MRV Communications (MRVC) 10-Q 4 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 03, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	MRV COMMUNICATIONS INC
Entity Central Index Key	887,969
Entity Filer Category	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		6,979,393

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Product revenue	$ 26,850	$ 31,196	$ 86,337	$ 93,411
Service revenue	10,425	11,974	32,425	35,201
Total revenue	37,275	43,170	118,762	128,612
Cost of Revenue:
Cost of product	14,969	20,560	52,804	60,672
Cost of services	7,627	7,894	22,311	25,191
Total cost of revenue	22,596	28,454	75,115	85,863
Gross profit	14,679	14,716	43,647	42,749
Operating expenses:
Product development and engineering	4,900	5,060	15,335	16,030
Selling, general and administrative	8,593	10,080	27,134	32,118
Total operating expenses	13,493	15,140	42,469	48,148
Operating Income (loss)	1,186	(424)	1,178	(5,399)
Interest expense	(52)	(116)	(151)	(306)
Other income (expense), net	202	227	(99)	(160)
Income (loss) before provision for income taxes	1,336	(313)	928	(5,865)
Provision for income taxes	450	727	1,390	1,659
Net Income (loss)	$ 886	$ (1,040)	$ (462)	$ (7,524)
Net income (loss) per share — basic (in usd per share)	$ 0.13	$ (0.14)	$ (0.07)	$ (1.03)
Net income (loss) per share — diluted (in usd per share)	$ 0.13	$ (0.14)	$ (0.07)	$ (1.03)
Weighted average number of shares:
Basic (in shares)	6,978	7,362	7,032	7,335
Diluted (in shares)	7,014	7,362	7,032	7,335

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net Loss	$ 886	$ (1,040)	$ (462)	$ (7,524)
Other comprehensive loss, net of tax
Foreign currency translation gain (loss)	159	(1,913)	(2,025)	(2,078)
Total comprehensive Income (loss)	$ 1,045	$ (2,953)	$ (2,487)	$ (9,602)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 19,914	$ 22,422
Restricted time deposits	190	235
Accounts receivable, net	36,930	43,513
Other receivables	9,596	11,012
Inventories, net	20,070	21,683
Income taxes receivable	251	558
Deferred income taxes	689	535
Other current assets	5,595	5,454
Total current assets	93,235	105,412
Property and equipment, net	4,603	4,890
Deferred income taxes	1,871	2,105
Intangible asset, net	1,214	1,364
Other assets	678	801
Total assets	101,601	114,572
Current liabilities:
Short-term debt	2,887	5,402
Deferred consideration payable	233	233
Accounts payable	22,006	24,327
Accrued liabilities	13,854	14,545
Deferred revenue	13,317	13,527
Other current liabilities	235	297
Total current liabilities	52,532	58,331
Other long-term liabilities	$ 4,603	$ 5,271
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---8,330 shares in 2015 and 8,242 shares in 2014; Outstanding — 6,972 shares in 2015 and 7,386 shares in 2014	270	270
Additional paid-in capital	1,285,409	1,284,483
Accumulated deficit	(1,220,954)	(1,220,492)
Treasury stock — 1,359 shares in 2015 and 856 shares in 2014	(15,355)	(10,412)
Accumulated other comprehensive loss	(4,904)	(2,879)
Total stockholders' equity	44,466	50,970
Total liabilities and stockholders' equity	$ 101,601	$ 114,572

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (shares)	1,000,000	1,000,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0
Common stock, par value (usd per share)	$ 0.0017	$ 0.0017
Common stock, shares authorized (shares)	16,000,000	16,000,000
Common stock, shares issued (shares)	8,330,000	8,242,000
Common stock, shares outstanding (shares)	6,972,000	7,386,000
Treasury stock, shares (shares)	1,359,000	856,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (462)	$ (7,524)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,639	1,688
Share-based compensation expense	782	706
Provision for doubtful accounts	0	80
Deferred income taxes	179	346
Changes in operating assets and liabilities:
Accounts and other receivables	4,623	10,205
Inventories	(719)	(1,403)
Other assets	1,909	(7,253)
Accounts payable	(1,039)	170
Accrued liabilities	(390)	(2,409)
Income tax payable	27	88
Deferred revenue	137	2,899
Other current liabilities	(584)	98
Net cash provided by (used in) operating activities	6,102	(2,309)
Cash flows from investing activities:
Purchases of property and equipment	(1,236)	(1,914)
Proceeds from sale of property and equipment	9	0
Release of restricted time deposits	45	0
Investment in time deposits	0	(187)
Net cash used in investing activities	(1,182)	(2,101)
Cash flows from financing activities:
Proceeds from exercise of stock options	145	0
Purchase of treasury shares	(4,943)	0
Borrowings on short-term debt	5,601	17,528
Payments on short-term debt	(7,712)	(15,802)
Shares repurchased for tax withholdings on vesting of restricted stock awards	0	(15)
Net cash (used in) provided by financing activities	(6,909)	1,711
Effect of exchange rate changes on cash and cash equivalents	(519)	(359)
Net decrease in cash and cash equivalents	(2,508)	(3,058)
Cash and cash equivalents, beginning of period	22,422	27,591
Cash and cash equivalents, end of period	19,914	24,533
Supplemental disclosure of cash flow information:
Cash paid during period for interest	102	247
Cash paid during period for income taxes	$ 765	$ 638

