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

To: Rich Wolf who wrote (19510)	7/19/2000 10:42:24 PM
From: Anthony Tsai	Respond to of 21342

Here's are excerpts from their company press release: "Customer Premise Equipment (CPE) revenues climbed 283%, to $61.9 million for the three months ended June 30, 2000 from $16.2 million in the prior quarter ending March 31, 2000. Transport Systems posted sales of $6.0 million for the three months ended June 30, 2000, compared to $2.3 million in the same quarter last year, a 175% increase. Combined DSL revenues in the current quarter comprised 63% of total revenue compared to 46% in prior quarter and 14% in the same quarter last year." "Pro forma gross margins for equipment, which exclude the inventory step-up associated with the acquisition of Teltrend on March 17, 2000, for the first fiscal quarter or 2001 were 21% compared to pro forma gross margins for equipment of 17% in the prior quarter ending March 31, 2000. Gross margins for equipment, including the inventory step-up were 20%." "Gross margins for services for the June 30, 2000 quarter were 37% compared to gross margins for services of 40% in the prior quarter ending March 31, 2000. Gross margins for CPI are expected to remain in the 36-40% range and were impacted this quarter by the implementation of several IP based initiatives with key customers." Good stuff all around. Anthony

To: Rich Wolf who wrote (19510)	7/19/2000 10:57:50 PM
From: Sir Auric Goldfinger	Read Replies (5) \| Respond to of 21342

Rich, you've GOT to be KIDDING, the CPE has lower gross margins and is growing the fastest: Ergo WSTL will LOOSE money quicker since CPE is where the growth is. Oh I guess WSLT will just make it up in volume, LOL.

To: Rich Wolf who wrote (19510)	7/19/2000 11:41:46 PM
From: LiPolymer	Respond to of 21342

Rich, I think you got it right on GPM. Forget year-over-year when revenue from lower margin CPE was negligible 12 months ago, look at the improvement over sequential quarters. This is what the Street was looking for when we got the GPM scare back in May. Now MZ has come through, blowing away revenues with the CPE upside and increasing GPM at the same time. Now let's see if we get some plausible guidance tomorrow on continued GPM improvement. Best wishes, Gary.