MRV Communications Inc. (MRVC), a maker of fiber-optic equipment, fell 24 percent after announcing that a committee would re-examine its stock option practices and it may need to restate financial results.
MRV dropped 45 cents to $1.45 at 4 p.m. New York time in Nasdaq Stock Market composite trading, the most since April 28, 2005. The stock has fallen 37 percent this year.
The review centers on, though is not limited to, two of MRV's European units, which granted options from 2002 through the first quarter of 2004, the company said today in a statement. MRV conducted an informal review in 2006 and 2007 that concluded ``there was no evidence that grant dates of options were designed to occur on dates with more favorable exercise prices.''
Now ``management has determined that it is likely that the conclusions reached from the earlier review were incorrect,'' the Chatsworth, California-based company said in the statement.
The results of an investigation may affect financial statements from 2002 to 2008, MRV said.
A board-chosen committee of independent directors, outside legal counsel and accountants will conduct the review, and the U.S. Securities and Exchange Commission has also been notified.
MRV, which has had nine straight years of annual losses, declined to comment beyond the statement, Maria Riley, an outside spokeswoman for the company, said in a telephone interview.
To contact the editor responsible for this story: JoAnne Norton at email@example.com.