Organization and Summary of sig

Organization and Summary of significant accounting policies	9 Months Ended
	Sep. 30, 2015
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 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 Network Integration segment which primarily operates in Italy, provides network system design, integration and distribution services that include products manufactured by third-party vendors. Our Network Equipment segment includes two business units: our Optical Communications Systems division ("OCS"), and Appointech, Inc. ("Appointech"). Our Network Integration segment includes one business unit: Tecnonet S.p.A. ("Tecnonet"). On August 10, 2015, we announced that we entered into a shares purchase agreement (“the Purchase Agreement”) with Maticmind S.p.A., (the “Purchaser”), a company incorporated under the laws of Italy, for the sale of all of the shares of our wholly-owned subsidiary Tecnonet. The sale of Tecnonet is subject to stockholder approval and is expected to take place at a special meeting of stockholders scheduled for December 1, 2015. For reporting purposes, the results of Tecnonet for the three and nine months ended September 30, 2015 and 2014 are included in continuing operations in the Company’s condensed consolidated financial statements and are further disclosed in segment reporting (see Note 10). Basis of Presentation The accompanying condensed 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 condensed 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 of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although management 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 September 30, 2015 , (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, 2014 , (the “ 2014 Form 10-K”) filed with the SEC. In the opinion of MRV's management, the unaudited interim financial information contained herein includes all normal recurring adjustments, necessary to present fairly the financial position of MRV as of September 30, 2015 , and the results of its operations and comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014 , and its cash flows for the nine months ended September 30, 2015 and 2014 . The results reported in these condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the full year or any future periods. Reclassification Certain reclassifications have been made to 2014 amounts to conform to the 2015 presentation. These reclassifications did not impact previously reported operating results or the Company's previously reported financial position. The reclassification is to conform Rule 5-03 of Regulation S-X, which requires that costs of sales for both product and service revenue be disclosed separately on the condensed consolidated statement of operations. Recently Issued Accounting Standards In May 2014, the FASB issued ASU 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 amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. ASU 2014-09 was originally effective for interim and annual reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date, which defers the effective date to annual reporting periods beginning after December 15, 2017. Early application is permitted after December 15, 2016. Management is currently evaluating the potential impact that adopting ASU 2014-09 and ASU 2015-14 will have on its consolidated financial statements and footnote disclosures. In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification Topic No. 718, “Compensation - Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (i) prospectively to all awards granted or modified after the effective date; or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. Management is currently evaluating the potential impact of that adopting ASU 2014-12 will have on its consolidated financial statements and footnote disclosures. In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern" ("ASU 2014-15"). ASU 2014-15 provides guidance on management’s responsibility in evaluating whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the Company in its fourth quarter of fiscal 2017 with early adoption permitted. Management is currently evaluating the potential impact that adopting ASU 2014-15 will have on its consolidated financial statements and footnote disclosures. In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory" (“ASU 2015-11”). ASU 2015-11 simplifies the guidance on the subsequent measurement if inventory, excluding inventory measured using the last-in, first out of the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value. ASU 2015-11 will be effective for the Company in the first quarter of fiscal 2017 with early adoption permitted. Management is currently evaluating the potential impact that adopting ASU 2015-11 will have on its consolidated financial statements and footnote disclosures.

Cash and Cash Equivalents and R

Cash and Cash Equivalents and Restricted Time Deposits	9 Months Ended
	Sep. 30, 2015
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents and Restricted Time Deposits	Cash and Cash Equivalents and Restricted Time Deposits MRV accounts for 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 federally insured limits. As of September 30, 2015 and December 31, 2014 , the Company's U.S. entities held $8.6 million and $13.3 million , respectively in various U.S. deposit accounts and a money market account. The remaining $11.3 million and $9.1 million , respectively, was held by the Company's foreign subsidiaries in foreign bank deposit accounts. Restricted time deposits represent investments that are restricted as to withdrawal or use and are primarily in foreign subsidiaries. Restricted time deposits generally secure standby letters of credit, bank lines of credit, or bank loans. When investments in restricted time deposits are directly related to an underlying bank loan and the restricted funds will be used to repay the loans, the investment and the subsequent release of the restricted time deposit are treated as investing activities in the Company's Condensed Consolidated Statements of Cash Flows. The other investments in and releases of restricted time deposits are included in investing activities because the funds are invested in certificates of deposit.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 2015
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, accounts payable, and short-term debt obligations, are carried at cost, which approximates their fair value. The fair values of cash, restricted time deposits, accounts receivable, other receivable and accounts payable approximate their carrying amounts due to their short-term nature. Short-term debt obligations have variable interest rates, which reset frequently; therefore, their carrying values do not materially differ from their calculated aggregate fair value. The Company follows a framework for measuring fair value using 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 - Measurements based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access; Level 2 - Measurements for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs, for similar instruments; Level 3 - Measurements based on inputs that are unobservable and significant to the overall fair value measurement. Under the framework, 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. Management has not elected fair value accounting for its non-financial assets and liabilities. As of September 30, 2015 and December 31, 2014 , the Company had cash equivalents consisting of money market funds of $1.8 million and $10.6 million , respectively, with fair values determined using Level 1 inputs quoted at market price. Cash equivalents are included in the condensed consolidated balance sheets as follows (in thousands): Cost Fair Value September 30, 2015 $ 1,807 $ 1,807 December 31, 2014 $ 10,606 $ 10,606 During 2014, the Company updated the estimated fair value of 250,000 warrants originally recorded as a liability that was awarded to plaintiffs' counsel on February 18, 2014 in a litigation matter, see Note 12, Litigation. In calculating fair value, the Company used the Black-Scholes option pricing model 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. Upon issuance and revaluation in February 2014, the warrants met the requirements necessary for equity classification and were removed from liabilities and recorded as a component of additional paid in capital. No additional expense was recorded in any period subsequent to the three months ended March 31, 2014. In November 2014, one of plaintiffs' counsel exercised 152,500 warrants under the 'cashless' exercise provisions contained within the warrant agreement, leaving 97,500 warrants available for future exercise. No additional warrants were exercised during the three and nine months ended September 30, 2015 .

Credit Risk

Credit Risk	9 Months Ended
	Sep. 30, 2015
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 financial institutions and accounts receivable due from customers. Management believes that the financial institutions holding our cash and cash equivalents have high credit quality. Management evaluates the collectability of accounts receivable based on a combination of factors. If management 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. 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 nine months ended September 30, 2015 (in thousands): Balance at beginning of period $ 1,758 Charged (reversed) to expense — Write-offs, net of amounts recovered (106 ) Foreign currency translation adjustment (57 ) Balance at end of period $ 1,595

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
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) at September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Raw materials $ 3,267 $ 3,663 Work-in process 637 641 Finished goods 16,166 17,379 Total $ 20,070 $ 21,683

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Intangible assets, net of amortization, totaled $1.2 million and $1.4 million as of September 30, 2015 and December 31, 2014 , respectively, and consist of intellectual property purchased during the years ended December 31, 2014 and 2013. A portion of these assets, approximating $1.0 million , represents software license agreements and was placed into service as of September 30, 2015 . Amortization of intangible assets was $0.1 million and $0.2 million for the three and nine months ended September 30, 2015 , respectively. There was no amortization recorded for the three and nine months ended September 30, 2014 . The Company amortizes the cost of the license agreements over their estimated useful lives, which range from three to five years. As of September 30, 2015 , intangible assets not yet placed into service totaled approximately $0.4 million , and management anticipates these assets will be placed in service during the quarter ending December 31, 2015. The following table illustrates the estimated future amortization expense of intangible assets as of September 30, 2015 (in thousands): Fiscal Year Ending December 31, Estimated Amortization Expense 2015 - remaining balance $ 82 2016 328 2017 280 2018 214 2019 214 Thereafter 96 Total $ 1,214

