Annual report pursuant to Section 13 and 15(d)

Basis of Presentation (Tables)

v3.3.0.814
Basis of Presentation (Tables)
 12 Months Ended
Mar. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Discontinued operations revenue and income before income taxes reported in discontinued operations
Revenue and income before income taxes reported in discontinued operations is as follows:
 
Fiscal Year Ended March 31,
(in thousands)
2015
 
2014
 
2013
Discontinued CPI Revenue
$
—

 
$
—

 
$
—

Discontinued CNS Revenue
—

 
—

 
1,236

Total discontinued operations revenue
$
—

 
$
—

 
$
1,236

 
 
 
 
 
 
CPI income (loss) before income taxes
$
227

 
$
—

 
$
(1,358
)
CNS income (loss) before income taxes
—

 
(45
)
 
(951
)
Total discontinued operations income (loss) before income taxes
$
227

 
$
(45
)
 
$
(2,309
)
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]
Reconciliation to Previously Reported Financial Data

The following table provides the reconciliation from previously reported financial data, as restated and adjusted:
 
 
Fiscal Year ended March 31, 2014
 
Fiscal Year ended March 31, 2013
(in thousands)
 
Previously reported
 
Effect of
Accounting
Principle
Change (1)
 
Effect of CSI
Purchase
Accounting
Adjustment (2)
 
Adjustments (3)
 
Adjusted
 
Previously reported
 
Effect of Accounting Principle Change (1)
 
Adjusted
Revenue
 
$
102,073

 
$
—

 
$
—

 
$
—

 
$
102,073

 
$
38,808

 
$
—

 
$
38,808

Cost of revenue
 
60,115

 
1,359

 
138

 
—

 
61,612

 
25,483

 
709

 
26,192

Gross profit
 
$
41,958

 
$
(1,359
)
 
$
(138
)
 
$
—

 
$
40,461

 
$
13,325

 
$
(709
)
 
$
12,616

Gross margin
 
41.1
%
 
 
 
 
 
 
 
39.6
%
 
34.3
%
 
 
 
32.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
 
$
14,663

 
$
(1,359
)
 
$
—

 
$
—

 
$
13,304

 
$
7,492

 
$
(709
)
 
$
6,783

Intangible Amortization
 
$
4,908

 
$
—

 
$
(19
)
 
$
—

 
$
4,889

 
$
887

 
$
—

 
$
887

Income tax (expense) benefit
 
$
8,782

 
$
—

 
$
(322
)
 
$
(550
)
 
$
7,910

 
$
(29,392
)
 
$
—

 
$
(29,392
)
Net income (loss)
 
$
5,367

 
$
—

 
$
(441
)
 
$
(550
)
 
$
4,376

 
$
(44,038
)
 
$
—

 
$
(44,038
)
(1) See Voluntary Change in Accounting Principle above
(2) Certain amounts have been adjusted to reflect measurement period adjustments related to the CSI acquisition (see Note 2).
(3) See Restatement of Consolidated Financial Statements below in Note 1.    

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]
summary of the impacts of the restatement adjustments on the Company's previously reported consolidated net income (loss):
 
Fiscal Year 2015 Quarter Ended,
 
Fiscal Year Ended,
(in thousands)
June 30, 2014
 
Sept. 30, 2014
 
Dec. 31, 2014
 
Mar. 31, 2015
 
Mar. 31, 2015
Net income (loss) previously reported
$
(2,818
)
 
$
(14,649
)
 
$
(27,540
)
 
$
(13,000
)
 
$
(58,007
)
Goodwill impairment adjustment
—

 
895

 
—

 
—

 
895

Net income (loss) as restated
$
(2,818
)
 
$
(15,544
)
 
$
(27,540
)
 
$
(13,000
)
 
$
(58,902
)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year 2014 Quarter Ended
 
Fiscal Year Ended,
 
June 30, 2013
 
Sept. 30, 2013
 
Dec. 31, 2013
 
Mar. 31, 2014
 
Mar. 31, 2014
Net income (loss) previously reported
$
(2,764
)
 
$
1,328

 
$
1,925

 
$
4,437

 
$
4,926

Income tax expense adjustment
—

 
—

 
—

 
550

 
550

Net income (loss) as restated
$
(2,764
)
 
$
1,328

 
$
1,925

 
$
3,887

 
$
4,376

The following tables provide a reconciliation of the amounts previously reported to the restated amounts for the years ended March 31, 2014 and March 31, 2015.

WESTELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
March 31, 2014(as reported)
 
Adjustments
 
March 31, 2014(as restated)
 
Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
$
35,793

 
$
—

 
$
35,793

 
Short-term investments
15,584

 
—

 
15,584

 
Accounts receivable
15,831

 
—

 
15,831

 
Inventories
24,056

 
—

 
24,056

 
Prepaid expenses and other current assets
1,952

 
—

 
1,952

 
Deferred income tax assets
899

 
550

 
1,449

 
Land held-for-sale
264

 
—

 
264

 
Total current assets
94,379

 
550

 
94,929

 
Land, Property and equipment:
 
 
 
 
 
 
Land
780

 
—

 
780

 
Machinery and equipment
1,413

 
—

 
1,413

 
Office, computer and research equipment
9,039

 
—

 
9,039

 
Leasehold improvements
7,450

 
—

 
7,450

 
Total property and equipment, gross
18,682

 
—

 
18,682

 
Less accumulated depreciation and amortization
(16,001
)
 
—

 
(16,001
)
 
Property and equipment, net
2,681

 
—

 
2,681

 
Goodwill
31,102

 
895

 
31,997

 
Other intangible assets, net
32,319

 
—

 
32,319

 
Other non-current assets
393

 
—

 
393

 
Total assets
$
160,874

 
$
1,445

 
$
162,319

 
Liabilities and Stockholders’ Equity
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
Accounts payable
$
7,508

 
$
—

 
$
7,508

 
Accrued expenses
2,920

 
1,445

 
4,365

 
Accrued restructuring
57

 
—

 
57

 
Accrued compensation
4,395

 
—

 
4,395

 
Contingent consideration
2,067

 
—

 
2,067

 
Deferred revenue
1,774

 
—

 
1,774

 
Total current liabilities
18,721

 
1,445

 
20,166

 
Deferred revenue non-current
787

 
 
 
787

 
Deferred income tax liability
1,072

 
550

 
1,622

 
Accrued restructuring non-current
—

 
—

 
—

 
Contingent consideration non-current
574

 
—

 
574

 
Other non-current liabilities
528

 
—

 
528

 
Total liabilities
21,682

 
1,995

 
23,677

 
Stockholders’ equity:
 
 
 
 

 
Class A common stock
459

 
—

 
459

 
Class B common stock
139

 
—

 
139

 
Additional paid-in capital
410,176

 
—

 
410,176

 
Treasury stock at cost
(34,206
)
 
—

 
(34,206
)
 
Cumulative translation adjustment
608

 
—

 
608

 
Accumulated deficit
(237,984
)
 
(550
)
 
(238,534
)
 
Total stockholders’ equity
139,192

 
(550
)
 
138,642

 
Total liabilities and stockholders’ equity
$
160,874

 
$
1,445

 
$
162,319

 
WESTELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
March 31, 2015(as reported)
 
Adjustments
 
March 31, 2015(as restated)
Assets
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
14,026

 
$
—

 
$
14,026

Short-term investments
23,906

 
—

 
23,906

Accounts receivable
11,845

 
—

 
11,845

Inventories
16,205

 
—

 
16,205

Prepaid expenses and other current assets
3,285

 
—

 
3,285

Deferred income tax assets
973

 
70

 
1,043

Land held-for-sale
264

 
—

 
264

Total current assets
70,504

 
70

 
70,574

Land, Property and equipment:
 
 
 
 
 
Land
672

 
—

 
672

Machinery and equipment
1,701

 
—

 
1,701

Office, computer and research equipment
6,260

 
—

 
6,260

Leasehold improvements
7,451

 
—

 
7,451

Total property and equipment, gross
16,084

 
—

 
16,084

Less accumulated depreciation and amortization
(12,481
)
 
—

 
(12,481
)
Property and equipment, net
3,603

 
—

 
3,603

Goodwill
—

 
—

 
—

Other intangible assets, net
25,942

 
—

 
25,942

Other non-current assets
258

 
—

 
258

Total assets
$
100,307

 
$
70

 
$
100,377

Liabilities and Stockholders’ Equity
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable
$
4,011

