Westell Technologies Reports Fiscal Third Quarter Results
- Third quarter revenue for the Westell Division rose 16%, to $8.9 million
- New products in distributed antenna systems (DAS), Ethernet and cell-site optimization more than doubled to 11% of total revenue
- Cash and short-term investments were $119.2 million at December 31, 2012
- The company repurchased 1.4 million shares for $2.9 million during the quarter
AURORA, Ill.--(BUSINESS WIRE)-- Westell Technologies, Inc. (NASDAQ: WSTL), a leading provider of telecommunications equipment for wireline, wireless and home networks, today announced results for its fiscal 2013 third quarter ended December 31, 2012. Consolidated revenue from continuing operations was $8.9 million. The net loss for the quarter was $2.0 million, equal to $0.03 per share. The non-GAAP net loss for the third quarter was $1.4 million, equal to $0.02 per share.
New Products Lift Division Revenues, Reflect Growth Strategy
“The most important takeaway for the quarter is the growing acceptance of the new wireless network products that we have brought to market over the last year,” said Chairman and CEO Rick Gilbert. “In the face of a seasonally slow quarter, sales of these new lines increased significantly and were the primary reason for the 16% year-over-year growth in Westell Division revenue.”
“This validates our growth strategy to expand and diversify Westell's revenue by using new products to build market share,” Gilbert explained. “We intend to add products for wireless networks through internal development, which is driven by customer feedback, and fold-in acquisitions. Realigning our sales efforts has fueled our momentum, and our advances should be supported by making steady progress in qualifying new products with additional customers.”
Westell's new products for wireless networks include distributed antenna systems (DAS) products, Ethernet network interface units and switches, and tower-mounted amplifiers. These new products contributed 11% of total revenue during the fiscal 2013 third quarter.
Lower Consolidated Results Reflect Wind-Down of Non-Core Business
Consolidated revenue from continuing operations for the latest quarter was $8.9 million, compared to $14.4 million in the prior-year period. The decrease reflected the planned wind-down of sales in the company's Customer Networking Solutions (CNS) Division.
The net loss for the third quarter was $2.0 million, equal to $0.03 per share, compared to net income of $19.8 million, equal to $0.29 per share, in the same quarter last year. Prior-year net income included $20.3 million of income from discontinued operations that related to the Conference Plus Division, including a gain on the sale of the division. The latest quarter included a $0.6 million loss from discontinued operations, which reflected charges associated with a pending indemnity claim, partially offset by an unrelated tax benefit. On a non-GAAP basis, net loss for the fiscal 2013 third quarter was $1.4 million, equal to $0.02 per share, compared to a non-GAAP net loss of $0.5 million, equal to $0.01 per share, in the year-ago quarter.
Westell Division Benefits from New and Traditional Product Sales
Revenue for the Westell Division was $8.9 million in the fiscal third quarter, up 16% from $7.7 million in the prior-year period. The increase was driven primarily by sales of new products, although traditional product categories also improved. Gross margin was 34.8% and was comparable to the prior-year period. Operating expenses were $4.4 million, up $1.1 million from the prior-year period, reflecting higher cost allocations and increases to support sales and development of new products. On this basis, the division reported a fiscal third quarter operating loss of $1.3 million, compared to an operating loss of $0.6 million in the same quarter of the prior year.
The CNS Division recorded revenue of $0.1 million in the fiscal third quarter, compared to $6.7 million in the same quarter last year. The decline reflects completion of the planned wind-down of sales to the division's remaining customer following the CNS sale transaction. CNS operating expenses in the most recent quarter declined to $0.4 million as a result of reducing project expenditures following the limited product release for HomecloudTM on September 26, 2012.
Strong Cash Position Helped Fund Share Repurchases
Total cash and short-term investments on December 31, 2012, were $119.2 million, compared to $124.4 million at September 30, 2012. The company repurchased 1.4 million shares at a cost of $2.9 million during the latest quarter.
