Westell Technologies Inc
OTC:WSTL
Westell Technologies Inc
Westell Technologies, Inc. engages in the provision of wireless infrastructure solutions. The company is headquartered in Aurora, Illinois. The firm operates in three reportable segments, which includes In-Building Wireless (IBW), Intelligent Site Management (ISM) and Communications Network Solutions (CNS). Its IBW segment solutions enable cellular and public safety coverage in stadiums, arenas, malls, buildings and other indoor. IBW also offers ancillary products that consist of passive system components and antennas for both the cellular service and public safety markets. Its ISM segment solutions include a suite of remote units, which provide machine-to-machine (M2M) communications that enable operators to remotely monitor, manage, and control physical site infrastructure and support systems. Its CNS segment offerings include cabinets, power distribution products, copper and fiber network connectivity products, fiber access products and T1 network interface units (NIUs).
Westell Technologies, Inc. engages in the provision of wireless infrastructure solutions. The company is headquartered in Aurora, Illinois. The firm operates in three reportable segments, which includes In-Building Wireless (IBW), Intelligent Site Management (ISM) and Communications Network Solutions (CNS). Its IBW segment solutions enable cellular and public safety coverage in stadiums, arenas, malls, buildings and other indoor. IBW also offers ancillary products that consist of passive system components and antennas for both the cellular service and public safety markets. Its ISM segment solutions include a suite of remote units, which provide machine-to-machine (M2M) communications that enable operators to remotely monitor, manage, and control physical site infrastructure and support systems. Its CNS segment offerings include cabinets, power distribution products, copper and fiber network connectivity products, fiber access products and T1 network interface units (NIUs).
Revenue Decline: Q4 revenue fell to $6.2 million from $7.2 million last quarter, mainly due to COVID-related order delays and supply chain interruptions.
Margins Under Pressure: Gross margin dropped to 32.8% from 38.8% quarter-over-quarter, with management warning of continued margin compression in the near term.
Cost Controls: The company quickly cut expenses, including executive pay cuts and reduced Board compensation, and expects Q1 operating expenses to be at the low end of $3.4–$3.7 million.
No Profitability Guidance: Management cannot predict when profitability will be achieved, citing high uncertainty due to the pandemic.
PPP Loan: Westell received a $1.6 million PPP loan, which it hopes to have forgiven, helping to retain staff during the crisis.
Product & Channel Progress: New product launches (CrossFire, Edge Link) and a nationwide distribution deal with Johnson Controls are seen as growth opportunities, though still early in development.
