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

To: Anthony Tsai who wrote (19496)	7/19/2000 7:54:39 PM
From: Anthony Tsai	Respond to of 21342

Trading at $25 7:49 pm Anthony

To: Anthony Tsai who wrote (19496)	7/19/2000 9:28:07 PM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 21342

Learn how to read an income statement sometime, wouldja? Gross Margins for Equipment sales DECLINED 50% year over year: Westell Technologies, Inc. Pro forma Financial Results Excluding Amortization of Goodwill and Inventory Step-up (Dollars in thousands except per share amounts) Three Months ended June 30, 2000 1999(A) % Change (unaudited) Revenues TAP $30,221 $13,824 119% Transport systems 6,017 2,189 175% CPE 61,880 1,175 5166% Services 9,758 6,971 40% Total revenues 107,876 24,159 347% Gross profit Equipment 20,477(B) 5,277 Services 3,650 2,228 Total gross profit 24,127 7,505 221% Gross margin Equipment 20.9% (2) 30.7% Services 37.4% 32.0% Total gross margin 22.4% 31.1% Operating expenses Sales & marketing 7,379 3,697 100% Expense to revenue 6.8% 15.3% General & administrative 5,664 3,240 75% Expense to revenue 5.3% 13.4% Research & development 7,438 3,597 107% Expense to revenue 6.9% 14.9% Goodwill amortization - (C) - Total operating expenses 20,481 10,534 94% Expense to revenue 19.0% 43.6% Operating income (loss) 3,646 (3,029) -220% Other income 169 (159) -206% Interest expense 119 244 -51% Income (loss) before tax benefit 3,696 (3,432) -208% Benefit for income taxes -(D) - NM Effective tax rate 0.0% 0.0% Net income (loss) $3,696 $(3,432) NM Loss per common share: Basic 0.06 (0.09) NM Diluted 0.06 - (E) NM Average number of common shares outstanding: Basic 62,652 36,468 Diluted 66,114 - (E) Footnotes: (A) Year over year comparisons effected by the acquisition of Teltrend, Inc. (B) Pro forma impact of excluding approximately $970,000 of inventory revaluation related to the Teltrend acquisition. (C) Pro forma impact of excluding approximately $8 million of goodwill amortization related to Teltrend acquisition. (D) A valuation reduction in the reserve of $1.5 million would have been recorded during the current quarter. (E) Loss year impact of dilution is anti-dilutive, therefore dilutive presentation is not applicable.