Westell Technologies Inc (WSTL)

[NGC 2537]

WSTL may be waking up

Should the upcoming quarterly report meet expectations and should there be an increase in revenue, we may see something we all have been waiting for.

The anticipated $0.03 per share is fairly a sure thing. However, were they able to increase the revenue? The previous earnings were based entirely on cost cutting while the revenues were in decline.

So, the question is: Is this poorly run company in terminal decline because of changes in technology? Is Westell willing to burn some of the cash on R&D rather than cranking out modems they started building over twenty years ago? Is their software development endeavor going to pan out?

As it is, the investors are thinking the earnings of this once-dominating com equipment manufacturer will keep on shrinking – an assumption hard to square with continued steady growth of networking and web traffic.

Forget about the share buy-back; invest in R&D and marketing!