 
$
—

 
$
4,011

Accrued expenses
3,157

 
1,445

 
4,602

Accrued restructuring
1,161

 
—

 
1,161

Accrued compensation
974

 
—

 
974

Contingent consideration
1,184

 
—

 
1,184

Deferred revenue
2,415

 
—

 
2,415

Total current liabilities
12,902

 
1,445

 
14,347

Deferred revenue non-current
751

 
—

 
751

Deferred income tax liability
1,019

 
70

 
1,089

Accrued restructuring non-current
1,642

 
—

 
1,642

Contingent consideration non-current
400

 
—

 
400

Other non-current liabilities
409

 
—

 
409

Total liabilities
17,123

 
1,515

 
18,638

Stockholders’ equity:
 
 
 
 
 
Class A common stock
468

 
—

 
468

Class B common stock
139

 
—

 
139

Additional paid-in capital
413,026

 
—

 
413,026

Treasury stock at cost
(35,066
)
 
—

 
(35,066
)
Cumulative translation adjustment
608

 
—

 
608

Accumulated deficit
(295,991
)
 
(1,445
)
 
(297,436
)
Total stockholders’ equity
83,184

 
(1,445
)
 
81,739

Total liabilities and stockholders’ equity
$
100,307

 
$
70

 
$
100,377

WESTELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)
Fiscal Year Ended March 31,
 
2014
(as reported)
 
Adjustments
 
2014
(as restated)
Revenue
$
102,073

 
$
—

 
$
102,073

Cost of revenue
61,612

 
—

 
61,612

Gross profit
40,461

 
—

 
40,461

Operating expenses:
 
 
 
 
—

Sales and marketing
13,304

 
—

 
13,304

Research and development
11,339

 
—

 
11,339

General and administrative
14,027

 
—

 
14,027

Intangible amortization
4,889

 
—

 
4,889

Restructuring
335

 
—

 
335

Goodwill impairment
—

 
—

 
—

Total operating expenses
43,894

 
—

 
43,894

Operating loss from continuing operations
(3,433
)
 
—

 
(3,433
)
Other income (expense), net
(56
)
 
—

 
(56
)
Loss before income taxes and discontinued operations
(3,489
)
 
—

 
(3,489
)
Income tax (expense) benefit
8,460

 
(550
)
 
7,910

Net income (loss) from continuing operations
4,971

 
(550
)
 
4,421

Discontinued operations (Note 1):
 
 
 
 

Income (loss) from discontinued operations, net of tax benefit (expense) of $(88), $0 and $813 for fiscal years 2015, 2014 and 2013, respectively
(45
)
 
—

 
(45
)
Net income (loss)
$
4,926

 
$
(550
)
 
$
4,376

Basic net income (loss) per share:
 
 
 
 

Basic net income (loss) from continuing operations
$
0.08

 
$
(0.01
)
 
$
0.08

Basic net income (loss) from discontinued operations
—

 
—

 
—

Basic net income (loss) per share
$
0.08

 
$
(0.01
)
 
$
0.07

Diluted net income (loss) per share:
 
 
 
 

Diluted net income (loss) from continuing operations
$
0.08

 
$
(0.01
)
 
$
0.07

Diluted net income (loss) from discontinued operations
—

 
—

 
—

Diluted net income (loss) per share
$
0.08

 
$
(0.01
)
 
$
0.07

Weighted-average number of shares outstanding:
 
 
 
 

Basic
58,786

 
—

 
58,786

Effect of dilutive securities: restricted stock, restricted stock units, performance stock units and stock options(3)
1,262

 
—

 
1,262

Diluted
60,048

 
—

 
60,048

WESTELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)
Fiscal Year Ended March 31,
 
2015
(as reported)
 
Adjustments
 
2015
(as restated)
Revenue
$
84,127

 
$
—

 
$
84,127

Cost of revenue
57,317

 
—

 
57,317

Gross profit
26,810

 
—

 
26,810

Operating expenses:
 
 
 
 
—

Sales and marketing
12,407

 
—

 
12,407

Research and development
17,348

 
—

 
17,348

General and administrative
14,678

 
—

 
14,678

Intangible amortization
6,377

 
—

 
6,377

Restructuring
3,243

 
—

 
3,243

Goodwill impairment
31,102

 
895

 
31,997

Total operating expenses
85,155

 
895

 
86,050

Operating loss from continuing operations
(58,345
)
 
(895
)
 
(59,240
)
Other income (expense), net
(2
)
 
—

 
(2
)
Loss before income taxes and discontinued operations
(58,347
)
 
(895
)
 
(59,242
)
Income tax (expense) benefit
201

 
—

 
201

Net income (loss) from continuing operations
(58,146
)
 
(895
)
 
(59,041
)
Discontinued operations (Note 1):
 
