WSTL – Westell Technologies Analysis

Business Overview Westell Technologies Inc (WSTL) designs and distributes telecommunications products primarily to major telephone companies. WSTL has been going through a transformation in the past year, and has sold off two of its major business units. It sold the Customer Networking Solutions (CNS) division on March 17th, 2011 to NETGEARInc. for a gain of $31.7M.  The transaction transferred associated assets and liabilities to NETGEAR except for the assets of the Homecloud product family. The Homecloud product is being kept, and will be part of the growth strategy of the company going forward.  WSTL sold the ConferencePlus division on On December 31st, 2011 to Arkadin S.A.S. for $41.0M in cash.  The result of the two sales leaves WSTL with the Outside Plant Systems (OSP) division.  The OSP division designs and distributes next-generation cabinets, enclosures and mountings, power distribution products, network interface devices, industrial switches and connectivity panels, T1 demarcation equipmentand more. WSTL kept the Homecloud product family, and plans to continue to build out the solution.  The Homecloud product consists of ultra-high-speed applications, capable gateways and other applications-capable devices for the home network, plus associated software for home networking devices, plus Web-based services, to enable the delivery of new services…

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