MRV STOCK JUMPS 27% FIRM ANNOUNCES ASIAN VENTURE.Byline: Jason Z. Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. Staff Writer CHATSWORTH - MRV Communications  OverviewMRV NASDAQ: MRVC is a company that designs, manufactures, sells, distributes, integrates and supports communication equipment and services, and optical components. , which has been a darling to investors in recent months, received another boost Friday after announcing a joint partnership in Asia. The communications equipment maker's stock surged 27 percent in heavy trading Friday after announcing it would form Access Asia, a venture with Korea Microwave Technologies. The combination will give MRV MRV minute respiratory volume. expanded manufacturing capacity and the ability to make its optical components at a lower cost, said Chet White, an analyst with First Security Van Kasper in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. . ``It brings a little more attention to MRV's fiber optic components business and it offers them a lower cost manufacturing opportunity,'' White said. The new company will design, manufacture and market optical components in Korea and other Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. countries. Although details of the transaction were undisclosed, MRV said it will be the majority stakeholder in the new company. MRV Chief Executive Officer Noam Lotan said Optical Access Asia will serve Asia's emerging markets, which have strong demand for fiber optic networks. Optical Access Asia will serve many of MRV's existing customers in Korea, such as Samsung, Lotan said. Several of them have local purchasing Local purchasing is a preference to buy locally produced goods and services over those produced more distantly. It is very often abbreviated as a positive goal 'buy local' to parallel the phrase think globally, act locally common in green politics. policies that might benefit the company, he said. The two companies have maintained a relationship over the years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time companies said. Korea Microwave's knowledge of MRV's existing products was a major factor in the partnering decision, Lotan said. In addition, White said Korea Microwave has expertise in wireless technology that MRV lacks. The extra manufacturing capacity will benefit MRV, even though the company recently expanded its manufacturing, White said. Lotan said MRV recently expanded its Chatsworth manufacturing plant from 30,000 square feet to 75,000 square feet. He said he expects capacity to become more of an issue as customers begin to demand fiber in place of copper wire. ``In the near term we're OK, but we have to be ready for the biggest growth, which will happen two years from now,'' Lotan said. ``Fiber is going deeper and deeper into the neighborhoods. Ultimately, fiber is king.'' MRV's stock closed at $87 per share, up $18.625. White, who recommends the stock as a ``strong buy,'' said he has a price target of $166 per share in the next 12 months. |
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