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, 2013
Quarterly Results of Operations (Unaudited) [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 quarterly fluctuations in revenue and gross profit in fiscal year 2012 are due primarily to fluctuations in the CNS segment.  The Company sold substantially all of the assets of CNS in April, 2011. The Company retained a certain major CNS customer relationship and contract. The Company completed the remaining contractually required product shipments under the retained contract in December 2011. 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. Budget cycles for our customers may also contribute to revenue variability in those same periods. The third quarter of fiscal year 2012 reflected exaggerated declines in customer purchases from the Westell segment as a result of a variety of factors.
 
 
Fiscal Year 2013 Quarter Ended
 
June 30, 2012
 
Sept. 30, 2012
 
Dec. 31, 2012
 
Mar. 31, 2013
(in thousands, except per share amounts)
 
 
 
 
 
 
 
Revenue
$
10,530

 
$
9,922

 
$
8,928

 
$
10,664

Gross profit
3,796

 
3,448

 
3,143

 
3,937

Goodwill impairment
—

 
—

 
—

 
2,884

Total operating expenses
6,593

 
6,689

 
5,921

 
9,397

Income (loss) before income taxes and discontinued operations
(2,713
)
 
(3,234
)
 
(2,735
)
 
(5,419
)
Income tax (expense) benefit
973

 
1,059

 
1,399

 
(32,823
)
Net income (loss) from continuing operations
(1,740
)
 
(2,175
)
 
(1,336
)
 
(38,242
)
Income (loss) from discontinued operations, net of tax
—

 
—

 
(629
)
 
84

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 June 30, 2012, quarter included $545,000 of excess and obsolete inventory expense; 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.
 
Fiscal Year 2012 Quarter Ended
 
June 30, 2011
 
Sept. 30, 2011
 
Dec. 31, 2011
 
Mar. 31, 2012
(in thousands, except per share amounts)
 
 
 
 
 
 
 
Revenue
$
23,201

 
$
20,728

 
$
14,392

 
$
11,334

Gross profit
8,366

 
6,221

 
4,263

 
4,407

Total operating expenses
6,613

 
5,621

 
5,052

 
5,650

Gain on CNS asset sale
31,608

 
46

 
—

 
—

Income (loss) before income taxes and discontinued operations
33,379

 
760

 
(720
)
 
(1,113
)
Income tax (expense) benefit
(13,228
)
 
1,810

 
268

 
(1,725
)
Net income (loss) from continuing operations
20,151

 
2,570

 
(452
)
 
(2,838
)
Income from discontinued operations, net of tax
980

 
927

 
20,254

 
390

Net income (loss)
21,131

 
3,497

 
19,802

 
(2,448
)
Net income (loss) per common share:
 
 
 
 
 
 
 
Basic
$
0.31

 
$
0.05

 
$
0.30

 
$
(0.04
)
Diluted
$
0.30

 
$
0.05

 
$
0.29

 
$
(0.04
)
Operating expenses in fiscal year 2012 included the following items: the June 30, 2011, quarter included $0.2 million of severance benefits for employee terminations related to the sale of CNS; the March 31, 2012, quarter included a $0.3 million restructuring charge consisting primarily of severance benefits for employee terminations related to the plan to relocate the majority of Noran Tel operations from Canada to the United States.