 
 
 
 
Income (loss) from discontinued operations, net of tax benefit (expense) of $(88), $0 and $813 for fiscal years 2015, 2014 and 2013, respectively
139

 
—

 
139

Net income (loss)
$
(58,007
)
 
$
(895
)
 
$
(58,902
)
Basic net income (loss) per share:
 
 
 
 
 
Basic net income (loss) from continuing operations
$
(0.97
)
 
$
(0.01
)
 
$
(0.98
)
Basic net income (loss) from discontinued operations
—

 
—

 
—

Basic net income (loss) per share
$
(0.97
)
 
$
(0.01
)
 
$
(0.98
)
Diluted net income (loss) per share:
 
 
 
 
 
Diluted net income (loss) from continuing operations
$
(0.97
)
 
$
(0.01
)
 
$
(0.98
)
Diluted net income (loss) from discontinued operations
—

 
—

 
—

Diluted net income (loss) per share
$
(0.97
)
 
$
(0.01
)
 
$
(0.98
)
Weighted-average number of shares outstanding:
 
 
 
 
 
Basic
59,985

 
—

 
59,985

Effect of dilutive securities: restricted stock, restricted stock units, performance stock units and stock options(3)
—

 
—

 
—

Diluted
59,985

 
—


59,985

WESTELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 (In thousands)
Fiscal Year Ended March 31,
 
2014
 (as reported)
 
Adjustments
 
2014
(as restated)
Net income (loss)
$
4,926

 
$
(550
)
 
$
4,376

Other comprehensive income (loss):
 
 
 
 

Foreign currency translation adjustment
—

 
—

 
—

Total other comprehensive income (loss)
—

 
—

 
—

Total comprehensive income (loss)
$
4,926

 
$
(550
)
 
$
4,376

 (In thousands)
Fiscal Year Ended March 31,
 
2015
(as reported)
 
Adjustments
 
2015
(as restated)
Net income (loss)
$
(58,007
)
 
$
(895
)
 
$
(58,902
)
Other comprehensive income (loss):
 
 
 
 
 
Foreign currency translation adjustment
—

 
—

 
—

Total other comprehensive income (loss)
—

 
—

 
—

Total comprehensive income (loss)
$
(58,007
)
 
$
(895
)
 
$
(58,902
)

WESTELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
 (In thousands)
Fiscal Year Ended March 31,
 
2014
(as reported)
 
Adjustments
 
2014
(as restated)
Common Stock Class A
$
459

 
$
—

 
$
459

Common Stock Class B
139

 
—

 
139

Additional paid-in-capital
410,176

 
—

 
410,176

Accumulated translation adjustment
608

 
—

 
608

Accumulated deficit
(237,984
)
 
(550
)
 
(238,534
)
Treasury stock
(34,206
)
 
—

 
(34,206
)
Total stockholders' equity
$
139,192

 
$
(550
)
 
$
138,642

 (In thousands)
Fiscal Year Ended March 31,
 
2015
(as reported)
 
Adjustments
 
2015
(as restated)
Common Stock Class A
$
468

 
$
—

 
$
468

Common Stock Class B
139

 
—

 
139

Additional paid-in-capital
413,026

 
—

 
413,026

Accumulated translation adjustment
608

 
—

 
608

Accumulated deficit
(295,991
)
 
(1,445
)
 
(297,436
)
Treasury stock
(35,066
)
 
—

 
(35,066
)
Total stockholders' equity
$
83,184

 
$
(1,445
)
 
$
81,739


WESTELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Fiscal Year Ended March 31,
 
2014
(as reported)
 
Adjustments
 
2014
(as restated)
Cash flows from operating activities:
 
 
 
 
 
Net income (loss)
$
4,926

 
$
(550
)
 
$
4,376

Reconciliation of net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
Depreciation and amortization
5,511

 
—

 
5,511

Goodwill impairment
—

 
—

 
—

Stock-based compensation
1,871

 
—

 
1,871

Exchange rate loss
33

 
—

 
33

Impairment loss or loss (gain) on sale of fixed assets
8

 
—

 
8

Restructuring
335

 
—

 
335

Deferred taxes
(8,990
)
 
550

 
(8,440
)
Changes in assets and liabilities:
 
 
 
 
—

Accounts receivable
(2,139
)
 
—

 
(2,139
)
Inventories
595

 
—

 
595

Prepaid expenses and other current assets
742

 
—

 
742

Other assets
190

 
—

 
190

Deferred revenue
(404
)
 
