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

To: max power who wrote (20010)	8/12/2000 12:57:43 AM
From: Michael F. Donadio	Respond to of 21342

Considering the "hockey stick" revenue growth WSTL is experiencing: "Revenue from the CPE products climbed 5,166.4%to $61.9 million for the three months ended June 30, 2000 compared to $1.2 million for the quarter ending June 30, 1999 due to higher unit volume offset in part by lower unit selling price." The following statement from their 10K satisfies me as to concerns about cash flow: "At June 30, 2000, the Company's principle sources of liquidity were $13.0 million of cash and the secured revolving credit facility under which the Company may borrow up to $8.0 million based upon receivables and inventory levels. In July, 2000, the Company received a commitment from the bank to increase the available line of credit to $30.0 million. Cash and cash equivalents, anticipated funds from operations, along with available credit lines and other resources, are expected to be sufficient to meet cash requirements for the next twelve months. Cash in excess of operating requirements will be invested on a short term basis in federal government agency instruments and the highest rated grade commercial paper."] This is an equipment maker with REAL income and REAL products satisfying an insatiable demand for bandwidth in the explosive internet juggernaut or as John Chambers of Cisco Systems likes to refer to it as "the Second Industrial Revolution." All the best, Michael