Diana Hayden, Director of Corporate Communications, MRV Communications, Inc.:
Thank you Carlo. Good afternoon, everyone, and thank you for joining us today.
We have changed our format time for our quarterly teleconference from 5:00 p.m.
Eastern to 4:30 p.m. Eastern. We will host future teleconferences at 4:30 p.m.
Eastern for the convenience of listeners on the East Coast.
With me today is Noam Lotan, our president and CEO, and Shay Gonen, our CFO.
If you haven’t yet seen the press release, it can be retrieved at www.mrv.com
or off of First Call or PR NewsWire. In addition, this conference call is being
web cast on our company web page and will be available for replay. We will
provide replay information at the end of today’s call.
Today, Noam will provide an introduction and Shay will review in detail the
financial results for the first quarter ended March 31, 2004. Following Shay’s
comments, Noam will discuss MRV’s first quarter highlights and provide an
executive summary.
A financial highlight and overview will be available in conjunction with this
first quarter 2004 Teleconference and webcast. It can be downloaded at
http://www.mrv.com/investor/quarterly_center.php
Before we begin with the call, let me take a few minutes to remind you: This
press release, teleconference and presentation contains forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934, and is subject to the safe harbor created by that section. These
forward-looking statements include statements relating to the Company’s
expectations of future success in achieving its objectives. Any forward-looking
statements in this presentation and teleconference are subject to a number of
risks and uncertainties, including the strength of the overall economy and the
high technology market in particular, competition, product development efforts,
and acceptance of MRV Communications’ current and future products. Actual
results could differ materially from those projected in our forward- looking
statements. Investors should review the risk factors described in more detail
in our most recent SEC reports available free of charge from MRV Communications
at www.mrv.com or from the SEC at www.sec.gov. MRV Communications, Inc. assumes
no obligation to update the forward-looking statements contained in this press
release.
And any information contained herein should be read in conjunction with the
April 22, 2004 Q1 financial results press release with accompanying financial
tables.
Noam Lotan, president and CEO, MRV Communications, Inc.:
Thank you, Diana. Good afternoon and welcome to our Q1 call.
Q1 was another solid quarter of improving results. Even with the seasonal
decline in Europe, revenues increased 17% year-over-year and were nearly $60
million. This was well within our
guided range of: $57 to $61 million. Next quarter, we also anticipate revenues
to be up, both year-over-year and sequentially.
Year-over-year Revenues for the networking group increased by nearly 20%, while
revenue for the optical components group, increased by 4%. Revenues from the
Americas increased 13% year-over-year and Europe was up 17%.
Gross margins improved, due to a more favorable product mix. In the previous
quarter (Q4), operating expenses were down and our operating loss was cut in
half as compared to the prior quarter. In Q1, profitability improved only
slightly. However, this was accomplished with revenues that were lower by
almost $10 million (or 14%) for the prior quarter. I’d say - we did pretty
well.
Our outlook for the second quarter continues to be positive. We have started
the quarter well. Accordingly, we anticipate Q2 revenue to be in the $64 to $68
million-range, which in the average, translates to a year-over-year revenue
increase of 7% and a sequential increase of about 10%.
With respect to the bottom line, we believe we can continue and deliver further
improvements in future quarters.
We are proud of what our people were able to accomplish. As we transform the
company to a more effective organization, especially more aggressive at winning
deals, we certainly see further growth opportunities ahead.
With that, let me now turn the call to our Chief Financial Officer, Shay Gonen,
for more details on our financial results.
Shay Gonen, CFO, MRV Communications, Inc.:
Thank you Noam.
Let me start with a brief review of our highlighted results, slide number 6
please.
Our revenues, which were within our guidance, were $59.6 million in Q1 of 2004
compared to $51.1 million in Q1 of 2003, an increase of 17% year over year.
Revenues declined sequentially by 14% or $9.5 million due to a seasonal decline
in our system integration activity in Europe.
We expect our revenues for Q2 of ‘04 to be in the $64 to $68 million range
reflecting an average sequential 10% growth and 7% year over year.
Our net loss remained constant at 5 cents although there was a slight
improvement in absolute dollars. Our net loss was $4.8 million for Q1 of ‘04
compared to $4.9 million for Q4 of ‘03. However, this was accomplished with
revenues that were $9.5 million lower.
Now I would like to breakdown our revenues by Business Segment, Geographical
Region and Product line.
Let us start with our revenues by business segment. Slide number 7, please.
