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Optical/IP

MRV Considers Its Exit

MRV Communications Inc. (Nasdaq: MRVC) is ready to leave the networking industry.

An Securities and Exchange Commission (SEC) filing on Friday afternoon says the company is considering alternatives for its Network Equipment Group. That would include the Optical Communications Systems division, a U.S.-based operation whose portfolio includes optical transport and carrier Ethernet gear.

The group also includes Appointech Inc., which is a Taiwanese optical-components outfit, and Creative Electronic Systems SA, a Swiss avionics company.

Not included in the group is Source Photonics Inc. , the optical transceiver division that comprised MRV's LuminentOIC Inc. and the acquired Fiberxon Inc. MRV sold off Source in October.

Should MRV sell off the group, it would be left with the Network Integration Group, which represented about 57 percent of MRV's revenues in 2010.

Why this matters
It's not immediately clear why MRV is suddenly considering divesting its networking business. MRV is skirting just around the break-even point but doesn't appear to be bleeding cash. In an indirect way, that could be part of the problem; MRV came under a shareholder revolt. An Aug. 16 letter from Raging Capital Management LLC demanded that MRV shrink its board, pay a dividend and hold quarterly earnings calls.

MRV wasn't immediately available for comment, and of course, the SEC filing came on the cusp of a long weekend in the United States. We may have to wait until next week for details.

For more
MRV's networking team certainly wasn't idle in recent months. Here's some of that activity, and some old links about the birth and death of Source Photonics.

— Craig Matsumoto, West Coast Editor, Light Reading

digiwolf 12/5/2012 | 4:54:48 PM
re: MRV Considers Its Exit

Does anybody know Marvell's attitude towards its ethernet switch chips?


Will MRV sell its ethernet chips divison?

DCITDave 12/5/2012 | 4:54:44 PM
re: MRV Considers Its Exit

Stock hasn't been above $2 in a year and suddenly its up nearly 4%. Weird, eh?

FiberWorld05 12/5/2012 | 4:54:42 PM
re: MRV Considers Its Exit

MRV does not make Ethernet "chips", their OCS division produces Ethernet Switches using others chips. So it would make it tough to sell their "chip division"...

Iluzun 12/5/2012 | 4:54:40 PM
re: MRV Considers Its Exit

My understanding...  Softsilicon/fpga, hardware based OAM


integration into the Optiswitch line, demarc/hybrid nids. & the tight integration of the


control & data planes via [email protected]  With 100g driving the deployment of


OTN, the control plane implementation choice w/the lowest potential capex/opex is


'in band, in channel', layer 0, which MRV does.  MRV & AMS-iX will deploy 100g in 


2011.  


 


http://more-ip-event.net/asset...

FiberWorld05 12/5/2012 | 4:54:39 PM
re: MRV Considers Its Exit

I think your post from back in 2010 says it best...


 


"I can relate to both 'their reaction', & your predicament.  The headline,





MRV Does Something, just about sums up both the frustration its owners


feel, given it's current market cap, & the long simmering dismay as to acknowledge-


ment as to why anyone in telecom would 'even care' what MRV does.


 


You kinda of stepped in it.  The cos. products seem to be a technical marvel


of modular & cost effective efficiencies, providing wavelength layer 0 & a


merged control/data plane out to the customer edge, a claimed industry first.


Yet the co. is currently delisted from the nasdq, has a new & as yet not well


known 'interim CEO' in Dilip Singh, & its future identity up for grabs."


 


MRV makes lots of interesting claims but never seems to sell those amazing industry first it clams to have invented.


 


 




FiberWorld05 12/5/2012 | 4:54:39 PM
re: MRV Considers Its Exit

100G in 2011...Yet...


 


No product information...


No Application notes...


No current support for GMPLS...


No multi-degree ROADM...


 


 


But we do have a press release and a generic presentation on 100G so it must be true...

Iluzun 12/5/2012 | 4:54:39 PM
re: MRV Considers Its Exit

http://www.mrv.com/product/MRV...


http://www.wipo.int/patentscop...


I don't quite know 'which' unexisting product you are referencing.


They've integrated a lot of 'softsilicon' into the agg/edge.


AMS-IX has been pretty open & reliable as to how & when these items


r deployed.   


 

Iluzun 12/5/2012 | 4:54:38 PM
re: MRV Considers Its Exit

Well haven't OTN, GMPLS, 100g been around/talked up for the last decade?  


'Digital wrapper' is more than a few yrs discussed, no?  Automated control plane?


The keys will be service facilitation & performance measurment, low capex/opex no?


It seems a lot is riding on 100g.  If no 100g, no OTN, no OTN, no GMPLS.  Timing, would


seem to be everything, no? 

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