AURORA, Ill., June 13, 2017 (GLOBE NEWSWIRE) -- Westell Technologies, Inc. (WSTL), a leading provider of high-performance wireless infrastructure solutions, today issued an open letter to shareholders.
Dear Shareholders:
We want to take this opportunity to highlight some of the recent actions Westell has taken to solidify its strong financial position and operational platform.
During fiscal year 2017, which ended March 31, 2017, we completed our plan to reset the Company’s cost and expense structure, leading to significant changes in how we operate the business. Today, Westell benefits from a major reduction in operating expense and a more effective organizational structure. Over the past six months we have turned a corner by delivering improved profitability, growing cash, and maintaining a strong, debt-free balance sheet.
With this strong financial and operational foundation in place, we now turn our attention to growing the Company and building greater value for shareholders. Our vision for fiscal 2018 and beyond is to effectively harness our position as a leading provider of high-performance wireless network infrastructure solutions to secure new business opportunities.
As a result of Westell’s longstanding commitment to customers and high-quality products and solutions, the Company has established itself as a trusted supplier to a diversified customer base of service providers, integrators/OEMs, neutral host operators, and distribution channel partners. These customers include several Blue Chip companies, and we plan to leverage these relationships to expand in areas where we have identified significant growth potential.
Our main area of focus in the immediate future is the emerging market for in-building wireless public safety equipment. A growing awareness of the need for fire, police, and Emergency Medical Services (EMS) personnel to have reliable and modern mobile communication capabilities inside buildings has led to greater investment in indoor public safety communication. With local governments increasingly having the jurisdiction to set in-building public safety coverage requirements, we are seeing expanding regulatory requirements to ensure proper coverage in case of emergencies. We are also excited about the future prospects for FirstNet, the new, planned nationwide broadband network for first responders.
Over the past year, we have introduced new products specifically for public safety. These products are gaining traction in the marketplace, and we have other new products in development for release later this year. We are confident that our years of in-building wireless experience has equipped us well to serve the public safety market.
The recent months have been a pivotal time for the Company and we believe Westell is well positioned for the future. On May 30, our shareholders recommitted the Company to its NASDAQ listing by approving a reverse stock split. Although this was a difficult decision, the NASDAQ listing has an important role in supporting liquidity and volume in the stock, and we believe this will serve the long-term interests of all shareholders. Westell’s stock began trading at the post-split level on June 8. In addition, on May 17, the Board of Directors authorized a new stock repurchase program of up to $2 million of our Class A common stock. This repurchase program is expected to return value to our loyal shareholders and reflects our confidence in the future of the Company. We are now reaching an exciting inflection point due to our successful campaign to reset expenses and improve overall efficiencies. Our goal is to drive revenue growth and continue improving profitability moving forward.
On behalf of management and the Board of Directors, we thank you for your continued support and we look forward to our mutual success.