Conference Call Information
Management will address financial and business results during its third quarter conference call on Tuesday, February 5, 2013, at 9:30 AM Eastern Time. Participants may register for the call at http://www.conferenceplus.com/westell. After doing so, they will receive a dial-in number, a passcode, and a personal identification number (PIN) that automatically joins them to the audio conference. Those who do not wish to register may participate in the call by dialing 888-206-4065 no later than 9:15 AM Eastern Time and using confirmation number 3406 9774#. International participants may dial 630-827-5974.
This news release and related information that may be discussed on the conference call will be posted on the Investor News section of Westell's website: http://www.westell.com. An archive of the entire call will be available on the site via Digital Audio Replay by approximately noon Eastern Time after the call ends. The replay of the conference also may be accessed by dialing 888-843-7419 or 630-652-3042 and entering 6887 757 #.
About Westell
Westell Technologies, Inc., headquartered in Aurora, Illinois, designs, distributes, markets and services a broad range of carrier-class communications equipment. This includes digital transmission, remote monitoring, power distribution, demarcation and cell-site optimization products used by wireline and wireless telecommunications service providers, industrial customers, and home network users. For more information, please visit http://www.westell.com.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
Certain statements contained herein that are not historical facts or that contain the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “may,” “will,” “plan,” “should,” or derivatives thereof and other words of similar meaning are forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, product demand and market acceptance risks, need for financing and capital, economic weakness in the United States (“U.S.”) economy and telecommunications market, the effect of international economic conditions and trade, legal, social and economic risks (such as import, licensing and trade restrictions), the impact of competitive products or technologies, competitive pricing pressures, customer product selection decisions, product cost increases, component supply shortages, new product development, excess and obsolete inventory, commercialization and technological delays or difficulties (including delays or difficulties in developing, producing, testing and selling new products and technologies), the ability to successfully consolidate and rationalize operations, the ability to successfully identify, acquire and integrate acquisitions, the effect of the company's accounting policies, retention of key personnel and other risks more fully described in the company's SEC filings, including the Form 10-K for the fiscal year ended March 31, 2012, under Item 1A - Risk Factors. The company undertakes no obligation to publicly update these forward-looking statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events, or otherwise.
Financial Tables to Follow:
|
Westell Technologies, Inc. Condensed Consolidated Statement of Operations (Amounts in thousands, except per share amounts) (Unaudited) |
||||||||||||||||||||||
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||
| Revenue | $ | 8,928 | $ | 14,392 | $ | 29,380 | $ | 58,321 | ||||||||||||||
| Gross profit | 3,143 | 4,263 | 10,387 | 18,850 | ||||||||||||||||||
| Gross margin | 35.2 | % | 29.6 | % | 35.4 | % | 32.3 | % | ||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Sales & marketing | 1,807 | 1,414 | 5,515 | 5,108 | ||||||||||||||||||
| Research & development | 1,754 | 1,797 | 5,515 | 5,865 | ||||||||||||||||||
