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

To: gyzniwa who wrote (7166)	2/24/1998 3:40:00 AM
From: Dee Jay	Respond to of 42804

they intentionally built up inventories so as to get product to customers faster, reducing sales lead times. They are emphasizing customer service; the headcount cuts at Xyplex excluded R & D, sales and customer service personnel. They're working at lowering DSO; with sales in the N. American market increasing that will almost automatically come down as terms here require faster payment than in Europe where matters can stretch out for months. As the US sales rise as a percentage of the total the DSO will drop, plus they're working harder at cutting the receivables outstanding. Dee Jay

To: gyzniwa who wrote (7166)	2/24/1998 7:40:00 AM
From: Sector Investor	Respond to of 42804

In the CC, they said this is due to at least three reasons. From memory, these are 1) A conscious decision to raise them so they could decrease their delivery times to customers - apparently they were longer than MRVC wanted. This was the major portion. 2) The full initial build of the 2024 (I think that was the product), which just started shipping at the end of Q4. This was over $2M. 3) OEMs were slower in Q4 - partly because of NN and DEC They indicated that they have already worked the inventory back down to about where they want it in Q1. I'm not worried.