SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JULY 23, 2001
MRV COMMUNICATIONS, INC.
(NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
| DELAWARE (STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION) | 06-1340090 (I.R.S. EMPLOYER IDENTIFICATION NUMBER) | |
| 20415 NORDHOFF STREET | ||
| CHATSWORTH, CA (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) | 91311 (ZIP CODE) |
ISSUER’S TELEPHONE NUMBER: (818) 773-0900
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
Item 5. Other Events
Luminent Press Release
On July 23, 2001, Luminent, Inc. issued a press release announcing its financial results for the three and six months ended June 30, 2001. A copy of that press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
Registrant’s Financial Results
On July 30, 2001, registrant announced its financial results for the three and six months ended June 30, 2001.
Registrant’s Reported Consolidated Results
Revenues for the quarter were $89.5 million, an increase of 21% over revenues of $73.9 million for the second quarter of fiscal year 2000. On a pro forma basis, net income for the current quarter was $1.3 million, or $0.02 per basic and diluted share, compared with pro forma net income of $1.4 million, or $0.02 per basic and diluted share in the previous quarter, and pro forma net income of $1.2 million, or $0.02 per basic and diluted share for the second quarter of 2000. Pro forma results exclude certain charges such as non-cash amortization of intangibles from acquisitions, non-cash deferred stock compensation expenses, cost incurred in connection with the Optical Access IPO, and expenses associated with development stage enterprises, as well as one time charges recorded by Luminent. On an as reported basis, MRV reported a net loss of $94.1 million, or $1.24 per basic and diluted share for the current quarter, compared with a net loss of $54.3 million, or $0.73 per basic and diluted share for the previous quarter and a net loss of $27.8 million, or $0.44 per basic and diluted share for the second quarter of 2000.
Registrant’s financial results as reported were as follows:
MRV COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
| June 30, | December 31, | |||||||||
| 2001 | 2000 | |||||||||
| (unaudited) | (audited) | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash & cash equivalents | $ | 174,887 | $ | 210,080 | ||||||
| Short-term investments, $52,907 and $56,181 restricted in 2001 and 2000 respectively | 55,704 | 73,947 | ||||||||
| Accounts receivable | 59,731 | 61,863 | ||||||||
| Inventories | 72,123 | 77,005 | ||||||||
| Deferred income taxes | 34,307 | 31,227 | ||||||||
| Other current assets | 26,812 | 22,750 | ||||||||
| Total current assets | 423,564 | 476,872 | ||||||||
| PROPERTY AND EQUIPMENT — At cost, net of depreciation and amortization | 75,291 | 72,269 | ||||||||
| OTHER ASSETS: | ||||||||||
| Goodwill & Intangibles | 475,496 | 504,027 | ||||||||
| Deferred income taxes | 7,797 | 6,209 | ||||||||
| Investments | 28,164 | 31,734 | ||||||||
| Other non-current assets | 12,835 | 5,660 | ||||||||
| $ | 1,023,147 | $ | 1,096,771 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| CURRENT LIABILITIES | ||||||||||
| Current maturities of financing lease obligations and long-term debt | $ | 2,642 | $ | 2,937 | ||||||
| Accounts payable | 68,644 | 56,088 | ||||||||
| Accrued liabilities | 31,867 | 34,044 | ||||||||
| Short-term debt | 12,976 | 9,104 | ||||||||
| Deferred revenue | 1,663 | 1,470 | ||||||||
| Income taxes payable | — | 6,477 | ||||||||
| Total current liabilities | 117,792 | 110,120 | ||||||||
| LONG-TERM LIABILITIES | ||||||||||
| Convertible debentures | 89,646 | 89,646 | ||||||||
| Capital lease obligations, net of current portion | 566 | 621 | ||||||||
| Long-term debt | 60,399 | 60,257 | ||||||||
| Other long-term liabilities | 4,571 | 3,980 | ||||||||
| Total long-term liabilities | 155,182 | 154,504 | ||||||||
| MINORITY INTEREST | 39,868 | 50,592 | ||||||||
