstract]	'
Schedule of Product Warranty Liability	'
	The following table summarizes the change in product warranty liability during the six months ended June 30, 2014 (in thousands):
		Six months ended
		June 30, 2014
	Beginning balance	$	578
	Cost of warranty claims	(18		)
	Accruals for product warranties	43
	Total	$	603

ShareBased_Compensation_Tables

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'
	The following table summarizes the impact on MRV's results of operations of recording share-based compensation for the three and six months ended June 30, 2014 and 2013 (in thousands):
		Three months ended						Six months ended
		June 30,						June 30,
		2014				2013		2014		2013
	Cost of goods sold	$	33			$	26	$	53	$	43
	Product development and engineering	50				15		73		25
	Selling, general and administrative	245				42		349		234
	Total share-based compensation expense (1)	$	328			$	83	$	475	$	302
	-1	Income tax benefits realized from stock option exercises and similar awards were immaterial in both periods.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	'
	The following weighted average assumptions were used for estimating the fair value of options granted during the six months ended June 30, 2014 and the options modified during the six months ended June 30, 2013, respectively.
	Six months ended June 30,	2014		2013
	Risk-free interest rate	2	%	1.2	%
	Dividend yield (1)	—		—
	Volatility	51	%	52	%
	Expected life (in years)	5.9		5.7
	-1	As the Company does not pay a dividend on a regular basis, and dividends paid in the past have been special in nature, a dividend rate of zero was used.

Segment_Reporting_and_Geograph1

Segment Reporting and Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2014
Segment Reporting [Abstract]	'
Reconciliation of Revenue from Segments to Consolidated	'
	The following table summarizes revenues by segment, including intersegment revenues (in thousands):
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Network Equipment	$	21,833		$	21,100		$	44,152		$	42,046
	Network Integration	21,355			17,135			41,408			35,117
	Before intersegment adjustments	43,188			38,235			85,560			77,163
	Intersegment adjustments	(64		)	(60		)	(118		)	(83		)
	Total	$	43,124		$	38,175		$	85,442		$	77,080
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	'
	The following table summarizes external revenue by geographic region (in thousands):
		Three months ended						Six months ended
		June 30,						June 30,
		2014			2013			2014			2013
	United States	$	13,555		$	13,676		$	26,411		$	25,801
	Americas (Excluding the U.S.)	126			855			682			2,480
	Europe	26,522			21,869			53,101			45,290
	Asia Pacific	2,921			1,775			5,248			3,509
	Total	$	43,124		$	38,175		$	85,442		$	77,080
	Revenue from external customers attributed to Italy totaled $21.4 million and $17.3 million for the three months ended June 30, 2014 and June 30, 2013 respectively. Revenue from external customers attributed to Italy totaled $41.8 million and $35.4 million for the six months ended June 30, 2014 and June 30, 2013 respectively.
	The following table summarizes long-lived assets, consisting of property and equipment, by geographic region (in thousands):
		June 30, 2014			December 31, 2013
	Americas	$	3,199		$	3,326
	Europe	2,017			2,194
	Asia Pacific	32			35
	Total	$	5,248		$	5,555
Reconciliation of Operating Profit (Loss) from Segments to Consolidated	'
	The following table provides selected Statement of Operations information by business segment (in thousands):
		Three months ended						Six months ended
		June 30,						June 30,
		2014			2013			2014			2013
	Gross profit
	Network Equipment	$	11,185		$	11,183		$	21,944		$	21,949
	Network Integration	3,598			2,187			6,088			4,444
	Total before intersegment adjustments	14,783			13,370			28,032			26,393
	Corporate unallocated and intersegment adjustments (1)	(1		)	2			1			6
	Total	$	14,782		$	13,372		$	28,033		$	26,399
	Depreciation expense
	Network Equipment	$	433		$	283		$	969		$	583
	Network Integration	51			52			100			105
	Corporate	20			48			59			96
	Total	$	504		$	383		$	1,128		$	784
	Operating income (loss)
	Network Equipment	$	(1,503	)	$	(296	)	$	(4,343	)	$	(1,415	)
	Network Integration	1,704			675			2,550			1,366
	Total before intersegment adjustments	201			379			(1,793		)	(49		)
	Corporate unallocated operating loss and adjustments (1)	(1,327		)	(914		)	(3,182		)	(4,499		)
	Total	$	(1,126	)	$	(535	)	$	(4,975	)	$	(4,548	)
	(1) Adjustments reflect the elimination of intersegment revenue and profit in inventory.
Reconciliation of Assets and Other Reconciling Items from Segment to Consolidated	'
	The following tables provide selected Balance Sheet and Statement of Cash Flow information by business segment (in thousands):
		Six months ended
		June 30,
		2014			2013
	Additions to Fixed Assets
	Network Equipment	$	1,019		$	2,064
	Network Integration	74			46
	Corporate	83			6
	Total	$	1,176		$	2,116
		June 30, 2014			December 31, 2013
	Total Assets
	Network Equipment	$	44,798		$	48,955
	Network Integration	65,288			54,625
	Corporate and intersegment eliminations	19,053			24,367
	Total	$	129,139		$	127,947