Product Warranty

Product Warranty	9 Months Ended
	Sep. 30, 2015
Product Warranties Disclosures [Abstract]
Product Warranty	Product Warranty As of September 30, 2015 , and December 31, 2014 , MRV's product warranty liability recorded in accrued liabilities was $0.7 million and $0.6 million , respectively. 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 nine months ended September 30, 2015 (in thousands): Balance at beginning of the period $ 616 Cost of warranty claims — Accruals for product warranties 38 Balance at end of the period $ 654

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2015
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 net 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. Employee equity share options, non-vested shares and similar equity instruments granted by MRV are treated as potential shares of common stock outstanding in computing diluted net income per share. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service not yet recognized, and the amount of income tax benefits that would be realized and recorded in additional paid-in capital if the deduction for the award would reduce income taxes payable are assumed to be used to repurchase shares on the open market. The following table sets forth the computation of net income per common share – basic and diluted (in thousands, except per share amounts): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Numerator: Net Income (loss) $ 886 $ (1,040 ) $ (462 ) $ (7,524 ) Denominator Basic weighted average common shares outstanding 6,978 7,362 7,032 7,335 Effect of dilutive securities 36 — — — Diluted weighted average common shares outstanding 7,014 7,362 7,032 7,335 Net income per common share Basic 0.13 (0.14 ) (0.07 ) (1.03 ) Diluted 0.13 (0.14 ) (0.07 ) (1.03 ) Outstanding stock options to purchase 290,974 shares were excluded from the computation of dilutive income (loss) per shares for the three months ended September 30, 2015 as they were anti-dilutive. Outstanding stock options to purchase 413,901 shares were excluded from the computation of dilutive income (loss) per shares for the three months ended September 30, 2014 , as they were anti-dilutive because of the net loss. Outstanding stock options to purchase 407,480 and 369,321 shares were excluded from the computation of dilutive income (loss) per shares for the nine months ended September 30, 2015 , and 2014 , as they were anti-dilutive because of the net loss.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation MRV records share-based compensation expense at fair value. The following table summarizes the impact on MRV's results of operations of recording share-based compensation for the three and nine months ended September 30, 2015 and 2014 (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Cost of goods sold $ 35 $ 34 $ 90 $ 87 Product development and engineering 68 49 161 122 Selling, general and administrative 222 148 531 497 Total share-based compensation expense (1) $ 325 $ 231 $ 782 $ 706 (1) Income tax benefits realized from stock option exercises and similar awards were immaterial in all periods. During the three months ended September 30, 2015, the Company granted 31,000 stock options with a related fair value of $5.28 per option and 11,000 restricted shares with a related fair value $12.12 per share. During the nine months ended September 30, 2015, the Company granted 228,848 stock options with a related fair value of $4.31 per option and 82,872 restricted shares with a related fair value of $9.96 per share. During the three months ended September 30, 2014, the Company granted 15,000 stock options with a related fair value of $6.06 per option and 5,000 restricted shares with a related fair value $13.46 per share. During the nine months ended September 30, 2014, the Company granted 188,722 stock options with a related fair value of $7.07 per option and 90,907 restricted shares with a related fair value of $14.35 per share. As of September 30, 2015 , the total unrecognized share-based compensation balance for unvested options, net of expected forfeitures, was $1.9 million , which is expected to be amortized over a weighted-average period of 2.2 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. There were no options modified during the three and nine months ended September 30, 2015 and 2014 . Nine months ended September 30, 2015 2014 Risk-free interest rate 1.7 % 2.0 % Dividend yield (1) — — Volatility 43 % 51 % Expected life (in years) 6.0 5.9 (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 Geographi

Segment Reporting and Geographic Information	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Reporting and Geographic Information	Segment Reporting and Geographic Information MRV operates its business in two segments: the Network Equipment segment and the Network Integration segment. The Network Equipment segment designs, manufactures, distributes and services optical networking solutions and Internet infrastructure products. The Network Integration segment distributes network solutions and Internet infrastructure products and provides value-added integration and support services for customers' networks. The Network Integration segment consists principally of the business operations of our wholly-owned subsidiary, Tecnonet. As discussed in Note 1, the Company announced on August 10, 2015 that they entered into a shares purchase agreement to sell all of the shares of Tecnonet. The sale is subject to stockholder approval and is expected to take place at a special meeting of stockholders currently scheduled for December 1, 2015. Upon completion of the sale, the Company will have a single reporting segment, the Network Equipment segment. The accounting policies of the segments are the same as those described in the summary of significant accounting polices disclosed in MRV's 2014 Form 10-K. Management 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 Nine Months Ended 2015 2014 2015 2014 Network Equipment $ 22,974 $ 21,979 $ 69,787 $ 66,131 Network Integration 14,343 21,237 49,126 62,644 Total before intersegment adjustments 37,317 43,216 118,913 128,775 Intersegment adjustments (42 ) (46 ) (151 ) (163 ) Total $ 37,275 $ 43,170 $ 118,762 $ 128,612 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 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 components sold as part of system solutions. Substantially all Network Integration's sales are within Italy. One customer accounted for $24.4 million and $33.8 million of revenue in the Network Integration segment, or 21% and 26% of total revenue, for the nine months ended September 30, 2015 , and 2014 , respectively. The same customer accounted for $7.5 million and $11.0 million of revenue in the Network Integration segment, or 20% and 25% of total revenue for the three months ended September 30, 2015 and 2014, respectively. The same customer accounted for 7% and 5% of total accounts receivable before allowance for doubtful accounts as of September 30, 2015 , and December 31, 2014 , respectively. Another customer accounted for $16.5 million and $20.2 million of revenue in the Network Integration segment, or 14% and 16% of total revenue, for the nine months ended September 30, 2015 , and 2014 , respectively. The same customer accounted for $4.8 million and $6.1 million of revenue in the Network Integration segment, or 13% and 14% of total revenue for the three months ended September 30, 2015 and 2014, respectively. The same customer accounted for 23% and 29% of total accounts receivable before allowance for doubtful accounts as of September 30, 2015 , and December 31, 2014 , respectively. The following table summarizes external revenue by geographic region (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 United States $ 10,368 $ 13,254 $ 34,239 $ 39,665 Americas (Excluding the U.S.) 1,297 197 5,917 879 Europe 19,545 25,553 63,855 78,653 Asia Pacific 6,065 4,166 14,751 9,415 Total $ 37,275 $ 43,170 $ 118,762 $ 128,612 Revenue from external customers attributed to Italy totaled $14.7 million and $21.2 million for the three months ended September 30, 2015 and 2014 , respectively. Revenue from external customers attributed to Italy totaled $50.1 million and $63.0 million for the nine months ended September 30, 2015 and 2014 , respectively. Revenue from external customers attributed to Australia totaled $5.7 million and $3.8 million for the three months ended September 30, 2015 and 2014 , respectively. Revenue from external customers attributed to Australia totaled $13.5 million and $7.8 million for the nine months ended September 30, 2015 and 2014 , respectively. The following table summarizes long-lived assets, consisting of property and equipment, by geographic region (in thousands): September 30, 2015 December 31, 2014 Americas $ 2,961 $ 3,078 Europe 1,622 1,786 Asia Pacific 20 26 Total $ 4,603 $ 4,890 The following table provides selected Statement of Operations information by business segment (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Gross profit Network Equipment $ 12,113 $ 11,062 $ 35,616 $ 33,007 Network Integration 2,567 3,654 8,031 9,742 Total before intersegment adjustments 14,680 14,716 43,647 42,749 Corporate unallocated and intersegment adjustments (1) (1 ) — — — Total $ 14,679 $ 14,716 $ 43,647 $ 42,749 Depreciation and amortization expense Network Equipment $ 473 $ 459 $ 1,460 $ 1,428 Network Integration 31 50 92 149 Corporate 29 52 87 111 Total $ 533 $ 561 $ 1,639 $ 1,688 Operating income (loss) Network Equipment $ 1,277 $ (953 ) $ 1,599 $ (5,296 ) Network Integration 1,254 1,762 3,292 4,311 Total before intersegment adjustments 2,531 809 4,891 (985 ) Corporate unallocated operating loss and adjustments (1) (1,345 ) (1,233 ) (3,713 ) (4,414 ) Total $ 1,186 $ (424 ) $ 1,178 $ (5,399 ) (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): Nine months ended September 30, 2015 2014 Additions (write-offs) of property and equipment Network Equipment $ 1,168 $ 1,736 Network Integration 74 95 Corporate (6 ) 83 Total $ 1,236 $ 1,914 September 30, 2015 December 31, 2014 Total Assets Network Equipment $ 42,472 $ 40,664 Network Integration 49,270 56,921 Corporate and intersegment eliminations 9,859 16,987 Total $ 101,601 $ 114,572

