Quarterly Financial Data (Unaudited)

The following tables summarize MRV's Consolidated Statements of Operations for 2016 (in thousands):



Three months ended:	March 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Revenue	$	18,882		$	21,584		$	18,947		$	20,902
Cost of sales	9,079			11,513			9,981			10,636
Gross profit	9,803			10,071			8,966			10,266
Operating expenses:
Product development and engineering	5,344			5,125			4,937			5,075
Selling, general and administrative	8,017			7,007			6,931			7,719
Total operating expenses	13,361			12,132			11,868			12,794
Operating loss	(3,558		)	(2,061		)	(2,902		)	(2,528		)
Other income (loss), net	(277		)	74			(180		)	117
Loss before provision for income taxes	(3,835		)	(1,987		)	(3,082		)	(2,411		)
Provision for income taxes	61			36			31			194
Net loss	$	(3,896	)	$	(2,023	)	$	(3,113	)	$	(2,605	)

Net loss per share — basic and diluted	$	(0.56	)	$	(0.29	)	$	(0.45	)	$	(0.38	)
Basic and diluted weighted average shares	6,981			7,092			6,868			6,808

The above table includes adjustments to revenue for the quarters ended March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016 in the amounts of $0.3 million, $0.4 million, $0.3 million and $0.5 million, respectively, related to the reversing of an excess accrual for future product discounts upon the expiration of a customer contract.

The following tables summarize MRV's Consolidated Statements of Operations for 2015 (in thousands):



Three months ended:	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Revenue	$	22,185		$	24,519		$	22,933		$	18,562
Cost of sales	10,641			12,560			10,819			8,599
Gross profit	11,544			11,959			12,114			9,963
Operating expenses:
Product development and engineering	5,125			5,310			4,901			5,112
Selling, general and administrative	7,736			7,379			7,281			6,570
Total operating expenses	12,861			12,689			12,182			11,682
Operating loss	(1,317		)	(730		)	(68		)	(1,719		)
Interest expense	(14		)	(22		)	(11		)	(8		)
Other income (loss), net	81			(296		)	188			(21		)
Income (loss) from continuing operations before provision for income taxes	(1,250		)	(1,048		)	109			(1,748		)
Provision (benefit) for income taxes	50			77			(39		)	2,783
Income (loss) from continuing operations	(1,300		)	(1,125		)	148			(4,531		)
Gain (loss) from discontinued operations	232			844			738			(2,185		)
Net income (loss)	$	(1,068	)	$	(281	)	$	886		$	(6,716	)

Net income (loss) per share — basic
From continuing operations	$	(0.18	)	$	(0.16	)	$	0.02		$	(0.65	)
From discontinued operations	0.03			0.12			0.11			(0.31		)
Net income (loss) per share — basic	$	(0.15	)	$	(0.04	)	$	0.13		$	(0.96	)

Net income (loss) per share — diluted
From continuing operations	$	(0.18	)	$	(0.16	)	$	0.02		$	(0.65	)
From discontinued operations	0.03			0.12			0.11			(0.31		)
Net income (loss) per share — diluted	$	(0.15	)	$	(0.04	)	$	0.13		$	(0.96	)

Basic weighted average shares	7,131			6,988			6,978			6,980
Diluted weighted average shares	7,131			6,988			7,014			6,980

The above table includes a $2.6 million increase in the provision for income taxes for the three months ended December 31, 2015 related to an increase in the Company's valuation allowance on deferred tax assets. (See Note 6, Income Taxes).