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Friday, Jul 12, 2024

MRV Reports ‘Inflection Point’ Quarter

MRV Communications reported higher net income on lower revenue for a quarter the chief executive called an “inflection point.” The Chatsworth company, which makes computer network equipment, reported net income of $1.9 million (13 cents a share) for the quarter ended Sept. 30, compared to a loss of $1 million (-14 cents) for the same quarter last year. Revenue declined 13.7 percent to $37.3 million. No analysts follow the company. During the quarter, the company sold off Tecnonet, a subsidiary in Italy for $17.7 million. The company blamed its lower revenue on the loss of Tecnonet’s portion, but Chief Executive Officer Mark Bonney said the company is moving forward. “This quarter represents an inflection point,” he said in a statement. “The agreement we entered into for the sale of Tecnonet not only represents the divestiture of our last remaining network integration business at an attractive valuation, but also the proceeds will further strengthen our balance sheet and enable us to focus on the growing opportunities in our network equipment business. … The investments we previously made in new product development for packet and optical networking are beginning to bear fruit.” The company announced results after market close. MRV shares closed up 25 cents or nearly 2 percent to $13.08 on the Nasdaq.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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