Quarterly report pursuant to Section 13 or 15(d)

Interim Segment Information (Tables)

Interim Segment Information (Tables)

9 Months Ended

Dec. 31, 2016

Segment information for the three and nine months ended December 31, 2016, and 2015, is set forth below:



	Three months ended December 31, 2016
(in thousands)	IBW			ISMS			CNS			Total
Revenue	$	6,224		$	5,525		$	3,234		$	14,983
Cost of revenue	3,713			2,730			2,486			8,929
Gross profit	2,511			2,795			748			6,054
Gross margin	40.3		%	50.6		%	23.1		%	40.4		%
Research and development	1,307			805			302			2,414
Segment profit	$	1,204		$	1,990		$	446		3,640
Operating expenses:
Sales and marketing										1,943
General and administrative										1,777
Intangible amortization										1,212
Restructuring										490
Operating profit (loss)										(1,782		)
Other income (expense), net										(15		)
Income tax benefit (expense)										(10		)
Net income (loss) from continuing operations										$	(1,807	)

	Three months ended December 31, 2015
(in thousands)	IBW			ISMS			CNS			Total
Revenue	$	8,680		$	6,147		$	5,388		$	20,215
Cost of revenue	5,361			3,209			3,682			12,252
Gross profit	3,319			2,938			1,706			7,963
Gross margin	38.2		%	47.8		%	31.7		%	39.4		%
Research and development	2,701			1,363			829			4,893
Segment profit	$	618		$	1,575		$	877		3,070
Operating expenses:
Sales and marketing										3,900
General and administrative										2,627
Intangible amortization										1,418
Operating profit (loss)										(4,875		)
Other income (expense), net										85
Income tax benefit (expense)										(7		)
Net income (loss) from continuing operations										$	(4,797	)




	Nine months ended December 31, 2016
(in thousands)	IBW				ISMS			CNS			Total
Revenue	$	18,989			$	14,773		$	13,817		$	47,579
Cost of revenue	13,251			⁽¹⁾	7,552			9,790			30,593
Gross profit	5,738				7,221			4,027			16,986
Gross margin	30.2		%		48.9		%	29.1		%	35.7		%
Research and development	5,265				3,336			1,417			10,018
Segment profit	$	473			$	3,885		$	2,610		6,968
Operating expenses:
Sales and marketing											8,220
General and administrative											6,340
Intangible amortization											3,613
Restructuring											3,055
Long-lived assets impairment											1,181
Operating profit (loss)											(15,441		)
Other income (expense), net											76
Income tax benefit (expense)											(20		)
Net income (loss) from continuing operations											$	(15,385	)


	Nine months ended December 31, 2015
(in thousands)	IBW				ISMS			CNS			Total
Revenue	$	28,569			$	16,538		$	22,192		$	67,299
Cost of revenue	16,702				8,225			15,749			40,676
Gross profit	11,867				8,313			6,443			26,623
Gross margin	41.5		%		50.3		%	29.0		%	39.6		%
Research and development	8,638				3,946			2,020			14,604
Segment profit	$	3,229			$	4,367		$	4,423		12,019
Operating expenses:
Sales and marketing											11,209
General and administrative											8,089
Intangible amortization											4,249
Restructuring											17
Operating profit (loss)											(11,545		)
Other income (expense), net											62
Income tax benefit (expense)											75
Net income (loss) from continuing operations											$	(11,408	)

⁽¹⁾ The nine months ended December 31, 2016, includes E&O expense for ClearLink DAS inventory and pipeline inventory. See Note 2, Restructuring Charges.