Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | May 17, 2019 | Sep. 30, 2018 | |
Entity Registrant Name | WESTELL TECHNOLOGIES INC | ||
Entity Central Index Key | 0001002135 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Trading Symbol | WSTL | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 24 | ||
Class A Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 12,051,719 | ||
Class B Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 3,484,287 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 25,457 | $ 24,963 |
Short-term investments | 0 | 2,779 |
Accounts receivable (net of allowance of $100 and $95 at March 31, 2019 and 2018, respectively) | 6,865 | 8,872 |
Inventories | 9,801 | 9,222 |
Prepaid expenses and other current assets | 1,706 | 816 |
Total current assets | 43,829 | 46,652 |
Non-current assets: | ||
Land, property and equipment, gross | 8,109 | 8,381 |
Less accumulated depreciation and amortization | (6,811) | (6,780) |
Land, property and equipment, net | 1,298 | 1,601 |
Intangible assets, net | 3,278 | 11,435 |
Other non-current assets | 492 | 771 |
Total assets | 48,897 | 60,459 |
Current liabilities: | ||
Accounts payable | 2,313 | 1,903 |
Accrued expenses | 3,567 | 3,280 |
Accrued restructuring | 63 | |
Deferred revenue | 1,217 | 1,790 |
Total current liabilities | 7,097 | 7,036 |
Deferred revenue non-current | 444 | 846 |
Other non-current liabilities | 176 | 282 |
Total liabilities | 7,717 | 8,164 |
Commitments and contingencies (see Note 5) | ||
Stockholders’ equity: | ||
Preferred stock, par $0.01, Authorized – 1,000,000 shares Issued and outstanding – none | 0 | 0 |
Additional paid-in capital | 418,859 | 417,691 |
Treasury stock at cost – 5,122,414 and 4,633,871 shares at March 31, 2019 and 2018, respectively | (37,135) | (35,907) |
Accumulated deficit | (340,698) | (329,645) |
Total stockholders’ equity | 41,180 | 52,295 |
Total liabilities and stockholders’ equity | 48,897 | 60,459 |
Class A Common Stock [Member] | ||
Stockholders’ equity: | ||
Common stock, value | 119 | 121 |
Class B Common Stock [Member] | ||
Stockholders’ equity: | ||
Common stock, value | $ 35 | $ 35 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Accounts receivable, allowance | $ 100 | $ 95 |
Treasury stock, shares | 5,122,414 | 4,633,871 |
Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 109,000,000 | 109,000,000 |
Common stock, shares outstanding | 11,909,979 | 12,145,743 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 3,484,287 | 3,484,287 |
Common stock, shares outstanding | 3,484,287 | 3,484,287 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenue | $ 43,570 | $ 58,577 | |
Cost of revenue | 25,206 | 33,410 | |
Gross profit | 18,364 | 25,167 | |
Operating expenses | |||
Research and development | 6,790 | 7,375 | |
Sales and marketing | 8,342 | 8,290 | |
General and administrative | 6,699 | 6,602 | |
Intangible amortization | 3,435 | 4,189 | |
Restructuring | 0 | 165 | |
Long-lived assets impairment | 4,722 | ||
Total operating expenses | 29,988 | 26,621 | |
Operating income (loss) | (11,624) | (1,454) | |
Other income (expense), net | 626 | 888 | |
Income (loss) before income taxes | (10,998) | (566) | |
Income tax (expense) benefit | (39) | 597 | |
Net income (loss) from continuing operations | (11,037) | 31 | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (345) | ||
Net income (loss) | $ (11,382) | $ 31 | |
Basic net income (loss) per share: | |||
Basic net income (loss) from continuing operations | $ (0.71) | $ 0 | |
Basic net income (loss) from discontinued operations | (0.02) | 0 | |
Earnings Per Share, Basic | (0.73) | 0 | |
Earnings Per Share, Diluted [Abstract] | |||
Income (Loss) from Continuing Operations, Per Diluted Share | (0.71) | 0 | |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | (0.02) | 0 | |
Earnings Per Share, Diluted | $ (0.73) | $ 0 | |
Weighted-average number of shares outstanding: | |||
Basic | 15,517 | 15,497 | |
Effect of dilutive securities: restricted stock, restricted stock units, performance stock units and stock options(1) | [1] | 0 | 210 |
Diluted | 15,517 | 15,707 | |
[1] | The Company has 1.0 million and 0.3 million shares represented by common stock equivalents for the twelve months ended March 31, 2019 and 2018, respectively, which were not included in the computation of average dilutive shares outstanding because they were anti-dilutive. In periods with a net loss from continuing operations, the basic loss per share equals the diluted loss per share as all common stock equivalents are excluded from the per share calculation because they are anti-dilutive. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Discontinued Operation, Tax Effect of Discontinued Operation | $ 0 | $ 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 1 | 0.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (11,382) | $ 31 | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment (1) | [1] | (608) | |
Total comprehensive income (loss) | $ (11,382) | $ (577) | |
[1] | During the quarter ended September 30, 2017, the Company dissolved the NoranTel legal entity, which triggered a one-time foreign currency gain with the reversal of a cumulative translation adjustment. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Translation Adjustment [Member] | Accumulated Deficit [Member] | |
Beginning Balance at Mar. 31, 2017 | $ 52,174 | $ 120 | $ 35 | $ 416,422 | $ (35,335) | $ 608 | $ (329,676) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 31 | 31 | ||||||
Translation adjustment | [1] | (608) | (608) | |||||
Common stock issued | 1 | 3 | (2) | |||||
Treasury stock | (574) | (2) | (572) | |||||
Stock-based compensation | 1,271 | 1,271 | ||||||
Ending Balance at Mar. 31, 2018 | 52,295 | 121 | 35 | 417,691 | (35,907) | $ 0 | (329,645) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative Effect on Retained Earnings, Net of Tax | Accounting Standards Update 2014-09 [Member] | [2] | 329 | 329 | |||||
Net income (loss) | (11,382) | (11,382) | ||||||
Common stock issued | 0 | 3 | (3) | |||||
Treasury stock | (1,233) | (5) | (1,228) | |||||
Stock-based compensation | 1,171 | 1,171 | ||||||
Ending Balance at Mar. 31, 2019 | $ 41,180 | $ 119 | $ 35 | $ 418,859 | $ (37,135) | $ (340,698) | ||
[1] | During the quarter ended September 30, 2017, the Company dissolved the NoranTel legal entity, which triggered a one-time foreign currency gain with the reversal of a cumulative translation adjustment. | |||||||
[2] | Includes the cumulative effect adjustment of the ASC 606 adoption. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (11,382) | $ 31 |
Reconciliation of net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 4,026 | 4,957 |
Long-lived assets impairment | 4,722 | |
Stock-based compensation | 1,171 | 1,271 |
Exchange rate loss (gain) | 2 | 2 |
Loss (gain) on sale of fixed assets | 2 | 22 |
Restructuring | 165 | |
Gain (Loss) on Disposition of Assets | (608) | |
Deferred taxes | 0 | (697) |
Changes in assets and liabilities: | ||
Accounts receivable | 2,007 | 3,200 |
Inventories | (579) | 3,289 |
Prepaid expenses and other current assets | (890) | 593 |
Other assets | 279 | 86 |
Deferred revenue | (646) | (825) |
Accounts payable and accrued expenses | 528 | (4,541) |
Net cash provided by (used in) operating activities | (760) | 6,945 |
Cash flows from investing activities: | ||
Maturities of other short-term investments | 2,779 | 2,232 |
Payments to Acquire Short-term Investments | 5,011 | |
Purchases of property and equipment | (290) | (408) |
Payments for (Proceeds from) Other Investing Activities | (2) | |
Net cash provided by (used in) investing activities | 2,489 | (3,185) |
Cash flows from financing activities: | ||
Purchases of treasury stock | (1,233) | (574) |
Net cash provided by (used in) financing activities | (1,233) | (574) |
Gain (loss) of exchange rate changes on cash | (2) | (1) |
Net increase (decrease) in cash and cash equivalents | 494 | 3,185 |
Cash and cash equivalents, beginning of period | 24,963 | 21,778 |
Cash and cash equivalents, end of period | 25,457 | 24,963 |
Supplemental Cash Flow Information | ||
Cash paid (refunded) for income taxes, net | $ 15 | $ 28 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation: Description of Business Westell Technologies, Inc. (the Company) is a holding company. Its wholly owned subsidiary, Westell, Inc., designs and distributes telecommunications products, which are sold primarily to major telephone companies. During the second quarter ended September 30, 2017, the Company dissolved Noran Tel, Inc. (NoranTel) a wholly owned subsidiary of Westell, Inc. NoranTel's operations have been fully incorporated into Westell, Inc. As a result of the wind-up of NoranTel, the Company recognized a one-time $0.6 million foreign currency translation gain, which is presented in Other income, net on the Consolidated Statements of Operations. Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of the Company and its majority owned subsidiaries. The Consolidated Financial Statements have been prepared using accounting principles generally accepted in the United States (GAAP). All intercompany accounts and transactions have been eliminated in consolidation. Discontinued Operations During the fiscal year ended March 31, 2019, the Company recorded an expense of $0.3 million for loss contingencies associated with two indemnity claims related to a significant customer contract. Both of these claims relate to a business which was previously sold and therefore presented as discontinued operations. The Consolidated Statements of Cash Flows include discontinued operations. See Note 5 for additional information. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and that affect revenue and expenses during the periods reported. Estimates are used when accounting for the allowance for uncollectible accounts receivable, net realizable value of inventory, product warranty accrued, relative selling prices, stock-based compensation, and intangible assets fair value, depreciation, income taxes, and contingencies, among other things. The Company bases its estimate on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. Reclassifications Certain amounts in the Consolidated Balance Sheets for the prior period have been reclassified to conform to the current period presentation. The reclassification had no impact on previously reported amounts for total assets, total liabilities, total stockholders’ equity or net income (loss). Reverse Stock Split All common stock, equity, share and per share amounts in the financial statements and notes have been retroactively adjusted to reflect a one-for-four reverse stock split, which was effective June 7, 2017. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies: Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with maturities of three months or less when purchased and include bank deposits and money market funds. Money market funds are accounted for as available-for-sale securities. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount less payment discounts and estimated allowance for doubtful accounts. The Company provides allowances for doubtful accounts related to accounts receivable for estimated losses resulting from the inability of its customers to make required payments. The Company takes into consideration the overall quality of the receivable portfolio along with specifically identified customer risks. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company, the Company provides allowances for bad debts against amounts due to reduce the net realized receivable to the amount it reasonably believes will be collected. Short-term Investments Certificates of deposit held for investment with an original maturity greater than 90 days and less than one year are carried at cost and reported as Short-term investments on the Consolidated Balance Sheets. The certificates of deposit are not debt securities. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and trade receivables. The Company currently invests its excess cash in government and prime money market funds. The cash in the Company’s U.S. banks is insured by the Federal Deposit Insurance Corporation up to the insurable limit of $250,000 . Income (Loss) per Share The computation of basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share includes the number of additional common shares that would have been outstanding if the dilutive potential shares had been issued. In periods with a net loss, all common stock equivalents are excluded from the per share calculation; therefore, the basic loss per share equals the diluted loss per share. Inventories and Inventory Valuation Inventories are stated at the lower of first-in, first-out (FIFO) cost or market value. Market value is based upon an estimated average selling price reduced by estimated costs of disposal. Should actual market conditions differ from the Company’s estimates, the Company’s future results of operations could be materially affected. Reductions in inventory valuation are included in Cost of revenue in the accompanying Consolidated Statements of Operations. The Company reviews inventory for excess quantities and obsolescence based on its best estimates of future demand, product lifecycle status and product development plans. The Company uses historical information along with these future estimates to reduce the inventory cost basis. Subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Prices anticipated for future inventory demand are compared to current and committed inventory values. The components of inventories are as follows: March 31, (in thousands) 2019 2018 Raw materials $ 3,445 $ 2,969 Finished goods 6,356 6,253 Total inventories $ 9,801 $ 9,222 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets generally consist of prepaid product royalty, prepaid maintenance agreements and prepaid rent, which are amortized as expense generally over the term of the underlying contract or estimated product life. Land, Property and Equipment Land, property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, or for leasehold improvements, the shorter of the remaining lease term or the estimated useful life. The estimated useful lives for machinery and equipment range from 5 to 7 years and for office, computer and research equipment from 2 to 5 years . Expenditures for major renewals and improvements that extend the useful life of property and equipment are capitalized. Depreciation and amortization expense was $0.6 million and $0.8 million for fiscal years 2019 and 2018 , respectively. In accordance with ASC Topic 360, Property, Plant and Equipment (ASC 360) , the Company assesses all of its long-lived assets, including intangibles, for impairment when impairment indicators are identified. If the carrying value of an asset exceeds its undiscounted cash flows, an impairment loss may be necessary. An impairment loss is calculated as the difference between the carrying value and the fair value of the asset. The Company acquired 16 acres of land with an acquisition and sold 4 acres in April 2015 for $264,000 . The Company still owns 12 acres of land that remains on the market. The Company concluded that a sale transaction for the remaining land is not probable within the next year; therefore, unsold land is classified as held-and-used as of March 31, 2019 and 2018. The components of fixed assets are as follows: March 31, (in thousands) 2019 2018 Land $ 672 $ 672 Machinery and equipment 1,372 1,296 Office, computer and research equipment 5,267 5,175 Leasehold improvements 798 1,238 Land, property and equipment, gross $ 8,109 $ 8,381 Less accumulated depreciation and amortization (6,811 ) (6,780 ) Land, property and equipment, net $ 1,298 $ 1,601 Intangible Assets Intangible assets with determinable lives are amortized on a straight-line basis or the consumption period based on expected cash flows from the underlying intangible asset over their respective estimated useful lives. If the Company were to determine that a change to the remaining estimated useful life of an intangible asset was necessary, then the remaining carrying amount of the intangible asset would be amortized prospectively over that revised remaining useful life. On an ongoing basis, the Company reviews intangible assets with a definite life and other long-lived assets for impairment whenever events and circumstances indicate that carrying values may not be recoverable. If such events or changes in circumstances occur, the Company will recognize an impairment loss if the undiscounted future cash flow expected to be generated by the asset is less than the carrying value of the related asset. Any impairment loss would adjust the asset to its implied fair value. See Note 4 , Intangible Assets for further discussion of intangible assets impairment evaluations. Accrued Expenses The components of accrued expenses are as follows: March 31, (in thousands) 2019 2018 Accrued compensation $ 656 $ 772 Accrued contractual obligation 1,445 1,445 Other accrued expenses 1,466 1,063 Total accrued expenses $ 3,567 $ 3,280 Revenue Recognition and Deferred Revenue The Company records revenue based on a five-step model in accordance with ASC Topic 606, Revenue From Contracts With Customers (ASC 606). The Company's revenue is derived from the sale of products, software, and