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

To: Trey McAtee who wrote (10175)	4/13/1998 7:30:00 PM
From: JEFF A. KEHL	Read Replies (1) \| Respond to of 21342

<<makes you wonder if maybe ORCTF and WSTL are soon to be one.>> I can't think of any other reason why they filed the shelf registration. A company would only raise funds to invest internally or externally or to refinance current debt or equity. Consider the two paragraphs below that I copied from the February 10Q. The first paragraph says they have plenty of cash for the next year. So they don't need it to finance internal operations. The second paragraph says they're not sure what they're going to do with the $300 million. If they were using it to refinance, I think they would have said so. Also, I can only find $4 million of existing long term debt on their balance sheet. What would they refinance? Can anyone else think of any possible uses for the cash? If not that means that they're considering an acquisition. The question is do they have anyone in mind or are they just covering their bases? I think someone else already pointed out there are only two companies 'in their price range', AWRE & ORCTF. It's interesting that the shelf offering is for almost exactly the market cap of these two companies. Would buying one of these two give them DMT technology that they're having trouble developing in-house??? At December 31, 1997 the Company's principle sources of liquidity were $47.1 million of cash and short term investments, and $12.9 million and $5.3 million available under its secured revolving promissory notes and equipment borrowing facilities, respectively. 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 continue to be invested on a short term basis in federal government agency instruments and the highest rated grade commercial paper. PART II. OTHER INFORMATION ITEM 5. OTHER EVENTS In December 1997, the Company filed a shelf registration statement with the Securities and Exchange Commission registering $300 million of debt and / or equity securities. Under this registration statement, the Company may from time to time issue and sell Class A Common Stock or debt or preferred stock that is convertible into Class A Common Stock. At the time of this Form 10-Q, the Company has not decided whether or when it will commence any offering of debt or equity pursuant to this shelf registration statement.