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

To: pat mudge who wrote (19130)	2/22/2000 10:06:00 PM
From: Greg h2o	Respond to of 42804

<<1) What was your prediction for earnings going into today?>> i really though we'd beat concencus earnings estimates...i saw both a 1 cent and 2 cent concencus....thought we'd come in above, but don't think that's the focus of the report... <<2) What was concensus?>> above << 3) Were you expecting write-downs for Enterprise LAN Products and do you understand the rationale for taking charge at this time?>> no, and yes... i thought noam and glazier both did a good job of explaining the move from a commodity business with declining prices and profit margins to one (optical) that is far more profitable and one where they have cutting edge technology. << 4) Did you think Noam was a bit dismissive regarding Greg's request for clarity on spin-off (IPO) schedule?>> ummm...yes! and further frustrated by not AT LEAST giving the names of the investment bankers! << 5) Did you expect more clarity on customer trials for RedC product line?>> thought they were as clear on that as anything else <g> was a difficult cc to listen to.... <<6) What do you think tone of analysts' was? Several asked where earnings would come from going forward. Were you satisfied with answers>>? yes. and i think most analysts, other than possibly Rao from Gruntal (who has done a woeful job covering this company) will be satisfied, as well. i don't think earnings are that meaningful until OA is spun off and you can concentrate on that one entity.... MRVC has truly turned into an optical incubator (no cracks, sector!). when was the last time somebody questioned a venture capital company, or for that matter CMGI, about earnings? <<7) What about the new accounting (mentioned in CC)? Are you comfortable with this? >> the new accounting (from what i gathered) was really 2-fold- first, in the means of tracking expenses for separate divisions (great idea, so you can focus on those that may actually provide solid earnings) and second, using the purchase method instead of pooling the new acquisition. <<8) What was the most positive part of CC and what the most negative? >> i guess i'd have to be general about the most positive (because there were so many specific things i thought were positive... updates of the divisions were very positive. most negative would be avoiding my question! <g> WHEW...now...i think i'm going to bed.

To: pat mudge who wrote (19130)	2/22/2000 10:50:00 PM
From: akmike	Respond to of 42804

I think that earnings were as expected and guided. I heard many positives and believe that Red-Sea progress and the acquisition were the most positive. The acquisition of such complementary products and an Asian (esp. mainland China) manufacturing component is very, very good news. The most negative was the sequential ramp of only 5% in OA. It is possible that this is entirely explained by seasonality in the Marconi business, but I will like to get better data on this.

To: pat mudge who wrote (19130)	2/22/2000 11:10:00 PM
From: Bridge Player	Read Replies (1) \| Respond to of 42804

Pat, I am not really up on the technology, but I did listen to the cc replay, so will chip in impressions. 1. What was your prediction for earnings going into today? .04 2. What was concensus? .02 concensus, .05 whisper. Sales down from year-ago in spite of strength in OA. 3. I was expecting nothing in this area. AFAIK the rationale is simply that they are exiting this line of business. They are simply going to stop making these products. Not stated but rather apparent was that the business is so unattractive that they could not even find a buyer to take it over. 4. Request for clarity on spin-off sched: yes, dismissive. Worthy of note that OA spin-off cannot now be accomplished until at least 3rd quarter of 2000 (after completion of integration of FOCI), possibly 4th quarter. 5. Did you expect more clarity on customer trials for RedC product line? I didn't, no. Thought it was positive, re: a 2nd customer in beta, a competitive win with Redback, and at least one other customer in negotiation as I recall 6. Analyst's tone and earnings source going forward; no opinion on tone, Noam never says anything about future earnings anyway. 7. Did not understand the part about consolidating earnings from the startups; anyone? 8. Positive: mfg capacity, asian growth, breadth of product line in optical. Negative: same-o, same-o: it's still all on the come; quarter sales down yr-over-yr. Looks great; but still out there at the other end of the tunnel. Also, I am fairly sure that CW was NEVER sched to go into beta in the 4th Q as the Gruntal jerk said. And I wish Noam had told him so in so many words. Also, note that MRVC paid 15 times sales for FOCI. Overall impression: ho-hum. A good acquisition, but no sales spike, no earnings surprise, on sched on betas, but delays on IPOs. Just a hold; no reason to sell for LT holders. BP

To: pat mudge who wrote (19130)	2/22/2000 11:18:00 PM
From: Bruce L	Read Replies (2) \| Respond to of 42804

Good questions, Pat. 1. The most positive part of CC IMO was the purchase of FOCI: strengthens OA in passive components and in Far East. I'm impressed with the company and my guess is, the Street will too. 2. I was disappointed with revenues and profits. Should have been higher as R&D wasn't that much higher. 3. I was disappointed with the answers of Noam; as suggested by one of the questioners, I recall a promise that some of the new products were to have been in Beta testing by this time. Also, I think something more specific could have been said beyond: 'the IPOs will come as soon as they're ready.' This is what we've been told for 3 quarters! Time is precious. The Street will be disappointed as well. In general, I'm very disappointed and sorry I didn't sell today. I'd be willing to bet we're going down tomorrow. Bruce