Saul, your question caused me to pull my MRVC files.
I rechecked numbers, which appear correct - MRVC did indeed spike inventories in 2Q96, one quarter ahead of the completion of the Fibronics acquisition. I could not find a specific answer for that, but I did find this from the Form 10-Q published in November, 1996, page 10:
"Inventories were $17,327,000 and $8,382,000 at September 30, 1996 and December 31, 1995, respectively. Inventories during these periods have increased as a result of increased sales. Inventories as a percentage of assets have increased because an increasing portion of the company's business has come from LAN products which have longer production cycles than the company's optical transmission products."
MRVC probably was building inventories due to anticipated sales demand and initial builds of new products, similar to the Q4 1997 situation.
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In researching your answer, I came across a breakdown of the 1995 and 1996 restructuring charges, which are old data of course, but are pertinent to the $53 Million charge for Xyplex, which many (not I) considered high. I will key this data in in a post later this AM, when I can break from work. I think the thread will find this interesting.
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