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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Westell Technologies | NASDAQ:WSTL | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.7183 | 0.73 | 0.755 | 0 | 01:00:00 |
|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
DELAWARE
|
|
36-3154957
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification Number)
|
|
|
|
750 North Commons Drive, Aurora, IL
|
|
60504
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
Title of Each Class
|
Trading Symbol
|
Name of Each Exchange on Which Registered
|
Class A Common Stock, $.01 par value
|
WSTL
|
NASDAQ Capital Market
|
Large Accelerated Filer
|
|
¨
|
|
Accelerated Filer
|
|
¨
|
|
|
|
|
|||
Non-Accelerated Filer
|
|
x
|
|
Smaller Reporting Company
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
Emerging Growth Company
|
|
¨
|
|
(unaudited)
|
|
|
||||
|
December 31,
2019 |
|
March 31,
2019 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
21,990
|
|
|
$
|
25,457
|
|
Accounts receivable (net of allowance of $100 at December 31, 2019, and March 31, 2019)
|
4,933
|
|
|
6,865
|
|
||
Inventories
|
7,622
|
|
|
9,801
|
|
||
Prepaid expenses and other current assets
|
1,703
|
|
|
1,706
|
|
||
Total current assets
|
36,248
|
|
|
43,829
|
|
||
Land, property and equipment, gross
|
8,146
|
|
|
8,109
|
|
||
Less accumulated depreciation and amortization
|
(7,073
|
)
|
|
(6,811
|
)
|
||
Land, property and equipment, net
|
1,073
|
|
|
1,298
|
|
||
Intangible assets, net
|
4,141
|
|
|
3,278
|
|
||
Right-of-use assets on operating leases, net
|
810
|
|
|
—
|
|
||
Other non-current assets
|
257
|
|
|
492
|
|
||
Total assets
|
$
|
42,529
|
|
|
$
|
48,897
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
2,821
|
|
|
$
|
2,313
|
|
Accrued expenses
|
3,422
|
|
|
3,567
|
|
||
Deferred revenue
|
1,314
|
|
|
1,217
|
|
||
Total current liabilities
|
7,557
|
|
|
7,097
|
|
||
Deferred revenue non-current
|
268
|
|
|
444
|
|
||
Other non-current liabilities
|
379
|
|
|
176
|
|
||
Total liabilities
|
8,204
|
|
|
7,717
|
|
||
Commitments and contingencies (Note 11)
|
|
|
|
|
|||
Stockholders’ equity:
|
|
|
|
||||
Class A common stock, par $0.01, Authorized – 109,000,000 shares
Outstanding – 12,222,806 and 11,909,979 shares at December 31, 2019, and March 31, 2019, respectively |
122
|
|
|
119
|
|
||
Class B common stock, par $0.01, Authorized – 25,000,000 shares
Issued and outstanding – 3,484,287 shares at December 31, 2019, and March 31, 2019 |
35
|
|
|
35
|
|
||
Preferred stock, par $0.01, Authorized – 1,000,000 shares
Issued and outstanding – none |
—
|
|
|
—
|
|
||
Additional paid-in capital
|
419,453
|
|
|
418,859
|
|
||
Treasury stock at cost – 5,214,597 and 5,122,414 shares at December 31, 2019, and March 31, 2019, respectively
|
(37,325
|
)
|
|
(37,135
|
)
|
||
Accumulated deficit
|
(347,960
|
)
|
|
(340,698
|
)
|
||
Total stockholders’ equity
|
34,325
|
|
|
41,180
|
|
||
Total liabilities and stockholders’ equity
|
$
|
42,529
|
|
|
$
|
48,897
|
|
|
Three months ended December 31,
|
|
Nine months ended
December 31,
|
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||
Revenue
|
$
|
7,159
|
|
|
$
|
10,722
|
|
|
$
|
23,730
|
|
|
$
|
33,865
|
|
|
Cost of revenue
|
4,379
|
|
|
6,132
|
|
|
16,125
|
|
