Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: Skiawal who wrote (19248)	7/3/2000 9:43:34 AM
From: Czechsinthemail	Read Replies (1) \| Respond to of 21342

a Yahoo message: messages.yahoo.com WSTL and EFNT by: moimeme1 7/1/00 8:46 pm Msg: 14853 of 14872 There are many different ways of comparing WSTL and EFNT. One way is to compare overall revenues and revenue growth. For the trailing 12 months, WSTL had greater overall revenues, but the rate of revenue growth has been slower. Revenue growth for WSTL over the past 3 quarters has been 3.5%, 20.0% and 42.8%. Revenue growth for EFNT has been 58.3%, 117.1% and 133.7%. It is a bit of an apples to oranges comparison because EFNT has been more fully focused on DSL CPE, while a large chunk of WSTL's revenues come from Telco Access Products (TAP) Transport Systems (TS) and Conference Plus (CPI) business. CPE revenues at $16.2 million accounted for about 38% of last quarter's revenues; Telco Access Products produced $13.5 million or 31% of total revenues; Conference Plus represented $9.7 million or 23% of total revenues; and Transport Systems accounted for $3.5 million or 8% of the total. This leads to another interesting comparison between WSTL and EFNT. Though the rate of overall revenue increase at WSTL has been slower than at EFNT, if you look at the CPE portion of WSTL's revenues, you find that it grew 1212% from the previous year and 153% from the prior quarter. This is somewhat slower than EFNT on a year to year basis, but faster on a sequential quarter to quarter basis. Revenue growth was slower for the other divisions at WSTL -- 49% for Transport Systems, 44% for Conference Plus, and they even declined 2% for Telco Access Products. The slower growth in these divisions is perhaps the most important reason why WSTL has a market cap of $854 million compared with $4.061 billion for EFNT. Obviously, the market sees WSTL as less sexy than EFNT. But in the process, I think the market has significantly underestimated and undervalued WSTL with its slower growing divisions. To say that WSTL's revenues are not growing as fast as EFNT's is not to say that they are not growing very fast --total WSTL revenues for FY01 are expected to grow 227% according to the most recent Kaufman Bros. report. There is another difference between the two companies: WSTL is on the verge of positive earnings. biz.yahoo.com Note also that WSTL shows a pattern of rising earnings estimates and positive earnings surprises. EFNT, on the other hand, shows a pattern of declining earnings estimates. And for the past 3 quarters, EFNT has missed analyst estimates. biz.yahoo.com