Annual report pursuant to Section 13 and 15(d)

Quarterly Results of Operations (unaudited) (Notes)

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Quarterly Results of Operations (unaudited) (Notes)
 12 Months Ended
Mar. 31, 2014
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information [Text Block]
Quarterly Results of Operations (Unaudited):
The following tables present certain financial information for each of the last eight fiscal quarters. The Company believes that the unaudited information regarding each of these quarters is prepared on the same basis as the audited Consolidated Financial Statements of the Company appearing elsewhere in this Form 10-K. In the opinion of management, all necessary adjustments (consisting only of normal recurring adjustments) have been included to present fairly the unaudited quarterly results when read in conjunction with the audited Consolidated Financial Statements of the Company and the Notes thereto appearing elsewhere in this Form 10-K. These quarterly results of operations are not necessarily indicative of the results for any future period. Previously reported quarterly amounts have been adjusted for the effects of the discontinued operations described in Note 1.
The fiscal third quarter ending December 31 contains seasonality effects in the Westell segment. The Westell segment sells equipment that is installed outdoors and the ordering of such equipment declines during and in advance of the colder months. Customer budget cycles for may also contribute to revenue variability in those same periods. Revenue mix and gross profit by product varies by quarter. Charges for excess and obsolete inventory vary by quarter and may cause variability in gross margins.
 
 
Fiscal Year 2014 Quarter Ended
 
June 30, 2013
 
Sept. 30, 2013
 
Dec. 31, 2013
 
Mar. 31, 2014
(in thousands, except per share amounts)
 
 
 
 
 
 
 
Revenue
$
22,456

 
$
29,960

 
$
25,236

 
$
24,421

Gross profit
8,776

 
12,423

 
12,235

 
8,524

Total operating expenses
11,377

 
11,129

 
10,212

 
12,554

Income (loss) before income taxes and discontinued operations
(2,731
)
 
1,392

 
1,992

 
(4,023
)
Income tax (expense) benefit
(19
)
 
(68
)
 
(38
)
 
8,907

Net income (loss) from continuing operations
(2,750
)
 
1,324

 
1,954

 
4,884

Income (loss) from discontinued operations, net of tax
(14
)
 
4

 
(29
)
 
(6
)
Net income (loss)
(2,764
)
 
1,328

 
1,925

 
4,878

Net income (loss) per common share:
 
 
 
 
 
 
 
Basic
$
(0.05
)
 
$
0.02

 
$
0.03

 
$
0.08

Diluted
$
(0.05
)
 
$
0.02

 
$
0.03

 
$
0.08

The Company acquired Kentrox on April 1, 2013 and CSI on March 1, 2014. In the fourth quarter of fiscal 2014, deferred tax liabilities of $9.1 million resulted from the acquisitions relating primarily to acquired intangible assets. The Company's anticipated ability to realize deferred tax assets from the reversal of these deferred tax liabilities resulted in a reversal of valuation allowance which was recorded in the fourth quarter of fiscal year 2014.
 
Fiscal Year 2013 Quarter Ended
 
June 30, 2012
 
Sept. 30, 2012
 
Dec. 31, 2012
 
Mar. 31, 2013
(in thousands, except per share amounts)
 
 
 
 
 
 
 
Revenue
$
9,418

 
$
9,854

 
$
8,873

 
$
10,663

Gross profit
2,773

 
3,449

 
3,090

 
4,013

Total operating expenses
6,271

 
5,701

 
5,606

 
9,072

Income (loss) before income taxes and discontinued operations
(3,414
)
 
(2,245
)
 
(2,473
)
 
(5,018
)
Income tax (expense) benefit
1,247

 
677

 
1,295

 
(32,611
)
Net income (loss) from continuing operations
(2,167
)
 
(1,568
)
 
(1,178
)
 
(37,629
)
Income (loss) from discontinued operations, net of tax
427

 
(607
)
 
(787
)
 
(529
)
Net income (loss)
(1,740
)
 
(2,175
)
 
(1,965
)
 
(38,158
)
Net income (loss) per common share:
 
 
 
 
 
 
 
Basic
$
(0.03
)
 
$
(0.04
)
 
$
(0.03
)
 
$
(0.66
)
Diluted
$
(0.03
)
 
$
(0.04
)
 
$
(0.03
)
 
$
(0.66
)

Operating expenses in fiscal year 2013 included the following items: the September quarter included $534,000 of expense for the costs of a resolution of a dispute related the CNS sale and expenses resulting from the acquisition of ANTONE; the March quarter included a $2.9 million goodwill impairment charge.
Discontinued operations in the third quarter of fiscal year 2013 includes an after-tax charge of $0.9 million for a pending indemnification claim related to the sale of the discontinued operations of ConferencePlus and an unrelated tax benefit of $0.3 million that resulted from finalizing income tax filings related to the sale.
The fourth quarter of fiscal year 2013 includes an income tax charge for fully reserving deferred tax assets.