Exhibit 99.1
FOR IMMEDIATE RELEASE
MRV ANNOUNCES FIRST QUARTER 2005 FINANCIAL RESULTS
First Quarter Revenue Increased 4% Year-Over-Year
Chatsworth, CA — April 27, 2005 – MRV COMMUNICATIONS, INC. (Nasdaq: MRVC), a leading provider of scalable network infrastructure equipment and optical components for metropolitan, access and Fiber-to-the-Premise applications, today reported its results for its first quarter ended March 31, 2005.
Revenues for the first quarter of 2005 were $62.0 million, an increase of 4% over revenues of $59.6 million for the first quarter of 2004. Sequentially, revenues decreased 24% from $81.2 million for the fourth quarter of 2004 due to traditional seasonality for the first quarter of year. Net loss for the first quarter of 2005 was $6.4 million, or $0.06 per share, compared to a net loss of $4.8 million, or $0.05 per share, for the first quarter of 2004 and net income of $918,000, or $0.01 per share, for the fourth quarter of 2004.
Noam Lotan, MRV’s President and Chief Executive Officer commented, “First quarter revenues were $3 million below the lower range of our guidance. This was due to general weakness in our networking business in Europe. Despite these challenges, we are very encouraged by the acceptance of our Metro Ethernet Access products, our WDM systems, as well as the newly announced LX 8000 series of carrier class console server. With our new LX 8000, we successfully completed several evaluations with potential customers and realized initial sales into a major domestic carrier.”
Management Expectations
Management anticipates second quarter revenue to improve and to be within the range of $62 to $66 million. Management also anticipates an improvement in its net loss.
Other Information
MRV will host a conference call to discuss its first quarter of 2005 financial results on Wednesday, April 27, 2005 at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. The conference call dial-in number is (617) 801-9702, access code 66856588. A financial presentation designed to guide participants through the call will also be available at 4:00 p.m. Eastern Time / 1:30 p.m. Pacific Time. MRV will offer its live audio broadcast of the conference call, along with the financial presentation, on the MRV Investor Website athttp://www.mrv.com/investor. For replay information and a transcript of the call, including the question-and-answer session, please visit the MRV Investor Website athttp://www.mrv.com/investor.
About MRV Communications, Inc.
MRV provides optical Ethernet access equipment and services, and optical components. MRV Communications, Inc, (a Delaware corporation, “MRV” or the “Company”) designs, manufactures, sells, distributes, integrates and supports communication equipment and services, and optical components. MRV conducts its business along three principal segments: the networking group, the optical components group and development stage enterprise group. MRV’s networking group provides equipment used by commercial customers, governments and telecommunications service providers, and include switches, routers, physical layer products and console management products as well as specialized networking products for aerospace, defense and other applications including voice and cellular communication. MRV’s optical components group designs, manufactures and sells optical communications components, primarily through its wholly owned subsidiary LuminentOIC, Inc. These components include fiber optic transceivers for metropolitan, access and Fiber-to-the-Premises, or FTTP, applications. 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 has operations in Europe that provide network system design, integration and distribution services that include products manufactured by third-party vendors, as well as MRV products. Such specialization enhances access to customers and allows MRV to penetrate targeted vertical and regional markets. For more information, please visit our websites atwww.mrv.com andwww.luminentoic.com.
This announcement contains forward-looking statements that involve risks and uncertainties, including statements regarding MRV’s expectations for future operating results. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors including, but not limited to: MRV’s effectiveness in controlling expenses, fluctuation in demand for its products and services; a highly competitive business environment for network equipment and optical components; the possibility that MRV might experience delays in the development of new technology and products; customer response to its new technology and product; and a dependency on third parties for certain components and for the manufacturing of its products. MRV undertakes no obligation to update the forward-looking information in this release. More information about potential factors that could affect MRV’s business and financial results is included in its Report on Form 10-K on file with the Securities and Exchange Commission(http://www.sec.gov), including, without limitation, under the captions: “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Risk Factors.”
Investor Relations
MRV Communications, Inc.
Investor Relations
(818) 886-MRVC (6782)
ir@mrv.com
