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

To: cmg who wrote (13588)	5/19/1999 6:47:00 PM
From: Sector Investor	Read Replies (1) \| Respond to of 42804

<<Does mrv have the "capacity" for such sales as ascend...>> That's where some of the Infrastructure spending is going. They kept Xyplex's facility in Littleton, MA. They expanded their foundry and purchased state of the art lithography MOCVD equipment which will increase their capacity there by a factor of 8. They are expanding operations in Israel. Their new PISTOL Lab in MA too, etc. Our EPS has not gone down because sales are down, but because GMs fell due to a missed product cycle (which is hopefully temporary), but even more so because MRVC has increased Infrastructure spending faster than revenue growth, as I showed in a spreadsheet posted some weeks ago. Infrastructure spending doubled last year, while revenue rose 30% or so. This is not bad management, IMO but instead is a big bet on their future. This is even more impressive, IMO, when you consider that these people are very conservative - not the gambling type.