|
19,147
|
|
|
||||
Gross profit
|
2,780
|
|
|
4,590
|
|
|
7,605
|
|
|
14,718
|
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
|
||||||||
Research and development
|
1,222
|
|
|
1,736
|
|
|
4,227
|
|
|
5,011
|
|
|
||||
Sales and marketing
|
1,556
|
|
|
1,999
|
|
|
6,147
|
|
|
6,012
|
|
|
||||
General and administrative
|
1,093
|
|
|
1,738
|
|
|
3,706
|
|
|
4,672
|
|
|
||||
Intangible amortization
|
308
|
|
|
830
|
|
|
924
|
|
|
2,652
|
|
|
||||
Restructuring
|
234
|
|
|
—
|
|
|
234
|
|
|
—
|
|
|
||||
Total operating expenses
|
4,413
|
|
|
6,303
|
|
|
15,238
|
|
|
18,347
|
|
|
||||
Operating profit (loss)
|
(1,633
|
)
|
|
(1,713
|
)
|
|
(7,633
|
)
|
|
(3,629
|
)
|
|
||||
Other income, net
|
109
|
|
|
158
|
|
|
398
|
|
|
442
|
|
|
||||
Income (loss) before income taxes
|
(1,524
|
)
|
|
(1,555
|
)
|
|
(7,235
|
)
|
|
(3,187
|
)
|
|
||||
Income tax benefit (expense)
|
(20
|
)
|
|
(1
|
)
|
|
(27
|
)
|
|
(11
|
)
|
|
||||
Net income (loss) from continuing operations
|
(1,544
|
)
|
|
(1,556
|
)
|
|
(7,262
|
)
|
|
(3,198
|
)
|
|
||||
Discontinued Operations:
|
|
|
|
|
|
|
|
|
||||||||
Income from discontinued operations, net of tax (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(138
|
)
|
|
||||
Net income (loss) (2)
|
$
|
(1,544
|
)
|
|
$
|
(1,556
|
)
|
|
$
|
(7,262
|
)
|
|
$
|
(3,336
|
)
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic net income (loss) from continuing operations
|
$
|
(0.10
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(0.47
|
)
|
|
$
|
(0.21
|
)
|
|
Basic net income (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
||||
Basic
|
$
|
(0.10
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(0.47
|
)
|
|
$
|
(0.21
|
)
|
(3)
|
Diluted net income (loss) per share:
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income (loss) from continuing operations
|
$
|
(0.10
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(0.47
|
)
|
|
$
|
(0.21
|
)
|
|
Diluted net income (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
||||
Diluted
|
$
|
(0.10
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(0.47
|
)
|
|
$
|
(0.21
|
)
|
(3)
|
Weighted-average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
15,575
|
|
|
15,524
|
|
|
15,514
|
|
|
15,576
|
|
|
||||
Effect of dilutive securities: restricted stock, restricted stock units, performance stock units and stock options (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Diluted
|
15,575
|
|
|
15,524
|
|
|
15,514
|
|
|
15,576
|
|
|
|
Common
Stock
Class A
|
|
Common
Stock
Class B
|
|
Additional
Paid-in
Capital
|
|
Treasury
Stock
|
|
Accumulated
Deficit
|
|
Total
Stockholders’
Equity
|
||||||||||||
Balance, March 31, 2019
|
$
|
119
|
|
|
$
|
35
|
|
|
$
|
418,859
|
|
|
$
|
(37,135
|
)
|
|
$
|
(340,698
|
)
|
|
$
|
41,180
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,157
|
)
|
|
(2,157
|
)
|
||||||
Common stock issued
|
3
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchase of treasury stock
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(172
|
)
|
|
—
|
|
|
(173
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
244
|
|
|
—
|
|
|
—
|
|
|
244
|
|
||||||
Balance, June 30, 2019
|
121
|
|
|
35
|
|
|
419,100
|
|
|
(37,307
|
)
|
|
(342,855
|
)
|
|
39,094
|
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,561
