Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2020 | Jul. 24, 2020 | |
Entity Registrant Name | WESTELL TECHNOLOGIES INC | |
Entity Central Index Key | 0001002135 | |
Current Fiscal Year End Date | --03-31 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 12,331,407 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 3,484,287 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 21,917 | $ 20,869 |
Accounts receivable (net of allowance of $100 at June 30, 2020, and March 31, 2020) | 4,899 | 4,047 |
Inventories | 7,354 | 6,807 |
Prepaid expenses and other current assets | 916 | 1,298 |
Total current assets | 35,086 | 33,021 |
Land, property and equipment, gross | 8,010 | 7,987 |
Less accumulated depreciation and amortization | (6,982) | (6,911) |
Land, property and equipment, net | 1,028 | 1,076 |
Intangible assets, net | 2,463 | 2,728 |
Right-of-use assets on operating leases, net | 2,771 | 628 |
Other non-current assets | 114 | 73 |
Total assets | 41,462 | 37,526 |
Current liabilities: | ||
Accounts payable | 2,247 | 1,065 |
Accrued expenses | 3,028 | 3,136 |
Deferred revenue | 955 | 1,099 |
NotesPayableSBAPPPLoanCurrent | 723 | |
Total current liabilities | 6,953 | 5,300 |
NotesPayableSBAPPPLoanNoncurrent | 917 | |
Deferred revenue non-current | 185 | 221 |
Lease liabilities non-current | 2,226 | 250 |
Other non-current liabilities | 225 | 94 |
Total liabilities | 10,506 | 5,865 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock, par $0.01, Authorized - 1,000,000 shares. Issued and outstanding - none | 0 | 0 |
Additional paid-in capital | 419,790 | 419,630 |
Treasury stock at cost – 5,270,620 and 5,215,453 shares at June 30, 2020, and March 31, 2020, respectively | (37,367) | (37,326) |
Accumulated deficit | (351,625) | (350,800) |
Total stockholders’ equity | 30,956 | 31,661 |
Total liabilities and stockholders’ equity | 41,462 | 37,526 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | 123 | 122 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | $ 35 | $ 35 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Accounts receivable, allowance | $ 100 | $ 100 |
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 |
Treasury stock, shares | 5,270,620 | 5,215,453 |
Class A Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 109,000,000 | 109,000,000 |
Common stock, shares outstanding | 12,329,880 | 12,224,450 |
Class B Common Stock | ||
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | |||
Revenue | $ 7,350 | $ 9,002 | ||
Cost of revenue | 4,508 | 5,756 | ||
Gross profit | 2,842 | 3,246 | ||
Operating expenses | ||||
Research and development | 945 | 1,556 | ||
Sales and marketing | 1,376 | 2,332 | ||
General and administrative | 1,210 | 1,364 | ||
Intangible amortization | 226 | 308 | ||
Total operating expenses | 3,757 | 5,560 | ||
Operating profit (loss) | (915) | (2,314) | ||
Other income, net | 30 | 164 | ||
Income (loss) before income taxes | (885) | (2,150) | ||
Income tax benefit (expense) | 60 | (7) | ||
Net income (loss) (1) | [1] | $ (825) | $ (2,157) | |
Basic | $ (0.05) | $ (0.14) | ||
Diluted | $ (0.05) | $ (0.14) | [2] | |
Weighted-average number of common shares outstanding: | ||||
Basic (shares) | 15,665 | 15,455 | ||
Effect of dilutive securities: restricted stock, restricted stock units, performance stock units and stock options (2) | [3] | 0 | 0 | |
Diluted (shares) | 15,665 | 15,455 | ||
[1] | Net income (loss) and comprehensive income (loss) are the same for the periods reported. | |||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjZlN2VmNDIwNTljODRkNDBhNmMwZTIwYWRhNTMyNDc4fFRleHRTZWxlY3Rpb246MjU2NjQ3RUFGM0YzNTBBODQ3RkI3RDJFNEJGRDc3REIM} | |||
[3] | The Company had 0.9 million and 1.0 million shares represented by common stock equivalents for the three months ended June 30, 2020 and June 30, 2019, 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. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) Condensed Consolidated Statements of Operations Parenthetical (Unaudited) - shares shares in Millions | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.9 | 1 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) Statement - USD ($) $ in Thousands | Total | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | |
Stockholders' Equity Attributable to Parent at Mar. 31, 2019 | $ 41,180 | $ 119 | $ 35 | $ 418,859 | $ (37,135) | $ (340,698) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (2,157) | [1] | (2,157) | ||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 0 | 3 | (3) | ||||
Treasury Stock, Value, Acquired, Cost Method | (173) | (1) | (172) | ||||
Stock-based compensation | 244 | 244 | |||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2019 | 39,094 | 121 | 35 | 419,100 | (37,307) | (342,855) | |
Stockholders' Equity Attributable to Parent at Mar. 31, 2020 | 31,661 | 122 | 35 | 419,630 | (37,326) | (350,800) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (825) | [1] | (825) | ||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 0 | 2 | (2) | ||||
Treasury Stock, Value, Acquired, Cost Method | (42) | (1) | (41) | ||||
Stock-based compensation | 162 | 162 | |||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2020 | $ 30,956 | $ 123 | $ 35 | $ 419,790 | $ (37,367) | $ (351,625) | |