| General & administrative | 2,124 | 1,707 | 7,368 | 5,625 | ||||||||||||||||||
| Restructuring | — | (2 | ) | 149 | 275 | |||||||||||||||||
| Intangibles amortization | 236 | 136 | 656 | 413 | ||||||||||||||||||
| Total operating expenses | 5,921 | 5,052 | 19,203 | 17,286 | ||||||||||||||||||
| Operating income (loss) | (2,778 | ) | (789 | ) | (8,816 | ) | 1,564 | |||||||||||||||
| Gain on CNS asset sale | — | — | — | 31,654 | ||||||||||||||||||
| Other income | 43 | 106 | 134 | 201 | ||||||||||||||||||
| Interest (expense) | — | (37 | ) | — | (42 | ) | ||||||||||||||||
| Income (loss) before income taxes and discontinued operations | (2,735 | ) | (720 | ) | (8,682 | ) | 33,377 | |||||||||||||||
| Income tax benefit (expense) | 1,399 | 268 | 3,431 | (11,108 | ) | |||||||||||||||||
| Net income (loss) from continuing operations | (1,336 | ) | (452 | ) | (5,251 | ) | 22,269 | |||||||||||||||
| Income (loss) from discontinued operations, net of income tax | (629 | ) | (1) | 20,254 | (629 | ) | (2) | 22,161 | ||||||||||||||
| Net income (loss) | $ | (1,965 | ) | $ | 19,802 | $ | (5,880 | ) | $ | 44,430 | ||||||||||||
| Basic earnings per share: | ||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.09 | ) | $ | 0.33 | |||||||||||
| Net income (loss) from discontinued operations | (0.01 | ) | 0.30 | (0.01 | ) | 0.33 | ||||||||||||||||
| Net income (loss) | $ | (0.03 | ) | $ | 0.30 | $ | (0.10 | ) | $ | 0.66 | ||||||||||||
| Diluted earnings per share: | ||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.09 | ) | $ | 0.32 | |||||||||||
| Net income (loss) from discontinued operations | (0.01 | ) | 0.30 | (0.01 | ) | 0.32 | ||||||||||||||||
| Net income (loss) | $ | (0.03 | ) | $ | 0.29 | $ | (0.10 | ) | $ | 0.65 | ||||||||||||
| Average number of common shares outstanding: | ||||||||||||||||||||||
| Basic | 58,693 | 66,411 | 60,541 | 67,390 | ||||||||||||||||||
| Diluted | 58,693 | 67,332 | 60,541 | 68,656 | ||||||||||||||||||
| (1) | The company sold ConferencePlus on December 31, 2011. In the quarter ended December 31, 2012, the company recorded an after-tax charge of $0.9 million for a pending indemnification claim related to the ConferencePlus sale transaction and an unrelated tax benefit of $0.3 million that resulted from finalizing income tax filings related to the sale. | |
|
Westell Technologies, Inc. Condensed Consolidated Balance Sheet (Amounts in thousands) (Unaudited) |
|||||||||
| December 31, 2012 | March 31, 2012 | ||||||||
| Assets: | |||||||||
| Cash and cash equivalents | $ | 89,823 | $ | 120,832 | |||||
| Restricted cash | 4,104 | 7,451 | |||||||
| Short-term investments | 25,223 | 14,455 | |||||||
| Accounts receivable, net | 4,936 | 5,710 | |||||||
| Inventories | 11,507 | 9,906 | |||||||
| Prepaid expenses and other current assets | 2,620 | 1,456 | |||||||
| Deferred income taxes | 2,576 | 1,859 | |||||||
| Total current assets | 140,789 | 161,669 | |||||||
| Property and equipment, net | 1,143 | 1,197 | |||||||
| Goodwill | 2,860 | 801 | |||||||
| Intangibles, net | 5,299 | 2,728 | |||||||
| Deferred income taxes | 33,719 | 30,740 | |||||||
| Other assets | 509 | 291 | |||||||
| Total assets | $ | 184,319 | $ | 197,426 | |||||
| Liabilities and Stockholders’ Equity: | |||||||||
| Accounts payable | $ | 4,116 | $ | 3,142 | |||||
| Accrued expenses | 4,552 | 3,328 | |||||||
| Total current liabilities | 8,668 | 6,470 | |||||||
| Tax contingency reserve long-term | 3,484 | 3,483 | |||||||
| Contingent consideration long-term | 2,221 | — | |||||||
| Other long-term liabilities | 968 | 1,109 | |||||||
| Total liabilities | 15,341 | 11,062 | |||||||
| Total stockholders’ equity | 168,978 | 186,364 | |||||||
| Total liabilities and stockholders’ equity | $ | 184,319 | $ | 197,426 | |||||
|
