News Column

Westell Technologies Reports Third Quarter Revenue of $25 million

February 6, 2014

Westell Technologies, Inc. , a global provider of intelligent site and outside plant solutions, announced results for its fiscal 2014 third quarter ended December 31, 2013 . In a release on February 3 , the Company noted earnings details: Consolidated revenue was $25.2 million , led by $14.7 million in sales of intelligent site management solutions, as well as continued strong demand for tower mounted amplifiers (TMAs) and distributed antenna systems (DAS) interface panels. On a GAAP basis, the Company recorded net income in the quarter ended December 31, 2013 , of $1.9 million or $0.03 per share, compared to a net loss of $2.0 million or $0.03 per share in the year-ago quarter. On a non-GAAP basis, the Company recorded net income of $4.2 million or $0.07 per share, compared to a non-GAAP net loss of $1.0 million or $0.02 per share in the year-ago quarter. Cash and short-term investments were $86.8 million at December 31, 2013 , compared to $81.5 million at September 30, 2013 . Improved net income and working capital contributed to the increased cash position. "Despite the typical seasonal aspects of the December quarter, we continued to experience strong demand for our wireless products, which exceeded 70 percent of revenue in the third fiscal quarter. Our financial results also included consolidated gross margins of 48.5 percent and GAAP earnings of 3 cents per share," said Chairman and CEO Rick Gilbert . "We believe our results for this quarter position us to achieve our financial goals for fiscal 2014. We also expect our recently announced new product offerings, including Mobile Applications for the Optima Management System and the Kentrox Remote RMC-700, to drive further growth into fiscal 2015." Kentrox Segment Kentrox segment revenue was $14.7 million in the quarter ended December 31, 2013 , down 9 percent from $16.1 million in the fiscal 2014 second quarter ended September 30, 2013 . While revenues remained strong this quarter, the sequential decrease was primarily due to the project-based nature of the business which resulted in record high revenues achieved in the prior quarter. Gross profit was $8.8 million and gross margin was 59.8 percent compared to $8.1 million and 50.4 percent in the prior quarter. Gross profit and gross margin improvements were due to a lower impact of fair value inventory adjustments from the Kentrox acquisition and a more favorable mix. Kentrox R&D expenses were $0.9 million in both the third and second quarters of fiscal 2014. As a result, Kentrox segment profit was $7.9 million , compared to $7.3 million in the second quarter. Westell Segment Westell segment revenue was $10.5 million in the quarter ended December 31, 2013 , down 24 percent from $13.9 million in the prior quarter, but up 19 percent compared to the year-ago quarter. While demand continued to be strong for new wireless products in this segment, the sequential revenue decrease was primarily due to seasonal variations that are typical in the December quarter, including lower revenue of TMAs, which were at record high revenues in the prior quarter. Gross profit was $3.4 million and gross margin was 32.6 percent, compared to $4.3 million and 31.1 percent in the prior quarter. While gross profit decreased as a result of the lower revenue, the margin increased due primarily to lower excess and obsolete inventory costs. Westell R&D expenses were $1.6 million , compared to $1.8 million last quarter. As a result, Westell segment profit was $1.8 million , compared to $2.6 million in the second quarter. More Information: westell.com ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


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