We present Segment reporting information according to the following segments: -
Networking Group; - Optical Components Group; and - Development Stage
Enterprise Group.
Accordingly, our revenues by business segment for Q1 and Q4 were as follows: -
For the Networking Group, revenues decreased sequentially by 15% to $49.9
million in Q1 compared to $58.4 million in Q4. This decrease is due to a
typically seasonally slower Q1 specifically in our system integration business
in Europe. However, year over year revenues for our Networking Group grew from
$41.8 million to $49.9 million or nearly 20% partly thanks to currency exchange
rate. - Revenues for the Optical Components Group decreased sequentially by 8%
to $10.3 million in Q1 compared to $11.2 million in Q4. Year over year our
optical component group revenues increased by 4% and we are encouraged with
this positive trend. - Our inter-segment revenues from the Optical Components
group to the Networking group were $550,000 in Q1 compared to $469,000 in Q4,
these revenues are eliminated in our consolidated revenues. — There were no
revenues generated by our Development Stage Enterprise Group.
Please turn to slide number 8. With respect to geographical breakdown we
provide revenues data by the following regions - the Americas, Europe, Asia
Pacific, and Other Regions, which includes the Middle East & Africa.
The geographical breakdown as a percentage of revenues for Q1 and Q4 were as
follows: Q1 revenues in the Americas were 24% in Q1 compared to 22% in Q4. _
Q1 revenues in Europe were 70% compared to 72% in Q4; In absolute dollars,
revenues in Europe decreased by $7.8 million or 16%. This seasonal decrease is
typical for our European business in the first quarter of the year. Q1
revenues in Asia Pacific remained at 6%. Q1 revenues in Other Regions
remained at 1% or less.
For product line analysis please turn to slide number 9. As I previously
mentioned, revenues were $59.6 million, of which 92% consisted of product
revenues while 8% were service related revenues.
Product line revenue as a percentage of revenues for Q1 versus Q4 were as
follows: _ Optical Active Components were 19% in Q1, compared to 18% in Q4. _
Optical Passive Components were 7% in Q1, compared to 6% in Q4. _ Network
Physical Infrastructure products were 23% in Q1, compared to 18% in Q4, an
increase of 7% in absolute dollars. _ Switches and routers were 21% in Q1,
compared to 26% in Q4, a decrease of 29% in absolute dollars, mainly due to a
seasonal decline in our system integration activity in Europe. _ Remote Device
Management Products were 9% in Q1, compared to 7% in Q4, a sequential increase
of 21% in absolute dollars.
Of Service and other revenues Service related revenues were 8% of revenues in
Q1 compared to 10% in Q4. _ In Other Network Products revenues we include
communication networks for aerospace, defense and other applications including
cellular communication. These revenues were 13% in Q1 compared to 14% of
revenues in Q4, representing sequential decrease of 21% in absolute dollars.
Revenues generated from the sale of third-party products through our system
integration and distribution offices were 46% of our total reported revenues in
Q1 compared to 47% in Q4.
Looking at our consolidated P&L, the following items are worthy of note. Slide
number 10 please.
Net Loss As I already mentioned, our net loss in Q1 was $4.8 million compared
to $4.9 million in Q4. This slight reduction was accomplished with revenues
that were substantially lower due to our seasonal decline in Europe.
Please note that in Q1 and also in Q4 our deferred stock expense has been
reduced to an insignificant level.
Gross Profit Our gross margin improved and was 34% of revenues compared to 31%
in the previous quarter, resulting mainly from more favorable product mix. In
absolute dollars, our gross profit for Q1 decreased by $817,000 to $20.4
million.
Product Development and Engineering Our product development and engineering
expense in Q1 decreased by $920,000 or 13% to $6.3 million and remained
constant at 11% of our revenues.
Selling, General and Administration Our SG&A expense increased by $706,000 to
$18.2 million or by 4%. This increase is due to investment in direct sales and
marketing activities.
Operating expenses and Operating Loss Our total operating expenses in Q1 were
slightly lower that Q4. Operating loss for Q1 was $4.1 million compared to $3.5
million in Q4 of last year. This increase in our operating loss is attributed
to the decrease in gross profit.
Other Income (Expense) Net Other Income (Expense), net for Q1 remained constant
at less than 1% of revenues and was $212,000 compared to $450,000 for Q4. Q1
other expenses consisted mainly of interest expense on our convertible notes
issued in 2003.
Looking at our consolidated balance sheet, the following items are worthy of
note. Please turn to slide number 11.