[1] | Net income (loss) and comprehensive income (loss) are the same for the periods reported. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Cash flows from operating activities: | |||
Net income (loss) | [1] | $ (825) | $ (2,157) |
Reconciliation of net loss to net cash used in operating activities: | |||
Depreciation and amortization | 336 | 451 | |
Stock-based compensation | 162 | 244 | |
Exchange rate loss (gain) | (9) | (3) | |
Changes in assets and liabilities: | |||
Accounts receivable | (843) | 1,059 | |
Inventories | (547) | (142) | |
Prepaid expenses and other current assets | 382 | 33 | |
Other assets | (2,184) | (1,103) | |
Deferred revenue | (180) | (318) | |
Accounts payable and accrued expenses | 3,184 | 740 | |
Net cash provided by (used in) operating activities | (524) | (1,196) | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (23) | (14) | |
Net cash provided by (used in) investing activities | (23) | (14) | |
Cash flows from financing activities: | |||
Proceeds from Bank Debt | 1,637 | ||
Purchases of treasury stock | (42) | (173) | |
Net cash provided by (used in) financing activities | 1,595 | (173) | |
Gain (loss) of exchange rate changes on cash | 0 | 3 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 1,048 | (1,380) | |
Cash and cash equivalents, beginning of period | 20,869 | 25,457 | |
Cash and cash equivalents, end of period | $ 21,917 | $ 24,077 | |
[1] | Net income (loss) and comprehensive income (loss) are the same for the periods reported. |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
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. COVID-19 Impact In March 2020, the World Health Organization declared the spread of a new strain of coronavirus (“COVID-19”) a pandemic. This outbreak continues to spread throughout the U.S. and around the world. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and work force participation while creating significant disruption and volatility of financial markets. The COVID-19 pandemic has impacted and may continue to impact the Company’s sales, supply chain availability and sourcing costs, our workforce and operations, as well as, that for our customers, contract manufacturers and other supply chain partners. Basis of Presentation and Reporting The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. The Condensed Consolidated Financial Statements have been prepared using generally accepted accounting principles (GAAP) in the United States for interim financial reporting, and consistent with the instructions of Form 10-Q and Article 10 of Regulation S-X and, accordingly, they do not include all of the information and footnotes required in the annual consolidated financial statements and accompanying footnotes. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2020 . All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the unaudited interim financial statements included herein reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company’s condensed consolidated financial position and the results of operations, comprehensive income (loss) and cash flows at June 30, 2020 , and for all periods presented. The results of operations for the periods presented are not necessarily indicative of the results that may be expected for fiscal year 2021 . 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, intangible assets fair value, depreciation, income taxes, right-of-use lease assets and related lease liabilities, and contingencies, among other things. Actual results could differ from those estimates. Reclassifications Certain amounts in the prior period Condensed Consolidated Financial Statements have been reclassified to conform to the current period presentation. The reclassifications had no impact on total assets, total liabilities, total stockholders’ equity or net income (loss) as previously reported. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The amendments in ASU 2019-12 seek to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application and simplify GAAP in other areas of Topic 740. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company early adopted ASU 2019-12 effective April 1, 2020, with no immediate impact to the Company’s Condensed 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 adopted 2018-13 effective April 1, 2020, with no immediate impact to the Company’s Condensed 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”). The main objective of ASU 2018-15 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 adopted ASU 2018-15 effective April 1, 2020, with no immediate impact to the Company’s Condensed Consolidated Financial Statements. In November 2018, the FASB issued ASU 2018-18 Collaborative Arrangements (Topic 808) (“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 adopted ASU 2018-18 effective April 1, 2020, with no immediate impact to the Company's Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Inst rument s -Credit Losses (Topic 326) (“ASU 2016-13”). ASU 2016-13 will replace the current incurred loss approach with a new expected credit loss impairment model for trade receivables, loans, and other financial instruments. Under the new model, the estimate of expected credit losses will be based on historical experience, current conditions and reasonable and supportable forecasts. For the Company, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. E arly adoption permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of ASU 2016-13 on the Company's Condensed Consolidated Financial Statements. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases The Company accounts for leases under ASC 842. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets. The Company also made the accounting policy election to account for each separate lease component and non-lease component associated with that lease component as a single lease component, thus causing all fixed payments to be capitalized. The Company determines lease terms based on whether or not it is reasonably certain to exercise the lease extensions. The Company determines at inception whether an arrangement is a lease. Right-of-use (“ROU”) assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the net present value of remaining fixed lease payments over the lease term. Lease terms used to calculate the present value of the lease payments include any options to extend, renew, or terminate the lease, when it is reasonably certain that these options will be exercised. ROU assets also include any advance lease payments made and exclude any lease incentives. As the implicit interest rate for our leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease arrangements with non-lease components that are not in-substance fixed and considered variable, which were not included in the carrying balances of the ROU asset and lease liability. The Company does not have any finance leases. No leases require residual value guarantees. The Company reviews the impairment ROU assets consistent with the approach applied to other long-lived assets. ROU assets are reviewed for recoverability 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. The Company's operating leases primarily include building leases for the corporate headquarters in Aurora, IL, an engineering and service center in Dublin, OH, and office space in Manchester, NH. Future minimum lease payments as of June 30, 2020 , consisted of the following (in thousands): Fiscal Year Operating Leases 2021 (1) $ 335 2022 577 2023 577 2024 582 2025 593 Thereafter 268 Total lease payments 2,932 Less: imputed interest (331 ) Total operating lease liabilities $ 2,601 _______ (1) Represents the future minimum operating lease payments expected to be made over the remaining balance of the fiscal year. As of June 30, 2020 , the weighted-average remaining lease term was 5.3 years and the weighted-average discount rate was 4.5% . During the first quarter of fiscal year 2021, the Company executed a lease extension for the Manchester, New Hampshire facility with the lease term extended to August 31, 2022 with an option to further extend the lease for one additional term of two years (the “NH extension”). The Company also executed a lease extension for the Aurora, IL facility in the quarter ended June 30, 2020 that extended the lease to November 30, 2025 with an option to extend the lease for one additional term of five years (the “IL extension”). The IL extension required a deposit, which is expected to be applied to the final two lease payments and is included in the calculation of the total lease liability. Prior to the extension, additional rent payments covering the Company’s portion of operating expenses and taxes were fixed and included in the lease liability balance. The amendment to extend the lease changed these fixed additional rent payments to variable payments with adjustments made based on actual operating expenses and taxes and, as such, would no longer be included in the lease liability balances beginning October 1, 2020. During the second quarter of fiscal year 2020, as a cost savings effort, the Company executed a new 63 month lease for the Dublin, OH design service center rather than executing the two year option to extend the existing lease as previously assumed. The new lease commenced on December 1, 2019 and has a reduced footprint which is more suitable to our current operation. The new lease includes a renewal option to extend the initial lease term for an additional three years. The lease also includes a termination option effective the last day of the 39th month of the lease term. The cost to terminate under this option would be approximately $70,000 . At this time, the Company does not expect to terminate the lease at the end of the 39 th month of the lease term and so the cost to terminate is not included in the ROU asset and lease liability balance. Our building leases include variable lease payments that are not included in the lease liability balances as they are based on the expenses which can vary during the term of each lease. At this time, the Company is not reasonably certain to exercise any of the options for further lease extensions so they are not included in the ROU asset and lease liability balance. Lease expenses are included in Cost of revenue, Sales and marketing, Research and development, and General and administrative in the Company's Condensed Consolidated Statements of Operations. The components of lease expense are as follows: (in thousands) Three months ended June 30, 2020 Three months ended June 30, 2019 Operating lease expense $ 148 $ 204 Variable