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To: SpecialK who wrote (20939)	10/19/2000 1:57:46 PM
From: John Curtis	of 21342

Anthony, SpecialK, et.al.: Robinson-Humphrey reduces price target from $40 to $17. The analytical community will have its revenge. I'm sure more will be forthcoming. Too bad they didn't have the courage to rip MZ a new one on the call. I'da paid the money I lost to listen to something like THAT! Heh! Special: Losses are never an acceptable proposition, but they do occur to all of us playing this game. The key to it comes down to this; diversity and the reigning in of greed which oft-times makes one want to go for the grand-slam home run (sorry, I live in the NYC area and you know what's on everyone's sports minds around here right now-VBG). Diversity and looking for the singles and doubles tends to insure continued capital "build-out." So although I took a loss, it wasn't grievous. But this does nothing to assuage my desire to take the WSTL management team out behind the barn and wallop the ahem out of them..... John~

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To: John Curtis who wrote (20940)	10/19/2000 3:29:43 PM
From: Rich Wolf	of 21342

John et al., a very disappointing quarter and conference call. No tough questions, and poor tea leaves. EFNT blew out numbers, said they could have sold more if they'd had more components. WSTL has product on the shelves. Something doesn't jive. What I find distressing is that 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 MZ spins it forward, making the point about doing $22M of 'international' sales this last Q, and later indicating that is where growth is. My take on this is that he's hoping that BT can bail him out for lost business to the ILECs. Either that, or he's purposely low-balling the rev number so much that he can make sure he ups it later. Thanks a lot, MZ. Just shoot straight, will ya? Could it be that the 'market share' WSTL took last Q was the bump from their being the swing producer, rather than EFNT? I found MZ's comments about the proportion of the ADSL market being the same between WSTL and 'the other guy' rather disingenuous. If there is a ramp in the US, and WSTL is not going to be part of it, the forward estimate of market share points to a deterioration, and he as much as said so. Yet he makes an apparent backwards-looking comment. Even now, not shooting straight, MZ? Do you have a death wish for WSTL's credibility with the investment community? Do you have complete disregard for your shareholders? Yeah, what gripes me is that management had the clear opportunity to guide us down a month ago, when the stock was higher, and it might not have hit us like this. An earlier poster commented on 'credibility.' Exactly. Why should anyone believe MZ's guidance now, promising a wonderful FY'02, after this major hit we just took, when he KNEW they had margin problems and were heading into the end of the Q with a serious revenue shortfall, and said not a word? Doesn't he get it?

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

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To: marc friedman who wrote (20944)	10/19/2000 5:52:49 PM
From: ELH1006	of 21342

Mark, I just took a look at EFNT's report for the quarter and a couple of items stand out. First of all, EFNT's net profit B4 all amortization type charges was $6.1 million and $.10 per share; however this includes $6.9 million of interest income, therefore they actually lost $.8 million and $.01 per share from operations. Conversely, WSTL's comparative number after adding back the interest expense amount of $331K, was a net profit of $814K and $.01 per share. WSTL's numbers are certainly disappointing but EFNT is not exactly setting the world on fire. Secondly, EFNT's marketing/sales expense was 14.4% of revenues vs WSTL's 5.9%. Perhaps WSTL needs to revisit their sales program and this is part of the reason that EFNT sales were up some 24% for the quarter vs. WSTL's decline of 5% (CPE only). The other bothersome point that I noted, besides the obvious, is related to the buildup of their receivable balance. How can the balance be $77.6 million when the quarterly sales were $105.5 million? Are we not selling to credit worthy folks or are these sales basically on consignment? This one puzzles me based on the customer list (Verizon, SBC, etc.). Perhaps WSTL needs to hire a credit manager. Eddie

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To: ELH1006 who wrote (20945)	10/19/2000 6:39:53 PM
From: Rich Wolf	of 21342

Eddie, thanks for the slap upside the head about the 'truth' behind EFNT's numbers. Forgot to check that. Though, their CPE margins kick our butt. And they're selling, we're not. You can't book even tiny profits if you don't sell. Re: receivables: on the CC WSTL said they were at 66 days of receivables, 'one day improvement over previous.' They also said they were seeking more bank credit, that it wasn't a problem, that it was $45M last Q, and will be greatly expanded this Q. I can be patient, IF that is what is required (in re: developing an expanded customer base, waiting for Europe to kick in, and 'hoping' WSTL's new products will sell), but I don't like being mistreated by mgt. Make no bones, shareholders were abused.

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To: Rich Wolf who wrote (20941)	10/19/2000 8:19:50 PM
From: Czechsinthemail	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.

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