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


To: Mike Winn who wrote (6736)1/15/1998 11:16:00 AM
From: signist  Respond to of 42804
 
I know this is not the Bay thread but we do compete our used to compete with these people.
Just jealous...I guess
PS I do not own any Bay shares as IMHO they seem the most vulnerable to price competition?? Any opinions??

BW)(BAY-NETWORKS-2)(BAY) Price Waterhouse Mexico
Selects Bay Networks' Routers and Accelar Routing Switches;
New Network to Increase Quality of Communications to
Customers

Business Editors/High Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 15, 1998--Bay
Networks, Inc.(R); (NYSE:BAY) today announced that Access Node router
(AN(R)), Access Stack Node router (ASN(TM)) and Accelar(TM) routing
switch products have been installed in the Price Waterhouse Mexico network.
Bay Networks, with partners Comnet and Avantel, worked together to provide
the winning solution of products and services for Price Waterhouse Mexico.
Price Waterhouse is an international consultant business with 26 consultant
firms around the world and is recognized for its worldwide customer services.
Price Waterhouse Mexico, one of the 26 consultant firms, employees 1500
people in 11 states within the country.
"The most important issue for Price Waterhouse is being in permanent touch
with everybody, whether its clients or employees, from anywhere in the
world," said Luis Gerardo Diaz, Price Waterhouse marketing, positioning, and
communications (MPC) partner. "This is the true value of the network."
"We are pleased that Price Waterhouse has selected us for their new Frame
Relay network," said Gerardo Chavez, Latin America North Manager, Bay
Networks. "Our products combined with our partners Comnet, for system
integration, and Avantel, for frame relay services, provided an end-to-end
winning solution that is already paying off for our customer."
The primary objectives of the new network were to improve
communications to customers, increase the speed and quality of internal
communications, and reduce the cost of long distance communications. Before
the new network was installed, email communications were handled using
modems. Communications are now handled faster and cheaper using Bay
Networks' ANs, ASNs and Accelar routing switches. Currently, ten states are
connected through the new network and communications with the Price
Waterhouse Technology Center in Tampa Bay, Florida have been greatly
improved.
"The network has surpassed our expectations," said Antonio Aguilar, Price
Waterhouse reengineering manager. "We have already seen a cost savings of
30 percent in our corporate phone bill."
The operating plans for the new network include standard applications such
as e-mail, accounting, and human resources and other more advanced solutions,
like data warehousing and client/server applications.

About Avantel

Avantel is a joint venture between MCI and the Financial Group
Banamex-Accival (Banacci). Avantel offers a full range of domestic and
international long distance telecommunications services -- switched and
non-switched voice, data, and image -- to business, government and residential
customers -- throughout Mexico. Avantel combines the technical and marketing
strengths of the second largest US long distance company (MCI) and of the
largest financial group in Mexico (Banamex). With the experience of both
parent companies in areas like marketing, sales, customer service, regulations,
planning and technology, a unique organization has been created with all the
resources and experience necessary to break existing barriers and establish
new standards for excellence in communications throughout Mexico and all
over the world.

About Bay Networks

Bay Networks, Inc. (NYSE:BAY) is a leader in the worldwide networking
market, providing a complete line of products that serve corporate enterprises,
service providers and telecommunications carriers. The company offers frame
and ATM switches, routers, shared media, remote and Internet Access
solutions, IP services and network management applications, all integrated by
Bay Networks' Adaptive Networking strategy. With headquarters in Santa
Clara, California, Bay Networks markets its products and services around the
world, providing 7x24-support coverage. For additional information visit the
company's World Wide Web site at baynetworks.com or call
800/8-BAYNET.
This release, other than historical financial information, may consist of
forward-looking statements that involve risks and uncertainties. These
statements may differ materially from actual future events or results. For
instance, factors which could cause results to differ from future events include
the rate of adoption of new technology, competitive pricing actions and
marketing programs, among others. Readers are referred to the documents filed
by Bay Networks with the S.E.C., specifically the most recent reports on forms
10-K and 10-Q, which identify important risk factors which could cause actual
results to differ from those contained in the forward-looking statements.

Note to Editors: Bay Networks and AN are registered trademarks and ASN
and Accelar are trademarks of Bay Networks, Inc. Other brand and product
names are registered trademarks or trademarks of their respective holders.

--30--cmc/sf* dc/sf

CONTACT: Bay Networks
Kellie DiNaro, 408/495-3037
kdinaro@baynetworks.com
or
Miguel Licon, +52-5-480-1241
miguel_licon@baynetworks.com

KEYWORD: CALIFORNIA FLORIDA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
TELECOMMUNICATIONS INTERACTIVE/MULTIMEDIA/INTERNET PRODUCT



To: Mike Winn who wrote (6736)1/16/1998 8:56:00 AM
From: Wolverine  Read Replies (1) | Respond to of 42804
 
MRVC featured in 1/16/98 Online Investor:

MRV Communications
The Old Switch-a-roo

January 16, 1998 - A favorite of momentum investors not long ago, MRV Communications (Nasdaq:MRVC) may now be showing up on the radar screen of value investors. That change is largely due to the fourth quarter drubbing of computer networking stocks without any meaningful change in MRV's corporate performance. In other words MRV is still the same small, fast-growing maker of network switching products, but its stock is just a whole lot cheaper.

