MRV Communications Inc. (MRVC) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $3.11 million, or $ 0.45 a share in the quarter, against a net profit of $0.89 million, or $0.13 a share in the last year period. On an adjusted basis, net loss for the quarter was $2.16 million, when compared with net profit $0.91 million in the last year period. Revenue during the quarter dropped 17.38 percent to $18.95 million from $22.93 million in the previous year period. Gross margin for the quarter contracted 550 basis points over the previous year period to 47.32 percent. Operating margin for the quarter stood at negative 15.32 percent as compared to a negative 0.30 percent for the previous year period.
Operating loss for the quarter was $2.90 million, compared with an operating loss of $0.07 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $1.95 million compared to operating profit of $0.70 million in prior year period.
"During the quarter we continued to prudently invest in our product roadmap, particularly in our OptiSwitch V-Series of products for metro access and in our 100G solutions for data center interconnect, as we believe that we are well positioned to take advantage of the growth opportunities in these markets," stated MRV president and chief executive officer Mark Bonney. "In the quarter, amongst other factors, revenues from our Tier-1 service provider customers were not reflective of normal buying patterns as they were impacted by inventory adjustments and other short-term issues."
Working capital drops significantly
MRV Communications Inc. has witnessed a decline in the working capital over the last year. It stood at $30.34 million as at Sep. 30, 2016, down 25.46 percent or $10.36 million from $40.70 million on Sep. 30, 2015. Current ratio was at 2.22 as on Sep. 30, 2016, up from 1.77 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 69 days for the quarter from 169 days for the last year period. Days sales outstanding went down to 169 days for the quarter compared with 202 days for the same period last year.
Days inventory outstanding has decreased to 47 days for the quarter compared with 159 days for the previous year period. At the same time, days payable outstanding went down to 146 days for the quarter from 192 for the same period last year.
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