Westell Technologies Realigns Its Organizational Structure To Focus on Broadband Access Solutions
AURORA, Ill.--(BUSINESS WIRE)--Aug. 29, 2001--Westell Technologies, Inc. (NASDAQ: WSTL) announced today a realignment of its organizational structure. These changes are being implemented as part of a plan to refocus the Company's business strategy and streamline the organization to position Westell as a leader in the broadband access solutions market.
The new organizational model focuses the business around five core areas: Customer Networking Equipment; Carrier Transport and Multiplexers; Carrier Service Access; Outside Plant (OSP) Enclosures and Accessories; and Conferencing Services (Conference Plus, Inc.). The plan also called for the evaluation of various programs, functions, and positions throughout the organization to improve overall effectiveness and efficiency. The result was the elimination of activities that were not in alignment with the new strategy and business model.
The company expects the changes related to its streamlining plan, including the reduction of workforce and the elimination of unprofitable programs, to have an annual cost savings impact of approximately $15 million. The company plans to take a charge of an estimated $2.3 million in its second quarter ending September 30 in connection with the cost reductions. Approximately 125 employees will be effected by these changes, or approximately 14% of the total workforce of Westell, Inc.
"We are intent on being a key player in the broadband access market," stated Van Cullens, President and CEO of Westell Technologies. "The new structure meets the needs of our company today, and will allow us to function with laser-like focus on the market needs of tomorrow. These changes will provide for improved efficiency, flexibility, and responsiveness."
"The access technology now exists for open networking systems that enable the seamless connection of copper to fiber, wireless and other technologies," stated Cullens. "The new Westell will be focused on delivering leading broadband access solutions that will enhance the capabilities, and prolong the economic life of the 200 million copper access lines that comprise access networks in the U.S. market. Beyond that is an enormous global opportunity, and we are intent on being properly positioned to play a significant role in that opportunity when the dynamics are right."
About Westell
Westell Technologies, Inc. (NASDAQ: WSTL) headquartered in Aurora, Illinois is a broadband access solutions company that provides leading broadband products, service solutions, and conferencing solutions for carriers, service providers and business enterprises around the world. Westell delivers innovative, open broadband solutions that meet our customers' needs for fast and seamless broadband connection. Conference Plus, a Westell subsidiary, offers conferencing services including voice, video, and IP data conferencing, to carriers and multi-national corporations throughout the world. For more information visit www.westell.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act 1995:
Certain statements contained herein including, without limitation, statements containing the words "believe," "anticipate," "expect," "estimate", "await," "continue," "intend" and similar expressions are forward looking statements that involve risks and uncertainties. These risks include, but are not limited to, product demand and market acceptance risks, need for equity financing, the economic downturn in the U.S. economy and telecom market, the impact of competitive products or technologies, competitive pricing pressures, product development, excess and obsolete inventory due to new product development, commercialization and technological delays or difficulties (including delays or difficulties in developing, producing, testing and selling new products and technologies), the effect of Westell's accounting policies, the need for additional capital, the effect of economic conditions and trade, legal social and economic risks (such as import, licensing and trade restrictions) and other risks more fully described in Westell's Annual Report on Form 10-K for the fiscal year ended March 31, 2001 under the section "Risk Factors". Westell undertakes no obligation to release publicly the result of any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
CONTACT: Westell Technologies, Inc.
Nicholas Hindman, 630/375-4136
nhind@westell.com
or
Trade/Business Press:
KGT Communications Group
Ken Trantowski, 630/469-8765
kennethg_trantowski@msn.com
or
Westell Technologies, Inc.
Andrea Leiter, 630/375-4328
aleit@westell.com
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