So Google has announced their increased presence in the wireless space. Since it now appears that they will be trying to push specific technologies to enhance coverage, and not just function as a reseller, I wonder if it is a conflict of interest to have their executive sitting on Westell' s board?? I guess it would look awfully strange if Google were to adopt a competitive technology while their guy sits on the WSTL board. Of course it is also entirely possible that Westell factors into the Google solution and gains market share. Well one can always dream!
True, the next 6 months of product introductions have been in the makings under Gilbert. However the reaction by the Street will be reactive to new management. Gilbert just had no clue in dealing with the investment community. He came off as defensive and timid.
Typically acquisitions are met with synergistic savings through headcount and operations consolidation. Gilbert only took this move as a reactive measure post last quarter's earnings. Then you have the lack of international business expansion. Gilbert touted the Kentrox acquisition for its international footprint to help grow the business yet there was no real effort to pull through any products until his recently announced " real wake up call" about N. American dependence?! That's leadership or lack there of. Westell has the products and footprint to grow but needs good execution to get there. The new leader will be judged on that execution.
I am relieved that the board finally came to it's senses. It was most painful to listen to Gilbert's dismissive style over the last 3-4 conference calls. This last quarterly call was a joke. To say that their dependence on north America was a "wake up call" just showed his naivety in dealing with the investment community. If he wasn't coming off as a strong leader over the phone in an event that you plan for, one can only imagine how he was in his day to day leadership effectiveness. I noticed an immediate difference in the style and tone of the call with the new leader. He displayed a much better understanding of investor needs and is willing to show it. Now we will have a CEO who is actually willing to buy shares of stock in the open market instead of repeatedly selling them. I think that we will all see how a quarterly call should be run when the company reports earnings in May. This should initiate renewed confidence and interest in the stock.