services identified in contracts. A contract exists when both parties have an approved agreement that creates enforceable rights and obligations, identifies performance obligations and payment terms and has commercial substance. The Company records revenue from these contracts when control of the products or services transfer to the customer. The amount of revenue to be recognized is based upon the consideration, including the impact of any variable consideration, that the Company expects to be entitled to receive in exchange for these products and services. The majority of the Company’s revenue is recorded at a point in time from the sale of tangible products. Revenue is recorded when control of the products passes to the customer, dependent upon the terms of the underlying contract. For right-to-use software, revenue is recognized at the point in time the customer has the right to use and can substantially benefit from use of the software. Products regularly include warranties that include bug fixes, and minor updates so that the product continues to function as promised in a dynamic environment, and phone support. These standard warranties are assurance type warranties which do not offer any services beyond the assurance that the product will continue working as specified. Therefore, warranties are not considered separate performance obligations. Instead, the Company accrues the expected cost of warranty. Extended warranties are sold separately with a post contract support (PCS) agreement. PCS revenue is recognized over time during the support period. Revenue from installation services is recognized when the services have been completed or transferred as this is when the customer has obtained control. The Company has contracts with multiple performance obligations. When the sales agreement involves multiple performance obligations, each obligation is separately identified and the transaction price is allocated based on the amount of consideration the Company expects to be entitled to in exchange for transferring the promised good or service to the customer. In most cases, the Company allocates the consideration to each performance obligation based on the relative stand-alone selling price (RSP) of the distinct performance obligation. In circumstances where RSP is not observable, the Company allocates the consideration for the performance obligations by utilizing the residual approach. For performance obligations that the Company satisfies over time, revenue is recognized by consistently applying a method of measuring progress toward complete satisfaction of that performance obligation. The Company utilizes the method that most accurately depicts the progress toward completion of the performance obligation. If the measure of remaining rights exceeds the measure of the remaining performance obligations, the Company records a contract asset. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability. Contract assets and liabilities related to product returns will be recorded as contract assets and liabilities and presented on the Consolidated Balance Sheets in Prepaid expenses and other current assets and Deferred revenue, respectively. Customer billings for services not yet rendered are deferred and recognized as revenue as the services are rendered. The associated deferred revenue is included in Deferred revenue or Deferred revenue non-current, as appropriate, in the Consolidated Balance Sheets. The Company allows certain customers to return unused product under specified terms and conditions. The Company estimates product returns based on historical sales and return trends and records a corresponding refund liability. The refund liability is included within Accrued expenses on the accompanying Consolidated Balance Sheets. Additionally, the Company records an asset based on historical experience for the amount of product the Company expects to return to inventory as a result of the return, which is recorded in Prepaid and other current assets in the Consolidated Balance Sheets. Under previous guidance, the Company netted the asset against the refund liability and presented the net refund liability within Accrued expenses. The gross product return asset was $0.1 million and $0.2 million at April 1, 2018 and March 31, 2019, respectively. Financial Statement Impact of Adopting ASC 606 The following table summarizes the changes made to the Company's Consolidated Balance Sheets as of March 31, 2018 for the adoption of ASC 606: (in thousands) As reported March 31, 2018 Adjustments due to ASC 606 Adjusted as of April 1, 2018 Assets: Prepaid expenses and other current assets $ 816 $ 72 $ 888 Liabilities: Accrued expenses 3,280 72 3,352 Deferred revenue 1,790 (110 ) 1,680 Deferred revenue non-current 846 (219 ) 627 Stockholders' Equity: Accumulated deficit $ (329,645 ) $ 329 $ (329,316 ) The following table summarizes the impacts of adopting ASC 606 on the Company’s Consolidated Balance Sheets as of March 31, 2019: (in thousands) As of March 31, 2019 As reported under ASC 606 Effect of Change Increase/ (Decrease) Proforma under ASC 605 Assets: Prepaid expenses and other current assets $ 1,706 $ (175 ) $ 1,531 Liabilities: Accrued expenses 3,567 (175 ) 3,392 Deferred revenue 1,217 110 1,327 Deferred revenue non-current 444 109 553 Stockholders' Equity: Accumulated deficit $ (340,698 ) $ (219 ) $ (340,917 ) The following table summarizes the impacts of adopting ASC 606 on the Company’s Consolidated Statement of Operations for the fiscal year ended March 31, 2019: (in thousands) For the twelve months ended March 31, 2019 As reported under ASC 606 Effect of Change Increase/ (Decrease) Proforma under ASC 605 Revenue $ 43,570 $ 110 $ 43,680 Gross Profit 18,364 110 18,474 Net income (loss) from continuing operations (11,037 ) 110 (10,927 ) Net income (loss) $ (11,382 ) $ 110 $ (11,272 ) Practical Expedients and Exemptions The Company has adopted certain practical expedients available under ASC 606. Contract Costs The Company adopted the practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in sales and marketing and general and administrative expenses. If the incremental direct costs of obtaining a contract, which consist of sales commissions, relate to a service recognized over a period longer than one year, costs are deferred and amortized in line with the related services over the period of benefit. As of March 31, 2019, there were no deferred contract costs. Financing The Company adopted the practical expedient that permits the Company to forego adjusting contract consideration for the effects of any financing component if payments for goods and services are expected to be received one year or less from when control of the goods or services has transferred to the customer. Payment terms vary by customer. Generally, the time between invoicing and when payment is due is not significant. Occasionally, the Company requires customers to make a payment before delivery of the products or services to the customer. Sales Taxes The Company made the accounting policy election to record revenue net of sales taxes. This is consistent with the Company's practice under the previous guidance. Shipping and Handling Shipping and handling billed to customers is recorded as revenue. The Company classifies shipping and handling costs associated with both inbound freight and the distribution of finished product to our customers as cost of revenue. This is consistent with the Company's practice under the previous guidance. Disaggregation of revenue The following table disaggregates our revenue by major source: (In thousands) Fiscal year ended March 31, 2019 (under ASC 606) 2018 (under ASC 605) Revenue: Products $ 38,700 $ 51,891 Software 1,008 1,568 Services 3,862 5,118 Total revenue $ 43,570 $ 58,577 The following is the expected future revenue recognition timing of deferred revenue as of March 31, 2019: (in thousands) < 1 year 1-2 years > 2 years Deferred Revenue $ 1,217 $ 251 $ 193 During the fiscal year ended March 31, 2019, the Company recognized $1.7 million of revenue that was deferred as of the beginning of the period. Product Warranties Most of the Company’s products carry a limited warranty of up to seven years. The Company accrues for estimated warranty costs as products are shipped based on historical sales and cost of repair or replacement trends relative to sales. Research and Development Costs Engineering and product research and development costs are charged to expense as incurred. Stock-based Compensation The Company recognizes stock-based compensation expense for all employee stock-based payments based upon the fair value on the awards grant date over the requisite service period. If the awards are performance based, the Company must estimate future performance attainment to determine the number of awards expected to vest. Determining the fair value of equity-based options requires the Company to estimate the expected volatility of its stock, the risk-free interest rate, expected option term, and expected dividend yield. The Company accounts for forfeitures as they occur. See Note 8 for further discussion of the Company’s stock-based compensation plans. Fair Value Measurements The Company accounts for the fair value of assets and liabilities in accordance with ASC Topic 820, Fair Value Measurements and Disclosures ( ASC 820). ASC 820 defines fair value and establishes a framework for measuring fair value as required by other accounting pronouncements. See Note 12 for further discussion of the Company’s fair value measurements. Foreign Currency The Company’s primary foreign currency exposure is subject to fluctuations in exchange rates for the U.S. dollar versus the Australian and Canadian dollar and the related effects on receivables and payables denominated in those currencies. The Company records transaction gains (losses) for fluctuations on foreign currency rates on accounts receivable, accounts payable, and cash as a component of other income (expense), net on the Consolidated Statements of Operations. Income Taxes The Company accounts for income taxes under the provisions of ASC Topic 740, Income Taxes (ASC 740). ASC 740 requires an asset and liability based approach in accounting for income taxes. Deferred income tax assets, including net operating loss (NOL) and certain tax credit carryovers and liabilities, are recorded based on the differences between the financial statement and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the tax differences are expected to reverse. Valuation allowances are provided against deferred tax assets, which are assessed as not likely to be realized. On a quarterly basis, management evaluates the recoverability of deferred tax assets and the need for a valuation allowance. This evaluation requires the use of estimates and assumptions and considers all positive and negative evidence and factors, such as the scheduled reversal of temporary differences, the mix of earnings in the jurisdictions in which the Company operates, and prudent and feasible tax planning strategies. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the dates of enactment. The Company accounts for unrecognized tax benefits based upon its assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company reports a liability for unrecognized tax benefits resulting from unrecognized tax benefits taken or expected to be taken in a tax return and recognizes interest and penalties, if any, related to its unrecognized tax benefits in income tax expense. See Note 3 for further discussion of the Company’s income taxes. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASC 606 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. The Company adopted ASC 606 on April 1, 2018 using the modified retrospective approach to all non-completed contracts as of the date of adoption. The reported results for fiscal year 2019 reflect the application of ASC 606 guidance. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. As a result of the adoption, the Company recognized a cumulative effect of initially applying ASC 606 as a credit of $0.3 million to the beginning balance of retained earnings. This adjustment to retained earnings was a result of accelerated revenue recognition for right-to-use licenses previously accounted for under the software revenue recognition guidance and for which vendor specific objective evidence (VSOE) had not been established. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). ASU 2016-01 requires investments in equity securities, except those accounted for under the equity method and those that result in consolidation, to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 also simplifies the impairment assessment for those equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The Company adopted ASU 2016-01 on April 1, 2018. The adoption of ASU 2016-01 had no impact on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flow (Topic 230) (ASU 2016-15). This update is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The update provides new guidance regarding the classification of debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investments, beneficial interests in securitized transactions, and separately identifiable cash flows and application of the predominance principle. The Company adopted ASU 2016-15 on April 1, 2018. The adoption of ASU 2016-15 had no impact on the Company's Consolidated Financial Statements and prior periods were not restated. In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16). ASU 2016-16 requires the recognition of current and deferred income taxes for intra-entity asset transfers when the transaction occurs. The Company adopted the accounting guidance as of April 1, 2018. The adoption of ASU 2016-16 had no impact on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting (ASU 2017-09). ASU 2017-09 applies to all entities that change the terms or conditions of a share-based payment award. The amendments provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718 to the modification of the terms and conditions of a share-based payment award. The amendments in ASU 2017-09 include guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The Company adopted the accounting guidance as of April 1, 2018. The adoption of ASU 2017-09 had no impact on the Company’s Consolidated Financial Statements. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-based Payments (ASU 2018-07). ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company early adopted ASU 2018-07 on April 1, 2018. As the Company did not have any unsettled liability-classified awards as of April 1, 2018, the adoption of ASU 2018-07 had no impact on the Company's Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (ASU 2016-02). In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) (ASU 2017-13), which provides additional implementation guidance on the previously issued ASU 2016-02. ASU 2016-02 requires lessees to recognize leases on the balance sheet as right-of-use asset, representing the right to use the underlying asset for the lease term, and a corresponding lease liability for leases with terms greater than one year. The liability will be equal to the present value of lease payments while the right-of-use asset will be based on the liability, subject to adjustment, such as for initial direct costs. In addition, ASU 2016-02 expands the lease disclosure requirements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases) (ASU 2018-10), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. In July 2018, the FASB also issued ASU 2018-11, Targeted Improvements . The amendments in this ASU provide for an additional transition method in which an entity applying the lease standard at adoption date recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Any comparative periods presented in the financial statements would continue to be presented in accordance with current GAAP ( Topic 840 ). The Company is in the process of adopting the new standard effective April 1, 2019 and will elect to utilize the FASB approved option for transition relief with adoption occurring through a cumulative-effect adjustment as of April 1, 2019. The Company expects to recognize right of use assets and lease liabilities for operating leases in the Company's Consolidated Balance Sheets in the range of $1.1 million to $1.4 million upon adoption. As a practical expedient, short-term agreements of less than 12 months will be excluded from recognition under the Topic 842. The Company will finalize the adoption, including drafting an updated accounting policy that will include new key policy elections and disclosures during the first quarter of fiscal 2020. The Company does not believe the standard will materially impact the Consolidated Statement of Operations. In July 2018, the FASB issued ASU 2018-09, Codification Improvements (ASU 2018-09). ASU 2018-09 does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. The amendments that are immediately applicable had no impact to the Company. Others aspects of ASU 2018-09 provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018. The Company is currently evaluating this guidance to determine the impact it may have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (ASU 2018-13). This update modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. Certain disclosure requirements established in Topic 820 have been removed, some have been modified and new disclosure requirements were added. This new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact that ASU 2018-13 may have on the Company’s Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (ASU 2018-15). This update’s main objective is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this update require that a customer in a hosting arrangement that is a service contract follow the guidance in Subtopic 350-40 to determine which implementation costs should be capitalized as an asset and which costs should be expensed and states that any capitalized implementation costs should be expensed over the term of the hosting arrangement. This new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact that ASU 2018-15 may have on the Company’s Consolidated Financial Statements. