Company Press Release
SOURCE: Westell Technologies, Inc.
Westell Reports Sharp Increase in DSL Related Revenues
CPE Business Unit Revenue Climbs 71%, Transport Systems Sales Expands 15%
AURORA, Ill., Oct. 21 /PRNewswire/ -- Westell Technologies, Inc. (Nasdaq: WSTL - news) announced today as part of its quarterly earnings statement, a sharp increase in revenues associated with DSL as reported in its CPE and Transport Systems business units. Full earnings details are available in the accompanying release or at www.westell.com .
Westell's CPE business unit, provider of WireSpeed(TM) modems reported revenues for the second quarter ending September 30, 1999 of $2.0MM, up 71% from the prior quarter. Transport Systems, Westell's unit that supplies DSL equipment as well as TDM multiplexing equipment and protection systems for the wireless market posted sales of $2.5MM, up 15% from the prior quarter. The combined increase of 35% helped fuel Westell Technologies to a record $25.0MM of revenue for the second fiscal quarter of 2000.
``Westell continues to execute on the DSL strategy we articulated earlier this year,' remarked Marc Zionts, CEO of Westell, Inc. ``These results are reflective of our approach to work in conjunction with our partners in the largest accounts in the world while selling our CPE directly into multiple channels such as carriers, ISP's and directly to end-users. We believe we will see continued progress through our fiscal year and look forward to further growth from our Transport Systems and CPE Business units.'
``We have seen substantial growth with our DSL WireSpeed modems,' stated J. Nelson, President and COO of Westell, Inc. ``Customers recognize the potential to lower total system costs by virtue of plug and play configurations, our software download capability and the fact that there is no need to 'crack a computer case' to get service up and running. Our Transport Systems Group continues to benefit from worldwide momentum in DSL deployments. We value our Partnerships and are excited about the future prospects of our DSL products.'
Westell Technologies, Inc, headquartered in Aurora, Illinois, is a holding company for Westell, Inc. and Conference Plus, Inc. Westell, Inc. manufactures and licenses DSL systems and value added CPE, and manufactures telecommunications access products. Conference Plus, Inc. is a multi-point telecommunications service bureau specializing in audio teleconferencing, multi-point video conferencing, broadcast fax, and IP multimedia conferencing services. Additional information can be obtained by visiting Westell's Web site at westell.com .
``Safe Harbor' statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained herein including, are forward looking statements that involve risks and uncertainties. These risks include, but are not limited to, product demand and market acceptance risks (including the future commercial acceptance of Westell's ADSL systems by telephone companies and other customers), the impact of competitive products and technologies (such as cable modems and fiber optic cable), 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, such as ADSL systems), the effect of Westell's accounting policies, 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, 1999 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. |