Overall Debt Our short-term and long-term obligations, including our
convertible notes, the sum of the last two items on the bottom of the slide, as
of March 31, 2004 decreased by $378,000 to $25.7 million.
Our cash to debt ratio as of year-end was 3.4 to 1.0 compared to 3.7 to 1.0 at
the end of Q4. The ratio at the end of Q3 2003 stood at 3.4 as well.
Cash As of March 31, 2004 our consolidated cash, cash equivalents, short-term
and long-term marketable securities and time deposits were $88.4 million,
compared to $97.0 million for the previous quarter.
The decrease in cash in Q1 was $8.7 million compared to an increase in cash in
Q4 of $9.4 million. We used our cash to increase our inventories to meet
specific backlog commitments for Q2 and also to finance our losses. Over the
past 12 months our net reduction in our consolidated cash position was $15.7
million or approximately an average of $4.0 million per quarter.
Accounts Receivable In Q1, Accounts Receivable decreased to $50.8 million
compared to $53.5 million in Q4, a decrease of $2.6 million or approximately
5%. This decrease, in absolute dollars, is attributed to the decrease in our
revenues. DSOs in Q1 were 78 days compared to 70 days in Q4.
Inventories In Q1, Inventories increased by $5.3 million to $41.1 million in
preparation for scheduled shipments of system integration projects in Europe
that are expected to materialize in Q2. Consequentially, days in inventory for
Q1 were 96 days compared to 68 days in Q4.
Accounts payable Accounts payable in Q1 decreased to $44.4 million compared to
$46.8 million in Q4, representing a decrease of $2.4 million or approximately
5%.
As for the Outlook, Noam mentioned that our outlook is good for the second
quarter. We expect our revenues for Q2 to be in the $64 to $68 million range
reflecting an average sequential 10% growth and 7% year over year. We also
expect our bottom line to continue the improvement trend.
With that I would like to turn the call back to Noam Lotan, our President and
CEO. Noam please-
Noam Lotan, president and CEO, MRV Communications, Inc.:
Thank you, Shay.
A few minutes ago, I mentioned that we are in the process of transforming the
company to a more effective organization, ultimately more productive at
acquiring and retaining new customers. Over the past two years we unified and
repositioned MRV. We now focus on Ethernet Access & Aggregation, Optical
Transport, and remote management and control of data centers for both carriers
and the enterprise. This move, along with aggressive steps to make the company
more efficient, has paid off for our customers and our shareholders.
Going forward, the management of MRV is enthusiastic about our prospects for
continued growth. Here’s why:
We have a fifteen-year history of innovation in network equipment and optical
components. We have a global presence - with development centers, and
manufacturing sites in multiple locations on three continents, to ensure
business continuity.
We continue to witness a more favorable climate as both enterprise customers
and service providers invest in capacity, disaster-recovery, network-security
and broadband infrastructure.
MRV is at the leading edge of implementing the new IEEE 802.3AH standard for
Ethernet service delivery in the First Mile (EFM), and MPLS/VPLS solutions for
metro aggregation. For the access layer, we provide single service, multi
service and advanced service demarcation systems. In network aggregation, we
provide the OSM series of carrier class routers. The OSM series implements VPLS
according to the latest IETF drafts for delivering VPN (Virtual Private
Networks) over providers’ MPLS networks. As standards continue to mature, users
and providers will direct more infrastructure investments towards Ethernet
services, clearly our area of expertise.
MRV has a deep understanding of carrier’s needs. We have consistently met the
carriers’ quality and uptime requirements. For example, we have successfully
implemented some of the largest metro Ethernet networks to date, with hundreds
of thousand of broadband users connected to our switch / router platform.
Through LuminentOIC, we also supplied FTTP (Fiber-to-the-Premises) modules for
well over 1 million users, in the United States and in Japan.
We have over 20 years of experience in remote device management - and we have
shipped more remote management ports for more applications than most vendors in
this field.
In Optical Transport solutions, we are the only one or one of the only vendors
that can deliver DWDM and CWDM solutions in the same hardware platform. We have
also recently proven interoperability with leading networking and storage
vendors.
Key partners and top network equipment manufacturers have incorporated MRV
products into their solutions and rely on MRV as part of their road map. At the
same time, we are mindful of the risks, including competition, and execution
risks. Given our focus on Ethernet Access & Aggregation, Optical Transport, and
remote management and control, we understand the need to better articulate and
communicate our positioning.
Status Update
Let’s review some of our recent accomplishments. As stated in prior calls, MRV
is focused on three core initiatives. These initiatives are - sales channel
development, federal government business and the development of the MRV brand.