Income_Taxes_Tables

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
Details of Income Taxes	'
	The following table provides details of income taxes (in thousands, except percentages):
		Three months ended						Six months ended
		June 30,						June 30,
		2014			2013			2014			2013
	Loss before provision for income taxes	$	(1,586	)	$	(878	)	$	(5,552	)	$	(5,006	)
	Provision for income taxes	681			115			932			421
	Effective tax rate	(43		)%	(13		)%	(17		)%	(8		)%

Organization_and_Summary_of_si2

Organization and Summary of significant accounting policies (Narrative) (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
			segments
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'	'	'	'	'
Number of Business Segments	'	'	2	'	'
Error Corrections and Prior Period Adjustments Restatement [Line Items]	'	'	'	'	'
Revenue	($43,124)	($38,175)	($85,442)	($77,080)	'
Net loss	'	'	6,484	5,427	'
Cost of sales	-28,342	-24,803	-57,409	-50,681	'
Gross profit	-14,782	-13,372	-28,033	-26,399	'
Provision for income taxes	-681	-115	-932	-421	'
Inventories	28,485	'	28,485	'	22,981
Deferred revenue	'	'	3,230	973	'
Deferred income taxes	1,144	'	1,144	'	1,219
Accumulated deficit	1,214,821	'	1,214,821	'	1,208,337
Restatement Adjustment [Member]	'	'	'	'	'
Error Corrections and Prior Period Adjustments Restatement [Line Items]	'	'	'	'	'
Revenue	2,000	'	'	'	'
Net loss	100	'	100	'	'
Cost of sales	1,800	'	'	'	'
Gross profit	200	'	'	'	'
Provision for income taxes	100	'	'	'	'
Inventories	1,900	'	1,900	'	'
Deferred revenue	2,000	'	'	'	'
Deferred income taxes	100	'	100	'	'
Accumulated deficit	$100	'	$100	'	'

Fair_Value_Measurement_Narrati

Fair Value Measurement (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended	6 Months Ended
	Apr. 08, 2013	Jun. 30, 2014	Jun. 30, 2014	Feb. 18, 2014	Jun. 30, 2014	Dec. 31, 2013
					Money Market Funds [Member]	Money Market Funds [Member]
					Fair Value, Inputs, Level 1 [Member]	Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'	'	'	'	'
Cash Equivalents	'	'	'	'	$11,604,000	$14,001,000
Stipulation of settlement, payment to plaintiff, warrants	250,000	'	'	250,000	'	'
Expected volatility rate	'	'	41.00%	'	'	'
Risk free interest rate	'	'	1.50%	'	'	'
Stipulation of settlement, payment to plaintiff, warrants, term	'5 years	'	'5 years	'	'	'
Warrants, fair value per share	'	6.59	6.59	'	'	'
Liabilities, Fair Value Adjustment	'	$400,000	$400,000	'	'	'