|
)
|
|
(3,561
|
)
|
||||||
Common stock issued
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Purchase of treasury stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(16
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
201
|
|
|
—
|
|
|
—
|
|
|
201
|
|
||||||
Balance, September 30, 2019
|
122
|
|
|
35
|
|
|
419,301
|
|
|
(37,323
|
)
|
|
(346,416
|
)
|
|
35,719
|
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,544
|
)
|
|
(1,544
|
)
|
||||||
Common stock issued
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchase of treasury stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
152
|
|
|
—
|
|
|
—
|
|
|
152
|
|
||||||
Balance, December 31, 2019
|
$
|
122
|
|
|
$
|
35
|
|
|
$
|
419,453
|
|
|
$
|
(37,325
|
)
|
|
$
|
(347,960
|
)
|
|
$
|
34,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Common
Stock
Class A
|
|
Common
Stock
Class B
|
|
Additional
Paid-in
Capital
|
|
Treasury
Stock
|
|
Accumulated
Deficit
|
|
Total
Stockholders’
Equity
|
||||||||||||
Balance, March 31, 2018
|
$
|
121
|
|
|
$
|
35
|
|
|
$
|
417,691
|
|
|
$
|
(35,907
|
)
|
|
$
|
(329,645
|
)
|
|
$
|
52,295
|
|
Cumulative effect adjustment
ASC 606 adoption
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
329
|
|
|
329
|
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
(39
|
)
|
||||||
Common stock issued
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchase of treasury stock
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(404
|
)
|
|
—
|
|
|
(405
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
291
|
|
|
—
|
|
|
—
|
|
|
291
|
|
||||||
Balance, June 30, 2018
|
122
|
|
|
35
|
|
|
417,980
|
|
|
(36,311
|
)
|
|
(329,355
|
)
|
|
52,471
|
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,741
|
)
|
|
(1,741
|
)
|
||||||
Common stock issued
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchase of treasury stock
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(199
|
)
|
|
—
|
|
|
(200
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
295
|
|
|
—
|
|
|
—
|
|
|
295
|
|
||||||
Balance, September 30, 2018
|
122
|
|
|
35
|
|
|
418,274
|
|
|
(36,510
|
)
|
|
(331,096
|
)
|
|
50,825
|
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,556
|
)
|
|
(1,556
|
)
|
||||||
Common stock issued
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchase of treasury stock
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(431
|
)
|
|
—
|
|
|
(433
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
303
|
|
|
—
|
|
|
—
|
|
|
303
|
|
||||||
Balance, December 31, 2018
|
$
|
120
|
|
|
$
|
35
|
|
|
$
|
418,577
|
|
|
$
|
(36,941
|
)
|
|
$
|
(332,652
|
)
|
|
$
|
49,139
|
|
|
Nine months ended December 31,
|
|
||||||
|
2019
|
|
2018
|
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income (loss)
|
$
|
(7,262
|
)
|
|
$
|
(3,336
|
)
|
|
Reconciliation of net loss to net cash used in operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
1,426
|
|
|
3,092
|
|
|
||
Stock-based compensation
|
597
|
|
|
889
|
|
|
||
Loss (gain) on sale of fixed assets
|
(11
|
)
|
|
1
|
|
|
||
Restructuring
|
234
|
|
|
—
|
|
|
||
Exchange rate loss (gain)
|
(2
|
)
|
|
3
|
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
||||
Accounts receivable
|
1,934
|
|
|
1,892
|
|
|
||
Inventories
|
2,179