Westell Technologies, Inc. Condensed Consolidated Statement of Cash Flows (Amounts in thousands) (Unaudited) |
||||||||||
| Nine Months Ended December 31, | ||||||||||
| 2012 | 2011 | |||||||||
| Cash flows from operating activities: | ||||||||||
| Net income (loss) | $ | (5,880 | ) | $ | 44,430 | |||||
| Reconciliation of net income (loss) to net cash provided by (used in) operating activities: | ||||||||||
| Depreciation and amortization | 1,023 | 1,781 | ||||||||
| Stock-based compensation | 1,062 | 922 | ||||||||
| Gain on CNS asset sale | — | (31,654 | ) | |||||||
| Gain on Sale of ConferencePlus, net of tax | — | (19,980 | ) | |||||||
| Restructuring | 149 | 942 | ||||||||
| Deferred taxes | (3,696 | ) | 13,999 | |||||||
| Other | (7 | ) | (305 | ) | ||||||
| Changes in assets and liabilities: | ||||||||||
| Accounts receivable | 772 | 12,671 | ||||||||
| Inventory | (1,286 | ) | 623 | |||||||
| Accounts payable and accrued expenses | 1,064 | (26,573 | ) | |||||||
| Other | (1,406 | ) | 177 | |||||||
| Net cash provided by (used in) operating activities | (8,205 | ) | (2,967 | ) | ||||||
| Cash flows from investing activities: | ||||||||||
| Net purchases of short-term investments and debt securities | (10,768 | ) | (20,219 | ) | ||||||
| Proceeds from CNS asset sale | — | 36,683 | ||||||||
| Proceeds from the sale of ConferencePlus, net of cash transferred | — | 40,331 | ||||||||
| Payment for business acquisition | (2,524 | ) | — | |||||||
| Purchases of property and equipment, net | (305 | ) | (779 | ) | ||||||
| Proceeds from the sale of non-operating assets | — | 325 | ||||||||
| Changes in restricted cash | 3,347 | (7,449 | ) | |||||||
| Net cash provided by (used in) investing activities | (10,250 | ) | 48,892 | |||||||
| Cash flows from financing activities: | ||||||||||
| Purchase of treasury stock | (12,642 | ) | (12,553 | ) | ||||||
| Proceeds from stock options exercised | 85 | 1,600 | ||||||||
| Net cash provided by (used in) financing activities | (12,557 | ) | (10,953 | ) | ||||||
| Effect of exchange rate changes on cash | 3 | (128 | ) | |||||||
| Net increase (decrease) in cash | (31,009 | ) | 34,844 | |||||||
| Cash and cash equivalents, beginning of period | 120,832 | 86,408 | ||||||||
| Cash and cash equivalents, end of period | $ | 89,823 | $ | 121,252 | ||||||
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Westell Technologies, Inc. Segment Statement of Operations (Amounts in thousands) (Unaudited) |
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| Three Months Ended December, 2012 | ||||||||||||||||||||||
| Westell | CNS | Unallocated | Total | |||||||||||||||||||
| Revenue | $ | 8,873 | $ | 55 | $ | — | $ | 8,928 | ||||||||||||||
| Gross profit | 3,090 | 53 | — | 3,143 | ||||||||||||||||||
| Gross margin | 34.8 | % | 96.4 | % | 35.2 | % | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Sales & marketing | 1,862 | (55 | ) | — | 1,807 | |||||||||||||||||
| Research & development | 1,331 | 423 | — | 1,754 | ||||||||||||||||||
| General & administrative | 938 | (11 | ) | 1,197 | 2,124 | |||||||||||||||||
| Restructuring | — | — | — | — | ||||||||||||||||||
| Intangibles amortization | 234 | 2 | — | 236 | ||||||||||||||||||
| Total operating expenses (1) | 4,365 | 359 | 1,197 | 5,921 | ||||||||||||||||||
| Operating income (loss) | $ | (1,275 | ) | $ | (306 | ) | (1,197 | ) | (2,778 | ) | ||||||||||||
| Other income | 43 | 43 | ||||||||||||||||||||
| Income (loss) before income taxes before discontinued operations | (1,154 | ) | (2,735 | ) | ||||||||||||||||||
| Income tax benefit (expense) | 1,399 | 1,399 | ||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 245 | $ | (1,336 | ) | |||||||||||||||||
| Three Months Ended December 31, 2011 | ||||||||||||||||||||||
| Westell | CNS | Unallocated | Total | |||||||||||||||||||
