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

To: Frank A. Coluccio who wrote (10904)	10/19/1998 9:04:00 AM
From: signist	Read Replies (1) \| Respond to of 42804

INTEL TO ACQUIRE SHIVA CORPORATION; BROADENS PRODUCT LINE AND CH annels to Bring Comprehensive Data Networking Solutions to Small to Medium Enterprises Business Editors & Computer Writers NOTE: Intel and Shiva executives will host a teleconference to discuss the details of this agreement and answer questions at 10 a.m. (PDT) on Monday, October 19. Press and analysts interested in hearing about the acquisition may call into the teleconference by dialing 800/946-0741 to participate. International callers dial 719/457-2649. The confirmation number is 559115 for all callers. A full recording of the briefing can be accessed through October 26 by calling 800/839-2434 (domestic) or 402/633-6904 (International). An electronic copy of the presentation is available on Intel's Web site at www.intel.com/network. HILLSBORO, Ore. and BEDFORD, Mass.--(BUSINESS WIRE)-- Oct. 19, 1998--Intel Corporation and Shiva Corporation today announced they have entered into a definitive merger agreement. The acquisition is aimed at rapidly expanding Intel's networking product line with remote access and virtual private networking (VPN) solutions for the small to medium enterprise market segment and the remote needs of campuses and branch offices. The agreement states that each share of Shiva stock, other than shares held by stockholders who exercise statutory appraisal rights, will be converted into the right to receive $6 per share in cash. Under the merger agreement, Shiva will become a wholly-owned subsidiary of Intel, and will operate as part of the Intel Network Products Division. The transaction is subject to approval by Shiva stockholders, regulatory approval and other conditions. "We engaged Shiva because of its talented people, innovative technology and well-developed channel," said Mark Christensen, vice president and general manager of Intel's Network Products Division based in Oregon. "Networking plays a strategic role in Intel's vision of a billion connected computers. Shiva's industry-leading remote access and VPN products, and their focus on the small to medium-sized enterprise market segment, is a great complement to Intel's network systems business." "We believe that this deal is in the best interest of Shiva's stockholders," said Shiva chairman and CEO, James L. Zucco, Jr. "Becoming part of an industry-leading company such as Intel will provide great benefits for Shiva customers. The bottom line for our business access customers is that they will have an easier path to deployment and management of integrated direct-dial and VPN solutions, while also getting the added value of a single supplier of their end-to-end data networking needs." VPN technology utilizes the Internet to create secure network connections between multiple local area networks (LANs), separated by long distances, for the cost of a local Internet connection. Intel does not anticipate any immediate changes to Shiva's product line, and Shiva will continue to provide its products to customers under existing arrangements for the foreseeable future. Over time, Shiva's products will be integrated into Intel's extensive networking product line, and Intel will work with Shiva customers to ensure a smooth transition. Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking, and communications products. Additional information about Intel is available at www.intel.com/pressroom. Shiva Corporation is a leading global provider of remote access for business. Shiva connects employees, customers, and partners securely and reliably to business networks with integrated telephone network and Internet-based solutions. Its products, known for their ease of use, are inexpensive to operate, easy to manage, and have the right features. The company was founded in 1985, and is based in Bedford, Mass., with offices worldwide. Additional information is available at www.shiva.com.

To: Frank A. Coluccio who wrote (10904)	10/19/1998 9:16:00 AM
From: Sector Investor	Read Replies (2) \| Respond to of 42804

<<pigboy, in another venue I made the same criticisms of the larger players. Their only focus seems to have been on multiplying wavelengths, not a bad idea if you're in DWDM, but one that needs sorely to be expanded on. Frank, glad to see you lurking. You are better able to discuss this technically than I. <<The merits of the Fiber Driver aside for a moment, who knows what's behind the doors at the other shops? >> Excellent point. I have the feeling though that MRVC surprised the industry a bit with this technology. LU was said to be trying to figure out how MRVC does (will do) it. How long will the lead over competitors be is anyone's guess. They have had a BIG advantage by having both Fiber optic research AND networking technology research inside a company that is innovative and fast moving by nature. Even CSCO does not have this. They were (are?) working with Ciena for their DWDM and Optical Internetworking products. This has to be a slower R&D process than for MRVC. But how quickly can an existing DWDM vendor come out with competing products? That is where signist's question is key. Who can say if there are many ways to skin the same cat MRVC has, or if MRVC has some key aspect to this technology in the patent process? There must be some key differences with their dynamic DWDM, because in the earnings warning CC someone asked how their technology would scale, and Noam replied "up to 20 wavelengths and beyond" which surprised me. <<Routing (here I'm referring to the ability to tag wavelengths on the fly, much like CSCO's tag switching of IP flows, or its IETF heir, MPLS) and the ability to do add-drop along routes is going to be an imperative for the fiber box vendors. We could expect to see much of this, probably in significant numbers of releases, over the next six months to a year. Tracking who can stay ahead of the curve in this race [and not solely who can do the most lamdas] will be crucial.>> Absolutely. That is why one or more large strategic partners will be crucial here. Having all the pieces together close to announcement (hitting the ground running) will be important here. I wonder now if the delay in DWDM might have been semi-intentional, to give them more time to work on other aspects of marketing this technology? At any rate, I don't see MRVC trading below Cash value for much longer, if their earnings prospects are positive and they say positive things about this technology in the CC - always a worry, because the company is naturally secretive (rightly so, in most cases) about their new technology. MRVC told me that they were working on a CD-ROM that outlined their Optical Networking strategy. I sure would like to see that come out.