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (ASU 2018-18). The update provides guidance on the interaction between Revenue Recognition (Topic 606) and Collaborative Arrangements (Topic 808) by aligning the unit of account guidance between the two topics and clarifying whether certain transactions between collaborative participants should be accounted for as revenue under Topic 606. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact ASU 2018-18 may have on the Company's Consolidated Financial Statements. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The Company utilizes the liability method of accounting for income taxes and deferred taxes which are determined based on the differences between the financial statements and tax bases of assets and liabilities given the provisions of the enacted tax laws. In assessing the realizability of the deferred tax assets, the Company considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized through the generation of future taxable income. In making this determination, the Company assessed all of the evidence available at the time including recent earnings, forecasted income projections, and historical financial performance. The Company has fully reserved deferred tax assets as a result of this assessment. The income tax expense (benefit) from continuing operations are summarized as follows: Fiscal Year Ended March 31, (in thousands) 2019 2018 Federal: Current $ — $ (697 ) Deferred (1 ) 7 (1 ) (690 ) State: Current 20 52 Deferred 3 2 23 54 Foreign: Current 17 39 Deferred — — 17 39 Total $ 39 $ (597 ) The statutory federal income tax rate is reconciled to the Company's effective income tax rates below: Fiscal Year Ended March 31, 2019 2018 Statutory federal income tax rate 21.0 % 30.8 % Meals and entertainment (0.2 ) (4.5 ) State income tax, net of federal tax effect (6.4 ) 84.5 Valuation allowance (14.5 ) 2,677.8 Impact of Tax Reform — (2,686.5 ) Foreign tax credit (0.2 ) (8.9 ) Equity compensation (0.1 ) (20.4 ) NoranTel CTA Adjustment — 33.0 Other — (0.3 ) Effective income tax rate (0.4 )% 105.5 % Components of the net deferred income tax assets are as follows: March 31, (in thousands) 2019 2018 Deferred income tax assets: Allowance for doubtful accounts $ 26 $ 24 Foreign tax credit carryforward 810 812 Depreciation 173 227 Deferred revenue 425 675 Accrued compensation 412 358 Inventory reserves 757 948 Accrued warranty 33 77 Net operating loss carryforward 35,024 34,924 Accrued restructuring — 16 Intangibles and goodwill 272 — Other 839 660 Gross deferred tax assets 38,771 38,721 Valuation allowance (38,771 ) (37,103 ) Net deferred income tax assets — 1,618 Deferred income tax liabilities: Intangibles and goodwill — (1,618 ) Net deferred income tax liabilities $ — $ — In fiscal years 2019 and 2018 , the Company continued to maintain a full valuation allowance on deferred tax assets. The valuation allowance increased by $1.7 million in fiscal year 2019 . The Company recorded an income tax expense from continuing operations of $39,000 in fiscal year 2019. In fiscal year 2018, the Company recorded an income tax benefit from continuing operations of $597,000 . The fiscal year 2018 income tax benefit was due primarily from the release of the tax valuation allowance associated with previously generated alternative minimum tax (AMT) credits due to the December 22, 2017 Tax Cuts and Jobs Act Tax Reform (the “Tax Act”) . The Company has, on a tax-effected basis, approximately $0.8 million in tax credit carryforwards and $26.9 million of federal net operating loss carryforwards that are available to offset taxable income in the future. The tax credit carryforwards will begin to expire in fiscal year 2021 . The federal net operating loss carryforwards begin to expire in fiscal year 2022 . State tax credit carryforwards and net operating loss carryforwards, on a tax effected basis and net of federal tax benefits, are $0.1 million and $8.1 million , respectively. The remaining state tax credit carryforwards and state net operating loss carry forwards begin to expire in fiscal year 2020 . In fiscal year 2019 , $1.2 million of state net operating loss carryforwards expired. The Company accounts for uncertainty in income taxes under ASC 740, which prescribes a recognition threshold and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition , classification, interest and penalties, accounting in interim periods, disclosure and transition. A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits for fiscal years 2018 and 2019 is as follows: (in thousands) Unrecognized tax benefits at March 31, 2017 $ 2,962 Additions based on positions related to fiscal year 2018 — Unrecognized tax benefits at March 31, 2018 2,962 Additions based on positions related to fiscal year 2019 — Reductions as a result of expirations of applicable statutes of limitations (780 ) Unrecognized tax benefits at March 31, 2019 $ 2,182 If the unrecognized tax benefit balances at March 31, 2019 and 2018 , were recognized, it would affect the effective tax rate. The Company recognized interest and penalties of $2,500 and $2,000 as a component of income tax expense in fiscal year 2019 and 2018 , respectively. As of March 31, 2019 and 2018 , accrued interest and penalties were $17,800 and $15,300 , respectively. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. With few exceptions, the major jurisdictions subject to examination by the relevant taxable authorities, and open tax years, stated as the Company's fiscal years, are as follows: Jurisdiction Open Tax Years U.S. Federal 2015 - 2018 U.S. States 2014 - 2018 Foreign 2014 - 2018 Since net operating loss carryovers are subject to audit based on the year in which they are utilized, all of the Company’s net operating losses generated in the past are open to adjustment to the Internal Revenue Service or state tax authorities (some states have shorter carryover periods). The Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering the U.S. corporate federal income tax rate from 34% to 21% effective January 1, 2018 . In the quarter ended December 31, 2018, the Company finalized its estimates of the impact of the Tax Act with no material effect on the Consolidated Financial Statements. Due to the lack of interest expense, foreign operations and modest officer’s compensation, as well as the full valuation allowance, the various provisions of tax reform, effective this year, had no impact. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Intangible Assets : The Company has recorded intangible assets, such as trademark, developed technology, non-compete agreements, backlog, and customer relationships, and accounts for these in accordance with ASC 350. Intangible assets include finite-lived customer relationships, trade names, developed technology and other intangibles. Intangible assets with determinable lives are amortized over the estimated useful lives of the assets. These intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset’s carrying amount over its fair value. Intangible asset impairment charges are presented in intangible amortization on the Consolidated Statements of Operations. There was no intangible asset impairment during fiscal year 2018, for the IBW, ISM and CNS reporting units. During the fourth quarter of fiscal year 2019, the Company experienced triggering events that resulted in the Company testing its long-lived assets for impairment. In evaluating whether it is more likely than not that the fair value of the Company's reporting units were less than their carrying value, the Company assessed all relevant events and circumstances and determined that, due to the overall greater declining revenues and cash flow from its current portfolio of products coupled with delays expanding the public safety portfolio due to production schedules and recent product testing issues, indicators of impairment were present. The Company performed an evaluation to test IBW and ISM intangible assets for recoverability and concluded there was no impairment during the fiscal year ended March 31, 2019, for the ISM the reporting unit. During the fourth quarter of fiscal year 2019, IBW revenue declined more than previously forecasted and additional issues arose with respect to new products. As a result, the IBW reporting unit did not pass the recoverability test; therefore, the Company completed the third step of the evaluation, which compares the implied fair value of the intangible assets as determined using the multiple-period excess earnings method and the distributor model, with the carrying value to determine the amount of the impairment loss. Fair value assessments of the reporting unit are considered a Level 3 measurement due to the significance of unobservable inputs developed using company specific information. As a result of that impairment evaluation, the Company concluded that the customer list acquired from a previous acquisition for its IBW products was impaired and recorded an impairment charge of $4.7 million during the quarter ended March 31, 2019, to reduce the value of the asset to zero . The impairment loss is presented on the Consolidate Statements of Operations as Long-lived assets impairment. The following table presents details of the Company’s intangibles from historical acquisitions: March 31, 2019 March 31, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Backlog $ 1,530 $ (1,530 ) $ — $ 1,530 $ (1,530 ) $ — Customer relationships 23,260 (21,196 ) 2,064 23,260 (14,320 ) 8,940 Product technology 45,195 (44,148 ) 1,047 45,195 (43,034 ) 2,161 Non-compete 510 (510 ) — 510 (510 ) — Trade name and trademark 1,473 (1,306 ) 167 1,473 (1,139 ) 334 Total finite-lived intangible assets, net $ 71,968 $ (68,690 ) $ 3,278 $ 71,968 $ (60,533 ) $ 11,435 Originally, the finite-lived intangibles are being amortized over periods of two to ten years using either a straight line method or the consumption period based on expected cash flows from the underlying intangible asset. Finite-lived intangible amortization expense from continuing operations was $3.4 million and $4.2 million in fiscal years 2019 and 2018 . The following is the expected future amortization by fiscal year: (in thousands) 2020 2021 2022 2023 2024 Thereafter Intangible amortization expense $ 1,232 $ 903 $ 766 $ 377 $ — $ — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Obligations The Company has a three-year lease that began in October 2017 for the corporate headquarters in Aurora, Illinois. This location houses corporate administration, sales, marketing and the CNS segment product distribution, engineering and manufacturing. The Company has a long-term deferred lease liability of $59,000 presented in other long-term liabilities on the Consolidated Balance Sheets as of March 31, 2019 and 2018 , to account for an exit obligation associated with this lease. The ISM segment leases an engineering and service center in Dublin, Ohio, which runs through 2019 . The IBW office lease expires in the second quarter of fiscal year 2021. The leases require the Company to pay utilities, insurance and real estate taxes on the facilities. Total rent expense for all facilities was $0.9 million for both fiscal years 2019 and 2018 . In fiscal year 2018 , rent expense was offset by $0.1 million of sublease income. There was no sublease income in fiscal year 2019 . In fiscal years 2018, $0.1 million of lease payments reduced accrued reorganization. Future minimum lease obligations as of March 31, 2019 consisted of the following: (in thousands) 2020 2021 2022 2023 Thereafter Total Future minimum lease payments for operating leases $705 $357 — — — $1,062 A reserve for a net loss on firm purchase commitments of $167,000 and $130,000 is recorded on the balance sheet as Accrued expenses as of March 31, 2019 and 2018, respectively. Litigation and Contingency Reserves The Company and its subsidiaries are involved in various assertions, claims, proceedings and requests for indemnification concerning intellectual property, including patent infringement suits involving technologies that may be incorporated in the Company’s products, which are being handled and defended in the ordinary course of business. These matters are in various stages of investigation and litigation, and they are being vigorously defended. Although the Company does not expect that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial condition or results of operations, litigation is inherently unpredictable. Therefore, judgments could be rendered, or settlements entered, that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and it records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. In the ordinary course of operations the Company receives claims where the Company believes an unfavorable outcome is possible and/or for which is probable and no estimate of possible losses can currently be made. A significant customer was a defendant in two patent infringement claims and is asserting possible indemnity rights under contracts with the Company. The customer has settled one matter, and initially won summary judgment for all claims in the other, but on appeal the decision was reversed. The customer has informed the Company that the customer intends to seek to recover from the Company a share of the settlement and defense costs. For the summary judgment case, the customer provided an initial allocation of their defense costs. The Company recently obtained additional information to evaluate the facts for both cases and has agreed on principle to a combined settlement amount of $0.3 million , but have not agreed on the timing of payment. The parties are discussing f inal terms and conditions and are close to settlement, with some indemnity rights reserved. As of March 31, 2019, the combined settlement is unpaid and accrued on the Consolidated Balance Sheets presented in Accrued expenses. Both of these claims relate to a business which was previously sold and therefore the related expense is presented as discontinued operations in fiscal year 2019. |
Product Warranties
Product Warranties | 12 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties: The Company’s products carry a limited warranty ranging from one to seven years for the product within the CNS segment, typically one year for products within the ISM segment and from one to five years for the products within the IBW segment. The specific terms and conditions of those warranties vary depending upon the customer and the product sold. Factors that enter into the estimate of the Company’s warranty reserve include: the number of units shipped historically, anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the reserve as necessary. The current portions of the warranty reserve were $74,000 and $125,000 as of March 31, 2019 and 2018 , respectively, and are presented on the Consolidated Balance Sheets as Accrued expenses. The long-term portions of the warranty reserve were $56,000 and $175,000 as of March 31, 2019 and 2018 , respectively, and are presented on the Consolidated Balance Sheets as Other long-term liabilities. In fiscal year 2019, the warranty reserve decreased primarily due to improved quality and reduced repair costs. The following table presents the changes in our product warranty reserve: Fiscal Year Ended March 31, (in thousands) 2019 2018 Total product warranty reserve, beginning of period $ 300 $ 395 Warranty expense (98 ) 57 Utilization (72 ) (152 ) Total product warranty reserve, end of period $ 130 $ 300 |
Capital Stock and Stock Restric
Capital Stock and Stock Restrictions | 12 Months Ended |
Mar. 31, 2019 | |
Payments for Repurchase of Equity [Abstract] | |