With respect to our commitment to the channel, we have successfully
transitioned nearly 100% of our revenue to channel partners - distributors,
resellers, integrators and OEMs. The next step in the program is to intensify
the ongoing engagement of the channel. This includes lead generation, business
development, certification, training and support.
Our targeting of Federal business is producing significant results. Based on Q1
performance, we are on a trajectory of over 50% year-over-year growth. Our
investment in the federal initiative is clearly paying off, and we believe that
many new opportunities will open up in the future. We have also maintained a
high level of activity in our branding initiative. During the quarter MRV
participated in 9 trade shows domestically and internationally. LuminentOIC
appeared at OFC, which is a major annual event for the optical components
industry. In addition, we held sales conferences for MRV Americas, MRV Europe.
We also held our first Asia - Pacific partners’ event, which was widely
attended. We continue to invest in advertising in leading publications both
online and in print.
New market opportunities
During the quarter, LuminentOIC introduced the first DWDM SFP transceiver, and
MRV introduced an advanced Multi-rate WDM transponder. Both products won
Editor’s Choice awards with Lightwave magazine. We have also recently announced
the successful completion of interoperability testing of our LambdaDriver® WDM
system with IBM’s “TotalStorage Solution” servers and our 144 port 4 Gb Media
Cross Connect for storage, bandwidth-on-demand and “wire once” network
applications.
With CWDM / DWDM Optical Transport solutions and our Media Cross Connect, we
have begun to address a new market for MRV: Storage Area Networks. Storage
networks are by far the largest consumers of bandwidth. Earlier this month MRV
exhibited at the Storage Networking World conference in Phoenix. We obtained
IBM TotalStorage Proven certification. We are also validating interoperability
with other leading storage vendors.
Our remote device management products (also known as terminal servers / console
managers) are
gaining market acceptance with carrier applications, as well large enterprise
data centers. These devices help network managers monitor status and control
key parameters in servers and other network equipment. They also monitor the
environment in which these servers operate to provide regular status and alarms
on thresholds of power, temperature and humidity. Every network, whether it
belongs to a service provider to an enterprise, or to a storage user, needs
secure remote management.
Security is quickly becoming a top requirement for remote management. MRV has
strengthened its position with the most secure console servers in the market.
Our servers support multiple security, authentication and encryption standards
for truly secure remote access.
As Shay mentioned, in Q1 our remote device management line grew 21%
sequentially. Year-over-year, it grew an impressive 50%. Recognizing the
potential for growth, we are investing in additional resources, especially
engineering resources, to further enhance our competitive position.
With respect to our carrier business, MRV continues to enjoy success and expand
our penetration of the market. A number of factors, mainly related to our
technical innovation, are fueling this trend. During the quarter, our Fiber
Driver family of optical transport solutions was certified to comply with the
NEBS Telco standard. Our leadership in Ethernet in the First Mile (EFM)
contributed to early adoption of our products by international carriers.
Compliance to the NEBS standard will help parlay this success into the US
carrier market. After initial success in international markets, our carrier
class LambdaDriver® CWDM / DWDM platform has started to gain visibility in the
North American Carrier market, which is very encouraging. New carrier oriented
product announcements and demonstrations are planned for the upcoming Supercomm
show in June.
LuminentOIC, our wholly owned subsidiary, continues to exhibit technical
leadership in the field of FTTP and Metro transceivers. As ILECs’ revenue from
telephony is rapidly eroding, they recognize that their future is in broadband
services. FTTP is the ultimate broadband solution. It has the potential to
offer a totally new customer experience, including the delivery of new
applications such as high definition video over IP. LuminentOIC has been
supplying optical transmission components for Fiber-to-the- Curb and
Fiber-to-the-Home for over 10 years. We continue to be the innovation leader
with multiple design wins and aggressive pricing. However, we set the bar
higher and do not take our success for granted.
As I said earlier, during the quarter, LuminentOIC announced an industry first:
DWDM transmission in Small-Form Pluggable (SFP) transceivers. The SFP form
factor is commonly used for fiber optic transmission, including CWDM, but never
before for DWDM. LuminentOIC is the first to make DWDM work in an SFP form
factor and we were the first to sample it. We believe that today we are the
only one shipping such product. We anticipate competitors to offer similar
products within a few months. Having the early mover advantage, we aim to
remain number one.
