Westell Technologies, Inc. · OTC:WSTL
Westell Technologies — Merger or Acquisition (April 2011)
9 slides from Westell Technologies's merger presentation, Apr 21, 2011
Slide 1: Special Investor Presentation Regarding CNS Sale
Exhibit 99.3 Westell Technologies, Inc. Special Investor Presentation Regarding CNS Sale April 21, 2011
Slide 2: Safe Harbor Language
Safe Harbor Language Cautionary Statement Regarding Forward-Looking Information Certain statements contained herein that are not historical facts or that contain the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “may”, “will”, “plan”, “should”, or derivatives thereof and other words
Slide 3: Overview of CNS Transaction
Overview of CNS Transaction Transaction: sale of substantially all assets of Customer Networking Solutions (CNS) Division • Relates to revenue for the 12 months ended 12/31/10 of $39.5 million Closing: April 15, 2011 Purchaser: NETGEAR, Inc. Purchase consideration • $33.5 million purchase price • $3
Slide 4: Transaction Rationale
Transaction Rationale Sale captures significant value for Westell shareholders • CNS product lines are largely commoditized • CNS division made remarkable progress over two years but continues to face borderline profitability and ongoing marketplace challenges • NETGEAR is better positioned to capit
Slide 5: Transaction Rationale
Transaction Rationale Transaction allows Westell to focus on two profitable businesses • Outside Plant Systems (OSP) is a well-positioned, highly attractive platform that the Company would like to invest in and grow, both organically and inorganically • Conference Plus (CP) is a well-run niche playe
Slide 6: Post-Closing Perspective
Post-Closing Perspective CNS will continue as an operating division • Retained CNS business expected to generate significant, committed revenue through approximately two-thirds of FY12 • Gross margin on this revenue expected to be reasonably typical for CNS • Homecloud expected to spend about $2.5 m
Slide 7: Pro Forma Financial Statements
Pro Forma Financial Statements Pro forma schedules filed in Westell’s April 21, 2011 Form 8-K follow proscribed SEC guidelines. Unfortunately, management believes that the 8-K disclosures provide limited information concerning the effects of the transaction on Westell’s continuing business. • The gu
Slide 8: Westell's Future Look
Westell’s Future Look Outside Plant Systems Conference Plus Homecloud 8
Slide 9: Westell Strategy for the Future
Westell Strategy for the Future Grow Outside Plant Systems • Organic growth focused on cellular backhaul, eSmartAccess family of Ethernet products, systems integration, customized and semi-customized products, and extensions of product lines • Inorganic growth through prudent acquisitions targeted t
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