MRV Bounces Back
Optical equipment vendor MRV celebrated a corporate milestone Wednesday, regaining its status as a listed company on the Nasdaq in the wake of improving quarterly and full-year financials.
Almost five years since the trading of its stock was suspended from Nasdaq, after the vendor failed to file quarterly and annual reports and was forced to restate some of its financials, MRV Communications Inc. (Nasdaq: MRVC) has rejoined the global Nasdaq exchange. "We are very proud of the significant progress we have made in strengthening corporate governance, resolving legacy issues, improving operating efficiencies, and repositioning MRV for growth and profitability in the global communications market," noted the vendor's CEO David Stehlin earlier this week.
MRV ended its first day back on Nasdaq with a 0.7% gain, closing the day's trading at $15.00. The return to full trading status followed only days after the vendor reported a 10% year-on-year increase in fourth quarter and full year revenues to $50.7 million and $166.2 million, respectively. MRV managed a small operating profit in the fourth quarter, but reported an operating loss of $4.4 million for the full year, though that was an improvement on the $9.8 million operating loss reported for 2012. (See MRV Reports Fourth Quarter, Full Year Results.)
With its Nasdaq status revived and its financials heading in the right direction, MRV is now focusing on market growth. It has recently launched new metro transport products, unveiled an HTML5 version of its network management software, engaged with the NFV community, and revealed plans to launch a new packet-optical platform later in 2014. (See MRV Looking to Regain Momentum.) To help drive that growth, MRV has appointed former Overture Networks Inc. sales chief Scott St. John as its new SVP of global sales and service.
One area of upcoming growth is the 100G metro transport market, which is already showing signs of life, according to Scott Wilkinson, senior director of technical marketing at MRV. Speaking to Light Reading at the recent OFC 2014 industry event in San Francisco, Wilkinson noted that the 100G metro market was already starting to pick up. Alternative network operators, such as the competitive carriers and infrastructure-owning OTT players, are already deploying the higher-capacity systems, often for inter-data center connectivity. The major telcos are expected to start adding 100G systems to their metro networks in 2015 and beyond, he added. "They're waiting for the single wavelength systems."
That analysis chimes with the views of Heavy Reading senior analyst Sterling Perrin, who notes in his recent report, The Rise of 100G & Terabit Transport Networks, that the market for 100G metro systems is set to grow from about $400 million this year to more than $2.1 billion in 2018.
— Ray Le Maistre, Editor-in-Chief, Light Reading