Quarterly report pursuant to Section 13 or 15(d)

Interim Segment Information

v2.4.0.8
Interim Segment Information
 3 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Interim Segment Information
Interim Segment Information
Westell’s Chief Executive Officer is the chief operating decision maker (CODM). In the first quarter of fiscal 2015, the Company revised its segment reporting structure to realign internal reporting as a result of the full integration of Kentrox into Westell, and the recent CSI acquisition. The CODM continues to define segment profit as gross profit less research and development expenses. In order to provide information that is comparable year to year, fiscal year 2014 segment information has been restated to reflect the new reporting structure. 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 two reportable segments are as follows:
Communication Solutions Group (CSG) Segment
The CSG segment consists of all the intelligent site management, cell site optimization, and outside plant solutions product offerings. CSG segment products and solutions are developed at the Company’s design centers in Dublin, Ohio; Aurora, Illinois; Goleta, California; and Regina, Canada. The CSG operations are managed centrally at the Aurora facility, where products are assembled, tested, packaged, and shipped to customers.
In-Building Wireless (IBW) Segment
The IBW segment consists of all the in-building wireless solutions products, which include the comprehensive suite of products and solutions acquired with the addition of CSI, as well as the Westell developed DAS interface panels. IBW segment products and solutions are developed at the Company’s design center in Manchester, New Hampshire. IBW operations are managed centrally at our Manchester facility, where products other than the Westell developed DAS panels, are assembled, tested, packaged, and shipped to customers. The Westell developed DAS panels are assembled, tested, packaged, and shipped from Aurora, Illinois.
Segment information for the three months ended June 30, 2014, and 2013 is set forth below: 

 
 
 
Three months ended June 30, 2014
(in thousands)
 
 
CSG
 
IBW
 
Total
Revenue
 
 
$
13,728

 
$
14,097

 
$
27,825

Cost of revenue
 
 
9,855

 
8,286

 
18,141

Gross profit
 
 
3,873

 
5,811

 
9,684

Gross margin
 
 
28.2
%
 
41.2
%
 
34.8
%
Research and development
 
 
2,280

 
2,195

 
4,475

Segment profit
 
 
$
1,593

 
$
3,616

 
5,209

Operating expenses:
 
 
 
 
 
 
 
Sales and marketing
 
 
 
 
 
 
3,421

General and administrative
 
 
 
 
 
 
3,054

Intangible amortization
 
 
 
 
 
 
1,585

Restructuring
 
 
 
 
 
 
57

Operating loss
 
 
 
 
 
 
(2,908
)
Other income (expense)
 
 
 
 
 
 
61

Income tax benefit (expense)
 
 
 
 
 
 
29

Net loss from continuing operations
 
 
 
 
 
 
$
(2,818
)
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2013
(in thousands)
 
 
CSG
 
IBW
 
Total
Revenue
 
 
$
21,429

 
$
1,027

 
$
22,456

Cost of revenue
 
 
13,307

 
732

 
14,039

Gross profit
 
 
8,122

 
295

 
8,417

Gross margin
 
 
37.9
%
 
28.7
%
 
37.5
%
Research and development
 
 
2,507

 
192

 
2,699

Segment profit
 
 
$
5,615

 
$
103

 
5,718

Operating expenses:
 
 
 
 
 
 


Sales and marketing
 
 
 
 


 
3,059

General and administrative
 
 
 
 


 
3,572

Intangible amortization
 
 
 
 
 
 
1,622

Restructuring
 
 
 
 


 
66

Operating loss
 
 
 
 
 
 
(2,601
)
Other income (expense)
 
 
 
 


 
(130
)
Income tax benefit (expense)
 
 
 
 


 
(19
)
Net loss from continuing operations
 
 
 
 
 
 
$
(2,750
)


Asset information, although available, is not reported to or used by the CODM.