Fair_Value_Measurement_Cash_an

Fair Value Measurement (Cash and Cash Equivalents) (Details) (Money Market Funds [Member], Fair Value, Inputs, Level 1 [Member], USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Cash Equivalents, Beginning Balance	$11,604	$14,001
Cash Equivalents, Ending Balance	11,604	14,001
Cost [Member]	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Cash Equivalents, Beginning Balance	11,604	14,001
Cash Equivalents, Ending Balance	$11,604	$14,001

Credit_Risk_Changes_in_the_All

Credit Risk (Changes in the Allowance for Doubtful Accounts) (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Allowance for Doubtful Accounts Receivable [Roll Forward]	'	'
Balance at beginning of period	$2,183	'
Charged (reversed) to expense	-43	250
Write-offs, net of amounts recovered	2	'
Foreign currency translation adjustment	-9	'
Balance at end of period	$2,133	'

Inventories_Net_of_Reserves_De

Inventories (Net of Reserves) (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]	'	'
Raw materials	$4,374	$5,723
Work-in process	1,381	1,121
Finished goods	22,730	16,137
Total	$28,485	$22,981

Intangible_Asset_Narrative_Det

Intangible Asset (Narrative) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'	'	'
Intangible assets	$762,000	'	$762,000	'	$873,000
Amortization of intangible assets	$0	$0	$0	$0	'
Estimated useful life of finite-lived intangible assets	'	'	'5 years	'	'

Product_Warranty_Narrative_Det

Product Warranty (Narrative) (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014	Jun. 30, 2014
In Thousands, unless otherwise specified			Minimum [Member]	Maximum [Member]
Product Warranties Disclosures [Abstract]	'	'	'	'
Product warranty liability	$603	$578	'	'
Standard Product Warranty Period [Line Items]	'	'	'	'
Standard product warranty period	'	'	'90 days	'3 years

Product_Warranty_Change_in_Pro

Product Warranty (Change in Product Warranty Liability) (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]	'
Beginning balance	$578
Cost of warranty claims	-18
Accruals for product warranties	43
Total	$603

Net_Income_Loss_Per_Share_Narr

Net Income (Loss) Per Share (Narrative) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Stock Options [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	400,000	'	300,000	400,000
Potentially Dilutive Shares [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	8,141	0	7,206	0

ShareBased_Compensation_Narrat

Share-Based Compensation (Narrative) (Details) (USD $)	6 Months Ended	3 Months Ended
In Millions, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013
		Stock Options [Member]	Stock Options [Member]	Stock Options [Member]	Stock Options [Member]	Restricted Stock [Member]	Restricted Stock [Member]	Restricted Stock [Member]	Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'	'	'	'
Stock options, grants during period (in shares)	'	173,722	0	80,242	0	'	'	'	'
Stock options, weighted-average fair value, grants during the period (dollars per share)	'	$7.16	'	$4.89	'	'	'	'	'
Restricted stock, grants during period (in shares)	'	'	'	'	'	85,907	0	90,387	0
Restricted stock, weighted-average fair value, grants during the period (dollars per share)	'	'	'	'	'	$14.40	'	$9.99	'
Total compensation cost not yet recognized	$1.90	'	'	'	'	'	'	'	'
Total compensation cost not yet recognized, period for recognition	'2 years 4 months 24 days	'	'	'	'	'	'	'	'

ShareBased_Compensation_ShareB

Share-Based Compensation (Share-Based Compensation Expense) (Details) (USD $)	3 Months Ended				6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'		'		'		'
Allocated Share-based Compensation Expense	$328	[1]	$83	[1]	$475	[1]	$302	[1]
Cost of Goods Sold [Member]	'		'		'		'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'		'		'		'
Allocated Share-based Compensation Expense	33		26		53		43
Product Development and Engineering [Member]	'		'		'		'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'		'		'		'
Allocated Share-based Compensation Expense	50		15		73		25
Selling, General and Administrative [Member]	'		'		'		'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'		'		'		'
Allocated Share-based Compensation Expense	$245		$42		$349		$234
[1]	Income tax benefits realized from stock option exercises and similar awards were immaterial in both periods.