MRV is a relative small-fry in the computer networking industry, dwarfed by giants like Cisco Systems, 3Com and Ascend. MRV has carved out a profitable niche for itself with leading edge technology in the LAN (Local Area Network) switching market. MRV also has expertise in fiber-optic transmission technology, in fact this was the company's original focus. These LAN switching and fiber-optic products increase the bandwidth and performance of telecom networks, something that is in great demand these days with no sign of a let-up. Enterprises are continuously needing to upgrade the speed of their corporate networks, while telecom service providers are building out and upgrading existing networks to handle soaring traffic.

MRV is a leader in Fast Ethernet switches, which are ten times faster than regular Ethernet. The falling cost of upgrading to Fast Ethernet, thanks to intense price competition among the networking heavyweights, is accelerating the transition and stimulating demand for MRV's Fast Ethernet switches.

Last year MRV was the first in the industry to deliver a product which upgrades Fast Ethernet to handle Gigabit Ethernet transmissions (which are ten times faster than Fast Ethernet). The company also bought a valuable technology by acquiring the assets of Fibronics in 1996, which will enable MRV to produce a backbone switch that enables local-area networks (LANs) to transmit data directly to one another at higher speeds than existing routers. This product is expected to produce substantial revenues.

One major uncertainty facing MRV and its investors, though, is the potential competition from another high speed data transfer technology called Asynchronous Transfer Mode (or ATM). MRV is betting that with Ethernet as the current network standard, companies will find it easier to upgrade to Fast Ethernet and Gigabit Ethernet rather than switch to ATM. ATM backers say their technology is better for video and graphics and doubt that upgrading to Gigabit Ethernet will be any easier than going to ATM.

In general, computer networking experts predict LAN switches will continue to post the most exceptional growth rates within the industry. The foremost driver of demand for networking equipment in the next several years is expected to be upgrading of corporate networks. These intranets have become the strategic platform on which corporate applications are deployed, but their insufficient bandwidth is a glaring issue which will be addressed by upgrades to Fast Ethernet, Gigabit Ethernet, and/or ATM.

With the market for LAN switches exploding and MRV adding market share, analysts project a 40%-45% growth rate for earnings going forward. That's down from an estimated 89% increase in earnings per share for 1997, but a 40% growth rate seems more sustainable for long-term projections.

The share price of MRV peaked at $39.25 in late-September, but in the fourth quarter it plunged in tandem with the tech sector meltdown. Currently at $22.56, MRV is trading at a trailing 12-month P/E of 31.3 and at a forward multiple of 18 times 1998 earnings estimates. Of course, we can't be sure the company will meet those projections of 40%-45% growth, but this stock is trading at a P/E of less than half the EPS growth rate (which is a common benchmark for value investors).

Value investors might still have trouble with a stock that is priced at 3-1/2 times sales, but it's such a fast-growing company (revenue growth was thought to be 80%+ for 1997 and roughly 50% for 1998 and 1999) that the Price/Sales Ratio (PSR) doesn't look terribly excessive at this point.

Return on Equity (ROE) is over 20%, and insiders own 25%. The company has a close relationship with Intel, not only as a customer but also as a shareholder. Intel bought a small stake in MRV in late-1996, 200,000 shares with an option to buy another 500,000. MRV's relationship with Intel and Fujitsu (another big customer for MRV's technology) may help it compete as networking companies consolidate to form end-to-end solutions.



To: Mike Winn who wrote (6736)1/16/1998 11:55:00 PM
From: Eric L.  Read Replies (1) | Respond to of 42804
 
Hi,

Any opinion on this opinion? Relative to MRVC naturally

President Tom Nolle at the CIMI consulting firm
draws an unusual line between the winners and
losers. He expects corporations to buy high
volumes of lower-end networking products such as
ethernet switches, while deferring purchases of
potentially disruptive new technologies such as
so-called layer-three switching (these devices
employ silicon chips to move higher volumes of
data than traditional software-laden routers sold
mostly by Cisco).

But Nolle says these products are largely
indistinguishable, which means networkers will still
have to cut prices to compete. Cisco, with gross
margins steady at about 65%, is most protected
from this price competition. Even though 3Com
has historically sold more low-end products, Nolle
says Cisco might sell more successfully than
3Com because it has wider gross margins. All
these companies are Nolle's clients.

thestreet.com