|
|
|
(941
|
)
|
|
||
Prepaid expenses and other current assets
|
3
|
|
|
(353
|
)
|
|
||
Other assets
|
(575
|
)
|
|
11
|
|
|
||
Deferred revenue
|
(79
|
)
|
|
(1,114
|
)
|
(1)
|
||
Accounts payable and accrued expenses
|
332
|
|
|
494
|
|
|
||
Net cash provided by (used in) operating activities
|
(1,224
|
)
|
|
638
|
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Maturities of other short-term investments
|
—
|
|
|
2,779
|
|
|
||
Proceeds from sale of fixed assets
|
11
|
|
|
—
|
|
|
||
Purchase of product licensing rights
|
(1,950
|
)
|
(2)
|
—
|
|
|
||
Purchases of property and equipment
|
(113
|
)
|
|
(273
|
)
|
|
||
Net cash provided by (used in) investing activities
|
(2,052
|
)
|
|
2,506
|
|
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Purchases of treasury stock
|
(191
|
)
|
|
(1,038
|
)
|
|
||
Net cash provided by (used in) financing activities
|
(191
|
)
|
|
(1,038
|
)
|
|
||
Gain (loss) of exchange rate changes on cash
|
—
|
|
|
(4
|
)
|
|
||
Net increase (decrease) in cash and cash equivalents
|
(3,467
|
)
|
|
2,102
|
|
|
||
Cash and cash equivalents, beginning of period
|
25,457
|
|
|
24,963
|
|
|
||
Cash and cash equivalents, end of period
|
$
|
21,990
|
|
|
$
|
27,065
|
|
|
Fiscal Year
|
|
Operating Leases
|
||
2020 (1)
|
|
$
|
184
|
|
2021
|
|
420
|
|
|
2022
|
|
67
|
|
|
2023
|
|
69
|
|
|
2024
|
|
70
|
|
|
Thereafter
|
|
66
|
|
|
Total lease payments
|
|
876
|
|
|
Less: imputed interest
|
|
(46
|
)
|
|
Total operating lease liabilities
|
|
$
|
830
|
|
(in thousands)
|
Three months ended December 31, 2019
|
|
Nine months ended December 31, 2019
|
||||
Operating lease expense
|
$
|
202
|
|
|
$
|
610
|
|
Variable lease expense (1)
|
25
|
|
|
88
|
|
||
Total lease expense (2)
|
$
|
227
|
|
|
$
|
698
|
|
(in thousands)
|
|
December 31, 2019
|
|
Balance Sheet Classification
|
||
Assets:
|
|
|
|
|
||
ROU assets
|
|
$
|
810
|
|
|
Right-of-use assets on operating leases, net
|
Liabilities:
|
|
|
|
|
||
Current operating lease liability
|
|
566
|
|
|
Accrued expenses
|
|
Non-current operating lease liabilities
|
|
264
|
|
|
Other non-current liabilities
|
|
Total lease liabilities
|
|
$
|
830
|
|
|
|
(In thousands)
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Products
|
$
|
5,842
|
|
|
$
|
9,400
|
|
|
$
|
19,974
|
|
|
$
|
30,230
|
|
Software
|
92
|
|
|
408
|
|
|
272
|
|
|
982
|
|
||||
Services
|
1,225
|
|
|
914
|
|
|
3,484
|
|
|
2,653
|
|
||||
Total revenue
|
$
|
7,159
|
|
|
$
|
10,722
|
|
|
$
|
23,730
|
|
|
$
|
33,865
|
|
|
< 1 year
|
|
1-2 years
|
|
> 2 years
|
||||||
Deferred Revenue
|
$
|
1,314
|
|
|
$
|
145
|
|
|
$
|
123
|
|
|
Three months ended December 31, 2019
|
|
Nine months ended December 31, 2019
|
||||||||||||||||||||
(in thousands)
|
Employee related
|
|
Other costs
|
|
Total
|
|
Employee related
|
|
Other costs
|
|
Total
|
||||||||||||
Liability at beginning of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Charged
|
234
|
|
|
—
|
|
|
234
|
|
|
234
|
|
|
—
|
|
|
234
|
|
||||||
Paid
|
(227
|
)
|
|
—
|
|
|
(227
|
)
|
|
(227
|
)
|
|
—
|
|
|
(227
|
)
|
||||||
Liability at end of period
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
|
Three months ended December 31, 2019
|
||||||||||||||
(in thousands)
|
|
IBW
|
|
ISM
|
|
CNS
|
|
Total
|
||||||||
Revenue
|
|