ShareBased_Compensation_Valuat

Share-Based Compensation (Valuation Assumptions) (Details) (Stock Options [Member])	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Stock Options [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Risk-free interest rate	2.00%	1.20%
Dividend yield	0.00%	0.00%
Volatility	51.00%	52.00%
Expected life (in years)	'5 years 10 months 24 days	'5 years 8 months 12 days

Segment_Reporting_and_Geograph2

Segment Reporting and Geographic Information (Narrative) (Details) (USD $)

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

6 Months Ended

12 Months Ended

In Thousands, unless otherwise specified

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

segments

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Network Integration [Member]

Major Customer, One [Member]

Major Customer, One [Member]

Major Customer, One [Member]

Major Customer, One [Member]

Major Customer, Two [Member]

Major Customer, Two [Member]

Major Customer, Two [Member]

Major Customer, Two [Member]

Customer Concentration Risk [Member]

Customer Concentration Risk [Member]

Customer Concentration Risk [Member]

Customer Concentration Risk [Member]

Customer Concentration Risk [Member]

Customer Concentration Risk [Member]

Customer Concentration Risk [Member]

Customer Concentration Risk [Member]

Customer Concentration Risk [Member]

Customer Concentration Risk [Member]

Customer Concentration Risk [Member]

Customer Concentration Risk [Member]

Revenue [Member]

Revenue [Member]

Revenue [Member]

Revenue [Member]

Revenue [Member]

Revenue [Member]

Revenue [Member]

Revenue [Member]

Accounts Receivable [Member]

Accounts Receivable [Member]

Accounts Receivable [Member]

Accounts Receivable [Member]

Major Customer, One [Member]

Major Customer, One [Member]

Major Customer, One [Member]

Major Customer, One [Member]

Major Customer, Two [Member]

Major Customer, Two [Member]

Major Customer, Two [Member]

Major Customer, Two [Member]

Major Customer, One [Member]

Major Customer, One [Member]

Major Customer, Two [Member]

Major Customer, Two [Member]

Segment Reporting Information [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of Business Segments

'

'

2

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Revenue

$43,124

$38,175

$85,442

$77,080

$21,355

$17,135

$41,408

$35,117

$12,600

$10,800

$23,600

$22,200

$7,700

$4,100

$14,200

$9,000

'

'

'

'

'

'

'

'

'

'

'

'

Concentration percentage

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

29.00%

29.00%

28.00%

29.00%

18.00%

11.00%

17.00%

12.00%

25.00%

22.00%

28.00%

27.00%

Segment_Reporting_and_Geograph3

Segment Reporting and Geographic Information (Revenues by Segment) (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting, Revenue Reconciling Item [Line Items]	'	'	'	'
Revenue	$43,124	$38,175	$85,442	$77,080
Before intersegment adjustments [Member]	'	'	'	'
Segment Reporting, Revenue Reconciling Item [Line Items]	'	'	'	'
Revenue	43,188	38,235	85,560	77,163
Network Equipment [Member]	'	'	'	'
Segment Reporting, Revenue Reconciling Item [Line Items]	'	'	'	'
Revenue	21,833	21,100	44,152	42,046
Network Integration [Member]	'	'	'	'
Segment Reporting, Revenue Reconciling Item [Line Items]	'	'	'	'
Revenue	21,355	17,135	41,408	35,117
Intersegment adjustments [Member]	'	'	'	'
Segment Reporting, Revenue Reconciling Item [Line Items]	'	'	'	'
Revenue	($64)	($60)	($118)	($83)

