Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: bill c. who wrote (9458)	2/25/1998 12:45:00 AM
From: PiedPiper	Read Replies (2) \| Respond to of 21342

WSTL will have no DMT in 1998, at least manufacturable, so they could dig up samples for show and tell conferences. They only started on the lite version AFTER it was announced by the consortium. And they are currently behind schedule on the DMT version. My friends --this puppy has not found a bottom yet! However bill c. I willl admit that the GTE and BT deals will lend support to the stock whenever they get around to acknowledging planned shipments. The problem lies in the margin of those shipments which is very low plus the Dovatron deal makes it worse. MZ wants to sell the baby before it has to ship real volumes because he can't afford to build them cost effectively. Now , I can say this blasphemy only if I have some facts right? Friends close to the subject tell me that the there will be no increase in manufacturing capacity this year at WSTL due to the cash CRISIS. A new Surface mount line costs some 3 - 4 mill. and the current one is tapped out plus it cannot handle some newer packages that WSTL is gonna use for LU (bad news). They do not want to spend money on it becuz they don't think the product is going to ship this year. If it does bring Dovatron on at a premium and ship till the future can be assessed, meantime WSTL makes zippo. The other problem is with Amati which is increasing the power rqmts. (like 8W!?!, yikes) and pushing out their dates a couple months which gives WSTL virtually no system integration time this year for DMT-a (that's DMT- any variety). I am sorry that there aren't URLs for this stuff but I have contacts here in CHItown (actually Aurora and did you know how close WSTL is TLAB)?