Westell WSTL Message Board

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Technology Stocks : Westell WSTL

WSTL 6.130

+8.7%

Nov 26 3:52 PM EST

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To: Mark[ox5] who wrote (20971)	10/20/2000 9:16:11 PM
From: bill c.	Read Replies (1) of 21342

>> I did a study and I figure they were selling CPE at 2% gross margin 6 months ago, 11% in their "huge CPE quarter", and back down to around 1% in this most recent Q. >> You make money in ADSL with Volume. Getting down to 33mil in CPE is going to kill the margins. Why do you think Westell had 11% margins in 2Q when they had 62mil in CPE sales? Volume I disagree with your picture for next quarter. Since they have a CPE inventory issue with little volume, margins and EPS will suffer. Come 4th quarter when they produce 60-70mil in CPE business, we will see the margins and EPS increase.

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