Capital Stock And Stock Restriction Agreements [Text Block] | Capital Stock and Stock Restriction Agreements: Reverse Stock Split All common stock, equity, share and per share amounts in the financial statements and notes have been retroactively adjusted to reflect a one-for-four reverse stock split, which was effective June 7, 2017. Capital Stock Activity The Board of Directors has the authority to issue up to 1,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, without any further vote or action by stockholders. Share Repurchase Programs In May 2017, the Board of Directors authorized a share repurchase program whereby the Company may repurchase up to an aggregate of $2.0 million of its outstanding Class A Common Stock (the 2017 authorization). The 2017 authorization is in addition to the $0.1 million that was remaining from the August 2011 $20.0 million authorization (the 2011 authorization). There were 426,283 and 133,608 shares repurchased under the 2011 and 2017 authorizations during the fiscal year ended March 31, 2019 and March 31, 2018 at a weighted average purchase price of $2.43 and $2.98 per share, respectively. There was approximately $0.7 million remaining for additional share repurchases under the 2017 authorization as of March 31, 2019. In fiscal years 2019 and 2018 , the Company repurchased from employees 62,260 shares and 59,648 shares, respectively, to satisfy the minimum statutory tax withholding obligations on the vesting of restricted stock units and performance-based restricted stock units. These repurchases, which are not included in the authorized share repurchase programs, had a weighted-average purchase price of $3.18 and $2.92 , respectively. Voting Rights The Company’s Common Stock is divided into two classes. Class A Common Stock is entitled to one vote per share, while Class B Common Stock is entitled to four votes per share. As of May 17, 2019 , Robert C. Penny III, Robert W. Foskett and Patrick J. McDonough, Jr., as trustees of the Voting Trust containing common stock held for the benefit of the Penny family, have the exclusive power to vote over 49.8% of the votes entitled to be cast by the holders of the Company's common stock. Certain Penny family members also own, or are beneficiaries of, trusts that own shares outside of the Voting Trust. Messrs. Penny, Foskett and McDonough, as trustees of the Voting Trust and other trusts, control 53.9% of the voting power of the Company’s outstanding stock and therefore effectively control the Company. Stock Restriction Agreements The members of the Penny family (principal stockholders) have a Stock Transfer Restriction Agreement that prohibits, with limited exceptions, such members from transferring their Class B Common Stock acquired prior to November 30, 1995, without first offering such stock to the other members of the Penny family. If converted, Class B stock converts on a one-for-one basis into shares of Class A Common Stock upon a transfer. As of March 31, 2019 , a total of 3,484,287 shares of Class B Common Stock are subject to this Stock Transfer Restriction Agreement. Shares Issued and Outstanding The following table summarizes Common Stock transactions for fiscal years 2018 and 2019 : Common Shares Outstanding (in thousands) Class A Class B Treasury Shares Total shares outstanding, March 31, 2017 12,015 3,484 (4,441 ) Purchases of Treasury Stock (193 ) — (193 ) Restricted stock grants, including conversion of certain RSUs and PSUs, net of forfeitures 324 — — Total shares outstanding, March 31, 2018 12,146 3,484 (4,634 ) Purchases of Treasury Stock (489 ) — (489 ) Restricted stock grants, including conversion of certain RSUs and PSUs, net of forfeitures 253 — — Total shares outstanding, March 31, 2019 11,910 3,484 (5,123 ) In April 2019, the Compensation Committee granted 0.1 million restricted stock units (RSUs) and approximately 0.1 million performance-based restricted stock units (PSUs) to executives and other employees pursuant to the Westell Technologies, Inc. 2015 Omnibus Incentive Compensation Plan (see Note 8 ). |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-based Compensation: Employee Stock Incentive Plans The Westell Technologies, Inc. 2015 Omnibus Incentive Compensation Plan (the 2015 Plan) was approved at the annual meeting of stockholders on September 16, 2015. If any award granted under the 2015 Plan is canceled, terminates, expires, or lapses for any reason, any shares subject to such award will again be available for the grant of an award under the 2015 Plan. Shares subject to an award will not be made available again for issuance under the Plan if such shares are: (a) delivered to or withheld by the Company to pay the grant or purchase price of an award, or (b) delivered to or withheld by the Company to pay the withholding taxes related to an award. Any awards or portions thereof that are settled in cash and not in shares will not be counted against the foregoing Share limit. There are a total of 631,959 shares available for issuance under the 2015 Plan as of March 31, 2019 . The stock options, restricted stock awards, and RSU awards granted under the 2015 Plan generally typically vest in equal annual installments over 3 years for employees and 1 year for non-employee directors. PSUs earned generally vest over the performance period, as described below. Certain awards provide for accelerated vesting if there is a change in control (as defined in the 2015 Plan), or when provided within individual employment contracts. The Company accounts for forfeitures as they occur. The Company issues new shares of stock for awards under the 2015 Plan. Stock-Based Compensation Total stock-based compensation is reflected in the Consolidated Statements of Operations as follows: Fiscal Year Ended March 31, (in thousands) 2019 2018 Cost (benefit) of revenue $ 47 $ 30 Sales and marketing 369 272 Research and development 174 167 General and administrative 581 802 Stock-based compensation 1,171 1,271 Income tax benefit — — Total stock-based compensation, after taxes $ 1,171 $ 1,271 Stock Options Stock options that have been granted by the Company have an exercise price that is equal to the reported value of the Company’s stock on the grant date. The Company’s options have a contractual term of 7 years . Compensation expense is recognized on a straight-line basis over the vesting period for the award. The Company uses the Black-Scholes model to estimate the fair value of employee stock options on the date of grant. That model employs parameters for which the Company has made estimates according to the assumptions noted below. Expected volatilities were based on historical volatilities of the Company’s stock. The expected option lives represent the period of time that options granted are expected to be outstanding based on historical trends. The risk-free interest rates were based on the United States Treasury yield curve for the expected term at the time of grant. The dividend yield was based on expected dividends at the time of grant, which has always been zero. The Company recorded expense of $0.1 million in both the fiscal years ended March 31, 2019 and 2018 related to stock options. There were no options exercised in fiscal years 2019 and 2018 . Option activity for the fiscal year ended March 31, 2019 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, 2018 197,936 $ 4.87 Granted 100,000 $ 3.14 Exercised — $ — Forfeited (1,460 ) $ 4.66 Expired (2,998 ) $ 4.69 Outstanding on March 31, 2019 293,478 $ 4.28 4.4 $ 0 Exercisable on March 31, 2019 148,700 $ 5.21 3.3 $ 0 (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. As of March 31, 2019 , there was $0.1 million of pre-tax stock option compensation expense related to non-vested awards not yet recognized, which is expected to be recognized over a weighted-average period of 2.0 years . 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, 2019 2018 Input assumptions: Expected volatility 61 % 60 % Risk-free interest rate 2.8 % 1.7 % Expected life 4 years 4 years Expected dividend yield 0 % 0 % Output weighted-average grant date fair value $1.44 $1.41 Restricted Stock Vesting of restricted stock is subject to continued employment with the Company. During fiscal years 2019 and 2018 , non-employee directors received grants of 63,334 and 104,636 shares with a weighted-average grant date fair value of $2.86 and $3.01 , respectively. The Company recognizes compensation expense restricted stock on a straight-line basis over the vesting periods for the award based on the market value of Westell Technologies stock on the date of grant. The following table sets forth restricted stock activity for the fiscal year ended March 31, 2019 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2018 62,761 $3.35 Granted 63,334 $2.86 Vested (62,761 ) $3.35 Forfeited — $0.00 Non-vested as of March 31, 2019 63,334 $2.86 The Company recorded $0.2 million and $0.3 million of expense in the fiscal years ended March 31, 2019 and 2018 , respectively, related to restricted stock. As of March 31, 2019 , 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 during both of the fiscal years ended March 31, 2019 and 2018 . Restricted Stock Units (RSUs) In fiscal years 2019 and 2018 , there were 412,500 and 570,000 shares with a weighted-average grant date fair value of $3.08 and $2.91 , 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 for RSUs in both fiscal years 2019 and 2018 . As of March 31, 2019 , there was approximately $1.2 million of pre-tax unrecognized compensation expense related to the RSUs, which is expected to be recognized over a weighted-average period of 1.8 years . The total intrinsic fair value of RSUs vested was $0.6 million and $0.5 million during fiscal years 2019 and 2018 , respectively. The following table sets forth the RSUs activity for the fiscal year ended March 31, 2019 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2018 518,450 $3.03 Granted 412,500 $3.08 Vested (189,445 ) $3.21 Forfeited (76,378 ) $2.89 Non-vested as of March 31, 2019 665,127 $3.03 Performance-based RSUs (PSUs) During fiscal year 2019, 50,000 PSUs were granted. Those PSUs will be earned based upon achievement of performance goals tied to growing revenue and non-GAAP profitability targets for the first, second, third, and fourth quarters of fiscal year 2019 and toward the annual fiscal year 2019 objective, but have a continued employment provision and will vest one year from the grant date. During fiscal year 2018, 40,000 PSUs were granted, but were all forfeited prior to vesting. Upon vesting, the PSUs convert into shares of Class A Common Stock of the Company on a one-for-one basis. The Company recorded stock-based compensation expense of $14,000 and $40,000 for PSUs in fiscal years 2019 and 2018 , respectively. The total intrinsic fair value of PSUs vested during fiscal years 2019 and 2018 was $0 and $141,000 , respectively. The following table sets forth the PSUs activity for the fiscal year ended March 31, 2019 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2018 — $0.00 Granted 50,000 $3.14 Vested — $0.00 Forfeited (45,000 ) $3.14 Non-vested as of March 31, 2019 5,000 $3.14 |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment and Related 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 evaluates segment profit on 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 three reportable segments are as follows: In-Building Wireless (IBW) Segment The IBW segment solutions enable cellular coverage in stadiums, arenas, malls, buildings, and other indoor areas not served well or at all by the existing "macro" outdoor cellular network. For commercial service, the IBW segment solutions include digital repeaters and distributed antenna system (DAS) conditioners. For the public safety market, the IBW segment solutions include half-watt and two-watt repeaters and a battery backup unit. The Company’s IBW segment also offers ancillary products that consist of passive system RF components and antennas for both the commercial and public safety markets. In addition, in fiscal year 2019, IBW, in partnership with ip.access, a leading small cell solutions partner based in the U.K., began developing an OnGo small cell for the private LTE market. Intelligent Site Management (ISM) Segment (formerly Intelligent Site Management and Services or ISMS) The ISM segment solutions include a suite of remote units which provide machine-to-machine (M2M) communications that enable operators to remotely monitor, manage, and control physical site infrastructure and support systems. Remote units can be and often are combined with the Company’s Optima management software system. The Company also offers support services (i.e., maintenance agreements) and deployment services (i.e., installation). Communications Network Solutions (CNS) Segment The CNS segment solutions include a broad range of outdoor network infrastructure offerings consisting of integrated cabinets, power distribution products, copper and fiber connectivity panels, T1 network interface units (NIUs), and tower mounted amplifiers (TMAs). Starting in fiscal year 2019, CNS added a suite of fiber access solutions to address the growing customer needs of densification at the network’s edge. Segment information for the fiscal years ended March 31, 2019 and 2018 , is set forth below: Fiscal Year Ended March 31, 2019 (in thousands) IBW ISM CNS Total Revenue $ 12,474 $ 17,263 $ 13,833 $ 43,570 Gross profit 5,202 9,040 4,122 18,364 Gross margin 41.7 % 52.4 % 29.8 % 42.1 % Research and development 2,755 2,390 1,645 6,790 Segment profit $ 2,447 $ 6,650 $ 2,477 11,574 Operating expenses: Sales and marketing 8,342 General and administrative 6,699 Intangible amortization 3,435 Restructuring — Long-lived assets impairment 4,722 Operating income (loss) from continuing operations (11,624 ) Other income (expense), net 626 Income tax (expense) benefit (39 ) Net income (loss) from continuing operations $ (11,037 ) Fiscal Year Ended March 31, 2018 (in thousands) IBW ISM CNS Total Revenue $ 23,265 $ 19,350 $ 15,962 $ 58,577 Gross profit 10,653 9,959 4,555 25,167 Gross margin 45.8 % 51.5 % 28.5 % 43.0 % Research and development 4,141 2,264 970 7,375 Segment profit $ 6,512 $ 7,695 $ 3,585 17,792 Operating expenses: Sales and marketing 8,290 General and administrative 6,602 Intangible amortization 4,189 Restructuring 165 Long-lived assets impairment — Operating income (loss) from continuing operations (1,454 ) Other income (expense), net 888 Income tax (expense) benefit 597 Net income (loss) from continuing operations $ 31 Segment asset information is not reported to or used by the CODM. Enterprise-wide and Geographic Information More than 90% of the Company’s revenues were generated in the United States in fiscal years 2019 and 2018 . More than 90% of the Company's long-lived assets are located in the United States. Significant Customers and Concentration of Credit The Company is dependent on certain major companies operating in telecommunications markets that represent more than 10% of the total revenue. Sales to major customers and successor companies that exceed 10% of total revenue are as follows: Fiscal Year Ended March 31, 2019 2018 Verizon 23.1 % 18.0 % AT&T 11.4 % 12.5 % Verizon and AT&T are customers of all reporting segments. Major companies operating in telecommunications markets comprise a significant portion of the Company’s trade receivables. Receivables from major customers that exceed 10% of total accounts receivable balance are as follows: Fiscal Year Ended March 31, 2019 2018 Verizon 27.5 % 36.2 % AT&T 8.0 % 14.4 % |
Restructuring Charge
Restructuring Charge | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring Charge | Restructuring Charges: There were no restructuring expenses recorded in fiscal year 2019. In fiscal year 2018, the Company recorded a restructuring expense of $0.2 million related to employee termination costs that spanned all three segments (the 2018 restructuring plan). As of March 31, 2019 , there are no unpaid and accrued reorganization costs. As of March 31, 2018, $0.1 million of the restructuring costs, primarily related to the office space from the 2017 restructuring, are unpaid and accrued on the Consolidated Balance Sheets presented in Accrued restructuring. The restructuring costs were fully paid in fiscal year 2019. Total fiscal year 2019 restructuring charges and their utilization are summarized as follows: (in thousands) Employee -related Other costs Total Liability at March 31, 2018 $ — $ 63 $ 63 Charged — — — Payments — (63 ) (63 ) Liability at March 31, 2019 $ — $ — $ — Total fiscal year 2018 restructuring charges and their utilization are summarized as follows: (in thousands) Employee Other Total Liability at March 31, 2017 $ — $ 1,234 $ 1,234 Charged 165 — 165 Payments (165 ) (1,171 ) (1,336 ) Liability at March 31, 2018 $ — $ 63 $ 63 |
Short-term Investments
Short-term Investments | 12 Months Ended |
Mar. 31, 2019 | |
Short-term Investments [Abstract] | |
Short-term Investments | Short-term Investments: There were no short-term investments as of March 31, 2019. As of March 31, 2018, the Company owned certificates of deposit amounting to $2.8 million . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements: Fair value is defined by ASC 820 as the price that would be received upon selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted prices in active markets for identical assets and liabilities. • Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Assets Measured at Fair Value on a Recurring Basis The following table presents available-for-sale securities measured at fair value on a recurring basis as of March 31, 2019 : (in thousands) Total Fair Value of Asset or Liability Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Sheet Classification Assets: Money market funds $ 25,645 $ 25,645 $ — $ — Cash and cash equivalents The following table presents available-for-sale securities measured at fair value on a recurring basis as of March 31, 2018 : (in thousands) Total Fair Value of Asset or Liability Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Sheet Classification Assets: Money market funds $ 19,237 $ 19,237 $ — $ — Cash and cash equivalents The fair value of the money market funds approximates their carrying amounts due to the short-term nature of these financial assets. Assets Measured at Fair Value on a Nonrecurring Basis At March 31, 2019, assets measured at fair value on a nonrecurring basis consisted of long-lived assets for our IBW reporting unit. |
