Quarterly report pursuant to Section 13 or 15(d)

Interim Segment Information (Tables)

Interim Segment Information (Tables)

6 Months Ended

Sep. 30, 2016

Segment information for the six months ended September 30, 2016, and 2015, is set forth below:



	Three months ended September 30, 2016
(in thousands)	IBW				ISMS			CNS			Total
Revenue	$	6,644			$	5,109		$	6,027		$	17,780
Cost of revenue	4,411			⁽¹⁾	2,702			4,300			11,413
Gross profit	2,233				2,407			1,727			6,367
Gross margin	33.6		%		47.1		%	28.7		%	35.8		%
Research and development	1,594				1,237			496			3,327
Segment profit (loss)	$	639			$	1,170		$	1,231		3,040
Operating expenses:
Sales and marketing											2,896
General and administrative											2,218
Intangible amortization											1,201
Restructuring											2,601
Operating profit (loss)											(5,876		)
Other income (expense), net											74
Income tax benefit (expense)											(8		)
Net income (loss) from continuing operations											$	(5,810	)

	Three months ended September 30, 2015
(in thousands)	IBW				ISMS			CNS			Total
Revenue	$	10,819			$	5,886		$	8,809		$	25,514
Cost of revenue	6,272				2,722			6,289			15,283
Gross profit	4,547				3,164			2,520			10,231
Gross margin	42.0		%		53.8		%	28.6		%	40.1		%
Research and development	2,775				1,302			548			4,625
Segment profit (loss)	$	1,772			$	1,862		$	1,972		5,606
Operating expenses:
Sales and marketing											4,113
General and administrative											2,493
Intangible amortization											1,432
Operating profit (loss)											(2,432		)
Other income (expense), net											(61		)
Income tax benefit (expense)											20
Net income (loss) from continuing operations											$	(2,473	)




	Six months ended September 30, 2016
(in thousands)	IBW				ISMS			CNS			Total
Revenue	$	12,765			$	9,248		$	10,583		$	32,596
Cost of revenue	9,538			⁽¹⁾	4,822			7,304			21,664			⁽¹⁾
Gross profit	3,227				4,426			3,279			10,932
Gross margin	25.3		%		47.9		%	31.0		%	33.5		%
Research and development	3,958				2,531			1,115			7,604
Segment profit (loss)	$	(731	)		$	1,895		$	2,164		3,328
Operating expenses:
Sales and marketing											6,277
General and administrative											4,563
Intangible amortization											2,401
Restructuring											2,565
Long-lived assets impairment											1,181
Operating profit (loss)											(13,659		)
Other income (expense), net											91
Income tax benefit (expense)											(10		)
Net income (loss) from continuing operations											$	(13,578	)


	Six months ended September 30, 2015
(in thousands)	IBW				ISMS			CNS			Total
Revenue	$	19,889			$	10,391		$	16,804		$	47,084
Cost of revenue	11,341				5,016			12,067			28,424
Gross profit	8,548				5,375			4,737			18,660
Gross margin	43.0		%		51.7		%	28.2		%	39.6		%
Research and development	5,937				2,583			1,191			9,711
Segment profit (loss)	$	2,611			$	2,792		$	3,546		8,949
Operating expenses:
Sales and marketing											7,309
General and administrative											5,462
Intangible amortization											2,831
Restructuring											17
Operating profit (loss)											(6,670		)
Other income (expense), net											(23		)
Income tax benefit (expense)											82
Net income (loss) from continuing operations											$	(6,611	)

⁽¹⁾ The three and six months ended September 30, 2016, includes E&O expense for ClearLink DAS inventory and pipeline inventory. See Note 2, Restructuring Charges.