Indemnification Obligations

Indemnification Obligations	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Indemnification Obligations	Indemnification Obligations 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. Management is not aware of any claims under these indemnifications, and accordingly, no liabilities have been recorded for these agreements as of September 30, 2015 , and December 31, 2014 .

Litigation

Litigation	9 Months Ended
	Sep. 30, 2015
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. 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 have been implemented. In May 2014, a former customer of Tecnonet S.p.A.("Tecnonet"), the Company's Italian subsidiary, filed a claim in an Italian civil court alleging that Tecnonet, and two of its 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 alleged that Tecnonet was aware, at the time of entering into the supply agreements, that the customer’s managing director had a conflict of interest involving the subcontractors. The plaintiff claimed damages and restitution from Tecnonet and the subcontractors, jointly and severally, of approximately $3.0 million in the aggregate, plus costs. On July 21, 2015, Tecnonet and the plaintiff entered into an agreement to settle the lawsuit for a one-time cash payment, which had been accrued at June 30, 2015 and December 31, 2014. The settlement for this litigation was paid during the quarter ended September 30, 2015. Accordingly, we now consider this matter to be closed. Nhan T. Vo, individually and on behalf of other aggrieved employees vs. the Company, Superior Court of California, County of Los Angeles. On June 27, 2013, the plaintiff in this matter filed a lawsuit against the Company alleging claims for failure to properly pay overtime or provide meal and rest breaks to its non-exempt employees in California, among other things. The complaint seeks an unspecified amount of damages and penalties under provisions of the Labor Code, including the Labor Code Private Attorneys General Act. The Company has filed an answer denying all allegations regarding the plaintiff’s claims and asserting various defenses. The Company is currently in the discovery phase of this case. Management believes it has accrued adequate reserves for this matter and does not expect the resolution of this case to have a material adverse effect on its business or financial condition. However, depending on the actual outcome of this case, provisions could be recorded in the future which may have a material adverse effect on the Company’s operating results. In connection with the sale by MRV of Source Photonics, Inc. (“SPI”) in October 2010, MRV agreed to indemnify the buyer against certain claims brought after the closing for prior-occurring events. The Company has received a notice from SPI, advising the Company of a tax audit for periods including tax returns filed prior to the acquisition of SPI by the buyer. MRV believes that it has meritorious defenses to the extent a formal indemnification claim is asserted and has submitted the potential claim to its insurer. MRV intends to vigorously contest any claim; however, no formal legal proceeding has been commenced, and MRV can provide no assurance that such claim would not have a material adverse effect on its business, operating results or financial condition. 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. MRV and its subsidiaries have been named as a defendant in other lawsuits involving matters that management considers routine to the nature of its business. Management 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	9 Months Ended
	Sep. 30, 2015
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 September 30, 2015 , Tecnonet's factoring agreements permitted the factoring of up to €15.0 million or $16.9 million of accounts receivable in Italy. The factoring of accounts receivable under these agreements is accounted for as a sale, as the Company has no retained interests or servicing liabilities related to the accounts receivable that have been sold in Italy. At September 30, 2015 and December 31, 2014 , the face amount of total outstanding accounts sold by the Company pursuant to these agreements was $10.1 million and $10.5 million , respectively. Receivables transferred to the factor are derecognized at the date of sale and amounted to $31.5 million and $50.4 million for the nine months ended September 30, 2015 and 2014 , respectively. Proceeds are recorded at fair value and amounted to $31.3 million and $57.8 million for the nine months ended September 30, 2015 and 2014 , respectively. Proceeds consist of a receivable due from the factor. Cash received from the factors is recorded as a reduction of the receivable due from the factor. The related outstanding receivables from the factor were $9.2 million and $10.4 million as of September 30, 2015 and December 31, 2014 , respectively, and included in other receivables on the accompanying condensed consolidated balance sheets. The related losses on the sale were $0.1 million for the three months ended September 30, 2015 and 2014 , and $0.1 million and $0.2 million for the nine months ended September 30, 2015 and 2014, respectively and are included in interest expense on the accompanying condensed consolidated statements of operations.

