MRV Communications (MRVC) saw its loss narrow to $2.60 million, or $0.38 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $6.72 million, or $0.96 a share. On the other hand, adjusted net loss for the quarter narrowed to $0.94 million, or $0.14 a share from a loss of $4.42 million or $0.63 a share, a year ago. Revenue during the quarter grew 12.61 percent to $20.90 million from $18.56 million in the previous year period. Gross margin for the quarter contracted 456 basis points over the previous year period to 49.11 percent. Operating margin for the quarter stood at negative 12.09 percent as compared to a negative 9.26 percent for the previous year period.
Operating loss for the quarter was $2.53 million, compared with an operating loss of $1.72 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $0.74 million compared to operating loss of $1.61 million in prior year period.
“In the fourth quarter, we grew revenue 13% year-over year delivering revenue of $20.9 million, despite continued temporary softness in orders from two of our largest customers,” stated Mark Bonney, President and Chief executive officer. “In the quarter, we accomplished several important product development milestones and completed the transition of all packet and optical manufacturing to a single world-class manufacturing partner. Also, we implemented a cost reduction program that reduces our future operating costs by approximately $5 million per year while preserving our capability to execute on our product roadmap, support all of our customers and grow the business.”
Working capital drops significantly
MRV Communications has witnessed a decline in the working capital over the last year. It stood at $27.64 million as at Dec. 31, 2016, down 30 percent or $11.85 million from $39.48 million on Dec. 31, 2015. Current ratio was at 2.15 as on Dec. 31, 2016, down from 2.66 on Dec. 31, 2015.
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