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Technology Stocks : Westell WSTL

WSTL 5.400

-5.3%

11:21 AM EST

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To: Czechsinthemail who wrote (19822)	8/3/2000 3:10:02 PM
From: John Curtis	Read Replies (3) of 21342

Hmmmm........"Looking forward, we expect the cost of provisioning DSL service at SBC will be significantly reduced because 50 percent of new DSL lines will be self-installed by Dec. 2000 compared to the 10 to 15 percent today," Bellace wrote. "Our analysis indicates that there may be more-than-normal levels of inventory in the channel." Let's seee....the logic being employed here is....gee....we figure that at some point in the future our costs will decline because our DSL devices will be self-installed, compared with todays "sent a tech out," high cost methodology. Therefore Bellace feels there's a more than normal inventory level?!?? Call me stupid but am I missing something here? How does more efficient installation processes(read here shipping the device to the customer and having THEM install it by plugging into an available twisted pair--phone--jack) translate into higher inventory levels than necessary? You have only 4% of the xDSL market sector penetrated. You have clientele screaming for bandwidth upgrades, and that screaming ain't being muted by being satiated. And hoorah, you now have a faster, cheaper, process to accomplish the task at hand. One which ordinarily means you can do MORE installations which should translate into a need for MORE devices....and Bellace interprets this as an inventory problem??!? LOL! Tell me if I'm missing something here. Funny....he says nothing about an earnings down-grade along with this "problem." HEH!! John!

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