MRV’s Shares Plunge After Profit Warning

MRV Communications Inc.’s shares lost more than half their value after the maker of telecommunications equipment said third-quarter profit will lag expectations because of weaker European sales and product delays. Shares in Chatsworth-based MRV dropped $7.56 to close at $6.81 on Nasdaq. MRV said that delays in shipping new networking products will lower profit margins and drag down earnings. The company also said slowing European orders will cause revenue to fall 10% to 15% from second-quarter revenue of $65.7 million. Analysts had expected MRV to post earnings of about 31 cents a share. The company earned $5.92 million, or 23 cents a share, on sales of $42 million, in the year-earlier period.