Westell Negotiates New Lease at its Aurora Headquarters Facility
April 03 2017 - 9:01AM
Westell Technologies, Inc. (NASDAQ:WSTL), a leading provider
of high-performance wireless infrastructure solutions, announced
today that it expects to save approximately $2.0 million annually
after negotiating a new three-year lease on a portion of its
current Aurora, Illinois, headquarters facility.
The 174,000-square-foot facility at 750 North
Commons Avenue consists of a 92,000-square-foot, three-story office
building and 82,000 square feet of adjacent industrial space.
The facility was built by Westell in 1996 and has been leased by
Westell under a sale-leaseback transaction dating back to
1997. With the new lease, which takes effect in October 2017,
Westell will lease the industrial space plus a small area between
the industrial space and the first floor of the office
building.
“Given Westell's space requirements in recent
years, the 1997 lease has been a larger-than-necessary cash drain
on the business. We are pleased to sign a new agreement that should
provide Westell with significant cash savings,” said Tom
Minichiello, Westell’s Senior Vice President and Chief Financial
Officer. “Beginning in October 2017, we expect to reduce our
annual cash outlays by approximately $2.0 million as the new lease
covers a footprint that better matches our current
requirements.”
Westell will continue to occupy primarily the
industrial space at its Aurora location, which houses assembly and
test operations for its Intelligent Site Management and Services
(ISMS) and Communication Network Solutions (CNS) business segments,
engineering and product line management primarily for CNS, and
corporate management and administrative functions.
Engineering and product line management for ISMS and In-Building
Wireless (IBW) will continue to operate from Dublin, Ohio, and
Manchester, New Hampshire, respectively. As previously
announced, manufacturing for IBW has been consolidated at Spinnaker
in Tilton, New Hampshire.
About Westell
TechnologiesWestell is a leading provider of
high-performance wireless infrastructure solutions focused on
innovation and differentiation at the edge of communication
networks where end users connect. The Company's comprehensive set
of products and solutions enable service providers and network
operators to improve performance and reduce operating expenses.
With millions of products successfully deployed worldwide, Westell
is a trusted partner for transforming networks into high quality,
reliable systems. For more information, please visit
westell.com.
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that involve risks and uncertainties. Actual results may
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decisions, product cost increases, component supply shortages, new
product development, excess and obsolete inventory,
commercialization and technological delays or difficulties
(including delays or difficulties in developing, producing, testing
and selling new products and technologies), the ability to
successfully consolidate and rationalize operations, the ability to
successfully identify, acquire and integrate acquisitions, the
effect of the Company's accounting policies, retention of key
personnel and other risks more fully described in the Company's SEC
filings, including the Form 10-K for the fiscal year ended
March 31, 2016, under Item 1A - Risk Factors. The
Company undertakes no obligation to publicly update these
forward-looking statements to reflect current events or
circumstances after the date hereof, or to reflect the occurrence
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Twitter - Company: @Westell_Tech
Westell Investor Relations Contact
Tom Minichiello
Senior Vice President, Chief Financial Officer, Treasurer, and Secretary
Westell Technologies
630-375-4740
tminichiello@westell.com
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