Segment_Reporting_and_Geograph4

Segment Reporting and Geographic Information (External Revenue and Long-Lived Assets by Geographic Region) (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'	'	'	'
Revenue	$43,124	$38,175	$85,442	$77,080	'
Long-Lived Assets	5,248	'	5,248	'	5,555
Americas	'	'	'	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'	'	'	'
Long-Lived Assets	3,199	'	3,199	'	3,326
United States	'	'	'	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'	'	'	'
Revenue	13,555	13,676	26,411	25,801	'
Americas (Excluding the U.S.)	'	'	'	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'	'	'	'
Revenue	126	855	682	2,480	'
Europe	'	'	'	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'	'	'	'
Revenue	26,522	21,869	53,101	45,290	'
Long-Lived Assets	2,017	'	2,017	'	2,194
Italy	'	'	'	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'	'	'	'
Revenue	21,400	17,300	41,800	35,400	'
Asia Pacific	'	'	'	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'	'	'	'
Revenue	2,921	1,775	5,248	3,509	'
Long-Lived Assets	$32	'	$32	'	$35

Segment_Reporting_and_Geograph5

Segment Reporting and Geographic Information (Statement of Operations Information by Business Segment) (Details) (USD $)	3 Months Ended				6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Gross profit	'		'		'		'
Gross Profit	$14,782		$13,372		$28,033		$26,399
Depreciation expense	'		'		'		'
Depreciation expense	504		383		1,128		784
Operating income (loss)	'		'		'		'
Operating Income (Loss)	-1,126		-535		-4,975		-4,548
Total before intersegment adjustments [Member]	'		'		'		'
Gross profit	'		'		'		'
Gross Profit	14,783		13,370		28,032		26,393
Operating income (loss)	'		'		'		'
Operating Income (Loss)	201		379		-1,793		-49
Network Equipment [Member]	'		'		'		'
Gross profit	'		'		'		'
Gross Profit	11,185		11,183		21,944		21,949
Depreciation expense	'		'		'		'
Depreciation expense	433		283		969		583
Operating income (loss)	'		'		'		'
Operating Income (Loss)	-1,503		-296		-4,343		-1,415
Network Integration [Member]	'		'		'		'
Gross profit	'		'		'		'
Gross Profit	3,598		2,187		6,088		4,444
Depreciation expense	'		'		'		'
Depreciation expense	51		52		100		105
Operating income (loss)	'		'		'		'
Operating Income (Loss)	1,704		675		2,550		1,366
Corporate Unallocated and Intersegment Adjustments [Member]	'		'		'		'
Gross profit	'		'		'		'
Gross Profit	-1	[1]	2	[1]	1	[1]	6	[1]
Operating income (loss)	'		'		'		'
Operating Income (Loss)	-1,327	[1]	-914	[1]	-3,182	[1]	-4,499	[1]
Corporate [Member]	'		'		'		'
Depreciation expense	'		'		'		'
Depreciation expense	$20		$48		$59		$96
[1]	djustments reflect the elimination of intersegment revenue and profit in inventory.

Segment_Reporting_and_Geograph6

Segment Reporting and Geographic Information (Balance Sheet and Statement of Cash Flow Information) (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Segment Reporting Information [Line Items]	'	'	'
Additions to Fixed Assets	$1,176	$2,116	'
Assets	129,139	'	127,947
Network Equipment [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Additions to Fixed Assets	1,019	2,064	'
Assets	44,798	'	48,955
Network Integration [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Additions to Fixed Assets	74	46	'
Assets	65,288	'	54,625
Corporate [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Additions to Fixed Assets	83	6	'
Corporate Unallocated and Intersegment Adjustments [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Assets	$19,053	'	$24,367