lease expense (1) 22 40 Total lease expense (2) $ 170 $ 244 _______ (1) Variable lease expense is related to our leased real estate and primarily includes labor and operational costs as well as taxes and insurance. (2) Short-term lease expense is immaterial. For the three months ended June 30, 2020 and June 30, 2019, cash paid for operating leases included in the measurement of lease liabilities was $0.3 million and $0.1 million , respectively. The increase in the three months ended June 30, 2020 is primarily due to the deposit from the IL extension. All of these payments are presented in Operating activities cash flows on the Condensed Consolidated Statements of Cash Flows. The following table summarizes the classification of ROU assets and lease liabilities as of June 30, 2020 and March 31, 2020: (in thousands) June 30, 2020 March 31, 2020 Balance Sheet Classification Assets: ROU assets $ 2,771 $ 628 Right-of-use assets on operating leases, net Liabilities: Current operating lease liability 375 339 Accrued expenses Non-current operating lease liabilities 2,226 250 Lease liabilities non-current Total lease liabilities $ 2,601 $ 589 |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 2 years Deferred Revenue $ 955 $ 109 $ 76 During each of the three months ended June 30, 2020 , and June 30, 2019 , the Company recognized $0.4 million of revenue related to contract liabilities at the beginning of the periods. 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 Condensed Consolidated Balance Sheets. Additionally, the Company records an asset based on historical experience for the amount of product we expect to return to inventory as a result of the return, which is recorded in Prepaid and other current assets in the Condensed Consolidated Balance Sheets. The gross product return asset was $0.1 million at both June 30, 2020 , and March 31, 2020." id="sjs-B4">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. Disaggregation of revenue The following table disaggregates our revenue by major source: (in thousands) Three months ended June 30, 2020 2019 Revenue: Products $ 6,198 $ 7,815 Software 17 19 Services 1,135 1,168 Total revenue $ 7,350 $ 9,002 The following is the expected future revenue recognition timing of deferred revenue as of June 30, 2020 : (in thousands) < 1 year 1-2 years > 2 years Deferred Revenue $ 955 $ 109 $ 76 During each of the three months ended June 30, 2020 , and June 30, 2019 , the Company recognized $0.4 million of revenue related to contract liabilities at the beginning of the periods. 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 Condensed Consolidated Balance Sheets. Additionally, the Company records an asset based on historical experience for the amount of product we expect to return to inventory as a result of the return, which is recorded in Prepaid and other current assets in the Condensed Consolidated Balance Sheets. The gross product return asset was $0.1 million at both June 30, 2020 , and March 31, 2020. |
Notes Payable and Long-term Deb
Notes Payable and Long-term Debt (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Long-term Debt and Note Payable to Bank The Company has a Paycheck Protection Program loan (“PPP Loan”) implemented by the United States Small Business Administration (“SBA”). On April 14, 2020, the Company obtained an unsecured PPP Loan through JPMorgan Chase Bank, N.A. in the amount of $1,637,522 . The loan was made through the SBA as part of the Paycheck Protection Program under the 2020 Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). The interest rate is fixed at 0.98% per year. Under the CARES Act, all or a portion of this loan may be forgiven if certain requirements are met. The Company intends to adhere to the requirement and apply for loan forgiveness. If the loan is not forgiven, the Company will pay principal and interest payments of approximately $92,000 every month, beginning seven months from the effective date of the PPP Loan. The Company can repay the PPP Loan without any prepayment penalty. All remaining principal and accrued interest is due and payable 2 years from the effective date of the PPP Loan. The current portion and non-current portions of the PPP Loan is $0.7 million and $0.9 million respectively. The Company had no other debt as of June 30, 2020 or March 31, 2020. |
Interim Segment Information (No
Interim Segment Information (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Interim Segment Information | Interim Segment 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 continues to define segment profit as 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 included in the Company's Annual Report on Form 10-K for year ended March 31, 2020, and as updated in this filing. The Company’s three reportable segments are as follows: In-Building Wireless ( “ IBW " ) Segment The IBW segment solutions enable cellular and public safety coverage in stadiums, arenas, malls, buildings, and other indoor areas not served well or at all by the existing "macro" outdoor wireless network. For cellular service, solutions include distributed antenna system (“DAS") conditioners and digital repeaters. For the public safety market, solutions include Class A repeaters, Class B repeaters, and battery backup units. IBW also