Quarterly report pursuant to Section 13 or 15(d)

Interim Segment Information (Tables)

Interim Segment Information (Tables)

9 Months Ended

Dec. 31, 2018

Segment information for the three and nine months ended December 31, 2018, and 2017, is set forth below:



	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	)

	Three months ended December 31, 2017
(in thousands)	IBW			ISM			CNS			Total
Revenue	$	5,223		$	5,802		$	2,650		$	13,675
Cost of revenue	2,754			2,642			2,203			7,599
Gross profit	2,469			3,160			447			6,076
Gross margin	47.3		%	54.5		%	16.9		%	44.4		%
Research and development	750			547			245			1,542
Segment profit	$	1,719		$	2,613		$	202		4,534
Operating expenses:
Sales and marketing										1,950
General and administrative										1,502
Intangible amortization										1,047
Restructuring										—
Operating profit (loss)										35
Other income, net										79
Income tax benefit (expense)										685			⁽¹⁾
Net income (loss) from continuing operations										$	799
⁽¹⁾ During the quarter ended December 31, 2017, the Company had income tax benefit from the release of the tax valuation allowance associated with previously generated alternative minimum tax (AMT) credits due to the enacted Tax Reform. See Note 9.




	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	$	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	)

	Nine months ended December 31, 2017
(in thousands)	IBW			ISM			CNS			Total
Revenue	$	20,098		$	14,662		$	12,721		$	47,481
Cost of revenue	10,965			7,157			9,241			27,363
Gross profit	9,133			7,505			3,480			20,118
Gross margin	45.4		%	51.2		%	27.4		%	42.4		%
Research and development	3,656			1,635			732			6,023
Segment profit (loss)	$	5,477		$	5,870		$	2,748		14,095
Operating expenses:
Sales and marketing										6,278
General and administrative										5,022
Intangible amortization										3,142
Restructuring										165
Operating profit (loss)										(512		)
Other income, net										799			⁽¹⁾
Income tax benefit (expense)										660			⁽²⁾
Net income (loss) from continuing operations										$	947

⁽¹⁾ During the quarter ended September 30, 2017, the Company dissolved the NoranTel legal entity, which triggered a one-time foreign currency gain with the reversal of a cumulative translation adjustment. See Note 1.

⁽²⁾During the quarter ended December 31, 2017, the Company had income tax benefit from the release of the tax valuation allowance associated with previously generated alternative minimum tax (AMT) credits due to the enacted Tax Reform. See Note 9.