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

To: Joshua Schindler who wrote (7280)	2/25/1998 1:43:00 PM
From: Dee Jay	Read Replies (1) \| Respond to of 42804

the issue is not so much MRV's importance to Intel's overall sales but Intel to MRV's revenues: $16 million (and that's too high because there were/are other OEM customers)is not small potatoes in anyone's pot. Proper perspective, however, is that OEM sales, low margin revenues, are declining as a percentage of total (increasing) sales and that's good for gross profitability. As to Intel's interest in MRV we only have a backward look - we don't know what the current situation is vis a vis components or finished goods that MRV may sell to INTC for incorporation into Intel's products or as private label resale items. It's correct not to extrapolate too much as to what contributions, if any, MRV makes to Intel's newly announced products. Intel still has warrants to buy MRVC stock and as MRV continues to innovate and as Intel increases its LAN/WAN efforts MRV may (stressed as may)be an acquisition target. As those sectors become increasingly competitive with other companies crowding in having MRV's unique vertical integration may prove to be a tempting acquisition target for somebody. No predictions here but it seems logical. Dee Jay