MRV Communications Inc. announced that Chief Executive Dilip Singh had resigned and that the company planned sell a Swiss subsidiary to European investors in a deal worth $24.6 million.
The Chatsworth provider of optical networking components and services said the board named Chief Financial Officer Chris King as interim chief executive. He will continue as CFO for the interim. Barry Gorson, president of the company’s Optical Communications Systems division, will take on additional responsibilities as the company’s president and chief operating officer.
Singh, who has 39 years of experience at start-up, early-stage and large telecom companies, was hired on a one-year contract in July 2010 to replace Noam Lotan as chief executive. His resignation, which was effective Monday, follows Chairman Ken Shubin Stein’s resignation from the board in October. The company said Singh, who also resigned from the board at that time, now was resigning as CEO in order to “pursue other interests.”
“We thank Dilip for his dedication, commitment and contributions to MRV throughout his tenure as chief executive,” said Interim Chairman Philippe Tartavull in a statement. “We wish him all the best for the future.”
MRV said separately late Wednesday that it executed a definitive agreement with a group of European private equity firms, led by Vinci Capital SA, to sell Creative Electronic Systems SA. The subsidiary, based in Geneva, develops electronics boards, sub-systems and systems for avionics, defense and communications uses.
MRV last month reported its third quarter net income fell 42 percent to $2.08 million, with revenue down 5.5 percent to $62.4 million.
Shares closed up 2 cents, or 2 percent, to 82 cents on the Pink Sheets.