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

To: Rich Wolf who wrote (20941)	10/19/2000 3:51:23 PM
From: John Curtis	Respond to of 21342

Rich: Exactly right on all counts. we know SBC is ramping this Q, and WSTL has inventory on the shelves right now. Yet MZ guides us to even lower revenue for this quarter, a full $20M less than last Q, doubtless coming out of CPE for the most part. One is left with the inevitable conclusion that the ramp for SBC must be going to someone else, likely EFNT. If that is true this Q, it is probably the same going forward. So where does MZ come up with his ramp in rev for CY'01? Doesn't look to be coming from the current ILEC customers, at least not those currently ramping. So you have to ask yourself this question. WHY aren't WSTL ILEC customers asking for more of their product, since we know how focused they are on build-out. Doesn't he get it? Of COURSE he gets it! This is why he exercised such spin control and refusal to comment. He's just hoping he can fool the investment community again. And yes this implies he has complete disregard for his shareholders and the investment community at large. He's playing everyone for fools. This is just the way it is. And all I'll say is a paraphrase off that 'ol Star Trek quote, "Fool me once, shame on you. Fool me twice.....well, there's not gonna be a TWICE. Seeee yaa!" This is my last posting on the WSTL thread. Good luck to those who hold on. I wish you well with this equity. Now I'm gonna go hug my WCOM trade (up 6 points in two days) and TKLC trade (up +5 points in two days) all while saying thank god, thank god, THANK GOD!! Heh! Oh....you're a telecom "geek." You just might want to monitor TKLC. They're a premier provider of SS7 switches, and are rapidly migrating to support IP7. They've held up well, and yesterdays earnings indicate they're setting up to do well the next couple of years or so. I think this is particularly true given the telecom network "evolution" to IP/Voice. Disclosure: I'm not only long this one from at least two splits ago, but I trade it as well. Warning; they're volatile, but even so I consider them a good buy below $35. Again, good luck to those who remain here. John~

To: Rich Wolf who wrote (20941)	10/19/2000 4:08:44 PM
From: marc friedman	Read Replies (1) \| Respond to of 21342

rich your right on all accounts seems like wstl was an interim supplier when efnt couldn't keep up. they straightened out and we got left out way too much truth has been left out here we are toast with investment community

To: Rich Wolf who wrote (20941)	10/19/2000 8:19:50 PM
From: Czechsinthemail	Read Replies (2) \| Respond to of 21342

Rich, Good points. Because Westell really has not provided good and reliable information before earnings or during the conference call, we simply don't know for sure what's going on. How it is that EFNT significantly beats estimates while WSTL misses by a mile is left a mystery. Your guess that EFNT may be the primary supplier at SBC with WSTL filling the secondary swing role may be on target. The fundamental problem is that Marc Zionts hasn't been up front in providing reliable information to shareholders and analysts -- information that is critical to understanding the company and its prospects. The result has been a disconnect between management's version of reality and the shareholders' unfortunate discovery, a discrepancy between what has been promised and what has been delivered. It has betrayed shareholder trust, so there is no credibility and no basis for relying upon his statements about the company's future. Whether or not they have exhibited gross incompetence and mismanagement, Westell's management has demonstrated some of the worst in corporate communications and shareholder relations. Instead of a shareholder friendly attitude of mutuality ("We're in this together"), they have adopted an attitude of secrecy and what can most charitably be described as poor communication, if not deception. They have put management at odds with shareholders. Why MZ has chosen this course also remains a mystery. I believe it has had a much more negative impact on the present and future share price than an earlier candid and forthright bad news announcement would have produced. But when management cannot be trusted, what do we really know except that we weren't let in on what was really happening until the nasty earnings surprise? Even now, what do we really know about what has actually gone on or why? Perhaps they have radically screwed up and felt that their butts needed to be given deep cover. Perhaps they felt they could somehow finesse the fiasco with a limited disclosure, "trust me" conference call. In any case, it's a sorry state of affairs when shareholders can no longer trust that any information they they are given isn't misinformation. I sold my remaining shares this morning. I wish the best to all remaining shareholders. I have appreciated the time and effort so many have put in trying to evaluate this company and its prospects, as well as their willingness to share it. It is unfortunate that management's failure to provide good information has betrayed and undermined that endeavor.

To: Rich Wolf who wrote (20941)	10/20/2000 12:40:46 AM
From: I. N. Vester	Read Replies (1) \| Respond to of 21342

Rich i spoke to wstl IR guy, Bruce Albelda. i chewed him out really good about the call. he took my remarks with grace and gave me as much time as i needed to answer all the specific questions i had. i told him all we've heard indicates sbc is ramping up installs this quarter why is your cpe reduced? he confirmed a figure of about 30M for cpe this Q(all the Q-to-Q decrease comes from cpe, looks like), but he swore up and down that they are not and have not been losing market share to their cpe customers. he said have to prove themselves everyday to their 1000 lb gorilla customers, and have gotten in hot water recently for discussing with 3rd parties what these customers have told them. but basically he confirmed that all of their forcasts past and future are very directly based on the numbers the customers give them. it sounds like the story of massive inventory buildup at sbc - enough to last into the current Q - may have been quite accurate. On the other hand he said that they have got a large prod capacity build up for them by solectron in malaysia and one reason for the inventory buildup was looking ahead to the expected pickup in demand in 1Q cal 2001 and beyond, if they drastically cut down their orders from solectron now, it could be really hard to get the capacity back from solectron when they need to turn the spikot on again for sbc et al. also mentioned that they felt they need to take advantage of the availability of parts - some are single supplier and will get scarce and expensive again when the dsl buildout train get back a head of steam. re financing, he reassured me that when the bankers come and see their operations there is no shortage of funds available and reasonable rates, whether in straight debt or convertable or whatever. <<JUST PLEASE DON'T GO BACK TO CASTLE CREEK, EH>>. on a trading basis i wish i had sold today at 6.5 or better, but i did come away feeling much better about the outlook and that the situation with the terrible forcasting and very jerky start and stop of the cpe business is not of wstl's making.