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

To: Anthony Tsai who wrote (19528)	7/20/2000 7:50:07 AM
From: Anthony Tsai	Respond to of 21342

Robinson-Humphrey report: 06:58am EDT 20-Jul-00 Robinson-Humphrey (MESNIAEFF 404-266-6344) WSTL ADTN ADC WSTL Turns Operating Profit in F'Q1 With Strong Revenue (Preliminary Notes --SUMMARY------------------------------------------------------------------- * Westell Technologies, Inc. (WSTL) reported EPS of $0.06 vs. a loss per share of $0.08 last year, ahead of our F'Q1 EPS estimate of $0.03. Street consensus was $0.02. * Revenue increased 347% over last year to $107.9 MM, driven by robust demand for DSL (Digital Subscriber Line) modems. * Gross margin was 22.4%, compared to 21.2% in F'Q4 and 31.1% last year. Operating margin was 3.4% vs. -5.4% in F'Q4 and -12.5% last year. * We are maintaining our BUY rating on WSTL shares pending further information. We will likely raise our revenue assumptions and fine-tune estimates following the conference call this morning at 8AM EDT at 1-800-531-1044. To access the call, you must first pre-register at 1-800-273-4061. Replay will be at 1-630-652-3017 (ID# 1900-637). --EARNINGS------------------------------------------------------------------ FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year Actual 03/00 EPS $(0.09)A $(0.08)A $(0.04)A $(0.02)A $(0.23)A Previous 03/01 EPS $0.03E $0.05E $0.06E $0.09E $0.23E Current 03/01 EPS $0.06A $0.05E $0.06E $0.09E $0.23E Previous 03/02 EPS $N/A $N/A $N/A $N/A $0.55E Current 03/02 EPS $N/A $N/A $N/A $N/A $0.55E Previous 03/03 EPS $N/A $N/A $N/A $N/A $N/A Current 03/03 EPS $N/A $N/A $N/A $N/A $N/A Footnotes: --FUNDAMENTALS-------------------------------------------------------------- Current Rating......:1 Price (7/19/2000)....:$21.75 Risk Rank...........:Speculative 12-Mo. Target Price.:$40.00 P/E 03/01...........:94.6x 52 Wk Price Range...:$40.75 - $6.43 P/E 03/02...........:39.5x Proj. 5yr EPS Grth..:30.0% Technical Rating....:3 Book Value(a).......:$1.43 ROE/LT Dbt-to-Cp....:-63.30%/2.86% Dividend/Yield......:$0.00/0.00% Revenue.............:$103.30 mil Latest Report Date..:Jan 24 2000 Shares Outstanding..:36.64 mil Convertible.........:No Mkt. Capitalization.:$796.92 mil Hedge Clause(s).....: Comments............: --OPINION------------------------------------------------------------------- ---------------------------------------------------------------------------- RATING = Robinson-Humphrey's rating system assigns a number code (1 = BUY, 2 = OUTPERFORM, 3 = NEUTRAL, 4 = UNDERPERFORM, 5 = SELL) for our 12 month fundamental rating as well as for our technical ratings. Our BUY and OUTPERFORM ratings indicate that we expect the stock to beat appropriate market indices over the next twelve months. A NEUTRAL rating suggests in line with market-type performance. Our UNDERPERFORM and SELL rating indicate underperformance is expected over the next twelve months. Also included is our risk rating: L = Low, M = Medium, H = High, S = Speculative. All references to the ratings appear in the following order: fundamental -- risk rank-- technical. Robinson-Humphrey is a registered broker-dealer. It is a member of Citigroup Inc. and is affiliated with Citibank, N.A. and its subsidiaries and branches worldwide (collectively "Citibank"). Despite those affiliations, securities recommended, offered, sold by, or held at Robinson-Humphrey or Salomon Smith Barney (i) are not insured by the Federal Deposit Insurance Corporation; (ii) are not deposits or other obligations of any insured depository institution (including Citibank); (iii) are subject to investment risks, including the possible loss of the principal amount invested. Robinson-Humphrey is a service mark of The Robinson-Humphrey Company, LLC. Information contained herein has been derived from sources believed to be reliable but is not guaranteed as to accuracy and does not purport to be a complete analysis of the security, company or industry involved. This report is not to be construed as an offer to sell or a solicitation of an offer to buy any security. The Robinson-Humphrey Company, LLC. or one or more of its officers or employees may have positions in any securities or options. For over-the-counter securities recommended in this report, the firm usually makes a market. The firm and/or one or more of its officers or employees may buy from or sell to customers on a principal basis. Investors may be prohibited in certain states from purchasing some over-the-counter securities mentioned herein. Opinions expressed are subject to change without notice. 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