Fiber optic components maker has failed to grow like its tech peers.
MRV Communications (NASDAQ: MRVC, Stock Forum) staged big sell-off after it said it may restate results due to a stock option probe. The word that it had given the SEC this information sent shares in the fibre optic components company down by 24% to $1.45, near a 52-week low.
Wall Street is concerned that the company is not much of a growth play. In Q1 it had revenue of $126 million and could not manage to make money. It had an operating loss of $2.8 million. The firm's guidance was for Q2 to hit $135 to $140 million with another small loss.
MRVC trades at about 50% of sales, which is not saying much for a firm in the tech sector.
Now, shareholders get to add the risk of an accounting investigation. Who wants to own that much trouble?
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