MRV COMMUNICATIONS
Host: Anne Marie Frisch
April 22, 2004/4:30 p.m. EDT
Page 1
MRV COMMUNICATIONS
April 22, 2004
4:30 p.m. EDT
(Poor audio made transcription difficult in parts of this call.)
With that, let me turn back the call to the operator for Q&A.
Moderator
We have a question from Greg Waters with Investors Asset Management.
G. Waters
Good afternoon. My question centers around the business with IBM
and Sun Micro, and I guess now, some other vendors as well that you’re
speaking with. Those are OEM arrangements, is that correct?
N. Lotan
They are OEM, but we are shipping under our own MRV brand name.
We’ve incorporated into their solution.
G. Waters
Can you help quantify what the market potential is for the
products through those arrangements?
N. Lotan
It’s hard for me quantify because we are involved with multiple
projects with these vendors and having a foot in the door, obviously is an
opportunity for us to increase it and we have to work and continue to work
within those vendors to help them grow the business that we’re involved
with them. That seems to be exactly what we’re doing.
We advertise in their own internal publications. We make
contact with their various branch offices and we are
constantly trying to be in their face suggesting new
applications in new areas where we can help. To quantify it
Greg, I think it’s a little premature at this point.
G. Waters
Can I narrow the focus a little bit? Then for remote management,
for that particular product, for the LX series, can you somehow give us an
idea of how it fits in with IBM and Sun Micros products? Exactly which
servers is it sold with so we can keep an eye on the direction of sales in
that product?
N. Lotan
In general, we are involved with the blade centers and with cluster
of IBM servers. Our LX and our In Reach product line provide secure
remote management for large data centers. This is a product that we also
provide to enterprise customers directly or through those kinds of
partnerships.
G. Waters
I guess I can step away from that one then. It sounds like things
are, or not just sounds like, it looks like from the numbers that things
are improving a little bit in the U.S. and obviously you’re looking
forward to a good quarter because it looks like you’ve set aside some
inventory for Europe for Q2. How is the U.S. shaping up? Is it looking
as strong as Europe?
N. Lotan
The U.S. is actually very promising at this point. We have
continuously invested in sales and marketing. We have increased our
headcount. We are still continuing to attract good people to the field.
We have very good traction with customers. I mentioned the storage
market, for example, just to take one opportunity.
We see a lot of potential there. it’s really we’re making
the first baby steps in this market. We have products that
are ideal for the storage application and storage obviously
is a very strong industry that up until now we were sitting
on the sidelines. So now we are addressing it head on with
the new relationships, with new partnerships, with
qualifications and even with dedicated channels.
I can go on and talk about other aspects in carriers markets,
for example. We have a clear engagement of the opportunities
to expand. We gave one example with the project that we’ve
done with the ... supernet project for Bell Canada and such.
We are actually quite positive about our North American, in
fact, our South American business as well.
We’ve also hired two key salespeople for Latin and South
America and we are looking at additional people.
MRV COMMUNICATIONS
Host: Anne Marie Frisch
April 22, 2004/4:30 p.m. EDT
Page 2
G. Waters
Very encouraging to see the increase in sales people in
advertising. That speaks volumes. One last thing on the government
sales, on government sales, what type of products are you currently
selling to government?
N. Lotan
As a matter of fact, Greg, we’re selling practically all of our
product lines with the exception, I would say at this point, of switches
and routers. So the other product lines, like the remote management, the
Ethernet access, as well as the free space optics, those product lines are
actually currently in multiple sales opportunities.
Like I mentioned on my opening remarks, this business
segment, this market segment has a lot to offer and MRV has a
great potential there.
G. Waters
Thank you very much.
Moderator
Our next question is from Bill Musser.
B. Musser
As you look out over the next year or 12 months, which one of the
product lines do you think will be the fastest growing and what’s going to
be the slowest growing part of the business?
N. Lotan
I think the fastest growing product line would probably be our
Ethernet access and aggregation. There is no question that the trend with
the carriers is to provide additional services initially to business
customers and then through the ... effort in fiber to the home, fiber to
the curb. We will see, also, deployment of residential customers.
Initially, I think in the next few months we will see more
and more optical transport as well as Ethernet access and
aggregation. Also, less pronounced would probably be the
growth of our free space optics.
B. Musser
That will be the slowest part of the business?
N. Lotan
I would imagine so. I think that market is still slow to take off
and we just have to hang in there and continue to stay in this business,
develop new products, but for example, in the military, we see a lot of
applications for free space optics, but they do take time to materialize.
B. Musser
Did you update us on the [inaudible]?
