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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: TBF who wrote (13926)	6/15/1999 10:08:00 AM
From: Sector Investor	Read Replies (1) \| Respond to of 42804

<<My concern with MRVC is that revenues may continue to grow but that margins remain under pressure forever thus limiting the upside to its current trading range until someone buys it (if the technology is truly superior).>> You need to look closer at the "New MRVC" products and dig deeper in your DD. The margin pressure was coming from the previous iteration of their switches and they missed a product upgrade cycle while they were concentrating on the Xyplex acquisition. Before they were a niche switch vendor. Their products were good, but their interfaces were limited, which kept them at the "low end" of the switch market which got squeezed on margins due to the increased competition at the low end. The new products are much more robust, are more advanced technologically, and now have distinguishing features like the "Linux" router. The new acquisitions are also aimed at the Metro and Carrier markets, where margins will be higher and not easily get eroded, the opportunities broader, the wins larger and longer term as well. MRVC is no longer a niche commodity switch vendor, but the market has not yet recognized that fact.