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Friday, Jun 9, 2023

MRV Reports Losses

MRV Communications Inc. said Friday it lost money in the first quarter despite rising revenue, as the company underwent a corporate restructuring and spent more on research and development. The Chatsworth firm, which sells and installs computer networking equipment, reported a net loss of $4.4 million (-59 cents a share) in the quarter ended March 31, compared with a profit of $3.6 million (45 cents) for the same quarter a year earlier. Revenue rose 16 percent to $39 million. There were no analyst estimates for the company’s earnings. The company said it spent more money on various networking products and also restructured its corporate management, which raised legal costs. The company announced last month that it had reached a settlement with shareholders over alleged illegal backdating of stock options. It has since implemented new rules for its board and improved financial oversight. A new chief financial officer was hired, and in February, David Stehlin was named chief executive. Shares closed down 59 cents, or 6 percent, to $9.26 in over-the-counter trading.

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