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

To: Richard Pich who wrote (9901)	8/5/1998 6:32:00 PM
From: Mr_Green	Read Replies (2) \| Respond to of 42804

Mr. Green Responds: This is Rose again for Mr. Green. I made the call to Edmund Glaser under instructions from Mr. Green. These are the figures from Edmund: Of the $23.5M restructuring fees, here is the breakdown: 28% in termination fees. A substantial number of Xyplex employees were let go. These are recorded costs. 26% in costs associated with closing of facilities. Mr. Green recalls that this is very reasonable and in accordance with the specifics that he read. 27% in costs associated with the elimination of product lines, again in accordance. The remaining 19% in miscellaneous costs. Mr Green noted that the acquisition costs associated with Xyplex were in line with his own and other analysts' estimates. The restructuring costs are not out of line by any measure. I have this note from Mr. Green: "Even if the $23.5M in restructuring costs were completely bogus, say unsold MRVC products tossed into the Pacific, the cash position and balance sheet of MRVC would remain attractive. The $100M debt offering, which has confused some, bears no connection to a cash-poor situation and I believe that it represents a creative way of maintaining an acquisitive flexibility." I also asked about stock buybacks. They still think money is better spent on growth. Perhaps Mr. Green, when he has time, will be able to make a difference. However, at this time, things are really busy. Mr. Glaser was unable to produce a target for inventory reduction and dso's however, they expect a continued reduction. Finally, Mr. Green notes that he feels that the market and MRVC are both "oversold," and he detects a shift in the trading pattern of mrvc that appears to be promising. Rose for Mr. Green