Annual report pursuant to Section 13 and 15(d)

Segment Information (Notes)

v3.21.1
Segment Information (Notes)
 12 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information Segment and Related 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 evaluates segment profit on 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.
The Company’s three reportable segments are as follows:
In-Building Wireless (“IBW”) Segment
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 cellular network. For cellular service, solutions include indoor distributed antenna systems (“DAS”), 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 products, fiber access products and T1 network interface units (“NIUs”).
Segment information for the fiscal years ended March 31, 2021 and 2020, is set forth below:
  Fiscal Year Ended March 31, 2021
(in thousands) IBW ISM CNS Total
Revenue $ 9,683  $ 9,352  $ 10,912  $ 29,947 
Cost of revenue 7,159  4,108  8,608  19,875 
Gross profit 2,524  5,244  2,304  10,072 
Gross margin 26.1  % 56.1  % 21.1  % 33.6  %
Research and development 1,596  1,623  813  4,032 
Segment profit $ 928  $ 3,621  $ 1,491  6,040 
Operating expenses:
Sales and marketing 5,207 
General and administrative 4,086 
Intangible amortization 903 
Restructuring — 
Long-lived assets impairment 525 
Operating income (loss) from continuing operations (4,681)
Gain on forgiveness of first draw PPP loan 1,637 
Other income (expense), net 288 
Income tax (expense) benefit 22 
Net income (loss) from continuing operations $ (2,734)
Fiscal Year Ended March 31, 2020
(in thousands) IBW ISM CNS Total
Revenue $ 10,021  $ 10,101  $ 9,834  $ 29,956 
Cost of revenue 7,408  4,865  8,036  20,309 
Gross profit 2,613  5,236  1,798  9,647 
Gross margin 26.1  %

51.8  % 18.3  % 32.2  %
Research and development 1,757  2,237  1,352  5,346 
Segment profit $ 856  $ 2,999  $ 446  4,301 
Operating expenses:
Sales and marketing 7,592 
General and administrative 4,757 
Intangible amortization 1,233 
Restructuring 234 
Long-lived assets impairment 1,007 
Operating income (loss) from continuing operations (10,522)
Other income (expense), net 456 
Income tax (expense) benefit (36)
Net income (loss) from continuing operations $ (10,102)
Segment asset information is not reported to or used by the CODM.
Enterprise-wide and Geographic Information
More than 90% of the Company’s revenues were generated in the United States in fiscal years 2021 and 2020. More than 90% of the Company's long-lived assets are located in the United States.
Significant Customers and Concentration of Credit
The Company is dependent on certain major companies operating in telecommunications markets. Although, no customers exceeded 10% of total revenue during fiscal year 2021 or 2020, receivables from major customers that exceeded 10% of total accounts receivable balance are as follows:
  Fiscal Year Ended March 31,
  2021 2020
Customer 1 10.8  % 12.5  %
Customer 2 11.0  % 9.4  %
Customer 3 6.8  % 10.8  %
Customer 4 11.7  % 4.3  %
Customers 1, 3 and 4 are customers of all reporting segments .Customers 2 is a customer of the ISM reporting segments.