Short Term Debt

Short Term Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Short Term Debt	Short Term Debt Short-term debt consists of unsecured lines of credit held by Tecnonet, the Company's Italian Network Integration subsidiary. As of September 30, 2015 and December 31, 2014 , short-term debt totaled $2.9 million and $5.4 million , respectively. Short-term debt bears interest at rates ranging from 1.4% to 2.5% , and the weighted average interest rate was approximately 1.8% and 2.1% as of September 30, 2015 and December 31, 2014 , respectively. These obligations are incurred and settled in local currency.

Share Repurchase

Share Repurchase	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Share Repurchase	Share Repurchase On December 16, 2014, the Company's Board of Directors approved a repurchase of shares of the Company's Common Stock in an amount up to $8.0 million under a share repurchase plan that expires on November 13, 2015. During the three months ended September 30, 2015, the Company repurchased 33,621 shares at a total cost of approximately $0.4 million excluding commission under this share repurchase plan. The Company has repurchased 502,077 shares at a total cost of approximately $4.9 million excluding commission under this share repurchase plan through September 30, 2015 . As of September 30, 2015 , the Company had remaining authority to repurchase shares up to an additional $3.1 million excluding commission under this share repurchase plan prior to its expiration.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The following table provides details of income taxes for the three and nine months ended September 30, 2015 and 2014 (in thousands, except percentages): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Income (loss) before provision for income taxes $ 1,336 $ (313 ) $ 928 $ (5,865 ) Provision for income taxes 450 727 1,390 1,659 Effective tax rate 34 % (232 )% 150 % (28 )% 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 of $0.5 million and $1.4 million on our pre-tax income of $1.3 million and $0.9 million for the three and nine months ended September 30, 2015 , respectively, is due to income tax associated with our foreign subsidiaries that do not benefit from our federal net operating loss carryforwards. During the nine months ended September 30, 2015 , management determined that it no longer met the criteria for indefinite reinvestment of the undistributed earnings of its foreign subsidiaries. As a result, the Company recorded a provision for deferred taxes related to foreign earnings in the amount of $8.7 million and a corresponding reduction in the deferred tax valuation allowance of $8.7 million ; the change had no impact on the Company's effective income tax rate for the period ended September 30, 2015. As of December 31, 2014 , MRV had federal, state, and foreign net operating loss ("NOLs") carryforwards available of $179.7 million , $100.7 million , and $97.3 million , respectively. Additionally, the Company had capital loss carryforwards of $110.5 million and $24.0 million for federal and state tax purposes, respectively as of December 31, 2014 . The capital loss carry-forwards, which were generated by the sale of Source Photonics, expire at the end of 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 carryforwards 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 December 31, 2014 and September 30, 2015 , the Company has recorded a valuation allowance against its net deferred tax asset which includes its US federal and state NOLs.

Sale of Tecnonet

Sale of Tecnonet	9 Months Ended
	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Sale of Tecnonet	Sale of Tecnonet On August 10, 2015, we announced that we entered into a shares purchase agreement (“the Purchase Agreement”) with Maticmind S.p.A., (the “Purchaser”), a company incorporated under the laws of Italy, for the sale of all of the shares of our wholly-owned subsidiary Tecnonet. The sale of Tecnonet is subject to stockholder approval, which had not been obtained prior to quarter end, and accordingly, Tecnonet is reported as a continuing operation as of September 30, 2015. The consideration for the transaction includes a cash payment by the Purchaser to the Company of €15.6 million at closing plus a cash payment by Tecnonet to the Company of €4.1 million prior to closing to repay an outstanding intercompany obligation. Tecnonet has procured third party debt financing and has repaid the loan in full in two payments. €1.5 million was received during the quarter ended September 30, 2015, with the remaining amount received during October, 2015. The Purchaser is obligated to assume this debt at closing. Within 60 days of closing, the parties are required to make a post-closing adjustment based on changes in debt and cash of Tecnonet between June 30, 2015 and closing, as provided for in the Purchase Agreement. The Purchase Agreement contains customary representations, warranties, covenants and indemnification obligations. The transaction is conditioned upon, among other things, the Company receiving stockholder approval for the transaction and other customary closing conditions. The closing is expected to occur on or around December 2, 2015. The Purchase Agreement contains a €250,000 termination fee (subject to increase to €350,000 if the Purchase Agreement is terminated after November 30, 2015) payable by the Company if the transaction is terminated because MRV stockholder approval is not obtained and under certain other circumstances.

Organization and Summary of s24

Organization and Summary of significant accounting policies (Policies)	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying condensed 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 condensed 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 of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although management 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 September 30, 2015 , (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, 2014 , (the “ 2014 Form 10-K”) filed with the SEC. In the opinion of MRV's management, the unaudited interim financial information contained herein includes all normal recurring adjustments, necessary to present fairly the financial position of MRV as of September 30, 2015 , and the results of its operations and comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014 , and its cash flows for the nine months ended September 30, 2015 and 2014 . The results reported in these condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the full year or any future periods.
Recently Issued Accounting Standards	In May 2014, the FASB issued ASU 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 amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. ASU 2014-09 was originally effective for interim and annual reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date, which defers the effective date to annual reporting periods beginning after December 15, 2017. Early application is permitted after December 15, 2016. Management is currently evaluating the potential impact that adopting ASU 2014-09 and ASU 2015-14 will have on its consolidated financial statements and footnote disclosures. In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification Topic No. 718, “Compensation - Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (i) prospectively to all awards granted or modified after the effective date; or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. Management is currently evaluating the potential impact of that adopting ASU 2014-12 will have on its consolidated financial statements and footnote disclosures. In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern" ("ASU 2014-15"). ASU 2014-15 provides guidance on management’s responsibility in evaluating whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the Company in its fourth quarter of fiscal 2017 with early adoption permitted. Management is currently evaluating the potential impact that adopting ASU 2014-15 will have on its consolidated financial statements and footnote disclosures. In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory" (“ASU 2015-11”). ASU 2015-11 simplifies the guidance on the subsequent measurement if inventory, excluding inventory measured using the last-in, first out of the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value. ASU 2015-11 will be effective for the Company in the first quarter of fiscal 2017 with early adoption permitted.
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 financial institutions and accounts receivable due from customers. Management believes that the financial institutions holding our cash and cash equivalents have high credit quality. Management evaluates the collectability of accounts receivable based on a combination of factors. If management 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. 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)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping	Cash equivalents are included in the condensed consolidated balance sheets as follows (in thousands): Cost Fair Value September 30, 2015 $ 1,807 $ 1,807 December 31, 2014 $ 10,606 $ 10,606

Credit Risk (Tables)

