Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation (Tables)

v3.8.0.1
Stock-Based Compensation (Tables)
12 Months Ended
Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock-based compensation expense
Stock-Based Compensation
Total stock-based compensation is reflected in the Consolidated Statements of Operations as follows:
 
Fiscal Year Ended March 31,
(in thousands)
2018
 
2017
Cost (benefit) of revenue
$
30

 
$
34

Sales and marketing
272

 
482

Research and development
167

 
163

General and administrative
802

 
915

Stock-based compensation
1,271

 
1,594

Income tax benefit

 

Total stock-based compensation, after taxes
$
1,271

 
$
1,594

Stock option activity
Option activity for the fiscal year ended March 31, 2018 is as follows:
 
Shares
 
Weighted-
Average
Exercise
Price Per
Share
 
Weighted-
Average
Remaining
Contractual
Term (in
years)
 
Aggregate
Intrinsic
Value(1)
(in thousands)
Outstanding on March 31, 2017
362,396

 
$
4.89

 
 
 
 
Granted
100,000

 
$
3.06

 
 
 
 
Exercised

 
$

 
 
 
 
Forfeited
(200,317
)
 
$
3.73

 
 
 
 
Expired
(64,143
)
 
$
5.76

 
 
 
 
Outstanding on March 31, 2018
197,936

 
$
4.87

 
4.4
 
$
56

Exercisable on March 31, 2018
99,426

 
$
5.87

 
3.9
 
$
19

(1) The intrinsic value for the stock options is calculated based on the difference between the exercise price of the underlying awards and the Westell Technologies’ closing stock price as of the reporting date.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
The fair value of each option was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions:
 
Fiscal Year Ended March 31,
 
2018
 
2017
Input assumptions:
 
 
 
Expected volatility
60
%
 
50
%
Risk-free interest rate
1.7
%
 
1.1
%
Expected life
4 years

 
4 years

Expected dividend yield
0
%
 
0
%
Output weighted-average grant date fair value
$1.41
 
$1.68
Restricted stock activity
The following table sets forth restricted stock activity for the fiscal year ended March 31, 2018:
 
Shares
 
Weighted-Average
Grant Date Fair
Value
Non-vested as of March 31, 2017
34,375

 
$4.10
Granted
104,636

 
$3.01
Vested
(76,250
)
 
$3.22
Forfeited

 
$0.00
Non-vested as of March 31, 2018
62,761

 
$3.35
The Company recorded $0.3 million and $0.0 million of expense in the fiscal years ended March 31, 2018 and 2017, respectively, related to restricted stock. As of March 31, 2018, there was $0.1 million of pre-tax unrecognized compensation expense, related to non-vested restricted stock, which is expected to be recognized over a weighted-average period of 0.4 years. The total intrinsic fair value of shares vested was $0.2 million and $0.1 million during the fiscal years ended March 31, 2018 and 2017, respectively.
Restricted Stock Units (RSUs)
In fiscal years 2018 and 2017, there were 570,000 and 470,376 shares with a weighted-average grant date fair value of $2.91 and $3.96, respectively, of RSUs awarded to certain key employees. These awards convert into shares of Class A Common Stock on a one-for-one basis upon vesting. The Company recognizes compensation expense on a straight-line basis over the vesting for the award based on the market value of Westell Technologies stock on the date of grant.
The Company recorded stock-based compensation expense of $0.9 million and $1.1 million for RSUs in fiscal years 2018 and 2017, respectively. As of March 31, 2018, there was approximately $1.1 million of pre-tax unrecognized compensation expense related to the RSUs, which is expected to be recognized over a weighted-average period of 1.7 years. The total intrinsic fair value of RSUs vested was $0.5 million during both fiscal years 2018 and 2017.
The following table sets forth the RSUs activity for the fiscal year ended March 31, 2018:
 
Shares
 
Weighted-Average
Grant Date Fair
Value
Non-vested as of March 31, 2017
373,886

 
$4.48
Granted
570,000

 
$2.91
Vested
(170,412
)
 
$4.93
Forfeited
(255,024
)
 
$3.60
Non-vested as of March 31, 2018
518,450

 
$3.03

Performance-based RSUs (PSUs)
During fiscal year 2018, 40,000 PSUs were granted, but were all forfeited prior to vesting. During fiscal year 2017, 56,250 and 65,581 PSUs were granted to the Interim Chief Executive Officer (CEO) and other key employees, respectively. The PSUs granted to the CEO contained vesting criteria based upon achievement of certain performance goals (either by reducing quarterly operating expenses in the third or fourth quarter to a certain level or achieving profitability in the third or fourth quarter on a non-GAAP basis) tied to the cost savings plan approved by the Board and the PSUs granted to employees had similar targets but required meeting such performance targets in both the third and fourth quarters. In the fourth quarter, the Compensation Committee reviewed the financial results for the third quarter determined that all 56,250 PSUs issued to the CEO met the performance standard and vested during the fourth quarter in fiscal year 2017. The PSUs granted to key employees have also been earned based upon the achievement of the performance goals, but have a continued employment provision and will vest one year from the grant date. Upon vesting, the PSUs converted into shares of Class A Common Stock of the Company on a one-for-one basis.
The Company recorded stock-based compensation expense of $40,000 and $0.2 million for PSUs in fiscal years 2018 and 2017, respectively. The total intrinsic fair value of PSUs vested during fiscal years 2018 and 2017 was $141,000 and $197,000, respectively.
The following table sets forth the PSUs activity for the fiscal year ended March 31, 2018:
 
Shares
 
Weighted-Average
Grant Date Fair
Value
Non-vested as of March 31, 2017
76,053

 
$3.56
Granted
40,000

 
$3.06
Vested
(49,686
)
 
$2.30
Forfeited
(66,367
)
 
$4.20
Non-vested as of March 31, 2018

 
$0.00