offers ancillary products that consist of passive system components and antennas for both the cellular service and public safety markets. Intelligent Site Management ( “ ISM " ) Segment 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. ISM also offers support services (i.e., maintenance agreements) and deployment services (i.e., installation). Communications Network Solutions ( “ CNS " ) Segment CNS segment solutions include a broad range of hardened network infrastructure offerings suitable for both indoor and outdoor use. The offerings consist of integrated cabinets, power distribution products, copper and fiber network connectivity panels, and T1 network interface units (“NIUs"). Segment information for the three months ended June 30, 2020 , and 2019 , is set forth below: Three months ended June 30, 2020 (in thousands) IBW ISM CNS Total Revenue $ 2,949 $ 2,047 $ 2,354 $ 7,350 Cost of revenue 1,749 892 1,867 4,508 Gross profit 1,200 1,155 487 2,842 Gross margin 40.7 % 56.4 % 20.7 % 38.7 % Research and development 349 382 214 945 Segment profit $ 851 $ 773 $ 273 1,897 Operating expenses: Sales and marketing 1,376 General and administrative 1,210 Intangible amortization 226 Operating profit (loss) (915 ) Other income, net 30 Income tax benefit (expense) 60 Net income (loss) $ (825 ) Three months ended June 30, 2019 (in thousands) IBW ISM CNS Total Revenue $ 2,923 $ 3,095 $ 2,984 $ 9,002 Cost of revenue 1,951 1,516 2,289 5,756 Gross profit 972 1,579 695 3,246 Gross margin 33.3 % 51.0 % 23.3 % 36.1 % Research and development 399 701 456 1,556 Segment profit $ 573 $ 878 $ 239 1,690 Operating expenses: Sales and marketing 2,332 General and administrative 1,364 Intangible amortization 308 Operating profit (loss) (2,314 ) Other income, net 164 Income tax benefit (expense) (7 ) Net income (loss) $ (2,157 ) Segment asset information is not reported to or used by the CODM. |
Inventories (Notes)
Inventories (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost, on a first-in, first-out basis, or net realizable value. The components of net inventories are as follows: (in thousands) June 30, 2020 March 31, 2020 Raw materials $ 2,369 $ 2,188 Work-in-process — — Finished goods 4,985 4,619 Total inventories $ 7,354 $ 6,807 The Company records provisions against inventory for excess and obsolete inventory, which are determined based on the Company's best estimates of future demand, product lifecycle status and product development plans. These provisions reduce the inventory cost basis. The Company recorded provision for excess and obsolete inventory with a charge of $0.6 million in the three months ended June 30, 2019. The charges for the provision for excess and obsolete inventory for the three months ended June 30, 2020, were negligible. These costs are presented in Cost of revenue on the Condensed Consolidated Statements of Operations. The Company believes the estimates and assumptions underlying its provisions are reasonable. However, there is risk that additional charges may be necessary if future demand is less than current forecasts due to rapid technological changes, uncertain customer requirements, or other factors . |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Westell Technologies, Inc. 2019 Omnibus Incentive Compensation Plan (the “2019 Plan”) was approved at the annual meeting of stockholders on September 17, 2019. The 2019 Plan replaced the Westell Technologies, Inc. 2015 Omnibus Incentive Compensation Plan (the “2015 Plan”). The 2019 Plan includes a total of 1,000,000 shares of Class A Common Stock (Shares) plus the number of Shares reserved for issuance under the 2015 Plan that have not been granted or reserved for issuance under an outstanding award that may be issued under the 2019 Omnibus Plan. If any award granted under the 2019 Plan or the 2015 Plan is canceled, terminates, expires, or lapses for any reason, any Shares subject to such award shall again be available for the grant of an award under the 2019 Plan. Shares subject to an award shall not again be made available 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 shall not be counted against the foregoing Share limit. The stock options, restricted stock awards, and restricted stock units (“RSUs”) awarded under the 2019 Plan generally vest in equal annual installments over 3 years for employees and 1 year for non-employee directors. Performance stock units (“PSUs”) earned vest over the performance period. Certain awards provide for accelerated vesting if there is a change in control (as defined in the 2019 Plan), or when provided within individual employment contracts. The Company accounts for forfeitures as they occur. The Company issues new shares for stock awards under the 2019 Plan. The following table is a summary of total stock-based compensation expense resulting from stock options, restricted stock, RSUs and PSUs, during the three months ended June 30, 2020 , and 2019 : Three months ended June 30, (in thousands) 2020 2019 Stock-based compensation expense $ 162 $ 244 Income tax benefit — — Total stock-based compensation expense, after taxes $ 162 $ 244 Stock Options Stock option activity for the three months ended June 30, 2020 , 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, 2020 221,812 $ 1.87 5.4 $ — Granted — — Exercised — — Forfeited — — Expired — — Outstanding on June 30, 2020 221,812 $ 1.87 5.1 $ — _______ (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 respective reporting date. Restricted Stock The following table sets forth restricted stock activity for the three months ended June 30, 2020 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2020 128,584 $ 1.39 Granted — — Vested (2,500 ) 1.72 Forfeited — — Non-vested as of June 30, 2020 126,084 $ 1.38 RSUs The following table sets forth the RSU activity for the three months ended June 30, 2020 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2020 441,108 $ 2.31 Granted 271,140 0.78 Vested (160,597 ) 2.87 Forfeited — — Non-vested as of June 30, 2020 551,651 $ 1.39 PSUs PSUs will be earned primarily based upon achievement of performance goals tied to growing revenue and to non-GAAP profitability targets for fiscal year 2021. Upon vesting, the PSUs convert into shares of Class A Common Stock of the Company on a one-for-one basis. The following table sets forth the PSU activity for the three months ended June 30, 2020 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2020 (at target) 5,000 $ 1.38 Granted, at target 229,303 0.78 Vested — — Forfeited (5,000 ) 1.38 Non-vested as of June 30, 2020 (at target) 229,303 $ 0.78 |
Product Warranties (Notes)
Product Warranties (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties The Company’s products carry a limited warranty ranging from one to five years for the products within the IBW segment, typically one year for products within the ISM segment, and one to seven years for products within the CNS segment. The specific terms and conditions of those warranties vary depending upon the customer and the products sold. Factors that affect the estimate of the Company’s warranty reserve include: the number of units shipped, 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 are $88,000 and $120,000 as of June 30, 2020 , and March 31, 2020 , respectively, and are presented on the Condensed Consolidated Balance Sheets in Accrued expenses. The non-current portions of the warranty reserves are $42,000 and $40,000 as of June 30, 2020 , and March 31, 2020 , respectively, and are presented on the Condensed Consolidated Balance Sheets in Other non-current liabilities. The following table presents the changes in the Company’s product warranty reserve: Three months ended June 30, (in thousands) 2020 2019 Total product warranty reserve at the beginning of the period $ 160 $ 130 Warranty expense to cost of revenue 32 12 Utilization (62 ) (12 ) Total product warranty reserve at the end of the period $ 130 $ 130 |
Variable Interest Entity and Gu
Variable Interest Entity and Guarantee (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Guarantees [Abstract] | |
Equity Method Investment [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 810, Consolidations , and concluded that AKA is a variable interest entity (VIE) and the Company has a variable interest in the VIE. The Company has concluded that it is not the primary beneficiary of AKA and, therefore, consolidation is not required. The carrying amount of the Company's investment in AKA was approximately $0.1 million as of both June 30, 2020 , and March 31, 2020 , which is presented on the Condensed Consolidated Balance Sheets within Other non-current assets. The Company's revenue from sales to AKA for the three months ended June 30, 2020 , and 2019 , was $0.3 million and $0.4 million , respectively. Accounts receivable from AKA was $0.2 million as of both June 30, 2020 , and March 31, 2020 . AKA deferred revenue, which primarily relates to maintenance contracts, was $0.4 million and $0.5 million as of June 30, 2020 , and March 31, 2020 , respectively. The Company also has provided an unlimited guarantee for the performance of the other 50% owner in AKA, which 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. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At the end of each interim period, the Company makes its best estimate of the effective tax rate expected to be applicable for the full fiscal year and uses that rate to provide for income taxes on a current year-to-date basis before discrete items. If a reliable estimate cannot be made, the Company may make a reasonable estimate of the annual effective tax rate, including use of the actual effective rate for the year-to-date. The impact of discrete items is recorded in the quarter in which they occur. 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 basis of assets and liabilities given the enacted tax laws. The Company evaluates the need for valuation allowances on the net deferred tax assets under the rules of ASC 740, Income Taxes. In assessing the realizability of the Company's deferred tax assets, the Company considers whether it is more likely than not that some or all of the deferred tax assets will 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 performance. The Company determined that the negative evidence outweighed the objectively verifiable positive evidence and previously recorded a full valuation allowance against deferred tax assets. The Company will continue to reassess realizability going forward. As of June 30, 2020 , the Company had net deferred tax assets