$
|
2,466
|
|
|
$
|
2,456
|
|
|
$
|
2,237
|
|
|
$
|
7,159
|
|
Cost of revenue
|
|
1,657
|
|
|
991
|
|
|
1,731
|
|
|
4,379
|
|
||||
Gross profit
|
|
809
|
|
|
1,465
|
|
|
506
|
|
|
2,780
|
|
||||
Gross margin
|
|
32.8
|
%
|
|
59.6
|
%
|
|
22.6
|
%
|
|
38.8
|
%
|
||||
Research and development
|
|
470
|
|
|
505
|
|
|
247
|
|
|
1,222
|
|
||||
Segment profit
|
|
$
|
339
|
|
|
$
|
960
|
|
|
$
|
259
|
|
|
1,558
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Sales and marketing
|
|
|
|
|
|
|
|
1,556
|
|
|||||||
General and administrative
|
|
|
|
|
|
|
|
1,093
|
|
|||||||
Intangible amortization
|
|
|
|
|
|
|
|
308
|
|
|||||||
Restructuring
|
|
|
|
|
|
|
|
234
|
|
|||||||
Operating profit (loss)
|
|
|
|
|
|
|
|
(1,633
|
)
|
|||||||
Other income, net
|
|
|
|
|
|
|
|
109
|
|
|||||||
Income tax benefit (expense)
|
|
|
|
|
|
|
|
(20
|
)
|
|||||||
Net income (loss) from continuing operations
|
|
|
|
|
|
|
|
$
|
(1,544
|
)
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended December 31, 2018
|
||||||||||||||
(in thousands)
|
|
IBW
|
|
ISM
|
|
CNS
|
|
Total
|
||||||||
Revenue
|
|
$
|
2,794
|
|
|
$
|
5,116
|
|
|
$
|
2,812
|
|
|
$
|
10,722
|
|
Cost of revenue
|
|
1,725
|
|
|
2,217
|
|
|
2,190
|
|
|
6,132
|
|
||||
Gross profit
|
|
1,069
|
|
|
2,899
|
|
|
622
|
|
|
4,590
|
|
||||
Gross margin
|
|
38.3
|
%
|
|
56.7
|
%
|
|
22.1
|
%
|
|
42.8
|
%
|
||||
Research and development
|
|
682
|
|
|
570
|
|
|
484
|
|
|
1,736
|
|
||||
Segment profit
|
|
$
|
387
|
|
|
$
|
2,329
|
|
|
$
|
138
|
|
|
2,854
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Sales and marketing
|
|
|
|
|
|
|
|
1,999
|
|
|||||||
General and administrative
|
|
|
|
|
|
|
|
1,738
|
|
|||||||
Intangible amortization
|
|
|
|
|
|
|
|
830
|
|
|||||||
Operating profit (loss)
|
|
|
|
|
|
|
|
(1,713
|
)
|
|||||||
Other income, net
|
|
|
|
|
|
|
|
158
|
|
|||||||
Income tax benefit (expense)
|
|
|
|
|
|
|
|
(1
|
)
|
|||||||
Net income (loss) from continuing operations
|
|
|
|
|
|
|
|
$
|
(1,556
|
)
|
|
|
Nine months ended December 31, 2019
|
||||||||||||||
(in thousands)
|
|
IBW
|
|
ISM
|
|
CNS
|
|
Total
|
||||||||
Revenue
|
|
$
|
8,007
|
|
|
$
|
8,197
|
|
|
$
|
7,526
|
|
|
$
|
23,730
|
|
Cost of revenue
|
|
5,813
|
|
|
4,111
|
|
|
6,201
|
|
|
16,125
|
|
||||
Gross profit
|
|
2,194
|
|
|
4,086
|
|
|
1,325
|
|
|
7,605
|
|
||||
Gross margin
|
|
27.4
|
%
|
|
49.8
|
%
|
|
17.6
|
%
|
|
32.0
|
%
|
||||
Research and development
|
|
1,272
|
|
|
1,825
|
|
|
1,130
|
|
|
4,227
|
|
||||
Segment profit
|
|
$
|
922
|
|
|
$
|
2,261
|
|
|
$
|
195
|
|
|
3,378
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Sales and marketing
|
|
|
|
|
|
|
|
6,147
|
|
|||||||
General and administrative
|
|
|
|
|
|
|
|
3,706
|
|
|||||||
Intangible amortization
|
|
|
|
|
|
|
|
924
|
|
|||||||
Restructuring
|
|
|
|
|
|
|
|
234
|
|
|||||||
Operating profit (loss)
|
|
|
|
|
|
|
|
(7,633
|
)
|
|||||||
Other income, net
|
|
|
|
|
|
|
|
398
|
|
|||||||
Income tax benefit (expense)
|
|
|
|
|
|
|
|
(27
|
)
|
|||||||
Net income (loss) from continuing operations
|
|
|
|
|
|
|
|
$
|
(7,262
|
)
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Nine months ended December 31, 2018
|
||||||||||||||
(in thousands)
|
|
IBW
|
|
ISM
|
|
CNS
|
|
Total
|
||||||||
Revenue
|
|
$
|
9,997
|
|
|
$
|
13,506
|
|
