Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: V who wrote (7996)	4/1/1998 1:02:00 AM
From: Allen Scher	Read Replies (1) \| Respond to of 42804

Single indicators can be misleading but I feel that an efficient management is probably smart and can handle competition. I looked up revenue per employee and income per employee for csco, mrvc,bay,lu,and one other (nt?). The order of citation is the order of revenue and income. Csco is ahead of MRVC, and they are way ahead of the others. Its hard for me to decide which firms will actually compete. Saul Fineberg's list of 25 competing firms differs from Yahoos and if we consider all the firms in both its very large. It appears from MS Investor that most indicators are very favorable for MRVC.Csco may be overvalued. . Allen

To: V who wrote (7996)	4/1/1998 7:08:00 AM
From: Sector Investor	Read Replies (3) \| Respond to of 42804

<<But when the "big boys" (CSCO--BAY-COMS-INTC-LU-NT etc) start a slugfest and engage in a brutal fight for market share , the margins are going to be squeezed for everybody. The smaller players will be forced out or be bought out and there will be consolidation in the networking mfrs. just like in any other maturing sector of the economy.>> Not the smaller players, the WEAKER players - those trying to make a buck with tight margins to begin with, and a less than competitive product. This includes Newbridge and CS. Newbridge came close to exiting the LAN business (and may still). Even BAY had to drastically lower prices and margins were hurt in the last quarter. I don't think COMS Ethernet switch products are as strong as MRVC's either. MRVC can compete successfully because their costs are lower and they have a strong product line. It is their fiber and ASIC design capability that gives them an edge. And of course, INTC is using NBASE chips in their products. We want them to be successful because they hurt the other "big boys" with strong products and every sale helps MRVC thru royalties. Also, LU and NT aren't competitors at this time, except with Livingston in the RAS area that MRVC just acquired thru Xyplex. I haven't checked ALL their recent acquisitions, though, so correct me if I missed something from these two that impacts MRVC. Yes, there will be consolidation, but it may not be MRVC that gets consolidated (at least right away). I see MRVC's competitive position strengthening, not weakening.