Quarterly report pursuant to Section 13 or 15(d)

Interim Segment Information (Notes)

v3.3.0.814
Interim Segment Information (Notes)
 6 Months Ended
Sep. 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 and six months ended September 30, 2015, and 2014 is set forth below: 

 
 
Three months ended September 30, 2015
(in thousands)
 
IBW
 
CSG
 
Total
Revenue
 
$
10,819

 
$
14,695

 
$
25,514

Cost of revenue
 
6,272

 
9,011

 
15,283

Gross profit
 
4,547

 
5,684

 
10,231

Gross margin
 
42.0
%
 
38.7
%
 
40.1
%
Research and development
 
2,775

 
1,850

 
4,625

Segment profit (loss)
 
$
1,772

 
$
3,834

 
5,606

Operating expenses:
 
 
 
 
 
 
Sales and marketing
 
 
 
 
 
4,026

General and administrative
 
 
 
 
 
2,580

Intangible amortization
 
 
 
 
 
1,432

Restructuring
 
 
 
 
 
—

Operating income (loss)
 
 
 
 
 
(2,432
)
Other income (expense), net
 
 
 
 
 
(61
)
Income tax benefit (expense)
 
 
 
 
 
20

Net income (loss) from continuing operations
 
 
 
 
 
$
(2,473
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Three months ended September 30, 2014
(in thousands)
 
IBW
 
CSG
 
Total
Revenue
 
$
11,121

 
$
12,525

 
$
23,646

Cost of revenue
 
6,753

 
8,828

 
15,581

Gross profit
 
4,368

 
3,697

 
8,065

Gross margin
 
39.3
%
 
29.5
%
 
34.1
%
Research and development
 
2,103

 
2,197

 
4,300

Segment profit (loss)
 
$
2,265

 
$
1,500

 
3,765

Operating expenses:
 
 
 
 
 
 
Sales and marketing
 
 
 
 
 
2,924

General and administrative
 
 
 
 
 
3,280

Intangible amortization
 
 
 
 
 
1,710

Restructuring
 
 
 
 
 
(2
)
Goodwill impairment
 
 
 
 
 
11,450

Operating income (loss)
 
 
 
 
 
(15,597
)
Other income (expense), net
 
 
 
 
 
(16
)
Income tax benefit (expense)
 
 
 
 
 
69

Net income (loss) from continuing operations
 
 
 
 
 
$
(15,544
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended September 30, 2015
(in thousands)
 
IBW
 
CSG
 
Total
Revenue
 
$
19,889

 
$
27,195

 
$
47,084

Cost of revenue
 
11,341

 
17,083

 
28,424

Gross profit
 
8,548

 
10,112

 
18,660

Gross margin
 
43.0
%
 
37.2
%
 
39.6
%
Research and development
 
5,937

 
3,774

 
9,711

Segment profit (loss)
 
$
2,611

 
$
6,338

 
8,949

Operating expenses:
 
 
 
 
 


Sales and marketing
 
 
 
 
 
7,222

General and administrative
 
 
 
 
 
5,549

Intangible amortization
 
 
 
 
 
2,831

Restructuring
 
 
 
 
 
17

Operating income (loss)
 
 
 
 
 
(6,670
)
Other income (expense), net
 
 
 
 
 
(23
)
Income tax benefit (expense)
 
 
 
 
 
82

Net income (loss) from continuing operations
 
 
 
 
 
$
(6,611
)
 
 
 
 
 
 
 

 
 
Six months ended September 30, 2014
(in thousands)
 
IBW
 
CSG
 
Total
Revenue
 
$
25,218

 
$
26,253

 
$
51,471

Cost of revenue
 
15,039

 
18,683

 
33,722

Gross profit
 
10,179

 
7,570

 
17,749

Gross margin
 
40.4
%

28.8
%
 
34.5
%
Research and development
 
4,298

 
4,477

 
8,775

Segment profit (loss)
 
$
5,881

 
$
3,093

 
8,974

Operating expenses:
 
 
 
 
 


Sales and marketing
 
 
 
 
 
6,345

General and administrative
 
 
 
 
 
6,334

Intangible amortization
 
 
 
 
 
3,295

Restructuring
 
 
 
 
 
55

Goodwill impairment
 
 
 
 
 
11,450

Operating income (loss)
 
 
 


 
(18,505
)
Other income (expense), net
 
 
 
 
 
45

Income tax benefit (expense)
 
 
 
 
 
98

Net income (loss) from continuing operations
 
 
 


 
$
(18,362
)


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