Credit Risk (Tables)	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Schedule of Allowance for Doubtful Accounts	The following table summarizes the changes in the allowance for doubtful accounts during the nine months ended September 30, 2015 (in thousands): Balance at beginning of period $ 1,758 Charged (reversed) to expense — Write-offs, net of amounts recovered (106 ) Foreign currency translation adjustment (57 ) Balance at end of period $ 1,595

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories, net of reserves, consisted of the following (in thousands) at September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Raw materials $ 3,267 $ 3,663 Work-in process 637 641 Finished goods 16,166 17,379 Total $ 20,070 $ 21,683

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The following table illustrates the estimated future amortization expense of intangible assets as of September 30, 2015 (in thousands): Fiscal Year Ending December 31, Estimated Amortization Expense 2015 - remaining balance $ 82 2016 328 2017 280 2018 214 2019 214 Thereafter 96 Total $ 1,214

Product Warranty (Tables)

Product Warranty (Tables)	9 Months Ended
	Sep. 30, 2015
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Liability	The following table summarizes the change in product warranty liability during the nine months ended September 30, 2015 (in thousands): Balance at beginning of the period $ 616 Cost of warranty claims — Accruals for product warranties 38 Balance at end of the period $ 654

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of net income per common share – basic and diluted (in thousands, except per share amounts): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Numerator: Net Income (loss) $ 886 $ (1,040 ) $ (462 ) $ (7,524 ) Denominator Basic weighted average common shares outstanding 6,978 7,362 7,032 7,335 Effect of dilutive securities 36 — — — Diluted weighted average common shares outstanding 7,014 7,362 7,032 7,335 Net income per common share Basic 0.13 (0.14 ) (0.07 ) (1.03 ) Diluted 0.13 (0.14 ) (0.07 ) (1.03 )

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
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 nine months ended September 30, 2015 and 2014 (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Cost of goods sold $ 35 $ 34 $ 90 $ 87 Product development and engineering 68 49 161 122 Selling, general and administrative 222 148 531 497 Total share-based compensation expense (1) $ 325 $ 231 $ 782 $ 706 (1) Income tax benefits realized from stock option exercises and similar awards were immaterial in all periods.
Schedule of Share-based Payment Award, Stock Options, 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. There were no options modified during the three and nine months ended September 30, 2015 and 2014 . Nine months ended September 30, 2015 2014 Risk-free interest rate 1.7 % 2.0 % Dividend yield (1) — — Volatility 43 % 51 % Expected life (in years) 6.0 5.9 (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 Geograp32

Segment Reporting and Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2015
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 Nine Months Ended 2015 2014 2015 2014 Network Equipment $ 22,974 $ 21,979 $ 69,787 $ 66,131 Network Integration 14,343 21,237 49,126 62,644 Total before intersegment adjustments 37,317 43,216 118,913 128,775 Intersegment adjustments (42 ) (46 ) (151 ) (163 ) Total $ 37,275 $ 43,170 $ 118,762 $ 128,612
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	The following table summarizes long-lived assets, consisting of property and equipment, by geographic region (in thousands): September 30, 2015 December 31, 2014 Americas $ 2,961 $ 3,078 Europe 1,622 1,786 Asia Pacific 20 26 Total $ 4,603 $ 4,890 The following table summarizes external revenue by geographic region (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 United States $ 10,368 $ 13,254 $ 34,239 $ 39,665 Americas (Excluding the U.S.) 1,297 197 5,917 879 Europe 19,545 25,553 63,855 78,653 Asia Pacific 6,065 4,166 14,751 9,415 Total $ 37,275 $ 43,170 $ 118,762 $ 128,612
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 Nine months ended September 30, September 30, 2015 2014 2015 2014 Gross profit Network Equipment $ 12,113 $ 11,062 $ 35,616 $ 33,007 Network Integration 2,567 3,654 8,031 9,742 Total before intersegment adjustments 14,680 14,716 43,647 42,749 Corporate unallocated and intersegment adjustments (1) (1 ) — — — Total $ 14,679 $ 14,716 $ 43,647 $ 42,749 Depreciation and amortization expense Network Equipment $ 473 $ 459 $ 1,460 $ 1,428 Network Integration 31 50 92 149 Corporate 29 52 87 111 Total $ 533 $ 561 $ 1,639 $ 1,688 Operating income (loss) Network Equipment $ 1,277 $ (953 ) $ 1,599 $ (5,296 ) Network Integration 1,254 1,762 3,292 4,311 Total before intersegment adjustments 2,531 809 4,891 (985 ) Corporate unallocated operating loss and adjustments (1) (1,345 ) (1,233 ) (3,713 ) (4,414 ) Total $ 1,186 $ (424 ) $ 1,178 $ (5,399 ) (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): Nine months ended September 30, 2015 2014 Additions (write-offs) of property and equipment Network Equipment $ 1,168 $ 1,736 Network Integration 74 95 Corporate (6 ) 83 Total $ 1,236 $ 1,914 September 30, 2015 December 31, 2014 Total Assets Network Equipment $ 42,472 $ 40,664 Network Integration 49,270 56,921 Corporate and intersegment eliminations 9,859 16,987 Total $ 101,601 $ 114,572

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Details of Income Taxes	The following table provides details of income taxes for the three and nine months ended September 30, 2015 and 2014 (in thousands, except percentages): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Income (loss) before provision for income taxes $ 1,336 $ (313 ) $ 928 $ (5,865 ) Provision for income taxes 450 727 1,390 1,659 Effective tax rate 34 % (232 )% 150 % (28 )%

Organization and Summary of s34

Organization and Summary of significant accounting policies (Narrative) (Details)	9 Months Ended
	Sep. 30, 2015segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business segments	2

Cash and Cash Equivalents and35

Cash and Cash Equivalents and Restricted Time Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 19,914	$ 22,422	$ 24,533	$ 27,591
United States [Member]
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	8,600	13,300
Foreign [Member]
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 11,300	$ 9,100

Fair Value Measurement (Narrati

Fair Value Measurement (Narrative) (Details) $ in Millions	Apr. 08, 2013shares	Nov. 30, 2014shares	Sep. 30, 2015USD ($)shares	Mar. 31, 2014USD ($)	Sep. 30, 2015USD ($)shares	Dec. 31, 2014USD ($)$ / warrant	Feb. 18, 2014shares
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
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 | $ / warrant						6.59
Liabilities, fair value adjustment | $				$ 0.4
Number of warrants exercised		152,500	0		0
Number of warrants outstanding		97,500
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents | $			$ 1.8		$ 1.8	$ 10.6

