Quarterly report pursuant to Section 13 or 15(d)

Interim Segment Information (Notes)

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Interim Segment Information (Notes)
 9 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Interim Segment Information Interim Segment Information
Segment information is presented in accordance with a “management approach", which designates the internal reporting used by the chief operating decision-maker (“CODM") for making decisions and assessing performance as the source of the Company's reportable segments. Westell’s Chief Executive Officer is the CODM. The CODM defines segment profit as gross profit less research and development expenses. The accounting policies of the segments are the same as those for Westell Technologies, Inc. described in the summary of significant accounting policies included in the Company's Annual Report on Form 10-K for year ended March 31, 2020, and as updated in this filing.
The Company’s three reportable segments are as follows:
In-Building Wireless (“IBW") Segment
The IBW segment solutions enable cellular and public safety coverage in stadiums, arenas, malls, buildings, and other indoor areas not served well or at all by the existing "macro" outdoor wireless network. For cellular service, solutions include distributed antenna system (“DAS") conditioners and digital repeaters. For the public safety market, solutions include Class A repeaters, Class B repeaters, and battery backup units. IBW also offers ancillary products that consist of passive system components and antennas for both the cellular service and public safety markets.
Intelligent Site Management (“ISM") Segment
ISM segment solutions include a suite of remote units, which provide machine-to-machine (“M2M") communications that enable operators to remotely monitor, manage, and control physical site infrastructure and support systems. Remote units can
be and often are combined with the Company's Optima management software system. ISM also offers support services (i.e., maintenance agreements) and deployment services (i.e., installation).
Communications Network Solutions (“CNS") Segment
CNS segment solutions include a broad range of hardened network infrastructure offerings suitable for both indoor and outdoor use.  The offerings consist of integrated cabinets, power distribution products, copper and fiber network connectivity panels, and T1 network interface units (“NIUs").

Segment information for the three and nine months ended December 31, 2020, and 2019, is set forth below: 
Three months ended December 31, 2020
(in thousands) IBW ISM CNS Total
Revenue $ 1,648  $ 2,677  $ 3,324  $ 7,649 
Cost of revenue 1,564 

1,242  2,637  5,443 
Gross profit 84  1,435  687  2,206 
Gross margin 5.1  % 53.6  % 20.7  % 28.8  %
Research and development 404  409  193  1,006 
Segment profit $ (320) $ 1,026  $ 494  1,200 
Operating expenses:
Sales and marketing 1,200 
General and administrative 863 
Intangible amortization 226 
Operating profit (loss) (1,089)
Other income, net 178 
Income tax benefit (expense) (23)
Net income (loss) $ (934)
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 (loss) $ 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) $ (1,544)
  Nine months ended December 31, 2020
(in thousands) IBW ISM CNS Total
Revenue $ 7,618  $ 6,632  $ 9,069  $ 23,319 
Cost of revenue 5,300 

3,017  7,163  15,480 
Gross profit 2,318  3,615  1,906  7,839 
Gross margin 30.4  % 54.5  % 21.0  % 33.6  %
Research and development 1,068  1,195  602  2,865 
Segment profit $ 1,250  $ 2,420  $ 1,304  4,974 
Operating expenses:
Sales and marketing 4,024 
General and administrative 3,175 
Intangible amortization 677 
Operating profit (loss) (2,902)
Other income, net 223 
Income tax benefit (expense) 35 
Net income (loss) $ (2,644)
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 (loss) $ 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) $ (7,262)
Segment asset information is not reported to or used by the CODM.