| Revenue | $ | 7,674 | $ | 6,718 | $ | — | $ | 14,392 | ||||||||||||||
| Gross profit | 2,650 | 1,613 | — | 4,263 | ||||||||||||||||||
| Gross margin | 34.5 | % | 24.0 | % | 29.6 | % | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Sales & marketing | 1,269 | 145 | — | 1,414 | ||||||||||||||||||
| Research & development | 1,223 | 574 | — | 1,797 | ||||||||||||||||||
| General & administrative | 649 | 200 | 858 | 1,707 | ||||||||||||||||||
| Restructuring | — | (2 | ) | — | (2 | ) | ||||||||||||||||
| Intangibles amortization | 135 | 1 | — | 136 | ||||||||||||||||||
| Total operating expenses (2) | 3,276 | 918 | 858 | 5,052 | ||||||||||||||||||
| Operating income (loss) | $ | (626 | ) | $ | 695 | (858 | ) | (789 | ) | |||||||||||||
| Other income | 106 | 106 | ||||||||||||||||||||
| Interest (expense) | (37 | ) | (37 | ) | ||||||||||||||||||
| Income (loss) before income taxes before discontinued operations | (789 | ) | (720 | ) | ||||||||||||||||||
| Income tax benefit (expense) | 268 | 268 | ||||||||||||||||||||
| Net income (loss) from continuing operations | $ | (521 | ) | $ | (452 | ) | ||||||||||||||||
| (1) | Includes $0.3 million and $0.0 million of depreciation and amortization expense from the Westell and CNS segments, respectively. | |
| (2) | Includes $0.3 million and $0.0 million of depreciation and amortization expense from the Westell and CNS segments, respectively. | |
|
Westell Technologies, Inc. Segment Statement of Operations (Amounts in thousands) (Unaudited) |
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| Nine Months Ended December 31, 2012 | ||||||||||||||||||||||
| Westell | CNS | Unallocated | Total | |||||||||||||||||||
| Revenue | $ | 28,145 | $ | 1,235 | $ | — | $ | 29,380 | ||||||||||||||
| Gross profit | 9,312 | 1,075 | — | 10,387 | ||||||||||||||||||
| Gross margin | 33.1 | % | 87.0 | % | 35.4 | % | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Sales & marketing | 5,568 | (53 | ) | — | 5,515 | |||||||||||||||||
| Research & development | 4,216 | 1,299 | — | 5,515 | ||||||||||||||||||
| General & administrative | 3,232 | 531 | 3,605 | 7,368 | ||||||||||||||||||
| Restructuring | 149 | — | — | 149 | ||||||||||||||||||
| Intangibles amortization | 652 | 4 | — | 656 | ||||||||||||||||||
| Total operating expenses (1) | 13,817 | 1,781 | 3,605 | 19,203 | ||||||||||||||||||
| Operating income (loss) | $ | (4,505 | ) | $ | (706 | ) | (3,605 | ) | (8,816 | ) | ||||||||||||
| Other income | 134 | 134 | ||||||||||||||||||||
| Income (loss) before income taxes before discontinued operations | (3,471 | ) | (8,682 | ) | ||||||||||||||||||
| Income tax benefit (expense) | 3,431 | 3,431 | ||||||||||||||||||||
| Net income (loss) from continuing operations | $ | (40 | ) | $ | (5,251 | ) | ||||||||||||||||
| Nine Months Ended December 31, 2011 | ||||||||||||||||||||||
| Westell | CNS | Unallocated | Total | |||||||||||||||||||
| Revenue | $ | 32,920 | $ | 25,401 | $ | — | $ | 58,321 | ||||||||||||||
| Gross profit | 13,090 | 5,760 | — | 18,850 | ||||||||||||||||||
| Gross margin | 39.8 | % | 22.7 | % | 32.3 | % | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Sales & marketing | 4,197 | 911 | — | 5,108 | ||||||||||||||||||
| Research & development | 3,829 | 2,036 | — | 5,865 | ||||||||||||||||||
| General & administrative | 2,071 | 751 | 2,803 | 5,625 | ||||||||||||||||||
| Restructuring | — | 275 | — | 275 | ||||||||||||||||||
| Intangibles amortization | 410 | 3 | — | 413 | ||||||||||||||||||
| Total operating expenses (2) | 10,507 | 3,976 | 2,803 | 17,286 | ||||||||||||||||||
| Operating income (loss) | $ | 2,583 | $ | 1,784 | (2,803 | ) | 1,564 | |||||||||||||||
| Gain on CNS asset sale | 31,654 | 31,654 | ||||||||||||||||||||
| Other income | 201 | 201 | ||||||||||||||||||||