|
$
|
10,362
|
|
|
$
|
33,865
|
|
Cost of revenue
|
|
5,574
|
|
|
6,237
|
|
|
7,336
|
|
|
19,147
|
|
||||
Gross profit
|
|
4,423
|
|
|
7,269
|
|
|
3,026
|
|
|
14,718
|
|
||||
Gross margin
|
|
44.2
|
%
|
|
53.8
|
%
|
|
29.2
|
%
|
|
43.5
|
%
|
||||
Research and development
|
|
2,071
|
|
|
1,697
|
|
|
1,243
|
|
|
5,011
|
|
||||
Segment profit (loss)
|
|
$
|
2,352
|
|
|
$
|
5,572
|
|
|
$
|
1,783
|
|
|
9,707
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Sales and marketing
|
|
|
|
|
|
|
|
6,012
|
|
|||||||
General and administrative
|
|
|
|
|
|
|
|
4,672
|
|
|||||||
Intangible amortization
|
|
|
|
|
|
|
|
2,652
|
|
|||||||
Operating profit (loss)
|
|
|
|
|
|
|
|
(3,629
|
)
|
|||||||
Other income, net
|
|
|
|
|
|
|
|
442
|
|
|||||||
Income tax benefit (expense)
|
|
|
|
|
|
|
|
(11
|
)
|
|||||||
Net income (loss) from continuing operations
|
|
|
|
|
|
|
|
$
|
(3,198
|
)
|
(in thousands)
|
December 31, 2019
|
|
March 31, 2019
|
||||
Raw materials
|
$
|
2,263
|
|
|
$
|
3,445
|
|
Finished goods
|
5,359
|
|
|
6,356
|
|
||
Total inventories
|
$
|
7,622
|
|
|
$
|
9,801
|
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Stock-based compensation expense
|
$
|
152
|
|
|
$
|
303
|
|
|
$
|
597
|
|
|
$
|
889
|
|
Income tax benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total stock-based compensation expense, after taxes
|
$
|
152
|
|
|
$
|
303
|
|
|
$
|
597
|
|
|
$
|
889
|
|
|
Shares
|
|
Weighted-Average
Exercise Price Per
Share
|
|
Weighted-Average
Remaining
Contractual Term
(in years)
|
|
Aggregate
Intrinsic Value (1) (in
thousands)
|
|||||
Outstanding on March 31, 2019
|
293,478
|
|
|
$
|
4.28
|
|
|
4.4
|
|
$
|
—
|
|
Granted
|
150,000
|
|
|
1.35
|
|
|
|
|
|
|||
Exercised
|
—
|
|
|
—
|
|
|
|
|
|
|||
Forfeited
|
(66,667
|
)
|
|
3.14
|
|
|
|
|
|
|||
Expired
|
(145,624
|
)
|
|
5.39
|
|
|
|
|
|
|||
Outstanding on December 31, 2019
|
231,187
|
|
|
$
|
2.01
|
|
|
5.4
|
|
$
|
—
|
|
(1)
|
The intrinsic value for the stock options is calculated based on the difference between the exercise price of the underlying awards and the Westell Technologies’ closing stock price as of the respective reporting date.
|
|
Shares
|
|
Weighted-Average
Grant Date Fair
Value
|
|||
Non-vested as of March 31, 2019
|
665,127
|
|
|
$
|
3.03
|
|
Granted
|
301,037
|
|
|
1.73
|
|
|
Vested
|
(271,426
|
)
|
|
3.10
|
|
|
Forfeited
|
(239,879
|
)
|
|
2.69
|
|
|
Non-vested as of December 31, 2019
|
454,859
|
|
|
$
|
2.31
|
|
|
Shares
|
|
Weighted-Average Grant Date Fair Value
|
|||
Non-vested as of March 31, 2019 (at target)
|
5,000
|
|
|
$
|
3.14
|
|
Granted, at target
|
216,144
|
|
|
1.89
|
|
|
Vested
|
(5,000
|
)
|
|
3.14
|
|
|
Forfeited
|
(127,498
|
)
|
|
2.07
|
|
|
Non-vested as of December 31, 2019 (at target)
|
88,646
|
|
|
$
|
1.63
|
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Total product warranty reserve at the beginning of the period
|
$
|
130
|
|
|
$
|
285
|
|
|
$
|
130
|
|
|
$
|
300
|
|
Warranty expense to cost of revenue
|
17
|
|
|
12
|
|
|
51
|
|
|
44
|
|
||||
Utilization
|
(17
|
)
|
|
(22
|
)
|
|
(51
|
)
|
|
(69
|
)
|
||||
Total product warranty reserve at the end of the period
|
$
|
130
|
|
|
$
|
275
|
|
|
$
|
130
|
|
|
$
|
275
|
|
•
|
Level 1 – Quoted prices in active markets for identical assets and liabilities.