Fair Value Measurement (Cash an

Fair Value Measurement (Cash and Cash Equivalents) (Details) - Money Market Funds [Member] - Fair Value, Inputs, Level 1 [Member] $ in Thousands	Sep. 30, 2015USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents, Beginning Balance	$ 10,600
Cash Equivalents, Ending Balance	1,800
Cost [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents, Beginning Balance	10,606
Cash Equivalents, Ending Balance	1,807
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents, Beginning Balance	10,606
Cash Equivalents, Ending Balance	$ 1,807

Credit Risk (Changes in the All

Credit Risk (Changes in the Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	$ 1,758
Charged (reversed) to expense	0	$ (80)
Write-offs, net of amounts recovered	(106)
Foreign currency translation adjustment	(57)
Balance at end of period	$ 1,595

Inventories (Net of Reserves) (

Inventories (Net of Reserves) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 3,267	$ 3,663
Work-in process	637	641
Finished goods	16,166	17,379
Total	$ 20,070	$ 21,683

Intangible Assets (Narrative) (

Intangible Assets (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Intangible assets	$ 1,214,000		$ 1,214,000		$ 1,364,000
Amortization of intangible assets	100,000	$ 0	200,000	$ 0
Developed Technology Rights, Placed in Service [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	1,000,000		$ 1,000,000
Developed Technology Rights, Placed in Service [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life of finite-lived intangible assets			3 years
Developed Technology Rights, Placed in Service [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life of finite-lived intangible assets			5 years
Developed Technology Rights, Not Placed in Service [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	$ 400,000		$ 400,000

Intangible Assets (Amortization

Intangible Assets (Amortization Expense, Maturity Schedule) (Details) $ in Thousands	Sep. 30, 2015USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2015 - remaining balance	$ 82
2,016	328
2,017	280
2,018	214
2,019	214
Thereafter	96
Total	$ 1,214

Product Warranty (Narrative) (D

Product Warranty (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Standard Product Warranty Period [Line Items]
Product warranty liability	$ 654	$ 616
Minimum [Member]
Standard Product Warranty Period [Line Items]
Standard product warranty period	90 days
Maximum [Member]
Standard Product Warranty Period [Line Items]
Standard product warranty period	3 years

Product Warranty (Change in Pro

Product Warranty (Change in Product Warranty Liability) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at beginning of the period	$ 616
Cost of warranty claims	0
Accruals for product warranties	38
Balance at end of the period	$ 654

Net Income (Loss) Per Share (Na

Net Income (Loss) Per Share (Narrative) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
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)	290,974	413,901	407,480	369,321

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net Income (loss)	$ 886	$ (1,040)	$ (462)	$ (7,524)
Basic weighted average common shares outstanding (in shares)	6,978	7,362	7,032	7,335
Diluted weighted average common shares outstanding (in shares)	36	0	0	0
Diluted weighted average common shares outstanding (in shares)	7,014	7,362	7,032	7,335
Net income (loss) per share — basic (in usd per share)	$ 0.13	$ (0.14)	$ (0.07)	$ (1.03)
Net income (loss) per share — diluted (in usd per share)	$ 0.13	$ (0.14)	$ (0.07)	$ (1.03)

Share-Based Compensation (Share

Share-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense	$ 325	$ 231	$ 782	$ 706
Cost of Goods Sold [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense	35	34	90	87
Product Development and Engineering [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense	68	49	161	122
Selling, General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense	$ 222	$ 148	$ 531	$ 497

Share-Based Compensation (Narra

Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, grants during period (in shares)					197,848	173,722
Stock options, grants during period, weighted average grant date fair value (usd per share)					$ 4.16	$ 7.16
Restricted stock, grants during period (in shares)					71,872	85,907
Restricted stock, grants during period, weighted average grant date fair value (usd per share)					$ 9.63	$ 14.40
Total compensation cost not yet recognized	$ 1.9				$ 1.9
Total compensation cost not yet recognized, period for recognition					2 years 2 months 10 days
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, grants during period (in shares)	31,000	0	15,000	0	228,848	188,722
Stock options, grants during period, weighted average grant date fair value (usd per share)	$ 5.28		$ 6.06		$ 4.31	$ 7.07
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock, grants during period (in shares)	11,000	0	5,000	0	82,872	90,907
Restricted stock, grants during period, weighted average grant date fair value (usd per share)	$ 12.12		$ 13.46		$ 9.96	$ 14.35

Share-Based Compensation (Valua

Share-Based Compensation (Valuation Assumptions) (Details) - Stock Options [Member]	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.70%	2.00%
Dividend yield	0.00%	0.00%
Volatility	43.00%	51.00%
Expected life (in years)	5 years 12 months	5 years 10 months 24 days

Segment Reporting and Geograp49

Segment Reporting and Geographic Information (Narrative) (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)segment	Sep. 30, 2014USD ($)	Dec. 31, 2014
Segment Reporting Information [Line Items]
Number of business segments | segment			2
Revenue	$ 37,275	$ 43,170	$ 118,762	$ 128,612
Network Integration [Member]
Segment Reporting Information [Line Items]
Revenue	14,343	21,237	49,126	62,644
Network Integration [Member] | Major Customer, One [Member]
Segment Reporting Information [Line Items]
Revenue	$ 7,500	$ 11,000	$ 24,400	$ 33,800
Network Integration [Member] | Major Customer, One [Member] | Customer Concentration Risk [Member] | Revenue [Member]
Segment Reporting Information [Line Items]
Concentration percentage	20.00%	25.00%	21.00%	26.00%
Network Integration [Member] | Major Customer, One [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member]
Segment Reporting Information [Line Items]
Concentration percentage			7.00%		5.00%
Network Integration [Member] | Major Customer, Two [Member]
Segment Reporting Information [Line Items]
Revenue	$ 4,800	$ 6,100	$ 16,500	$ 20,200
Network Integration [Member] | Major Customer, Two [Member] | Customer Concentration Risk [Member] | Revenue [Member]
Segment Reporting Information [Line Items]
Concentration percentage	13.00%	14.00%	14.00%	16.00%
Network Integration [Member] | Major Customer, Two [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member]
Segment Reporting Information [Line Items]
Concentration percentage			23.00%		29.00%
Network Equipment [Member]
Segment Reporting Information [Line Items]
Revenue	$ 22,974	$ 21,979	$ 69,787	$ 66,131

