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

To: Steve Lee who wrote (7916)	3/29/1998 10:53:00 AM
From: Sector Investor	Respond to of 42804

<<If MRV's efforts in reducing inventory are successful. Will all the revenue for this quarter's sales show up in this quarter's figures whilst all the manufacturing costs have already been accounted for in previous quarters?>> MRVC's efforts will be successful, IMO but inventories will still be higher due to MRVC's decision to shorten their delivery times. If you noticed MRVC said sales cycles in Europe were longer, and they had $47+ million in A/R on Q4's earnings. This plus more from Q1 that got paid will turn into Q1 revenues. It was nice to see 98% of Q4's revenue already sitting in A/R for Q1 on 12/31/97 - and that was net of reserves for losses too. That was comforting, indeed as that is Q1's starting revenue. I'm not sure how or when MRVC takes manufacturing costs, but I bet not until they take it as revenue. Perhaps someone else can answer this better than I.