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

To: Saul Feinberg Jr. who wrote (8923)	6/4/1998 10:52:00 PM
From: Sector Investor	Read Replies (1) \| Respond to of 42804

Re: COGS. <<Here they are: 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 3/98 COGS 8.9M 11,4M 13.3M 17.8M 20.2M 22.8M 23.8M 27.8M 34.0M Inv. 9.9M 15.9M 17.3M 18.2M 21.0M 21.3M 23.9M 41.7M 44.6M Ratio 1.10 1.39 1.31 1.03 1.04 0.93 1.01 1.50 1.31 (Inv/ COGS)>> This makes sense to me. MRVC acquired Fibronics in 2Q 96 I think, hence the 6 month blip in Inventory. In 4Q97, MRVC lost DEC and NN OEMs and also made a conscious decision to build inventories to reduce sales time, and also for a new switching product introduced in December. In 1Q 98, it looks to me like MRVC successfully worked on the 4Q97 blip, but then had to add in acquired Xyplex inventories. I bet we see this number come down to 1.2 or lower in 2Q98. The number may remain a bit higher from now on due to the shorter delivery times they want to achieve.