Variable Interest Entity Variab
Variable Interest Entity Variable Interest Entity | 12 Months Ended |
Mar. 31, 2019 | |
Guarantees [Abstract] | |
Guarantees [Text Block] | Variable Interest Entity and Guarantee: The Company has a 50% equity ownership in AccessTel Kentrox Australia PTY LTD (AKA). AKA distributes network management solutions provided by the Company and the other 50% owner to one customer. The Company holds equal voting control with the other owner. All actions of AKA are decided at the board level by majority vote. The Company evaluated ASC Topic 810, Consolidations , and concluded that AKA is a variable interest entity (VIE). The Company has concluded that it is not the primary beneficiary of AKA and therefore consolidation is not required. As of both March 31, 2019 and March 31, 2018 , the carrying amount of the Company's investment in AKA was approximately $0.1 million , which is presented on the Consolidated Balance Sheets within Other assets. In fiscal year 2018, the Company received a cash dividend payment of $59,000 from AKA. The Company's revenue to AKA for fiscal years 2019 and 2018 was $1.9 million and $3.5 million , respectively. Accounts receivable from AKA is $0.3 million and $0.4 million and deferred revenue relating to maintenance contracts is $0.8 million and $1.4 million as of March 31, 2019 and March 31, 2018 , respectively. The Company also has an unlimited guarantee for the performance of the other 50% owner in AKA, who primarily provides support and engineering services to the customer. This guarantee was put in place at the request of the AKA customer. The guarantee, which is estimated to have a maximum potential future payment of $0.7 million , will stay in place as long as the contract between AKA and the customer is in place. The Company would have recourse against the other 50% owner in AKA in the event the guarantee is triggered. The Company determined that it could perform on the obligation it guaranteed at a positive rate of return and, therefore, did not assign value to the guarantee. The Company's exposure to loss as a result of its involvement with AKA, exclusive of lost profits, is limited to the items noted above. |
Benefit Plans Benefit Plans
Benefit Plans Benefit Plans | 12 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Benefit Plans: The Company sponsors a 401(k) benefit plan (the Westell Plan), which covers substantially all of Westell, Inc.'s domestic employees. The Westell Plan is a salary reduction plan that allows employees to defer up to 100% of wages subject to Internal Revenue Service limits. The Westell Plan also allows for Company discretionary and matching contributions. In October 2016, the Company established a prospective maximum employer match of $500 per calendar year. Matching contribution expense was $0.1 million in both fiscal years 2019 and 2018 . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (In thousands) Balance at Beginning of Year Net Additions Charged to Cost and Expenses Deductions Balance at End of Year 2019 Accounts receivable allowances $ 95 $ 85 $ (80 ) (1) $ 100 Reserve for excess and obsolete inventory and net realizable value 3,562 564 (1,345 ) (2) 2,781 Deferred tax assets valuation allowance 37,103 1,668 (3) — 38,771 Reserve for returns 51 341 (145 ) 247 2018 Accounts receivable allowances $ 90 $ 7 $ (2 ) (1) $ 95 Reserve for excess and obsolete inventory and net realizable value 8,458 1,213 (6,109 ) (2) 3,562 Deferred tax assets valuation allowance 52,190 — (15,087 ) (3) 37,103 Reserve for returns 82 329 (360 ) 51 (1) Accounts written off, including early pay discounts, net of recoveries. (2) Inventory loss charged against inventory reserves. (3) Change in valuation allowance due to assessment of realizability of deferred tax assets and in fiscal year 2018 the impact of the Tax Act. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with maturities of three months or less when purchased and include bank deposits and money market funds. Money market funds are accounted for as available-for-sale securities. |
Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount less payment discounts and estimated allowance for doubtful accounts. The Company provides allowances for doubtful accounts related to accounts receivable for estimated losses resulting from the inability of its customers to make required payments. The Company takes into consideration the overall quality of the receivable portfolio along with specifically identified customer risks. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company, the Company provides allowances for bad debts against amounts due to reduce the net realized receivable to the amount it reasonably believes will be collected. |
Short-term Investment, Policy [Policy Text Block] | Short-term Investments Certificates of deposit held for investment with an original maturity greater than 90 days and less than one year are carried at cost and reported as Short-term investments on the Consolidated Balance Sheets. The certificates of deposit are not debt securities. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and trade receivables. The Company currently invests its excess cash in government and prime money market funds. |
Earnings Per Share, Policy [Policy Text Block] | Income (Loss) per Share The computation of basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share includes the number of additional common shares that would have been outstanding if the dilutive potential shares had been issued. In periods with a net loss, all common stock equivalents are excluded from the per share calculation; therefore, the basic loss per share equals the diluted loss per share. |
Inventory, Policy [Policy Text Block] | Inventories and Inventory Valuation Inventories are stated at the lower of first-in, first-out (FIFO) cost or market value. Market value is based upon an estimated average selling price reduced by estimated costs of disposal. Should actual market conditions differ from the Company’s estimates, the Company’s future results of operations could be materially affected. Reductions in inventory valuation are included in Cost of revenue in the accompanying Consolidated Statements of Operations. The Company reviews inventory for excess quantities and obsolescence based on its best estimates of future demand, product lifecycle status and product development plans. The Company uses historical information along with these future estimates to reduce the inventory cost basis. Subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Prices anticipated for future inventory demand are compared to current and committed inventory values. |
Prepaid expenses policy text block [Policy Text Block] | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets generally consist of prepaid product royalty, prepaid maintenance agreements and prepaid rent, which are amortized as expense generally over the term of the underlying contract or estimated product life. |
Property, Plant and Equipment [Table Text Block] | Land, Property and Equipment Land, property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, or for leasehold improvements, the shorter of the remaining lease term or the estimated useful life. The estimated useful lives for machinery and equipment range from 5 to 7 years and for office, computer and research equipment from 2 to 5 years . Expenditures for major renewals and improvements that extend the useful life of property and equipment are capitalized. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets Intangible assets with determinable lives are amortized on a straight-line basis or the consumption period based on expected cash flows from the underlying intangible asset over their respective estimated useful lives. If the Company were to determine that a change to the remaining estimated useful life of an intangible asset was necessary, then the remaining carrying amount of the intangible asset would be amortized prospectively over that revised remaining useful life. On an ongoing basis, the Company reviews intangible assets with a definite life and other long-lived assets for impairment whenever events and circumstances indicate that carrying values may not be recoverable. If such events or changes in circumstances occur, the Company will recognize an impairment loss if the undiscounted future cash flow expected to be generated by the asset is less than the carrying value of the related asset. Any impairment loss would adjust the asset to its implied fair value. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition and Deferred Revenue The Company records revenue based on a five-step model in accordance with ASC Topic 606, Revenue From Contracts With Customers (ASC 606). The Company's revenue is derived from the sale of products, software, and services identified in contracts. A contract exists when both parties have an approved agreement that creates enforceable rights and obligations, identifies performance obligations and payment terms and has commercial substance. The Company records revenue from these contracts when control of the products or services transfer to the customer. The amount of revenue to be recognized is based upon the consideration, including the impact of any variable consideration, that the Company expects to be entitled to receive in exchange for these products and services. The majority of the Company’s revenue is recorded at a point in time from the sale of tangible products. Revenue is recorded when control of the products passes to the customer, dependent upon the terms of the underlying contract. For right-to-use software, revenue is recognized at the point in time the customer has the right to use and can substantially benefit from use of the software. Products regularly include warranties that include bug fixes, and minor updates so that the product continues to function as promised in a dynamic environment, and phone support. These standard warranties are assurance type warranties which do not offer any services beyond the assurance that the product will continue working as specified. Therefore, warranties are not considered separate performance obligations. Instead, the Company accrues the expected cost of warranty. Extended warranties are sold separately with a post contract support (PCS) agreement. PCS revenue is recognized over time during the support period. Revenue from installation services is recognized when the services have been completed or transferred as this is when the customer has obtained control. The Company has contracts with multiple performance obligations. When the sales agreement involves multiple performance obligations, each obligation is separately identified and the transaction price is allocated based on the amount of consideration the Company expects to be entitled to in exchange for transferring the promised good or service to the customer. In most cases, the Company allocates the consideration to each performance obligation based on the relative stand-alone selling price (RSP) of the distinct performance obligation. In circumstances where RSP is not observable, the Company allocates the consideration for the performance obligations by utilizing the residual approach. For performance obligations that the Company satisfies over time, revenue is recognized by consistently applying a method of measuring progress toward complete satisfaction of that performance obligation. The Company utilizes the method that most accurately depicts the progress toward completion of the performance obligation. If the measure of remaining rights exceeds the measure of the remaining performance obligations, the Company records a contract asset. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability. Contract assets and liabilities related to product returns will be recorded as contract assets and liabilities and presented on the Consolidated Balance Sheets in Prepaid expenses and other current assets and Deferred revenue, respectively. Customer billings for services not yet rendered are deferred and recognized as revenue as the services are rendered. The associated deferred revenue is included in Deferred revenue or Deferred revenue non-current, as appropriate, in the Consolidated Balance Sheets. The Company allows certain customers to return unused product under specified terms and conditions. The Company estimates product returns based on historical sales and return trends and records a corresponding refund liability. The refund liability is included within Accrued expenses on the accompanying Consolidated Balance Sheets. Additionally, the Company records an asset based on historical experience for the amount of product the Company expects to return to inventory as a result of the return, which is recorded in Prepaid and other current assets in the Consolidated Balance Sheets. Under previous guidance, the Company netted the asset against the refund liability and presented the net refund liability within Accrued expenses. The gross product return asset was $0.1 million and $0.2 million at April 1, 2018 and March 31, 2019, respectively. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Shipping and handling billed to customers is recorded as revenue. The Company classifies shipping and handling costs associated with both inbound freight and the distribution of finished product to our customers as cost of revenue. This is consistent with the Company's practice under the previous guidance. |
Product Warranties, Policy [Policy Text Block] | Product Warranties Most of the Company’s products carry a limited warranty of up to seven years. The Company accrues for estimated warranty costs as products are shipped based on historical sales and cost of repair or replacement trends relative to sales. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Engineering and product research and development costs are charged to expense as incurred. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based Compensation The Company recognizes stock-based compensation expense for all employee stock-based payments based upon the fair value on the awards grant date over the requisite service period. If the awards are performance based, the Company must estimate future performance attainment to determine the number of awards expected to vest. Determining the fair value of equity-based options requires the Company to estimate the expected volatility of its stock, the risk-free interest rate, expected option term, and expected dividend yield. The Company accounts for forfeitures as they occur. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements The Company accounts for the fair value of assets and liabilities in accordance with ASC Topic 820, Fair Value Measurements and Disclosures ( ASC 820). ASC 820 defines fair value and establishes a framework for measuring fair value as required by other accounting pronouncements. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency The Company’s primary foreign currency exposure is subject to fluctuations in exchange rates for the U.S. dollar versus the Australian and Canadian dollar and the related effects on receivables and payables denominated in those currencies. The Company records transaction gains (losses) for fluctuations on foreign currency rates on accounts receivable, accounts payable, and cash as a component of other income (expense), net on the Consolidated Statements of Operations. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes under the provisions of ASC Topic 740, Income Taxes (ASC 740). ASC 740 requires an asset and liability based approach in accounting for income taxes. Deferred income tax assets, including net operating loss (NOL) and certain tax credit carryovers and liabilities, are recorded based on the differences between the financial statement and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the tax differences are expected to reverse. Valuation allowances are provided against deferred tax assets, which are assessed as not likely to be realized. On a quarterly basis, management evaluates the recoverability of deferred tax assets and the need for a valuation allowance. This evaluation requires the use of estimates and assumptions and considers all positive and negative evidence and factors, such as the scheduled reversal of temporary differences, the mix of earnings in the jurisdictions in which the Company operates, and prudent and feasible tax planning strategies. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the dates of enactment. The Company accounts for unrecognized tax benefits based upon its assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company reports a liability for unrecognized tax benefits resulting from unrecognized tax benefits taken or expected to be taken in a tax return and recognizes interest and penalties, if any, related to its unrecognized tax benefits in income tax expense. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (ASU 2016-02). In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) (ASU 2017-13), which provides additional implementation guidance on the previously issued ASU 2016-02. ASU 2016-02 requires lessees to recognize leases on the balance sheet as right-of-use asset, representing the right to use the underlying asset for the lease term, and a corresponding lease liability for leases with terms greater than one year. The liability will be equal to the present value of lease payments while the right-of-use asset will be based on the liability, subject to adjustment, such as for initial direct costs. In addition, ASU 2016-02 expands the lease disclosure requirements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases) (ASU 2018-10), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. In July 2018, the FASB also issued ASU 2018-11, Targeted Improvements . The amendments in this ASU provide for an additional transition method in which an entity applying the lease standard at adoption date recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Any comparative periods presented in the financial statements would continue to be presented in accordance with current GAAP ( Topic 840 ). The Company is in the process of adopting the new standard effective April 1, 2019 and will elect to utilize the FASB approved option for transition relief with adoption occurring through a cumulative-effect adjustment as of April 1, 2019. The Company expects to recognize right of use assets and lease liabilities for operating leases in the Company's Consolidated Balance Sheets in the range of $1.1 million to $1.4 million upon adoption. As a practical expedient, short-term agreements of less than 12 months will be excluded from recognition under the Topic 842. The Company will finalize the adoption, including drafting an updated accounting policy that will include new key policy elections and disclosures during the first quarter of fiscal 2020. The Company does not believe the standard will materially impact the Consolidated Statement of Operations. In July 2018, the FASB issued ASU 2018-09, Codification Improvements (ASU 2018-09). ASU 2018-09 does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. The amendments that are immediately applicable had no impact to the Company. Others aspects of ASU 2018-09 provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018. The Company is currently evaluating this guidance to determine the impact it may have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (ASU 2018-13). This update modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. Certain disclosure requirements established in Topic 820 have been removed, some have been modified and new disclosure requirements were added. This new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact that ASU 2018-13 may have on the Company’s Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (ASU 2018-15). This update’s main objective is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this update require that a customer in a hosting arrangement that is a service contract follow the guidance in Subtopic 350-40 to determine which implementation costs should be capitalized as an asset and which costs should be expensed and states that any capitalized implementation costs should be expensed over the term of the hosting arrangement. This new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact that ASU 2018-15 may have on the Company’s Consolidated Financial Statements. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (ASU 2018-18). The update provides guidance on the interaction between Revenue Recognition (Topic 606) and Collaborative Arrangements (Topic 808) by aligning the unit of account guidance between the two topics and clarifying whether certain transactions between collaborative participants should be accounted for as revenue under Topic 606. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact ASU 2018-18 may have on the Company's Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The components of inventories are as follows: March 31, (in thousands) 2019 2018 Raw materials $ 3,445 $ 2,969 Finished goods 6,356 6,253 Total inventories $ 9,801 $ 9,222 |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment [Table Text Block] | The components of fixed assets are as follows: March 31, (in thousands) 2019 2018 Land $ 672 $ 672 Machinery and equipment 1,372 1,296 Office, computer and research equipment 5,267 5,175 Leasehold improvements 798 1,238 Land, property and equipment, gross $ 8,109 $ 8,381 Less accumulated depreciation and amortization (6,811 ) (6,780 ) Land, property and equipment, net $ 1,298 $ 1,601 Intangible Assets |
Schedule of Accrued Liabilities [Table Text Block] | The components of accrued expenses are as follows: March 31, (in thousands) 2019 2018 Accrued compensation $ 656 $ 772 Accrued contractual obligation 1,445 1,445 Other accrued expenses 1,466 1,063 Total accrued expenses $ 3,567 $ 3,280 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Financial Statement Impact of Adopting ASC 606 The following table summarizes the changes made to the Company's Consolidated Balance Sheets as of March 31, 2018 for the adoption of ASC 606: (in thousands) As reported March 31, 2018 Adjustments due to ASC 606 Adjusted as of April 1, 2018 Assets: Prepaid expenses and other current assets $ 816 $ 72 $ 888 Liabilities: Accrued expenses 3,280 72 3,352 Deferred revenue 1,790 (110 ) 1,680 Deferred revenue non-current 846 (219 ) 627 Stockholders' Equity: Accumulated deficit $ (329,645 ) $ 329 $ (329,316 ) The following table summarizes the impacts of adopting ASC 606 on the Company’s Consolidated Balance Sheets as of March 31, 2019: (in thousands) As of March 31, 2019 As reported under ASC 606 Effect of Change Increase/ (Decrease) Proforma under ASC 605 Assets: Prepaid expenses and other current assets $ 1,706 $ (175 ) $ 1,531 Liabilities: Accrued expenses 3,567 (175 ) 3,392 Deferred revenue 1,217 110 1,327 Deferred revenue non-current 444 109 553 Stockholders' Equity: Accumulated deficit $ (340,698 ) $ (219 ) $ (340,917 ) The following table summarizes the impacts of adopting ASC 606 on the Company’s Consolidated Statement of Operations for the fiscal year ended March 31, 2019: (in thousands) For the twelve months ended March 31, 2019 As reported under ASC 606 Effect of Change Increase/ (Decrease) Proforma under ASC 605 Revenue $ 43,570 $ 110 $ 43,680 Gross Profit 18,364 110 18,474 Net income (loss) from continuing operations (11,037 ) 110 (10,927 ) Net income (loss) $ (11,382 ) $ 110 $ (11,272 ) |
Disaggregation of Revenue [Table Text Block] | Disaggregation of revenue The following table disaggregates our revenue by major source: (In thousands) Fiscal year ended March 31, 2019 (under ASC 606) 2018 (under ASC 605) Revenue: Products $ 38,700 $ 51,891 Software 1,008 1,568 Services 3,862 5,118 Total revenue $ 43,570 $ 58,577 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following is the expected future revenue recognition timing of deferred revenue as of March 31, 2019: (in thousands) < 1 year 1-2 years > 2 years Deferred Revenue $ 1,217 $ 251 $ 193 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax expense (benefit) from continuing operations are summarized as follows: Fiscal Year Ended March 31, (in thousands) 2019 2018 Federal: Current $ — $ (697 ) Deferred (1 ) 7 (1 ) (690 ) State: Current 20 52 Deferred 3 2 23 54 Foreign: Current 17 39 Deferred — — 17 39 Total $ 39 $ (597 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The statutory federal income tax rate is reconciled to the Company's effective income tax rates below: Fiscal Year Ended March 31, 2019 2018 Statutory federal income tax rate 21.0 % 30.8 % Meals and entertainment (0.2 ) (4.5 ) State income tax, net of federal tax effect (6.4 ) 84.5 Valuation allowance (14.5 ) 2,677.8 Impact of Tax Reform — (2,686.5 ) Foreign tax credit (0.2 ) (8.9 ) Equity compensation (0.1 ) (20.4 ) NoranTel CTA Adjustment — 33.0 Other — (0.3 ) Effective income tax rate (0.4 )% 105.5 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Components of the net deferred income tax assets are as follows: March 31, (in thousands) 2019 2018 Deferred income tax assets: Allowance for doubtful accounts $ 26 $ 24 Foreign tax credit carryforward 810 812 Depreciation 173 227 Deferred revenue 425 675 Accrued compensation 412 358 Inventory reserves 757 948 Accrued warranty 33 77 Net operating loss carryforward 35,024 34,924 Accrued restructuring — 16 Intangibles and goodwill 272 — Other 839 660 Gross deferred tax assets 38,771 38,721 Valuation allowance (38,771 ) (37,103 ) Net deferred income tax assets — 1,618 Deferred income tax liabilities: Intangibles and goodwill — (1,618 ) Net deferred income tax liabilities $ — $ — |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits for fiscal years 2018 and 2019 is as follows: (in thousands) Unrecognized tax benefits at March 31, 2017 $ 2,962 Additions based on positions related to fiscal year 2018 — Unrecognized tax benefits at March 31, 2018 2,962 Additions based on positions related to fiscal year 2019 — Reductions as a result of expirations of applicable statutes of limitations (780 ) Unrecognized tax benefits at March 31, 2019 $ 2,182 |
Summary of Income Tax Examinations [Table Text Block] | With few exceptions, the major jurisdictions subject to examination by the relevant taxable authorities, and open tax years, stated as the Company's fiscal years, are as follows: Jurisdiction Open Tax Years U.S. Federal 2015 - 2018 U.S. States 2014 - 2018 Foreign 2014 - 2018 Since net operating loss carryovers are subject to audit based on the year in which they are utilized, all of the Company’s net operating losses generated in the past are open to adjustment to the Internal Revenue Service or state tax authorities (some states have shorter carryover periods). The Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering the U.S. corporate federal income tax rate from 34% to 21% effective January 1, 2018 . In the quarter ended December 31, 2018, the Company finalized its estimates of the impact of the Tax Act with no material effect on the Consolidated Financial Statements. Due to the lack of interest expense, foreign operations and modest officer’s compensation, as well as the full valuation allowance, the various provisions of tax reform, effective this year, had no impact. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill [Line Items] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The following table presents details of the Company’s intangibles from historical acquisitions: March 31, 2019 March 31, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Backlog $ 1,530 $ (1,530 ) $ — $ 1,530 $ (1,530 ) $ — Customer relationships 23,260 (21,196 ) 2,064 23,260 (14,320 ) 8,940 Product technology 45,195 (44,148 ) 1,047 45,195 (43,034 ) 2,161 Non-compete 510 (510 ) — 510 (510 ) — Trade name and trademark 1,473 (1,306 ) 167 1,473 (1,139 ) 334 Total finite-lived intangible assets, net $ 71,968 $ (68,690 ) $ 3,278 $ 71,968 $ (60,533 ) $ 11,435 |
Schedule of Expected Amortization Expense [Table Text Block] | The following is the expected future amortization by fiscal year: (in thousands) 2020 2021 2022 2023 2024 Thereafter Intangible amortization expense $ 1,232 $ 903 $ 766 $ 377 $ — $ — |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies Disclosure (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Long-term Purchase Commitment [Line Items] | |
Long-term Purchase Commitment [Table Text Block] | Future minimum lease obligations as of March 31, 2019 consisted of the following: (in thousands) 2020 2021 2022 2023 Thereafter Total Future minimum lease payments for operating leases $705 $357 — — — $1,062 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Changes in Company's product warranty reserve | The following table presents the changes in our product warranty reserve: Fiscal Year Ended March 31, (in thousands) 2019 2018 Total product warranty reserve, beginning of period $ 300 $ 395 Warranty expense (98 ) 57 Utilization (72 ) (152 ) Total product warranty reserve, end of period $ 130 $ 300 |
Capital Stock and Stock Restr_2
Capital Stock and Stock Restrictions (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Class of Stock [Line Items] | |
Schedule of Stock by Class [Table Text Block] | The following table summarizes Common Stock transactions for fiscal years 2018 and 2019 : Common Shares Outstanding (in thousands) Class A Class B Treasury Shares Total shares outstanding, March 31, 2017 12,015 3,484 (4,441 ) Purchases of Treasury Stock (193 ) — (193 ) Restricted stock grants, including conversion of certain RSUs and PSUs, net of forfeitures 324 — — Total shares outstanding, March 31, 2018 12,146 3,484 (4,634 ) Purchases of Treasury Stock (489 ) — (489 ) Restricted stock grants, including conversion of certain RSUs and PSUs, net of forfeitures 253 — — Total shares outstanding, March 31, 2019 11,910 3,484 (5,123 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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) 2019 2018 Cost (benefit) of revenue $ 47 $ 30 Sales and marketing 369 272 Research and development 174 167 General and administrative 581 802 Stock-based compensation 1,171 1,271 Income tax benefit — — Total stock-based compensation, after taxes $ 1,171 $ 1,271 |
Stock option activity | Option activity for the fiscal year ended March 31, 2019 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, 2018 197,936 $ 4.87 Granted 100,000 $ 3.14 Exercised — $ — Forfeited (1,460 ) $ 4.66 Expired (2,998 ) $ 4.69 Outstanding on March 31, 2019 293,478 $ 4.28 4.4 $ 0 Exercisable on March 31, 2019 148,700 $ 5.21 3.3 $ 0 (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, 2019 2018 Input assumptions: Expected volatility 61 % 60 % Risk-free interest rate 2.8 % 1.7 % Expected life 4 years 4 years Expected dividend yield 0 % 0 % Output weighted-average grant date fair value $1.44 $1.41 |
Restricted stock activity | The following table sets forth restricted stock activity for the fiscal year ended March 31, 2019 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2018 62,761 $3.35 Granted 63,334 $2.86 Vested (62,761 ) $3.35 Forfeited — $0.00 Non-vested as of March 31, 2019 63,334 $2.86 The Company recorded $0.2 million and $0.3 million of expense in the fiscal years ended March 31, 2019 and 2018 , respectively, related to restricted stock. As of March 31, 2019 , 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 during both of the fiscal years ended March 31, 2019 and 2018 . Restricted Stock Units (RSUs) In fiscal years 2019 and 2018 , there were 412,500 and 570,000 shares with a weighted-average grant date fair value of $3.08 and $2.91 , 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 for RSUs in both fiscal years 2019 and 2018 . As of March 31, 2019 , there was approximately $1.2 million of pre-tax unrecognized compensation expense related to the RSUs, which is expected to be recognized over a weighted-average period of 1.8 years . The total intrinsic fair value of RSUs vested was $0.6 million and $0.5 million during fiscal years 2019 and 2018 , respectively. The following table sets forth the RSUs activity for the fiscal year ended March 31, 2019 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2018 518,450 $3.03 Granted 412,500 $3.08 Vested (189,445 ) $3.21 Forfeited (76,378 ) $2.89 Non-vested as of March 31, 2019 665,127 $3.03 Performance-based RSUs (PSUs) During fiscal year 2019, 50,000 PSUs were granted. Those PSUs will be earned based upon achievement of performance goals tied to growing revenue and non-GAAP profitability targets for the first, second, third, and fourth quarters of fiscal year 2019 and toward the annual fiscal year 2019 objective, but have a continued employment provision and will vest one year from the grant date. During fiscal year 2018, 40,000 PSUs were granted, but were all forfeited prior to vesting. Upon vesting, the PSUs convert into shares of Class A Common Stock of the Company on a one-for-one basis. The Company recorded stock-based compensation expense of $14,000 and $40,000 for PSUs in fiscal years 2019 and 2018 , respectively. The total intrinsic fair value of PSUs vested during fiscal years 2019 and 2018 was $0 and $141,000 , respectively. The following table sets forth the PSUs activity for the fiscal year ended March 31, 2019 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2018 — $0.00 Granted 50,000 $3.14 Vested — $0.00 Forfeited (45,000 ) $3.14 Non-vested as of March 31, 2019 5,000 $3.14 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment[Table Text Block] | Segment information for the fiscal years ended March 31, 2019 and 2018 , is set forth below: Fiscal Year Ended March 31, 2019 (in thousands) IBW ISM CNS Total Revenue $ 12,474 $ 17,263 $ 13,833 $ 43,570 Gross profit 5,202 9,040 4,122 18,364 Gross margin 41.7 % 52.4 % 29.8 % 42.1 % Research and development 2,755 2,390 1,645 6,790 Segment profit $ 2,447 $ 6,650 $ 2,477 11,574 Operating expenses: Sales and marketing 8,342 General and administrative 6,699 Intangible amortization 3,435 Restructuring — Long-lived assets impairment 4,722 Operating income (loss) from continuing operations (11,624 ) Other income (expense), net 626 Income tax (expense) benefit (39 ) Net income (loss) from continuing operations $ (11,037 ) Fiscal Year Ended March 31, 2018 (in thousands) IBW ISM CNS Total Revenue $ 23,265 $ 19,350 $ 15,962 $ 58,577 Gross profit 10,653 9,959 4,555 25,167 Gross margin 45.8 % 51.5 % 28.5 % 43.0 % Research and development 4,141 2,264 970 7,375 Segment profit $ 6,512 $ 7,695 $ 3,585 17,792 Operating expenses: Sales and marketing 8,290 General and administrative 6,602 Intangible amortization 4,189 Restructuring 165 Long-lived assets impairment — Operating income (loss) from continuing operations (1,454 ) Other income (expense), net 888 Income tax (expense) benefit 597 Net income (loss) from continuing operations $ 31 |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Significant Customers and Concentration of Credit The Company is dependent on certain major companies operating in telecommunications markets that represent more than 10% of the total revenue. Sales to major customers and successor companies that exceed 10% of total revenue are as follows: Fiscal Year Ended March 31, 2019 2018 Verizon 23.1 % 18.0 % AT&T 11.4 % 12.5 % |