|
•
|
Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
•
|
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
|
(in thousands)
|
Total Fair Value
of Asset or Liability |
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Balance Sheet
Classification |
||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||
Money market funds
|
$
|
21,644
|
|
|
$
|
21,644
|
|
|
—
|
|
|
—
|
|
|
Cash and cash
equivalents |
(in thousands)
|
Total Fair Value
of Asset or Liability |
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Balance Sheet
Classification |
||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||
Money market funds
|
$
|
25,645
|
|
|
$
|
25,645
|
|
|
—
|
|
|
—
|
|
|
Cash and cash
equivalents |
(in thousands)
|
December 31, 2019
|
|
March 31, 2019
|
|
||||
Accrued compensation
|
$
|
499
|
|
|
$
|
656
|
|
|
Accrued contractual obligation
|
1,445
|
|
|
1,445
|
|
|
||
Current operating lease liability
|
566
|
|
|
—
|
|
|
||
Other accrued expenses
|
912
|
|
|
1,466
|
|
(1)
|
||
Total accrued expenses
|
$
|
3,422
|
|
|
$
|
3,567
|
|
(1)
|
(in thousands)
|
December 31, 2019
|
|
March 31, 2019
|
||||
Land
|
$
|
672
|
|
|
$
|
672
|
|
Machinery and equipment
|
1,367
|
|
|
1,372
|
|
||
Office, computer and research equipment
|
5,319
|
|
|
5,267
|
|
||
Leasehold improvements
|
788
|
|
|
798
|
|
||
Land, property and equipment, gross
|
8,146
|
|
|
8,109
|
|
||
Less accumulated depreciation and amortization
|
(7,073
|
)
|
|
(6,811
|
)
|
||
Land, property and equipment, net
|
$
|
1,073
|
|
|
$
|
1,298
|
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
||||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
IBW
|
$
|
2,466
|
|
|
$
|
2,794
|
|
|
$
|
(328
|
)
|
|
$
|
8,007
|
|
|
$
|
9,997
|
|
|
$
|
(1,990
|
)
|
ISM
|
2,456
|
|
|
5,116
|
|
|
(2,660
|
)
|
|
8,197
|
|
|
13,506
|
|
|
(5,309
|
)
|
||||||
CNS
|
2,237
|
|
|
2,812
|
|
|
(575
|
)
|
|
7,526
|
|
|
10,362
|
|
|
(2,836
|
)
|
||||||
Consolidated revenue
|
$
|
7,159
|
|
|
$
|
10,722
|
|
|
$
|
(3,563
|
)
|
|
$
|
23,730
|
|
|
$
|
33,865
|
|
|
$
|
(10,135
|
)
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
||||||||||||||
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||
IBW
|
32.8
|
%
|
|
38.3
|
%
|
|
(5.5
|
)%
|
|
27.4
|
%
|
|
44.2
|
%
|
|
(16.8
|
)%
|
ISM
|
59.6
|
%
|
|
56.7
|
%
|
|
2.9
|
%
|
|
49.8
|
%
|
|
53.8
|
%
|
|
(4.0
|
)%
|
CNS
|
22.6
|
%
|
|
22.1
|
%
|
|
0.5
|
%
|
|
17.6
|
%
|
|
29.2
|
%
|
|
(11.6
|
)%
|
Consolidated gross margin
|
38.8
|
%
|
|
42.8
|
%
|
|
(4.0
|
)%
|
|
32.0
|
%
|
|
43.5
|
%
|
|
(11.5
|
)%
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
||||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
IBW
|
$
|
470
|
|
|
$
|
682
|
|
|
$
|
(212
|
)
|
|
$
|
1,272
|
|
|
$
|
2,071
|
|
|
$
|
(799
|
)
|
ISM
|
505
|
|
|
570
|
|
|
(65
|
)
|
|
1,825
|
|
|
1,697
|
|
|
128
|
|
||||||
CNS
|
247
|
|
|
484
|
|
|
(237
|
)
|
|
1,130
|
|
|
1,243
|
|
|
(113
|
)
|
||||||
Consolidated research and
development expense
|
$
|
1,222
|
|
|
$
|
1,736
|
|
|
$
|
(514
|
)
|
|
$
|
4,227
|
|
|
$
|
5,011
|
|
|
$
|
(784
|
)
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
||||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Consolidated sales and
marketing expense
|
$
|
1,556
|
|
|
$
|
1,999
|
|
|
$
|
(443
|
)
|
|
$
|
6,147
|
|
|
$
|
6,012
|
|
|
$
|
135
|
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
||||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Consolidated general and
administrative expense