| Interest (expense) | (42 | ) | (42 | ) | ||||||||||||||||||
| Income (loss) before income taxes before discontinued operations | 29,010 | 33,377 | ||||||||||||||||||||
| Income tax benefit (expense) | (11,108 | ) | (11,108 | ) | ||||||||||||||||||
| Net income (loss) from continuing operations | $ | 17,902 | $ | 22,269 | ||||||||||||||||||
| (1) | Includes $1.0 million and $0.0 million of depreciation and amortization expense from the Westell and CNS segments, respectively. | |
| (2) | Includes $0.7 million and $0.1 million of depreciation and amortization expense from the Westell and CNS segments, respectively. | |
|
Westell Technologies, Inc. Reconciliation of GAAP to non-GAAP Financial Measures (Amounts in thousands, except per share amounts) (Unaudited) |
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| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||
| GAAP net income (loss) | $ | (1,965 | ) | $ | 19,802 | $ | (5,880 | ) | $ | 44,430 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| CNS asset sale, net of tax (1) | (20 | ) | — | 316 | (18,963 | ) | ||||||||||||||||
| Income tax benefit (2) | — | — | — | (2,101 | ) | |||||||||||||||||
| (Income) loss from discontinued operations, net of income tax (3) | 629 | (20,254 | ) | 629 | (22,161 | ) | ||||||||||||||||
| Total adjustments | 609 | (20,254 | ) | 945 | (43,225 | ) | ||||||||||||||||
| Non-GAAP net income (loss) | $ | (1,356 | ) | $ | (452 | ) | $ | (4,935 | ) | $ | 1,205 | |||||||||||
| GAAP net income (loss) per common share: | ||||||||||||||||||||||
| Basic | $ | (0.03 | ) | $ | 0.30 | $ | (0.10 | ) | $ | 0.66 | ||||||||||||
| Diluted | $ | (0.03 | ) | $ | 0.29 | $ | (0.10 | ) | $ | 0.65 | ||||||||||||
| Non-GAAP net income (loss) per common share: | ||||||||||||||||||||||
| Basic | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.08 | ) | $ | 0.02 | |||||||||||
| Diluted | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.08 | ) | $ | 0.02 | |||||||||||
| Average number of common shares outstanding: | ||||||||||||||||||||||
| Basic | 58,693 | 66,411 | 60,541 | 67,390 | ||||||||||||||||||
| Diluted | 58,693 | 67,332 | 60,541 | 68,656 | ||||||||||||||||||
The company conforms to U.S. Generally Accepted Accounting Principles (GAAP) in the preparation of its financial statements. This schedule reconciles the company’s GAAP net income to adjusted net income on a non-GAAP basis. Management believes that these non-GAAP results provide meaningful supplemental information to investors and indicate the company's core performance and that they facilitate comparison of results across reporting periods. The company uses these non-GAAP measures when evaluating its financial results. Non-GAAP measures should not be viewed as a substitute for the company’s GAAP results.
| (1) | On April 15, 2011, the company sold certain assets and transferred certain liabilities of the CNS segment. The adjustments remove the gain on the sale, costs associated with the transaction, and related income tax effects. Fiscal year 2013 amounts reflect the costs of a resolution of a dispute related to the CNS sale. | |
| (2) | Benefit resulting from the release of a reserve for income taxes. | |
| (3) | On December 31, 2011, the ConferencePlus Division was sold. In the quarter ended December 31, 2012, the company recorded an after-tax charge of $0.9 million for a pending indemnification claim related to the ConferencePlus sale transaction and an unrelated tax benefit of $0.3 million that resulted from finalizing income tax filings related to the sale. Historical results of operations of ConferencePlus are presented as discontinued operations. |
Westell Technologies, Inc.
Brian Cooper
Chief Financial Officer
630.375.4740
BCooper@westell.com
Source: Westell Technologies, Inc.
Released February 4, 2013