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

To: Saul Feinberg Jr. who wrote (9630)	7/28/1998 11:21:00 AM
From: Saul Feinberg Jr.	Read Replies (1) \| Respond to of 42804

The xyplex part that pink refers to is the obsolete legacy products that xyplex had. Again, like I said, Xyplex can't be viewed separately anymore. So you can't just subtract 15 million from 65 million and claim that MRV would have only made 50 million without Xyplex. It could just be that MRV sold all the Xyplex legacy products for only 5 million. Thus, 65-5 = 60. So basically MRV lost 10 million (15-5 M) from the xyplex legacy products for the trade-off of disposing these product lines sooner. (It's very much like holding an inventory closeout sale on your store). The point is these products will not be revenue generators anyway. And MRV is saying screw it, let's just dispose of them as quickly as possible by selling them quickly, so we can start concentrating on the edge blaster and edge guardian products. Remember, MRVC did not buy Xyplex for its terminal servers, and other legacy products. It's the technology that will be incorporated in edge blaster and edge guardian (whose revenues have not yet been realized, but currently under trials in many corporations), the customer support service , the client relationships, the mailing list, the sales people and etcetera. Compared to Lucents purchase of Livingston of a few hundred dollars, MRV got a good price. In fact they got it so cheap, that even if they lost a few more million dollars disposing the old Xyplex equipment, they will be okay. This is what is meant by "Restructuring charges and writeoffs". Like I said, as outsiders, you can't be exactly sure what is going on inside the black box. Again, you have to make up your own mind. But, any 100 percent conclusion just from the 10-Q alone, will not be right.