|
$
|
1,093
|
|
|
$
|
1,738
|
|
|
$
|
(645
|
)
|
|
$
|
3,706
|
|
|
$
|
4,672
|
|
|
$
|
(966
|
)
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
||||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Consolidated intangible
amortization
|
$
|
308
|
|
|
$
|
830
|
|
|
$
|
(522
|
)
|
|
$
|
924
|
|
|
$
|
2,652
|
|
|
$
|
(1,728
|
)
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
||||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Consolidated other
income (expense)
|
$
|
109
|
|
|
$
|
158
|
|
|
$
|
(49
|
)
|
|
$
|
398
|
|
|
$
|
442
|
|
|
$
|
(44
|
)
|
|
Nine months ended December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Net cash flow provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
(1,224
|
)
|
|
$
|
638
|
|
Investing activities
|
(2,052
|
)
|
|
2,506
|
|
||
Financing activities
|
(191
|
)
|
|
(1,038
|
)
|
||
Effect of exchange rate on changes on cash
|
—
|
|
|
(4
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
$
|
(3,467
|
)
|
|
$
|
2,102
|
|
Period
|
|
Total Number
of Shares
Purchased (a)
|
|
Average Price
Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Programs (b)
|
|
Maximum Number (or Approximate Dollar Value) that May Yet Be Purchased Under the Programs (b)
|
||||||
October 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
680,957
|
|
November 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
680,957
|
|
||
December 2019
|
|
1,626
|
|
|
0.8750
|
|
|
—
|
|
|
680,957
|
|
||
Total
|
|
1,626
|
|
|
$
|
0.8750
|
|
|
—
|
|
|
$
|
680,957
|
|
(a)
|
In the three months ended December 31, 2019, the Company repurchased 1,626 shares from employees that were surrendered to satisfy the minimum statutory tax withholding obligations on the vesting of restricted stock, restricted stock units and performance-based restricted stock units. These repurchases were not included in the authorized share repurchase program and had a weighted-average purchase price of $0.88 per share.
|
(b)
|
In May 2017, the Board of Directors authorized a share repurchase program whereby the Company may repurchase up to an aggregate of $2.0 million of its outstanding Class A Common Stock in addition to the $0.1 million remaining from the August 2011 authorization. The August 2011 authorization was exhausted during the first quarter of fiscal year 2018 and there was approximately $0.7 million remaining under the May 2017 authorization as of December 31, 2019.
|
|
Exhibit Number
|
|
Description
|
|
|
|
|
|
|
|
|
|
Exhibit 31.1
|
|
|
|
|
|
|
|
Exhibit 31.2
|
|
|
|
|
|
|
|
Exhibit 32.1
|
|
|
|
|
|
|
|
Exhibit 101
|
|
The following financial information from the Quarterly Report on Form 10-Q for the period ended December 31, 2019, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets; (ii) the Condensed Consolidated Statements of Operations; (iii) the Condensed Consolidated Statements of Stockholders' Equity (iv) the Condensed Consolidated Statements of Cash Flows; and (v) the Notes to the Condensed Consolidated Financial Statements.
|
|
|
|
WESTELL TECHNOLOGIES, INC.
|
|
|
|
|
(Registrant)
|
|
|
|
|
||
DATE:
|
February 7, 2020
|
|
By:
|
/s/ Timothy L. Duitsman
|
|
|
|
|
Timothy L. Duitsman
|
|
|
|
|
Chief Executive Officer
|
|
|
|
||
|
|
|
By:
|
/s/ Jeniffer L. Jaynes
|
|
|
|
|
Jeniffer L. Jaynes
|
|
|
|
|
Interim Chief Financial Officer
|
1 Year Westell Technologies Chart |
1 Month Westell Technologies Chart |
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