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

To: BWAC who wrote (20049)	8/15/2000 10:28:51 PM
From: Rainmaker	Read Replies (1) \| Respond to of 21342

BWAC, as a CFO, thank you for that financial analysis. Let's see if there are poignant responses to the inquiries rather than mere innuendos and scare tactics or, "Buddy, you can't read a 10k if I spelled it out for you." Yeah, likely response... Thanks again. OT - Mark Martin, so close! But always the gentleman and was recognized as such by Park.

To: BWAC who wrote (20049)	8/16/2000 12:51:20 AM
From: P314159d	Read Replies (2) \| Respond to of 21342

A September quarter projection, based upon 1.) equipment spending is offset with LT lease obligations. Co had zero debt and now it grabs a little. 2.) the following data is based upon 25m increase in DSL revs and does produce a larger operating loss, because I chose to limit the profit at 11 cents (GW exc.), even though 11 cents is achievable with only 20m DSL increase and the given increase in margin of 2% (reduced freight costs, remember that one?). In fact if the data was reformed for the 20m increase, the cash flow would increase with no revolver increase. 3.) A/r and A/P, inv ratios remain the same. This can obviously be variable, but the point is if they manage cash as they have the data is outlined below. 4.) I chose net cash difference of zero vs increased revolver and that can go either way. I am betting that they will show a modest increase in cash at the expense of a slightly higher current ratio. 5.) Q4 should show the cash flow as positive from operations, equipment financing aside. Sorry the table doesn't format for SI WESTELL TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended June 30, SEP 30 ------------------------------------------------------------------------ 1999 2000 PROJECTION ----------------- --------------------------------------------------- (unaudited) (in thousands) Cash flows from operating activities: Net loss........................................................... $ (3,432) $ (5,232) 500 Reconciliation of net loss to net cash used in operating activities: Depreciation and amortization.................................... 1,857 10,530 10500 Interest expenses related to conversion of debentures...... - 135 0 Changes in assets and liabilities: Increase in accounts receivable.................................. (2,136) (37,911) (18500) Increase in inventory............................................ (1,252) (12,734) (6200) Decrease (increase) in prepaid expenses and deposits.......286 (397) (400) Decrease in refundable income taxes.............................. 5 - 0 (Increase) decrease in other assets.............................. (1,425) 546 0 (Dec.) inc. in accounts payable & accrued expenses....(2,678) 22,918 11200 Decrease in accrued compensation...............................(1,656) (663) (600) ----------------- ----------------- Net cash used in operating activities.........................(10,431) (22,808) (3700) ----------------- ----------------- Cash flows from investing activities: Purchases of property and equipment............................. (940) (6,682) (3000) Decrease in short term investments............................... - 1,951 0 - ------------- ----------------- Net cash used in investing activities......................... (940) (4,731) (3000) ---- ------------- ----------------- Cash flows from financing activities: (Repayment) borrowing of long-term debt and leases payable.(669) 3,692 3000 Net borrowing under revolving promissory notes................. - 8,000 1300 Proceeds from issuance of convertible debt...................... 19,000 - Proceeds from the issuance of common stock..................... 1,132 1,574 2400 ---- ------------- ----------------- Net cash provided in financing activities.................... 19,463 13,266 6700 ----------------- ----------------- Effect of exchange rate changes on cash............................ 4 (26) 0 Net increase (decrease) in cash............................... 8,096 (14,299) 0 Cash and cash equivalents, beginning of period..................... 6,715 27,258 12959 ----------------- ----------------- Cash and cash equivalents, end of period........................... $ 14,811 $ 12,959 12959 ==== ============= =================