<<and that when these hobby companies begin to show a profit (if ever) the profits won't go to MRV's bottom line... anybody else get that feeling?>>
No.
Greg, these companies are not new (except for Kempton, which was first mentioned in the Q4 CC). See this information from the 10-K MRVC issued on April 15, 1998, which spells things out quite clearly.
In May 1996, the Company purchased 50 percent of the outstanding stock of EDSLAN SRL, an Italian networking company. The purchase price paid by the Company was approximately $1,050,000. The purchase agreement
calls for the Company to receive 80 percent of EDS' profits or losses
from the date of acquisition. In June and November, 1997, the
Company purchased an additional 10 percent of the outstanding stock of
EDSLAN SRL, for $500,000, respectively. At December 31, 1997, the Company owns 70 percent of EDSLAN SRL.
Here is a link to their Website -note the NBase LOGO: edslan.com
Also from the same document, Netsoft is wholly owned, as are several others:
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, NBase Communications, Inc., NBase Communications, Ltd. (Nbase Ltd.), NBase Europe GmbH (Nbase
Europe), NBase Fibronics, Ltd. (Fibronics), Netsoft Solutions, Ltd. (Netsoft), and its 70 percent-owned subsidiary, EDSLAN SRL (EDS).
All significant intercompany transactions and accounts have been eliminated.
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