| STOCKHOLDERS’ EQUITY: | 710,305 | 781,555 | ||||||||
| $ | 1,023,147 | $ | 1,096,771 | |||||||
MRV COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
| Six Months Ended | Three Months Ended | |||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||||
| 2001 | 2000 | 2001 | 2000 | |||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
| REVENUES, net | $ | 189,634 | $ | 139,007 | $ | 89,530 | $ | 73,935 | ||||||||||
| COSTS AND EXPENSES: | ||||||||||||||||||
| Cost of goods sold | 155,156 | 88,529 | 88,765 | 45,793 | ||||||||||||||
| Research and development expenses | 50,787 | 26,649 | 25,782 | 14,758 | ||||||||||||||
| Selling, general and administrative expenses | 82,123 | 41,481 | 43,711 | 26,467 | ||||||||||||||
| Amortization of goodwill and intangibles from acquisitions | 57,167 | 13,069 | 29,028 | 12,055 | ||||||||||||||
| Operating loss | (155,599 | ) | (30,721 | ) | (97,756 | ) | (25,138 | ) | ||||||||||
| Other expense, net | (2,893 | ) | (1,678 | ) | (2,373 | ) | (1,190 | ) | ||||||||||
| Provision (credit) for income taxes | (3,622 | ) | 883 | (939 | ) | 1,377 | ||||||||||||
| Minority interest | (6,439 | ) | 332 | (5,051 | ) | 45 | ||||||||||||
| NET LOSS | $ | (148,431 | ) | $ | (33,614 | ) | $ | (94,139 | ) | $ | (27,750 | ) | ||||||
| NET LOSS PER SHARE | ||||||||||||||||||
| - BASIC | $ | (1.97 | ) | $ | (0.56 | ) | $ | (1.24 | ) | $ | (0.44 | ) | ||||||
| NET LOSS PER SHARE | ||||||||||||||||||
| - DILUTED | $ | (1.97 | ) | $ | (0.56 | ) | $ | (1.24 | ) | $ | (0.44 | ) | ||||||
| SHARES USED IN PER | ||||||||||||||||||
| - SHARE CALCULATION | ||||||||||||||||||
| - BASIC | 75,245 | 59,839 | 76,111 | 62,754 | ||||||||||||||
| SHARES USED IN PER | ||||||||||||||||||
| - SHARE CALCULATION | ||||||||||||||||||
| - DILUTED | 75,245 | 59,839 | 76,111 | 62,754 | ||||||||||||||
MRV COMMUNICATIONS, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
The following unaudited pro forma Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2001 and 2000 present results of operations excluding certain charges such as non-cash amortization of intangibles from acquisitions, non-cash deferred stock compensation expenses, cost incurred in connection with the Optical Access IPO and expenses associated with development stage enterprises.
| Six Months Ended | Three Months Ended | ||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||||
| 2001 | 2000 | 2001 | 2000 | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| REVENUES, net | $ | 189,634 | $ | 139,007 | $ | 89,530 | $ | 73,935 | |||||||||
| COSTS AND EXPENSES: | |||||||||||||||||
| Cost of goods sold | 121,804 | 88,529 | 57,696 | 45,793 | |||||||||||||
| Research and development expenses | 17,137 | 13,367 | 7,891 | 7,307 | |||||||||||||
| Selling, general and administrative expenses | 45,051 | 34,153 | 21,524 | 19,139 | |||||||||||||
| Operating income | 5,642 | 2,958 | 2,419 | 1,696 | |||||||||||||
| Other income (expense), net | 167 | (241 | ) | (564 | ) | (239 | ) | ||||||||||
| Provision for income taxes | 2,124 | 883 | 351 | 214 | |||||||||||||
| Minority interests | 1,031 | 332 | 211 | 45 | |||||||||||||
| NET INCOME | $ | 2,654 | $ | 1,502 | $ | 1,293 | $ | 1,198 | |||||||||
| NET INCOME PER SHARE - - BASIC | $ | 0.04 | $ | 0.03 | $ | 0.02 | $ | 0.02 | |||||||||
| NET INCOME PER SHARE - - DILUTED | $ | 0.03 | $ | 0.02 | $ | 0.02 | $ | 0.02 | |||||||||
| SHARES USED IN PER - - SHARE CALCULATION - - BASIC | 75,245 | 59,839 | 76,111 | 62,754 | |||||||||||||
| SHARES USED IN PER - - SHARE CALCULATION - - DILUTED | 80,847 | 66,767 | 81,229 | 68,925 | |||||||||||||
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release dated July 23, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, hereunto duly authorized.
Date: July 31, 2001
| MRV COMMUNICATIONS, INC. | ||||
| By: /s/ Edmund Glazer | ||||
| Edmund Glazer | ||||
| Executive Vice President Finance and Administration and Chief Financial Officer | ||||