N. Lotan
Yes. Like we said, in the previous quarter, we’ve already made
substantial reduction to the burn rate and we have continued that trend in
this quarter. We are now at a burn rate of approximately $600,000 per
quarter, which is substantially lower. It used to be three times that
level three quarters ago.
We do have, this is probably the sustainable level. We have
a tremendous team there. They are working on next generation
products and we are extremely excited about what we hope to
accomplish there. Obviously I cannot discuss it at this
moment, but we anticipate that there will be product
introductions probably a year from now, maybe three quarters
from now.
B. Musser
Thank you.
MRV COMMUNICATIONS
Host: Anne Marie Frisch
April 22, 2004/4:30 p.m. EDT
Page 3
Moderator
Sir, we have no further questions at this time.
N. Lotan
Thank you very much, operator. I want to thank you all for being
on the call today. As you can tell, we are proud of our results, but also
aware of execution challenges and a competitive threat. Our trend line is
going to steadily improve in operating performance and we want to keep it
that way.
I’d like to thank you again for being on the call and we look
forward to your participation again next quarter.
D. Hayden
Thank you again for being on this afternoon’s conference call. A
transcript of Mr. Lotan and Mr. Gonen’s teleconference discussion will be
available on MRV’s Web site at www.mrv.com/investor/quarterly_.php
beginning at 6:30 p.m. Eastern, 3:30 p.m. Pacific time today.
For those who wish to listen to the replay of the conference
call, an archived version of the Web cast will be available
shortly following the conclusion of this call on the investor
relation’s section of MRV’s Web site. In addition, a replay
will be available by phone from 8:00 Eastern today through 8:00 Eastern, April 24
th
at 617-801-6888,
access code is 7311223. Thank you again.
Moderator
Ladies and gentlemen, we thank you for your participation in today’s
conference. This concludes the presentation and you may now disconnect.
Good day.
Closing remarks: Thank you for being on the call today. As you can tell, we are
proud of our results, but also aware of execution challenges and competitive
threats.
Our trend line points to steadily improving operating performance. We want to
keep it that way.
Thanks for being on the call. We look forward to your participation again next
quarter. Diana
Diana Hayden, Director of Corporate Communications, MRV Communications, Inc.:
We would like to thank you for participating on this afternoon’s conference
call.
A transcript of Mr. Lotan and Mr. Gonen’s Teleconference discussion will be
available on MRV’s website at http://www.mrv.com/investor/quarterly_center.php,
beginning at 6:30 p.m. Eastern Time/3:30 p.m. Pacific Time on Thursday, April
22, 2004.
For those of you who wish to listen to the replay of the conference call, an
archive version of the web cast will be available shortly following the
conclusion of this call in the Investor Relations section of MRV’s website at:
http://www.mrv.com/investor/quarterly_center.php .
In addition, a replay will be available by phone from 6:30 pm Eastern Time,
today to 8:30 pm Eastern Time, April 24, 2004 at 617-801-6888, access code
87311223.
Thank you again.
1
st
Quarter
2004 Financial Results
Teleconference
April 22, 2004
Connectivity Unlimited
TM
20415 Nordhoff Street
Chatsworth, CA 91311
818-886- 6782
1
st
Quarter 2004 Financial Results
Teleconference
Introduction
This press release, teleconference and presentation contain forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934, and is subject to the safe harbor created by that section. These forward-
looking statements include statements by Mr. Lotan and Mr. Gonen relating to
the
competitive environment in 2004 and the Company’s expectations of future
success
in achieving its objectives. Any forward-looking statements in this press
release/teleconference/presentation are subject to a number of risks and
uncertainties, including the strength of the overall economy and the high
technology
market in particular, competition, product development efforts, and acceptance
of
MRV Communications’ current and future products. Actual results could differ
materially from those projected in our forward- looking statements. Investors
should
review the risk factors described in more detail in our most recent SEC reports
available free of charge from MRV Communications at www.mrv.com or from the
SEC at www.sec.gov. MRV Communications, Inc. assumes no obligation to update
the forward-looking statements contained in this press
release/teleconference/presentation.
Any information contained herein should be read in conjunction with the April
22, 2004 Q1 financial results press release with accompanying financial tables.
Slide
No. 3
Connectivity Unlimited
TM
1
st
Quarter 2004 Financial Results
Teleconference
Opening Remarks
Noam Lotan
President and Chief Executive Officer
Slide No. 4
Connectivity Unlimited
TM
1
st
Quarter 2004 Financial Results
Teleconference
Financial Review
Previous Section
