Quarterly report pursuant to Section 13 or 15(d)

Interim Segment Information (Notes)

v3.3.0.814
Interim Segment Information (Notes)
 3 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Interim Segment Information
Interim Segment 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 continues to define segment profit as 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 two reportable segments are as follows:
In-Building Wireless (IBW) Segment
The IBW segment solutions include distributed antenna systems (DAS) conditioners, high-performance digital repeaters and bi-directional amplifiers (BDAs), and system components and antennas, all used by wireless service providers and neutral-party hosts to fine tune radio frequency (RF) signals that helps extend coverage to areas not served well or at all by traditional cell sites.
Communication Solutions Group (CSG) Segment
The CSG segment solutions include intelligent site management (ISM), cell site optimization (CSO), and outside plant (OSP) as follows:
• ISM solutions include a suite of Remote monitoring and control devices which, when combined with the Company's Optima management system, provides comprehensive machine-to-machine (M2M) communications that enable operators to remotely monitor, manage, and control site infrastructure and support systems.
• CSO solutions consist of tower mounted amplifiers (TMAs), small outdoor-hardened units mounted next to antennas on cell towers, enabling wireless service providers to improve the overall performance of a cell site, including increasing data throughput and reducing dropped connections.
• OSP solutions, which are sold to wireline and wireless service providers as well as industrial network operators, consist of a broad range of offerings, including cabinets, enclosures, and mountings; synchronous optical networks/time division multiplexing (SONET/TDM) network interface units; power distribution units; copper and fiber connectivity panels; hardened Ethernet switches; and systems integration services.

Segment information for the three months ended June 30, 2015, and 2014 is set forth below: 


 
 
Three months ended June 30, 2015
(in thousands)
 
IBW
 
CSG
 
Total
Revenue
 
$
9,070

 
$
12,500

 
$
21,570

Cost of revenue
 
5,069

 
8,072

 
13,141

Gross profit
 
4,001

 
4,428

 
8,429

Gross margin
 
44.1
%
 
35.4
%
 
39.1
%
Research and development
 
3,162

 
1,924

 
5,086

Segment profit (loss)
 
$
839

 
$
2,504

 
3,343

Operating expenses:
 
 
 
 
 


Sales and marketing
 
 
 
 
 
3,196

General and administrative
 
 
 
 
 
2,969

Intangible amortization
 
 
 
 
 
1,399

Restructuring
 
 
 
 
 
17

Operating income (loss)
 
 
 
 
 
(4,238
)
Other income (expense), net
 
 
 
 
 
38

Income tax benefit (expense)
 
 
 
 
 
62

Net income (loss) from continuing operations
 
 
 
 
 
$
(4,138
)
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2014
(in thousands)
 
IBW
 
CSG
 
Total
Revenue
 
$
14,097

 
$
13,728

 
$
27,825

Cost of revenue
 
8,286

 
9,855

 
18,141

Gross profit
 
5,811

 
3,873

 
9,684

Gross margin
 
41.2
%

28.2
%
 
34.8
%
Research and development
 
2,195

 
2,280

 
4,475

Segment profit (loss)
 
$
3,616

 
$
1,593

 
5,209

Operating expenses:
 
 
 
 
 


Sales and marketing
 
 
 
 
 
3,421

General and administrative
 
 
 
 
 
3,054

Intangible amortization
 
 
 
 
 
1,585

Restructuring
 
 
 
 
 
57

Operating income (loss)
 
 
 


 
(2,908
)
Other income (expense), net
 
 
 
 
 
61

Income tax benefit (expense)
 
 
 
 
 
29

Net income (loss) from continuing operations
 
 
 


 
$
(2,818
)


Segment asset information is not reported to or used by the CODM.