—

 
(404
)
Accounts payable and accrued expenses
(3,223
)
 
—

 
(3,223
)
Accrued compensation
2,142

 
—

 
2,142

Net cash provided by (used in) operating activities
1,597

 
—

 
1,597

Cash flows from investing activities:
 
 
 
 
 
Maturities of held-to maturity short-term debt securities
28,514

 
—

 
28,514

Maturities of other short-term investments
3,682

 
—

 
3,682

Purchases of held-to maturity short-term debt securities
(21,955
)
 
—

 
(21,955
)
Purchases of other short-term investments
(1,476
)
 
—

 
(1,476
)
Purchases of property and equipment
(443
)
 
—

 
(443
)
Proceeds from sale of assets
—

 
—

 
—

Acquisitions, net of cash acquired
(66,170
)
 
—

 
(66,170
)
Changes in restricted cash
2,500

 
—

 
2,500

Net cash used in investing activities
(55,348
)
 
—

 
(55,348
)
Cash flows from financing activities:
 
 
 
 
 
Purchase of treasury stock
(359
)
 
—

 
(359
)
Payment of contingent consideration
—

 
—

 
—

Proceeds from stock options exercised
1,677

 
—

 
1,677

Net cash provided by (used in) financing activities
1,318

 
—

 
1,318

(Gain) loss of exchange rate changes on cash
(7
)
 
—

 
(7
)
Net increase (decrease) in cash and cash equivalents
(52,440
)
 
—

 
(52,440
)
Cash and cash equivalents, beginning of period
88,233

 
—

 
88,233

Cash and cash equivalents, end of period
$
35,793

 
$
—

 
$
35,793


WESTELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Fiscal Year Ended March 31,
 
2015
 (as restated)
 
Adjustments
 
2015
(as restated)
Cash flows from operating activities:
 
 
 
 
 
Net income (loss)
$
(58,007
)
 
$
(895
)
 
$
(58,902
)
Reconciliation of net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
Depreciation and amortization
7,416

 
—

 
7,416

Goodwill impairment
31,102

 
895

 
31,997

Stock-based compensation
2,605

 
—

 
2,605

Exchange rate loss
23

 
—

 
23

Impairment loss or loss (gain) on sale of fixed assets
117

 
—

 
117

Restructuring
3,243

 
—

 
3,243

Deferred taxes
(127
)
 
—

 
(127
)
Changes in assets and liabilities:
 
 
 
 
—

Accounts receivable
3,986

 
—

 
3,986

Inventories
8,186

 
—

 
8,186

Prepaid expenses and other current assets
(1,661
)
 
—

 
(1,661
)
Other assets
137

 
—

 
137

Deferred revenue
605

 
—

 
605

Accounts payable and accrued expenses
(3,492
)
 
—

 
(3,492
)
Accrued compensation
(3,420
)
 
—

 
(3,420
)
Net cash provided by (used in) operating activities
(9,287
)
 
—

 
(9,287
)
Cash flows from investing activities:
 
 
 
 
 
Maturities of held-to maturity short-term debt securities
22,776

 
—

 
22,776

Maturities of other short-term investments
1,985

 
—

 
1,985

Purchases of held-to maturity short-term debt securities
(24,662
)
 
—

 
(24,662
)
Purchases of other short-term investments
(8,421
)
 
—

 
(8,421
)
Purchases of property and equipment
(2,137
)
 
—

 
(2,137
)
Proceeds from sale of assets
—

 
—

 
—

Acquisitions, net of cash acquired
(304
)
 
—

 
(304
)
Changes in restricted cash
—

 
—

 
—

Net cash used in investing activities
(10,763
)
 
—

 
(10,763
)
Cash flows from financing activities:
 
 
 
 
 
Purchase of treasury stock
(863
)
 
—

 
(863
)
Payment of contingent consideration
(1,104
)
 
—

 
(1,104
)
Proceeds from stock options exercised
257

 
—

 
257

Net cash provided by (used in) financing activities
(1,710
)
 
—

 
(1,710
)
(Gain) loss of exchange rate changes on cash
(7
)
 
—

 
(7
)
Net increase (decrease) in cash and cash equivalents
(21,767
)
 
—

 
(21,767
)
Cash and cash equivalents, beginning of period
35,793

 
—

 
35,793

Cash and cash equivalents, end of period
$
14,026

 
$
—

 
$
14,026