MRV to Take $4.4 Million in Charges

MRV Communications Inc. said it will restate earnings for its last two quarters of 1996 to add $4.4 million in charges to comply with a ruling by the Securities and Exchange Commission. The computer-networking company said the charge is related to how it accounted for the convertible debentures it issued in acquiring Fibronics Ltd. In September, Chatsworth-based MRV completed a private placement of $30 million in 5% debentures convertible to common stock to help finance the Fibronics purchase. The SEC ruled that such debenture transactions must be charged to interest expense. With the restatement, the company said it lost $15.5 million, or 79 cents a share, for the quarter ended Sept. 30. It had reported a loss of $13.3 million, or 67 cents. Shares of MRV Communications fell $2.25 to close at $20 on Nasdaq.