Whoaa!  Westell Technologies  has extended its streak of profitable quarters to five and has generated positive cash flow for six consecutive quarters.  They wildly exceeded analyst consensus earnings prediction this past quarter.  As a result of this performance they have increased their cash balance by 30% to almost $62m ($0.91/share) over the past year!

Westell is making good on its promise to put profitability over growth which I believe is the perfect recipe in this environment.  That profitability has been steadily increasing!  In addition to reducing fixed expenses, gross margins are improving in each business segment!  Their development efforts going forward are going to be much more targeted and focused.  I believe this reduces risk and will increase the likelihood that profitability will be sustained.  Westell's balance sheet is very healthy and getting even more so the past SIX quarters!  Management indicated that sales would not grow in the coming quarter but restated its intention to be profitable.

Here is the company press release: http://finance.yahoo.com/news/Westell-Technologies-Reports-bw-3651852311.html?x=0&.v=1

Today I will be on the company conference call discussing the quarter and will post the transcript when I get it:

Though I anticipate continued weakness in the world economy, I feel very content that Westell is a major holding because it is now well managed has a pristine balance sheet that is getting even better at a brisk pace!

-Jeff