MRV Communications (MRVC) opinions? Message Board

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Technology Stocks : MRV Communications (MRVC) opinions?

MRVC 9.975

-0.1%

Aug 15 5:00 PM EST

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To: Kamil Nemr who wrote (7318)	2/26/1998 4:24:00 PM
From: Sector Investor	of 42804

With the acquisition of Xyplex, MRVC is now a "mini CSCO" in terms of Enterprise LAN-WAN solutions. CSCO's customers of course are the largest companies and predominantly domestic. MRVC on the other hand targets smaller companies (Noam said "up to 5000 people" or so in the CC) and is predominantly international. Since the Xyplex acquisition is brand new and CSCO has not come out with a GE product yet, there must be little head to head competition up to now. Now, consider that MRVC's technology is generally better (not sure of Xyplex, but MRVC likes it), denser and lower in price. Since MRVC's overall cost structure is much lower, this doesn't hurt margins. In addition, MRVC's ASICs and optical product capabilities offer additional advantages over CSCO. Now to answer your question. Would a higher-tech, lower-cost, mini-CSCO be attractive to larger fish moving into the data networking field (like INTC, CPQ, even Toyota)? - you bet. Is this about to happen and is that why the price is held low - you got me.

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