Schedule of Major Customer Accounts Receivable [Table Text Block] | Major companies operating in telecommunications markets comprise a significant portion of the Company’s trade receivables. Receivables from major customers that exceed 10% of total accounts receivable balance are as follows: Fiscal Year Ended March 31, 2019 2018 Verizon 27.5 % 36.2 % AT&T 8.0 % 14.4 % |
Restructuring Charge (Tables)
Restructuring Charge (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring charges | Total fiscal year 2019 restructuring charges and their utilization are summarized as follows: (in thousands) Employee -related Other costs Total Liability at March 31, 2018 $ — $ 63 $ 63 Charged — — — Payments — (63 ) (63 ) Liability at March 31, 2019 $ — $ — $ — Total fiscal year 2018 restructuring charges and their utilization are summarized as follows: (in thousands) Employee Other Total Liability at March 31, 2017 $ — $ 1,234 $ 1,234 Charged 165 — 165 Payments (165 ) (1,171 ) (1,336 ) Liability at March 31, 2018 $ — $ 63 $ 63 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis and their related valuation inputs | The following table presents available-for-sale securities measured at fair value on a recurring basis as of March 31, 2019 : (in thousands) Total Fair Value of Asset or Liability Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Sheet Classification Assets: Money market funds $ 25,645 $ 25,645 $ — $ — Cash and cash equivalents The following table presents available-for-sale securities measured at fair value on a recurring basis as of March 31, 2018 : (in thousands) Total Fair Value of Asset or Liability Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Sheet Classification Assets: Money market funds $ 19,237 $ 19,237 $ — $ — Cash and cash equivalents |
Basis of Presentation (Details
Basis of Presentation (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Business Acquisition [Line Items] | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | [1] | $ 608 | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (345) | ||
[1] | During the quarter ended September 30, 2017, the Company dissolved the NoranTel legal entity, which triggered a one-time foreign currency gain with the reversal of a cumulative translation adjustment. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Accounting Policies [Abstract] | ||
Raw materials | $ 3,445 | $ 2,969 |
Finished goods | 6,356 | 6,253 |
Total inventories | $ 9,801 | $ 9,222 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 672 | $ 672 |
Machinery and equipment | 1,372 | 1,296 |
Office, computer and research equipment | 5,267 | 5,175 |
Leasehold improvements | 798 | 1,238 |
Land, property and equipment, gross | 8,109 | 8,381 |
Less accumulated depreciation and amortization | (6,811) | (6,780) |
Land, property and equipment, net | $ 1,298 | $ 1,601 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 |
Accounting Policies [Abstract] | |||
Employee-related Liabilities, Current | $ 656 | $ 772 | |
Liabilities of Business Transferred under Contractual Arrangement, Current | 1,445 | 1,445 | |
Other Accrued Liabilities, Current | 1,466 | 1,063 | |
Accrued Liabilities, Current | $ 3,567 | $ 3,352 | $ 3,280 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Apr. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue | $ 43,570 | $ 58,577 | |
Gross profit | 18,364 | 25,167 | |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (11,037) | 31 | |
Prepaid Expense and Other Assets, Current | 1,706 | 816 | $ 888 |
Accrued Liabilities, Current | 3,567 | 3,280 | 3,352 |
Deferred revenue | 1,217 | 1,790 | 1,680 |
Deferred revenue non-current | 444 | 846 | 627 |
Retained Earnings (Accumulated Deficit) | (340,698) | (329,645) | (329,316) |
Net income (loss) | (11,382) | $ 31 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue | 110 | ||
Gross profit | 110 | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 110 | ||
Net income (loss) | 110 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue | 43,680 | ||
Gross profit | 18,474 | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (10,927) | ||
Prepaid Expense and Other Assets, Current | 1,531 | ||
Accrued Liabilities, Current | 3,392 | ||
Deferred revenue | 1,327 | ||
Deferred revenue non-current | 553 | ||
Retained Earnings (Accumulated Deficit) | (340,917) | ||
Net income (loss) | (11,272) | ||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid Expense and Other Assets, Current | (175) | 72 | |
Accrued Liabilities, Current | (175) | 72 | |
Deferred revenue | 110 | (110) | |
Deferred revenue non-current | 109 | (219) | |
Retained Earnings (Accumulated Deficit) | $ (219) | $ 329 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details 5) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 43,570 | $ 58,577 |
Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 38,700 | 51,891 |
License and Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,008 | 1,568 |
Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 3,862 | $ 5,118 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details 6) $ in Thousands | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 1,217 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 251 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years 11 months |
Revenue, Remaining Performance Obligation, Amount | $ 193 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2015USD ($) | Mar. 31, 2019USD ($)a | Mar. 31, 2018USD ($) | Apr. 01, 2019USD ($) | Sep. 30, 2018USD ($) | Apr. 01, 2018USD ($) | Apr. 07, 2015a | Apr. 02, 2013a | ||
Property, Plant and Equipment [Line Items] | |||||||||
Contract with Customer, Liability, Revenue Recognized | $ 1,700,000 | ||||||||
ContractWithCustomerProductReturnAsset | 200,000 | $ 100,000 | |||||||
Cash, FDIC Insured Amount | 250,000 | ||||||||
Depreciation | $ 600,000 | $ 800,000 | |||||||
Area of Real Estate Property | a | 16 | ||||||||
Proceeds from Sale of Property Held-for-sale | $ 264,000 | ||||||||
Capitalized Contract Cost, Net | $ 0 | ||||||||
Minimum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Operating Lease, Liability | $ 1,100,000 | ||||||||
Operating Lease, Right-of-Use Asset | 1,100,000 | ||||||||
Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Operating Lease, Liability | 1,400,000 | ||||||||
Operating Lease, Right-of-Use Asset | $ 1,400,000 | ||||||||
Machinery and Equipment [Member] | Minimum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||
Machinery and Equipment [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 7 years | ||||||||
Land available-for-sale [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Area of Real Estate Property | a | 4 | ||||||||
Land [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Area of Real Estate Property | a | 12 | ||||||||
3570 Computer and office Equipment [Member] | Minimum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 2 years | ||||||||
3570 Computer and office Equipment [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||
Accounting Standards Update 2014-09 [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Cumulative Effect on Retained Earnings, Net of Tax | [1] | $ 329,000 | |||||||
Accounting Standards Update 2014-09 [Member] | Accumulated Deficit [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Cumulative Effect on Retained Earnings, Net of Tax | [1] | $ 329,000 | |||||||
[1] | Includes the cumulative effect adjustment of the ASC 606 adoption. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Income Tax Expense (Benefit) | $ 39 | $ (597) |
Domestic Tax Authority [Member] | ||
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Current Federal Tax Expense (Benefit) | 0 | (697) |
Deferred Federal Income Tax Expense (Benefit) | (1) | 7 |
Income Tax Expense (Benefit) | (1) | (690) |
State and Local Jurisdiction [Member] | ||
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Income Tax Expense (Benefit) | 23 | 54 |
Current State and Local Tax Expense (Benefit) | 20 | 52 |
Deferred State and Local Income Tax Expense (Benefit) | 3 | 2 |
Foreign Tax Authority [Member] | ||
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Income Tax Expense (Benefit) | 17 | 39 |
Current Foreign Tax Expense (Benefit) | 17 | 39 |
Deferred Foreign Income Tax Expense (Benefit) | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2018Rate | Dec. 31, 2017Rate | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Statutory federal income tax rate | 21.00% | 34.00% | 21.00% | 30.80% |
Meals and entertainment | (0.20%) | (4.50%) | ||
State income tax, net of federal tax effect | (6.40%) | 84.50% | ||
Valuation allowance | (14.50%) | 2677.80% | ||
Impact of Tax Reform | 0.00% | (2686.50%) | ||
Foreign tax credit | (0.20%) | (8.90%) | ||
Equity compensation | (0.10%) | (20.40%) | ||
cumulative translation adjustment impact on income tax rate percentage | 0.00% | 33.00% | ||
Other | 0.00% | (0.30%) | ||
Effective income tax rate | (0.40%) | 105.50% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Deferred Tax Liability Not Recognized [Line Items] | ||
Allowance for doubtful accounts | $ 26 | $ 24 |
Foreign tax credit carryforward | 810 | 812 |
Depreciation | 173 | 227 |
Deferred revenue | 425 | 675 |
Accrued compensation | 412 | 358 |
Inventory reserves | 757 | 948 |
Accrued warranty | 33 | 77 |
Net operating loss carryforward | 35,024 | 34,924 |
Accrued restructuring | 16 | |
Deferred Tax Assets, Goodwill and Intangible Assets | 272 | |
Other | 839 | 660 |
Gross deferred tax assets | 38,771 | 38,721 |
Valuation allowance | (38,771) | (37,103) |
Net deferred income tax assets | 0 | 1,618 |
Intangibles and goodwill | 0 | (1,618) |
Deferred income tax liability | $ 0 | $ 0 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits | $ 2,182 | $ 2,962 | $ 2,962 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 0 | 0 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (780) | ||
Unrecognized Tax Benefits | $ 2,182 | $ 2,962 |
Income Taxes (Details 4)
Income Taxes (Details 4) | 12 Months Ended |
Mar. 31, 2019 | |
Minimum [Member] | Federal [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2015 |
Minimum [Member] | State and Local Jurisdiction [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
Minimum [Member] | Foreign Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
Maximum [Member] | Federal [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2018 |
Maximum [Member] | State and Local Jurisdiction [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2018 |
Maximum [Member] | Foreign Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2018 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Contingency [Line Items] | |||||||
Statutory federal income tax rate | 21.00% | 34.00% | 21.00% | 30.80% | |||
Deferred Tax Assets, Valuation Allowance | $ 37,103,000 | $ 38,771,000 | $ 37,103,000 | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 1,700,000 | ||||||
Income Tax Expense (Benefit) | 39,000 | (597,000) | |||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 2,500 | 2,000 | |||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 15,300 | 17,800 | 15,300 | ||||
Federal [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Tax Credit Carryforward, Amount | 800,000 | ||||||
Operating Loss Carryforwards | 26,900,000 | ||||||
State and Local Jurisdiction [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Tax Credit Carryforward, Amount | 100,000 | ||||||
Income Tax Expense (Benefit) | 23,000 | $ 54,000 | |||||
Operating Loss Carryforwards | 8,100,000 | ||||||
expiration net operating loss carryforward | $ 1,200,000 | ||||||
Subsequent Event [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Other Tax Carryforward, Expiration Dates | Mar. 31, 2021 | ||||||
Subsequent Event [Member] | Minimum [Member] | Federal [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Operating Loss Carryforwards, Expiration Date | Mar. 31, 2022 | ||||||
Subsequent Event [Member] | Minimum [Member] | State and Local Jurisdiction [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Other Tax Carryforward, Expiration Dates | Mar. 31, 2020 | ||||||
Operating Loss Carryforwards, Expiration Date | Mar. 31, 2020 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 71,968 | $ 71,968 |
Finite-Lived Intangible Assets, Accumulated Amortization | (68,690) | (60,533) |
Finite-Lived Intangible Assets, Net | 3,278 | 11,435 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,530 | 1,530 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,530) | (1,530) |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 23,260 | 23,260 |
Finite-Lived Intangible Assets, Accumulated Amortization | (21,196) | (14,320) |
Finite-Lived Intangible Assets, Net | 2,064 | 8,940 |
Product Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 45,195 | 45,195 |
Finite-Lived Intangible Assets, Accumulated Amortization | (44,148) | (43,034) |
Finite-Lived Intangible Assets, Net | 1,047 | 2,161 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 510 | 510 |
Finite-Lived Intangible Assets, Accumulated Amortization | (510) | (510) |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,473 | 1,473 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,306) | (1,139) |
Finite-Lived Intangible Assets, Net | $ 167 | $ 334 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) $ in Thousands | Mar. 31, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 1,232 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 903 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 766 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 377 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 0 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 0 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill [Line Items] | |||
Intangible amortization | $ 3,435,000 | $ 4,189,000 | |
Minimum [Member] | |||
Goodwill [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||
Maximum [Member] | |||
Goodwill [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
IBW [Member] | |||
Goodwill [Line Items] | |||
Impairment of Intangible Assets, Finite-lived | $ 4,700,000 | 0 | |
IBW [Member] | Customer-Related Intangible Assets [Member] | |||
Goodwill [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 0 | $ 0 | |
ISM [Member] | |||
Goodwill [Line Items] | |||
Impairment of Intangible Assets, Finite-lived | $ 0 | 0 | |
CNS [Member] | |||
Goodwill [Line Items] | |||
Impairment of Intangible Assets, Finite-lived | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Long-term Purchase Commitment [Line Items] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 705 |
Operating Leases, Future Minimum Payments, Due in Two Years | 357 |
Operating Leases, Future Minimum Payments Due | $ 1,062 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Operating Leases, Rent Expense, Net | $ 900,000 | $ 900,000 |
Operating Leases, Income Statement, Sublease Revenue | 0 | 100,000 |
PaymentsForRentReducedRestructuringAccrual | 100,000 | |
Reserve on Firm Purchase Commitments | 167,000 | 130,000 |
Loss Contingency Accrual | $ 300,000 | |
New Hampshire office lease [Member] | ||
Loss Contingencies [Line Items] | ||
Lease Expiration Date | Aug. 31, 2020 | |
Ohio design lease [Member] | ||
Loss Contingencies [Line Items] | ||
Lease Expiration Date | Oct. 31, 2019 | |
Aurora lease [Member] | ||
Loss Contingencies [Line Items] | ||
Contractual Obligation | $ 59,000 | $ 59,000 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in Company's product warranty reserve | ||
Total product warranty reserve, beginning of period | $ 300 | $ 395 |
NetProductWarrantyExpense | (98) | 57 |
Utilization | (72) | (152) |
Total product warranty reserve, end of period | $ 130 | $ 300 |
Product Warranties (Details Tex
Product Warranties (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Product Warranties (Textual) [Abstract] | ||
Current portions of warranty reserve | $ 74 | $ 125 |
Long-term portions of the warranty reserve | $ 56 | $ 175 |
CNS [Member] | Minimum [Member] | ||
Product Liability Contingency [Line Items] | ||
Standard Product Warranty Description | P1Y | |
CNS [Member] | Maximum [Member] | ||
Product Liability Contingency [Line Items] | ||
Standard Product Warranty Description | P7Y | |
ISM [Member] | ||
Product Liability Contingency [Line Items] | ||
Standard Product Warranty Description | P1Y | |
IBW [Member] | Minimum [Member] | ||