Segment Reporting and Geograp50

Segment Reporting and Geographic Information (Revenues by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	$ 37,275	$ 43,170	$ 118,762	$ 128,612
Before intersegment adjustments [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	37,317	43,216	118,913	128,775
Network Equipment [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	22,974	21,979	69,787	66,131
Network Integration [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	14,343	21,237	49,126	62,644
Intersegment adjustments [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	$ (42)	$ (46)	$ (151)	$ (163)

Segment Reporting and Geograp51

Segment Reporting and Geographic Information (External Revenue and Long-Lived Assets by Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 37,275	$ 43,170	$ 118,762	$ 128,612
Long-Lived Assets	4,603		4,603		$ 4,890
Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	2,961		2,961		3,078
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	10,368	13,254	34,239	39,665
Americas (Excluding the U.S.) [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,297	197	5,917	879
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	19,545	25,553	63,855	78,653
Long-Lived Assets	1,622		1,622		1,786
Italy [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	14,700	21,200	50,100	63,000
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	6,065	4,166	14,751	9,415
Long-Lived Assets	20		20		$ 26
Australia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 5,700	$ 3,800	$ 13,500	$ 7,800

Segment Reporting and Geograp52

Segment Reporting and Geographic Information (Statement of Operations Information by Business Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Gross profit
Gross Profit	$ 14,679	$ 14,716	$ 43,647	$ 42,749
Depreciation expense
Depreciation expense	533	561	1,639	1,688
Operating income (loss)
Operating income (loss)	1,186	(424)	1,178	(5,399)
Total before intersegment adjustments [Member]
Gross profit
Gross Profit	14,680	14,716	43,647	42,749
Operating income (loss)
Operating income (loss)	2,531	809	4,891	(985)
Network Equipment [Member]
Gross profit
Gross Profit	12,113	11,062	35,616	33,007
Depreciation expense
Depreciation expense	473	459	1,460	1,428
Operating income (loss)
Operating income (loss)	1,277	(953)	1,599	(5,296)
Network Integration [Member]
Gross profit
Gross Profit	2,567	3,654	8,031	9,742
Depreciation expense
Depreciation expense	31	50	92	149
Operating income (loss)
Operating income (loss)	1,254	1,762	3,292	4,311
Corporate Unallocated and Intersegment Adjustments [Member]
Gross profit
Gross Profit	(1)	0	0	0
Operating income (loss)
Operating income (loss)	(1,345)	(1,233)	(3,713)	(4,414)
Corporate [Member]
Depreciation expense
Depreciation expense	$ 29	$ 52	$ 87	$ 111

Segment Reporting and Geograp53

Segment Reporting and Geographic Information (Balance Sheet and Statement of Cash Flow Information) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Segment Reporting Information [Line Items]
Additions to Fixed Assets	$ 1,236	$ 1,914
Assets	101,601		$ 114,572
Network Equipment [Member]
Segment Reporting Information [Line Items]
Additions to Fixed Assets	1,168	1,736
Assets	42,472		40,664
Network Integration [Member]
Segment Reporting Information [Line Items]
Additions to Fixed Assets	74	95
Assets	49,270		56,921
Corporate [Member]
Segment Reporting Information [Line Items]
Additions to Fixed Assets	(6)	$ 83
Corporate Unallocated and Intersegment Adjustments [Member]
Segment Reporting Information [Line Items]
Assets	$ 9,859		$ 16,987

Indemnification Obligations (Na

Indemnification Obligations (Narrative) (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Indemnification Agreement [Member]
Loss Contingencies [Line Items]
Loss contingency accrued	$ 0	$ 0

Litigation (Narrative) (Details

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

Accounts Receivable Factoring (

Accounts Receivable Factoring (Narrative) (Details) € in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015EUR (€)	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Receivables [Abstract]
Amount of factoring permitted per credit facility agreements					€ 15	$ 16.9
Accounts receivables sold						10.1	$ 10.5
Receivables transferred to the factor			$ 31.5	$ 50.4
Proceeds from sale of accounts receivables			31.3	57.8
Outstanding balances on accounts receivable						$ 9.2	$ 10.4
Related losses on sale	$ 0.1	$ 0.1	$ 0.1	$ 0.2

Short Term Debt (Details)

Short Term Debt (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Short-term debt	$ 2,887	$ 5,402
Line of Credit [Member] | Tecnonet [Member]
Short-term Debt [Line Items]
Short-term debt	$ 2,900	$ 5,400
Debt instrument, stated interest rate, minimum	1.40%
Debt instrument, stated interest rate, maximum	2.50%
Short-term debt, weighted average interest rate	1.80%	2.10%

Share Repurchase (Narrative) (D

Share Repurchase (Narrative) (Details) - USD ($)	3 Months Ended	9 Months Ended		10 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Dec. 16, 2014
Equity, Class of Treasury Stock [Line Items]
Purchase of treasury shares		$ 4,943,000	$ 0
December 2014 Share Repurchase Agreement [Member]
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount					$ 8,000,000
Treasury stock, shares acquired	33,621			502,077
Purchase of treasury shares	$ 400,000			$ 4,900,000
Stock repurchase program, remaining authorized repurchase amount	$ 3,100,000	$ 3,100,000		$ 3,100,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Income (loss) before provision for income taxes	$ 1,336	$ (313)	$ 928	$ (5,865)
Provision for income taxes	$ 450	$ 727	$ 1,390	$ 1,659
Effective tax rate	34.00%	(232.00%)	150.00%	(28.00%)

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Provision for income taxes	$ 450	$ 727	$ 1,390	$ 1,659
Income (loss) before provision for income taxes	1,336	$ (313)	928	$ (5,865)
Provision for deferred tax liability related to foreign earnings to the U.S.	$ 8,700		8,700
Reduction in the deferred tax valuation allowance			$ 8,700
Federal Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses					$ 179,700
Federal Tax Authority [Member] | Capital Loss Carryforward [Member]
Operating Loss Carryforwards [Line Items]
Capital loss carryforwards					110,500
State Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses					100,700
State Tax Authority [Member] | Capital Loss Carryforward [Member]
Operating Loss Carryforwards [Line Items]
Capital loss carryforwards					24,000
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses					$ 97,300

Sale of Tecnonet (Narrative) (D

Sale of Tecnonet (Narrative) (Details) - Tecnonet [Member] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2015payment	Dec. 01, 2015EUR (€)	Nov. 30, 2015EUR (€)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of payments | payment		2
Proceeds from Divestiture of Businesses | $	$ 1.5
Scenario, Forecast [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal group, consideration, cash				€ 15,600,000
Disposal group, consideration, assumed debt				4,100,000
Disposal group, termination fee			€ 350,000	€ 250,000