Westell Technologies Reports 2nd Quarter Fiscal 2002 Results; Customer Networking Equipment Demand Increasing

Business Wire, Oct 23, 2001

Business Editors

AURORA, Ill.--(BUSINESS WIRE)--Oct. 23, 2001

Westell Technologies, Inc. (NASDAQ: WSTL) announced today results for its second quarter of fiscal year ending March 31, 2002.

Proforma net loss for the quarter, which excludes goodwill amortization, a charge for excess and obsolete inventory and restructuring charges, was $3.7 million or a $0.06 loss per share compared with a loss of $8.9 million or $0.14 loss per share in the quarter ended June 30, 2001. The result for the second quarter of the prior fiscal year was a loss of $76,000. Revenues for the quarter were $59.4 million compared to $106.0 million for the comparable quarter of last year.

GAAP net loss for the quarter, was $18.1 million or $0.28 per share compared to a loss of $8.0 million or $0.13 per share for the comparable quarter of last year.

Westell further reported a marked increase in order bookings for its Customer Networking Equipment in the current (third) quarter of fiscal 2002. Units shipped, plus bookings through the current date, already exceed total shipments for the second fiscal quarter.

"During our second quarter we experienced a number of developments", stated Van Cullens Westell's President and CEO, " on the negative side, the WTC attack impacted our largest customer". Mr. Cullens went on to say, "on a positive note, late in the second quarter we began to see signs of increasing demand for our broadband products, in particular Customer Networking Equipment. We are very encouraged with the progress we are making on the revised plan we announced at the end of August. The new strategy is getting traction."

For the six months ended September 30, 2001, Westell reported a proforma net loss of $12.6 million or a $0.20 loss per share compared to a proforma net profit of $1.2 million or $0.02 per share in the prior year comparable period. For fiscal year 2002, proforma losses exclude goodwill amortization, inventory charges related to excess and obsolete inventory and restructuring charges. For fiscal year 2001, proforma income excludes goodwill amortization and inventory revaluation related to the Teltrend acquisition. GAAP net loss for the six months ended September 30, 2001 was $35.0 million or a $0.55 loss per share compared to a loss of $15.7 million or a $0.26 loss per share in the comparable period of last year. Revenues for the six months ended September 30, 2001 were $122.7 million compared with $209.3 million in the prior year.

About Westell

Westell Technologies, Inc. (NASDAQ: WSTL) headquartered in Aurora, Illinois is a broadband access solutions company that provides leading broadband products, service solutions, and conferencing solutions for carriers, service providers and business enterprises around the world. Westell delivers innovative, open broadband solutions that meet our customers' needs for fast and seamless broadband connection. Conference Plus, a Westell subsidiary, offers conferencing services including voice, video, and IP data conferencing, to carriers and multi-national corporations throughout the world. For more information visit www.westell.com.

"Safe Harbor" statement under the Private Securities Litigation Reform Act 1995:

Certain statements contained herein including, without limitation, statements containing the words "believe," "anticipate," "expect," "estimate", "await," "continue," "intend" and similar expressions are forward looking statements that involve risks and uncertainties. These risks include, but are not limited to, product demand and market acceptance risks, need for equity financing, the economic downturn in the U.S. economy and telecom market, the impact of competitive products or technologies, competitive pricing pressures, product development, excess and obsolete inventory due to new product development, commercialization and technological delays or difficulties (including delays or difficulties in developing, producing, testing and selling new products and technologies), the effect of Westell's accounting policies, the need for additional capital, the effect of economic conditions and trade, legal social and economic risks (such as import, licensing and trade restrictions) and other risks more fully described in Westell's Annual Report on Form 10-K for the fiscal year ended March 31, 2001 under the section "Risk Factors". Westell undertakes no obligation to release publicly the result of any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.