Product Liability Contingency [Line Items] | ||
Standard Product Warranty Description | P1Y | |
IBW [Member] | Maximum [Member] | ||
Product Liability Contingency [Line Items] | ||
Standard Product Warranty Description | P5Y |
Capital Stock and Stock Restr_3
Capital Stock and Stock Restrictions (Details) - shares | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||
Treasury Stock, Shares Start | (4,633,871) | |
Treasury Stock, Shares End | (5,122,414) | (4,633,871) |
Class A Common Stock [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Common Stock, Shares, Outstanding Start | 12,145,743 | 12,015,000 |
Treasury Stock, Shares, Acquired | (489,000) | (193,000) |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 253,000 | 324,000 |
Common Stock, Shares, Outstanding End | 11,909,979 | 12,145,743 |
Class B Common Stock [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Common Stock, Shares, Outstanding Start | 3,484,287 | 3,484,000 |
Common Stock, Shares, Outstanding End | 3,484,287 | 3,484,287 |
Treasury Stock [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Treasury Stock, Shares Start | (4,634,000) | (4,441,000) |
Treasury Stock, Shares, Acquired | (489,000) | (193,000) |
Treasury Stock, Shares End | (5,123,000) | (4,634,000) |
Capital Stock and Stock Restr_4
Capital Stock and Stock Restrictions (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | May 17, 2019 | May 17, 2017 | Mar. 31, 2017 | Aug. 31, 2011 | |
Class of Stock [Line Items] | |||||||
Stock Repurchase Program Remaining Authorized Repurchases Amount | $ 0.7 | ||||||
Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | |||||
Class A Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Treasury Stock, Shares, Acquired | 489,000 | 193,000 | |||||
Common Stock, Shares, Outstanding | 11,909,979 | 12,145,743 | 12,015,000 | ||||
Class B Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common Stock, Shares, Outstanding | 3,484,287 | 3,484,287 | 3,484,000 | ||||
2017 authorization [Member] | Class A Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 2 | ||||||
Treasury Stock, Shares, Acquired | 426,283 | 133,608 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 2.43 | $ 2.98 | |||||
2011 Authorization [Member] | Class A Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 20 | ||||||
Stock Repurchase Program Remaining Authorized Repurchases Amount | $ 0.1 | ||||||
Outside of Publically Announced Repurchase Program [Member] | Class A Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Treasury Stock Acquired, Average Cost Per Share | $ 3.18 | $ 2.92 | |||||
Shares Paid for Tax Withholding for Share Based Compensation | 62,260 | 59,648 | |||||
Voting trust and other trusts [Member] | Class B Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common Stock, Shares, Outstanding | 3,484,287 | ||||||
Subsequent Event [Member] | Voting Trust [Member] | |||||||
Class of Stock [Line Items] | |||||||
Voting Control | 49.80% | ||||||
Subsequent Event [Member] | Voting trust and other trusts [Member] | |||||||
Class of Stock [Line Items] | |||||||
Voting Control | 53.90% | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 412,500 | 570,000 | |||||
Restricted Stock Units (RSUs) [Member] | Subsequent Event [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 100,000 | ||||||
Performance Shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 50,000 | 40,000 | |||||
Performance Shares [Member] | Subsequent Event [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 100,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock-based compensation expense | ||
Allocated Share-based Compensation Expense | $ 1,171 | $ 1,271 |
Income tax expense | 0 | 0 |
Total stock-based compensation expense after taxes | 1,171 | 1,271 |
Cost of Revenue [Member] | ||
Stock-based compensation expense | ||
Allocated Share-based Compensation Expense | 47 | 30 |
Selling and Marketing Expense [Member] | ||
Stock-based compensation expense | ||
Allocated Share-based Compensation Expense | 369 | 272 |
Research and Development Expense [Member] | ||
Stock-based compensation expense | ||
Allocated Share-based Compensation Expense | 174 | 167 |
General and Administrative Expense [Member] | ||
Stock-based compensation expense | ||
Allocated Share-based Compensation Expense | $ 581 | $ 802 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details 1) - Stock Options [Member] $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2019USD ($)$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding on March 31, 2018 | shares | 197,936 | |
Shares, Granted | shares | 100,000 | |
Shares, Exercised | shares | 0 | |
Shares, Forfeited | shares | (1,460) | |
Shares, Expired | shares | (2,998) | |
Outstanding on March 31, 2019 | shares | 293,478 | |
Exercisable on March 31, 2019 | shares | 148,700 | |
Weighted-Average Exercise Price Per Share, Outstanding on March 31, 2018 | $ / shares | $ 4.87 | |
Weighted-Average Exercise Price Per Share, Granted | $ / shares | 3.14 | |
Weighted-Average Exercise Price Per Share, Exercised | $ / shares | 0 | |
Weighted-Average Exercise Price Per Share, Forfeited | $ / shares | 4.66 | |
Weighted-Average Exercise Price Per Share, Expired | $ / shares | 4.69 | |
Weighted-Average Exercise Price Per Share, Outstanding on March 31, 2019 | $ / shares | 4.28 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 5.21 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 4 months 10 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 3 months 7 days | |
Aggregate Intrinsic Value, Outstanding on March 31, 2019 | $ | $ 0 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 0 | [1] |
[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. |
Stock-based Compensation (Det_3
Stock-based Compensation (Details 2) - Stock Options [Member] - $ / shares | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 61.00% | 60.00% |
Risk-free interest rate | 2.80% | 1.70% |
Expected life | 4 years | 4 years |
Expected dividend yield | 0.00% | 0.00% |
Output weighted-average grant date fair value | $ 1.44 | $ 1.41 |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Details 3) - $ / shares | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restricted Stock [Member] | ||
Restricted stock activity | ||
Non-vested as of March 31, 2018 | 62,761 | |
Shares, Granted | 63,334 | 104,636 |
Shares, Vested | (62,761) | |
Shares, Forfeited | 0 | |
Non-vested as of March 31, 2019 | 63,334 | 62,761 |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2018 | $ 3.35 | |
Weighted-Average Grant Date Fair Value, Granted | 2.86 | $ 3.01 |
Weighted-Average Grant Date Fair Value, Vested | 3.35 | |
Weighted-Average Grant Date Fair Value, Forfeited | 0 | |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2019 | $ 2.86 | $ 3.35 |
Restricted Stock Units (RSUs) [Member] | ||
Restricted stock activity | ||
Non-vested as of March 31, 2018 | 518,450 | |
Shares, Granted | 412,500 | 570,000 |
Shares, Vested | (189,445) | |
Shares, Forfeited | (76,378) | |
Non-vested as of March 31, 2019 | 665,127 | 518,450 |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2018 | $ 3.03 | |
Weighted-Average Grant Date Fair Value, Granted | 3.08 | $ 2.91 |
Weighted-Average Grant Date Fair Value, Vested | 3.21 | |
Weighted-Average Grant Date Fair Value, Forfeited | 2.89 | |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2019 | $ 3.03 | $ 3.03 |
Performance Shares [Member] | ||
Restricted stock activity | ||
Non-vested as of March 31, 2018 | 0 | |
Shares, Granted | 50,000 | 40,000 |
Shares, Vested | 0 | |
Shares, Forfeited | (45,000) | |
Non-vested as of March 31, 2019 | 5,000 | 0 |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2018 | $ 0 | |
Weighted-Average Grant Date Fair Value, Granted | 3.14 | |
Weighted-Average Grant Date Fair Value, Vested | 0 | |
Weighted-Average Grant Date Fair Value, Forfeited | 3.14 | |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2019 | $ 3.14 | $ 0 |
Stock-Based Compensation (Det_5
Stock-Based Compensation (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Option Contractual Life from Grant Date | 7 years | |
Allocated Share-based Compensation Expense | $ 1,171,000 | $ 1,271,000 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 100,000 | 100,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 0 | 0 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 100,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 4 days | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 900,000 | $ 900,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 1,200,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 15 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 412,500 | 570,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 189,445 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 600,000 | $ 500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.08 | $ 2.91 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 200,000 | $ 300,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 100,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 5 months 12 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 63,334 | 104,636 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 62,761 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 200,000 | $ 200,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 2.86 | $ 3.01 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 14,000 | $ 40,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 50,000 | 40,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | $ 141,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.14 | |
2015 Omnibus Incentive Compensation Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 631,959 | |
2015 Omnibus Incentive Compensation Plan [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting schedule of equal annual installments | 3 years | |
2015 Omnibus Incentive Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting schedule of equal annual installments | 3 years | |
2015 Omnibus Incentive Compensation Plan [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting schedule of equal annual installments | 1 year | |
key employees [Member] | 2015 Omnibus Incentive Compensation Plan [Member] | Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting schedule of equal annual installments | 1 year |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 43,570 | $ 58,577 |
Segment information | ||
Gross profit | $ 18,364 | $ 25,167 |
Gross margin | 42.10% | 43.00% |
Research and development | $ 6,790 | $ 7,375 |
Segment Profit Loss | 11,574 | 17,792 |
Other income (expense), net | 626 | 888 |
Income tax benefit (expense) | (39) | 597 |
Net income (loss) from continuing operations | (11,037) | 31 |
Operating expenses | ||
Sales and marketing | 8,342 | 8,290 |
General and administrative | 6,699 | 6,602 |
Intangible amortization | 3,435 | 4,189 |
Restructuring | 0 | 165 |
Impairment of Long-Lived Assets to be Disposed of | 4,722 | 0 |
Operating income (loss) | (11,624) | (1,454) |
IBW [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 12,474 | 23,265 |
Segment information | ||
Gross profit | $ 5,202 | $ 10,653 |
Gross margin | 41.70% | 45.80% |
Research and development | $ 2,755 | $ 4,141 |
Segment Profit Loss | 2,447 | 6,512 |
ISM [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 17,263 | 19,350 |
Segment information | ||
Gross profit | $ 9,040 | $ 9,959 |
Gross margin | 52.40% | 51.50% |
Research and development | $ 2,390 | $ 2,264 |
Segment Profit Loss | 6,650 | 7,695 |
CNS [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13,833 | 15,962 |
Segment information | ||
Gross profit | $ 4,122 | $ 4,555 |
Gross margin | 29.80% | 28.50% |
Research and development | $ 1,645 | $ 970 |
Segment Profit Loss | $ 2,477 | $ 3,585 |
Segment Information (Details 1)
Segment Information (Details 1) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Verizon [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage Of Net Revenue | 23.10% | 18.00% |
AT&T [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage Of Net Revenue | 11.40% | 12.50% |
Segment Information (Details 2)
Segment Information (Details 2) | Mar. 31, 2019 | Mar. 31, 2018 |
Verizon [Member] | ||
Segment Reporting Information [Line Items] | ||
Entity-wide Major Customer, Percent Accounts Receivable | 27.50% | 36.20% |
AT&T [Member] | ||
Segment Reporting Information [Line Items] | ||
Entity-wide Major Customer, Percent Accounts Receivable | 8.00% | 14.40% |
Segment Information (Details Te
Segment Information (Details Textual) | 12 Months Ended |
Mar. 31, 2019 | |
Sales Revenue, Net [Member] | |
Segment Reporting Information [Line Items] | |
Concentration Risk, Percentage | 10.00% |
Trade Accounts Receivable [Member] | |
Segment Reporting Information [Line Items] | |
Concentration Risk, Percentage | 10.00% |
UNITED STATES | Sales Revenue, Net [Member] | |
Segment Reporting Information [Line Items] | |
Concentration Risk, Percentage | 90.00% |
UNITED STATES | longlivedassets [Member] | |
Segment Reporting Information [Line Items] | |
Concentration Risk, Percentage | 90.00% |
Restructuring Charge (Details)
Restructuring Charge (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring charges | ||
Liability at beginning of period | $ 63 | $ 1,234 |
Restructuring | 0 | 165 |
Utilized | (63) | (1,336) |
Liability at end of period | 0 | 63 |
Employee Severance [Member] | ||
Restructuring charges | ||
Liability at beginning of period | 0 | 0 |
Restructuring | 0 | 165 |
Utilized | 0 | (165) |
Liability at end of period | 0 | 0 |
Other costs [Member] | ||
Restructuring charges | ||
Liability at beginning of period | 63 | 1,234 |
Utilized | (63) | (1,171) |
Liability at end of period | $ 0 | $ 63 |
Restructuring Charge (Details T
Restructuring Charge (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Charge (Textual) [Abstract] | |||
Restructuring | $ 0 | $ 165 | |
Accrued restructuring | 63 | ||
Payments for Restructuring | 63 | 1,336 | |
Unpaid balance of restructuring charges | 0 | 63 | $ 1,234 |
Employee Severance [Member] | |||
Restructuring Charge (Textual) [Abstract] | |||
Restructuring | 0 | 165 | |
Payments for Restructuring | 0 | 165 | |
Unpaid balance of restructuring charges | 0 | 0 | 0 |
Other Restructuring Costs [Member] | |||
Restructuring Charge (Textual) [Abstract] | |||
Payments for Restructuring | 63 | 1,171 | |
Unpaid balance of restructuring charges | $ 0 | $ 63 | $ 1,234 |
Short-term Investments (Details
Short-term Investments (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Short-term Investments [Abstract] | ||
Short-term investments | $ 0 | $ 2,779 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - Cash and Cash Equivalents [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 25,645 | $ 19,237 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 25,645 | 19,237 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Variable Interest Entity Vari_2
Variable Interest Entity Variable Interest Entity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Concentration Risk [Line Items] | ||
Revenue | $ 43,570 | $ 58,577 |
Accounts receivable | $ 6,865 | 8,872 |
AKA [Member] | ||
Concentration Risk [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | |
Equity Method Investments | $ 100 | 100 |
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, 50 Percent or Less Owned Persons | 59 | |
Revenue | 1,900 | 3,500 |
Accounts receivable | 300 | 400 |
Deferred Revenue | 800 | $ 1,400 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 700 |
Benefit Plans Benefit Plans (De
Benefit Plans Benefit Plans (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Max dollar amount employer matches of the employee's contribution. | $ 500 | |
Westell [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 100.00% | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 100,000 | $ 100,000 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | ||||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 95 | $ 90 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 85 | 7 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | [1] | (80) | (2) | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 100 | 95 | |||
SEC Schedule, 12-09, Reserve, Inventory [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 3,562 | 8,458 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 564 | 1,213 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | [2] | (1,345) | (6,109) | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 2,781 | 3,562 | |||
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 37,103 | 52,190 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 1,668 | [3] | 0 | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | 0 | (15,087) | [3] | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 38,771 | 37,103 | |||
Sales Returns and Allowances [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 51 | 82 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 341 | 329 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (145) | (360) | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 247 | $ 51 | |||
[1] | Accounts written off, including early pay discounts, net of recoveries. | ||||
[2] | Inventory loss charged against inventory reserves. | ||||
[3] | Change in valuation allowance due to assessment of realizability of deferred tax assets and in fiscal year 2018 the impact of the Tax Act. |