Westell offers a range of digital and analog products used by telephone companies and other telecommunications service providers to deliver broadband services over existing copper telephone wires and fiber that connect end users to a telephone company's central office.
Several product solutions provided by the company are attractive to opportunities outside their core carrier-market customer base. The Versalink and Trilink product-lines, for instance, have functionality that address requirements and demand by hospitality and business establishments. It can also be provided in multi-dwelling units upgrading their telephone network infrastructure.
The company has been in existence for nearly 30 years and continues its streak of 17 consecutive profitable quarters, yet the stock may be overlooked as a smallcap, as it is trading near its 52-week low. The consistency demonstrated by management to adjust spending levels to ensure positive earnings indicates the organizational flexibility and importance to bring value to shareholders.
Westell's balance sheet remains solid. The company has approximately $42 million in cash and short-term securities, with positive net earnings and continued cash generation.
WSTL 1-yr chart