Litigation_Narrative_Details

Litigation (Narrative) (Details) (USD $)	0 Months Ended	6 Months Ended	12 Months Ended		1 Months Ended	12 Months Ended	3 Months Ended		1 Months Ended
	Apr. 08, 2013	Jun. 30, 2014	Dec. 31, 2013	Feb. 18, 2014	Nov. 30, 2010	Dec. 31, 2013	Aug. 31, 2008	Aug. 31, 2008	31-May-14
					Purported Stockholder Derivative and Securities Class Action Lawsuits [Member]	Purported Stockholder Derivative and Securities Class Action Lawsuits [Member]	U. S. District Court in the Central District of California [Member]	Superior Court of the State of California [Member]	Pending Litigation [Member]
							Purported Stockholder Derivative and Securities Class Action Lawsuits [Member]	Purported Stockholder Derivative and Securities Class Action Lawsuits [Member]	Italian Civil Court [Member]
							claims	claims	Purported Breach of Supply Agreements Claim [Member]
									subcontractor
Loss Contingencies [Line Items]	'	'	'	'	'	'	'	'	'
Purported stockholder derivative and securities class action lawsuits	'	'	'	'	'	'	5	1	'
Litigation settlement, amount	'	'	'	'	$10,000,000	'	'	'	'
Stipulation of settlement, insurance carriers payment	2,500,000	'	'	'	'	'	'	'	'
Stipulation of settlement, payment to plaintiff	500,000	'	'	'	'	'	'	'	'
Stipulation of settlement, payment to plaintiff, warrants	250,000	'	'	250,000	'	'	'	'	'
Stipulation of settlement, payment to plaintiff, warrants, term	'5 years	'5 years	'	'	'	'	'	'	'
Insurance proceeds related to litigation settlement	'	'	'	'	'	1,000,000	'	'	'
Litigation settlement, expense	'	'	1,900,000	'	'	'	'	'	'
Loss contingency, number of third-party subcontractors	'	'	'	'	'	'	'	'	2
Loss contingency, value of damages sought, plus costs	'	'	'	'	'	'	'	'	$3,000,000

Accounts_Receivable_Factoring_

Accounts Receivable Factoring (Narrative) (Details)	3 Months Ended		6 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013
	USD ($)	USD ($)	USD ($)	USD ($)	EUR (€)	USD ($)
Receivables [Abstract]	'	'	'	'	'	'
Amount of factoring permitted per credit facility agreements	$13.70	'	$13.70	'	€ 10	'
Accounts receivables sold	12.7	'	12.7	'	'	17.2
Outstanding balances on accounts receivable	10	'	10	'	'	7.7
Related losses on sale	($0.07)	($0.05)	($0.11)	($0.13)	'	'

Share_Repurchase_Narrative_Det

Share Repurchase (Narrative) (Details) (USD $)	6 Months Ended		0 Months Ended	6 Months Ended	7 Months Ended	0 Months Ended	7 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 03, 2012	Jun. 30, 2013	Jun. 30, 2013	Aug. 15, 2013	Mar. 31, 2014
			December 2012 Share Repurchase Agreement	December 2012 Share Repurchase Agreement	December 2012 Share Repurchase Agreement	August 2013 Share Repurchase Agreement	August 2013 Share Repurchase Agreement
Equity, Class of Treasury Stock [Line Items]	'	'	'	'	'	'	'
Stock repurchase program, authorized amount	'	'	$10,000,000	'	'	$7,013,838	'
Treasury stock, shares acquired	'	'	'	141,412	181,717	'	127,510
Purchase of treasury shares	$0	$1,356,000	'	$1,400,000	$1,800,000	'	$1,300,000

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Tax Disclosure [Abstract]	'	'	'	'
Loss before provision for income taxes	($1,586)	($878)	($5,552)	($5,006)
Provision for income taxes	$681	$115	$932	$421
Effective tax rate	-43.00%	-13.00%	-17.00%	-8.00%

Income_Taxes_Narrative_Details

Income Taxes (Narrative) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013
					Federal Tax Authority	Federal Tax Authority	State Tax Authority	State Tax Authority	Foreign Tax Authority
						Capital Loss Carryforward		Capital Loss Carryforward
Operating Loss Carryforwards [Line Items]	'	'	'	'	'	'	'	'	'
Loss before provision for income taxes	($1,586,000)	($878,000)	($5,552,000)	($5,006,000)	'	'	'	'	'
Interest and penalties on a settlement of a tax audit of a foreign subsidiary	300,000	'	'	'	'	'	'	'	'
Net operating losses	'	'	'	'	172,300,000	'	93,100,000	'	95,800,000
Capital loss carryforwards	'	'	'	'	'	$110,500,000	'	$24,000,000	'