Annual report pursuant to Section 13 and 15(d)

Segment Information (Tables)

Segment Information (Tables)

12 Months Ended

Mar. 31, 2013

Segment Reporting Information [Line Items]

Segment information for the fiscal years ended March 31, 2013, 2012 and 2011, is set forth below:



	Fiscal Year Ended March 31, 2013
(in thousands)	Westell			CNS			Unallocated			Total
Revenue	$	38,808		$	1,236		$	—		$	40,044
Gross profit	13,325			999			—			14,324
Gross margin	34.3		%	80.8		%	—			35.8		%
Operating expenses:
Sales & marketing	7,492			(53		)	—			7,439
Research & development	5,725			1,601			—			7,326
General & administrative	4,401			600			4,909			9,910
Intangible amortization	887			5			—			892
Restructuring	149			—			—			149
Goodwill impairment	2,884			—			—			2,884
Operating expenses	21,538			2,153			4,909			28,600
Operating income (loss)	$	(8,213	)	$	(1,154	)	(4,909		)	(14,276		)
Other income (expense), net							175			175
Income tax (expense) benefit							(29,392		)	(29,392		)
Net income (loss) from continuing operations							$	(34,126	)	$	(43,493	)

	Fiscal Year Ended March 31, 2012
(in thousands)	Westell			CNS			Unallocated			Total
Revenue	$	43,629		$	26,026		$	—		$	69,655
Gross profit	17,272			5,985			—			23,257
Gross margin	39.6		%	23.0		%	—			33.4		%
Operating expenses:
Sales & marketing	5,573			923			—			6,496
Research & development	5,117			2,610			—			7,727
General & administrative	2,834			976			3,805			7,615
Intangible amortization	544			4			—			548
Restructuring	275			275			—			550
Operating expenses	14,343			4,788			3,805			22,936
Operating income (loss)	$	2,929		$	1,197		(3,805		)	321
Gain on CNS asset sale							31,654			31,654
Other income (expense), net							331			331
Income tax (expense) benefit							(12,875		)	(12,875		)
Net income (loss) from continuing operations							$	15,305		$	19,431



	Fiscal Year Ended March 31, 2011
(in thousands)	Westell			CNS			Unallocated			Total
Revenue	$	58,770		$	89,079		$	—		$	147,849
Gross profit	25,667			15,885			—			41,552
Gross margin	43.7		%	17.8		%	—			28.1		%
Operating expenses:
Sales & marketing	5,922			4,891			—			10,813
Research & development	3,825			7,949			—			11,774
General & administrative	2,023			3,365			3,235			8,623
Intangible amortization	540			5			—			545
Restructuring	—			—			—			—
Operating expenses	12,310			16,210			3,235			31,755
Operating income (loss)	$	13,357		$	(325	)	(3,235		)	9,797
Other income (expense), net							20			20
Income tax (expense) benefit							53,304			53,304
Net income (loss) from continuing operations							$	50,089		$	63,121



Depreciation and amortization	Fiscal Year Ended March 31,
(in thousands)	2013		2012		2011
Westell depreciation and amortization	$	1,342	$	955	$	809
CNS depreciation and amortization	39		121		428
Total depreciation and amortization	$	1,381	$	1,076	$	1,237

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

Significant Customers and Concentration of Credit

The Company is dependent on certain major companies operating in telecommunications markets that represent more than 10% of the total revenue. Sales to major customers and successor companies that exceed 10% of total revenue are as follows:



	Fiscal Year Ended March 31,
	2013		2012		2011
Verizon	19.7	%	45.4	%	39.4	%
CenturyLink	6.8	%	6.0	%	11.4	%
Frontier	2.4	%	3.1	%	10.8	%
Telamon	12.0	%	8.9	%	5.3	%
Time Warner Cable	10.1	%	2.0	%	0.6	%

Schedule of Major Customer Accounts Receivable [Table Text Block]

Major companies operating in telecommunications markets comprise a significant portion of the Company’s trade receivables. Receivables from major customers that exceed 10% of total accounts receivable balance are as follows:



	Fiscal Year Ended March 31,
	2013		2012
Verizon	11.4	%	22.4	%
Telamon	12.6	%	13.6	%
Time Warner Cable	19.8	%	14.8	%

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]

Geographic Information

The Company’s financial information by geographic area was as follows for the fiscal years ended March 31:



(in thousands)	Domestic			International			Total
2013
Revenue	$	38,069		$	1,975		$	40,044
Operating income (loss)	(13,410		)	(866		)	(14,276		)
Total assets	143,441			1,731			145,172
2012
Revenue	$	63,974		$	5,681		$	69,655
Operating income (loss)	798			(477		)	321
Total assets	192,137			5,289			197,426
2011
Revenue	$	140,848		$	7,001		$	147,849
Operating income (loss)	9,491			306			9,797
Total assets	192,457			8,930			201,387

International identifiable assets, revenues and operating income (loss) are related to Noran Tel, Inc. which is located in Regina, Saskatchewan, Canada. International identifiable assets for fiscal year 2011 also include the assets of Conference Plus Global Services, Ltd., which was located in Dublin, Ireland, and London, England. Conference Plus Global Services, Ltd. was sold on December 31, 2011, with ConferencePlus.

- Definition

Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries.

+ References + Details

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details