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

To: signist who wrote (15068)	8/14/1999 12:14:00 PM
From: BlueCrab	Read Replies (1) \| Respond to of 42804

John, all, article on Linux at: dailynews.yahoo.com

To: signist who wrote (15068)	8/14/1999 12:19:00 PM
From: Sector Investor	Respond to of 42804

MRV issued a new 10-Q. I didn't see too much to comment on, but a couple of items are worth highlighting. Regarding R&D expenses "The increases of 62.3% and 61.9% in R&D spending during the quarter and six months ended June 30, 1999 over the comparable periods in 1998 were attributable to the continued development of new networking and fiber optic products. Management believes that the ability of the Company to develop and commercialize new products is an important competitive factor, and the Company intends to continue to invest in the research and development of new products. Regarding SG&A expenses - this bodes well for the future: "As a percentage of revenues, SG&A increased from 18.7% and 18.9% for the quarter and six months ended June 30, 1998, respectively, to 21.7% and 22.1% for the quarter and six months ended June 30, 1999, respectively. The increases in SG&A expense, both in dollar amounts and as a percentage of sales, are due primarily to substantially increased marketing efforts as well as increased personnel and overhead costs in expanded locations." Regarding ASICs: "To develop ASICs successfully, the Company must transfer a code of instructions to a single mask from which low cost duplicates can be made. Each iteration of a mask involves a substantial up-front cost, which costs can adversely affect the Company's result of operations and financial condition if errors or "bugs" occur following multiple duplication of the masks. While the Company has not experienced material expenses to date as a result of errors discovered in ASIC masks, ... " I highlight this because some general articles on Terabit routers have come out where they say the buzz is noone has gotten the silicon right yet. Apparently they are not experiencing this with CW. Regarding rent expenses - this affects Q3 positively: "Waiver of Rent. Lessor hereby agrees to waive the Base Rent due from July 14, 1999 through September 13, 1999. No amounts due to Lessor under the Lease other than the Base Rent referred to above shall be waived. On or before September 1, 1999, Lessee shall pay Twenty-one Thousand Four Hundred Ninety-eight and 88/100 Dollars ($21,498.88) to Lessor which is the Base Rent due for the period September 14, 1999 through September 30, 1999."