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

To: ForYourEyesOnly who wrote (5771)	11/5/1997 8:54:00 AM
From: Sector Investor	Respond to of 42804

From Bear Stearns (BEST) They see No Impact to MRVC from Newbridge's shortfall in LAN Business They are maintaining their estimates and BUY Rating They state the following reasons why MRVC will not be affected: MRVC supplies switches to Newbridge. Newbridge's shortfall was largely caused by a decline in the shared media business. Since customers replace shared media products with switches, most often Ethernet and Fast Ethernet switches some of which Newbridge OEMs from MRVC, Newbridge will most likely try to compensate for the decline in shared media with switching, which could prove to be positive for MRVC. BEST thinks it would be beneficial for Newbridge to even broaden the relationship with MRV to include other switching products. They mention that even if Newbridge decided to exit the LAN business and concentrate on the Wide Area Network (WAN) segment where it enjoys a leadership position, they don't think MRVC would be significantly hurt, as Newbridge's contribution to MRVC's revenues currently amounts to no more than 3-4% of revenues. Moreover, Newbridge wouldn't most likely simply scuttle its LAN business, but would sell it or phase it out over time, thus giving MRVC ample time to replace the revenue base from other OEM partners. BEST indicates that it met with the management last Monday and BEST believes that the business conditions continue to be very strong and the company continues to enjoy a very robust demand for its products, particularly in the switching segment of its business. BEST believes both the near-term and long-term outlooks for MRV remain strong, as a result of a new product cycle in switching (higher-density versions of 10/100 autosensing switch, Gigabit Ethernet switch, and IP switch), and an expanding OEM and distribution base. BEST thinks that MRV can achieve both revenue and EPS growth of 40-50% over the next three years. BEST thinks MRVC has the broadest product offerings in the 10/100 autosensing workgroup switch segment, an area which could grow to $4.3 billion in revenues in 2001 from less than $100 million in 1996, a 95% CAGR according to IDC. BEST maintains their estimates and Buy rating on MRVC.

To: ForYourEyesOnly who wrote (5771)	11/5/1997 10:21:00 AM
From: Regis McConnell	Read Replies (1) \| Respond to of 42804

MRVC enjoys 'significant' price advantages over its competition & will benefit considerably as a result. Just watch as the $$$ role in. Technology, yes, MRV is certainly amongst the leaders, but price & selection, even more will win the volume that drives earnings forward. Do you believe that each of these 'switches' should be a hand built 'Rolex', or a 'Swatch'. Certainly there is a place for both, but who signs the checks? Distribution, sales, OEM relationships , pricing, selection, support, & performance all have weighting in the 'real world'. Lab test evaluation without cost considerations are for white rats w/large wallets.;-) Regis