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MRV Secures $55.0 million Revenue in Second Quarter 2012


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August 13, 2012

MRV Secures $55.0 million Revenue in Second Quarter 2012

By Anuradha Shukla, TMCnet Contributor

MRV (News - Alert) Communications reported second quarter 2012 revenue of $55.0 million as per the financial results for the second quarter ended June 30, 2012.

MRV provides optical communications network infrastructure equipment and integration and managed services.

The reports for second quarter of 2012 are good as it earned revenue of $48.4 million in the first quarter of 2012 and $59.2 million in the second quarter of 2011.

The latest financial results show that the year-over-year decline of 7 percent was due to a 13 percent decline in the Network Equipment group and a 4 percent decline in the Network Integration group.

“While the markets we sell into have been experiencing near term weakness, we had several key successes in the quarter and we continue to expand our customer footprint among existing customers as well as added 41 new customers,” said Barry Gorsun, MRV's chief executive officer.

MRV Communications’ (News - Alert) gross margin for the second quarter of 2012 was 34.4 percent and the decline in revenue at the Company's Network Integration and Network Equipment groups impacted the year over year decline in gross profit.

The report further indicates that a more competitive operating environment made a negative impact on the gross margins. Operating expenses in the second quarter of 2012 were found to be $22.3 million and included a $3.7 million goodwill impairment charge related to the company's subsidiary in Scandinavia.

"As we separately announced today, we have concluded our review of strategic alternatives and have decided to pursue divestitures of our Network Integration businesses and will be retaining, investing and building our core Optical Communications Systems (News - Alert) business,” added Gorsun.  

MRV Communications was recently in news for announcing that its Board of Directors has declared a special dividend of $0.30 per share payable on May 25, 2012 to stockholders of record as of May 16, 2012.

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Edited by Rich Steeves

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