Subsequent Events

3 Months Ended

Mar. 31, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Events

On May 1, 2012, the Company's Board of Directors declared a dividend and payment to option holders totaling approximately $48.6 million on the outstanding shares of the Company's Common Stock. The dividend is payable on May 25, 2012 to holders of record as of the close of business on May 16, 2012. The Board also approved a staggered cash payment to option holders equal to the loss in the Black-Scholes fair value of their options as a result of the dividend. Restricted stockholders will receive per share payments in the same amount as the Company's stock holders promptly following payment of the dividend. Option holders who provide service to the Company at the time of the payment of the dividend will receive 50 percent of the payment amount in respect of their vested options promptly following payment of the dividend, and 50 percent of the payment amount 12 months following, conditioned upon continuous service to MRV, subject to certain acceleration conditions such as involuntary termination without cause, death or disability, change of control, or a sale of the business unit in which the option holder is employed. Option holders with unvested options will receive the cash payment in 12 months, subject to the same conditions described above.

In April 2012, a major customer of Alcadon AB gave notice that it has shifted its future purchases to another vendor. In accordance with ASC 350 Intangibles - Goodwill and Other, we measured Alcadon's goodwill for impairment. The carrying value of Alcadon's goodwill exceeded its implied fair value by $2.8 million, and the Company will record an impairment charge of that amount to reduce the carrying value to the implied market value in the second quarter of 2012.