of approximately $40.8 million before a valuation allowance of $40.8 million . As of March 31, 2020, the Company had $348,000 of tax receivables associated with a prior AMT credit carryforward. The Company recovered the entire amount of the receivable in the quarter ended June 30, 2020 via a tax refund. The Company recorded $60,000 of income tax benefit in the three months ended June 30, 2020 , using an effective income tax rate of (0.18)% plus discrete items. The Company recorded $7,000 of income tax expense in the three months ended June 30, 2019 , using an effective rate of (0.30)% plus discrete items. The effective income tax rate in both periods is impacted by the intraperiod allocation as a result of income or loss from continuing operations, and states which base tax on gross margin and not pretax income. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. As of June 30, 2020, and March 31, 2020, the Company has not recorded any contingent liability attributable to existing litigation. Lease Obligations The Company currently occupies office space under operating leases, with various expiration dates through November 2025. The Company’s office leases provide for rental payments on a graduated scale. Lease expense is recognized on a straight-line basis over the lease term. For further details, refer to Note 2 . Leases. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined by ASC 820, Fair Value Measurements and Disclosures (“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. The Company’s money market funds are measured using Level 1 inputs. The following table presents available-for-sale securities measured at fair value on a recurring basis as of June 30, 2020 : (in thousands) Total Fair Value Quoted Prices in Significant Other Significant Balance Sheet Assets: Money market funds $ 21,891 $ 21,891 — — Cash and cash The following table presents available-for-sale securities measured at fair value on a recurring basis as of March 31, 2020 : (in thousands) Total Fair Value Quoted Prices in Significant Other Significant Balance Sheet Assets: Money market funds $ 20,690 $ 20,690 — — Cash and cash The fair value of the money market funds approximates their carrying amounts due to the short-term nature of these financial instruments. |
Share Repurchases (Notes)
Share Repurchases (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Payments for Repurchase of Equity [Abstract] | |
Share Repurchases | Share Repurchases 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 no shares repurchased under the 2017 authorization during the three months ended June 30, 2020 or June 30, 2019. As of June 30, 2020 , there was approximately $0.7 million remaining for additional share repurchases under the 2017 authorization. Additionally, in the three months ended June 30, 2020 and June 30, 2019 , the Company repurchased 55,167 and 80,936 shares of Class A Common Stock, respectively, from certain employees that were surrendered to satisfy the minimum statutory tax withholding obligations on the vesting of restricted stock, RSUs and PSUs. These repurchases were not included in the authorized share repurchase programs and had a weighted-average purchase price of $0.76 and $2.15 per share, respectively. |
Intangibles Assets (Notes)
Intangibles Assets (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | Intangible Assets Intangible assets include customer relationships, trade names, developed technology, product licensing rights, and other intangibles. Intangible assets with determinable lives are amortized over their estimated useful lives. 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. There was no intangible asset impairment during the three months ended June 30, 2020 , or the three months ended June 30, 2019. |
Accrued Expenses (Notes)
Accrued Expenses (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
accrued expenses [Text Block] | Accrued Expenses The components of accrued expenses are as follows: (in thousands) June 30, 2020 March 31, 2020 Accrued compensation $ 586 $ 596 Accrued contractual obligation 1,445 1,445 Current operating lease liability 375 339 Other accrued expenses 622 756 Total accrued expenses $ 3,028 $ 3,136 |
Land Property and Equipment (No
Land Property and Equipment (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment Disclosure [Text Block] | Land, Property, and Equipment Long-lived assets consist of land, property and equipment. Long-lived assets that are held and used should be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived assets might not be recoverable. There was no long-lived asset impairment during the three months ended June 30, 2020 , or June 30, 2019 . The components of fixed assets are as follows: (in thousands) June 30, 2020 March 31, 2020 Land $ 672 $ 672 Machinery and equipment 1,421 1,415 Office, computer and research equipment 5,129 5,112 Leasehold improvements 788 788 Land, property and equipment, gross 8,010 7,987 Less accumulated depreciation and amortization (6,982 ) (6,911 ) Land, property and equipment, net $ 1,028 $ 1,076 |
Subsequent Event (Notes)
Subsequent Event (Notes) | 3 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event On July 10, 2020, the Company announced that a Special Committee of independent directors has recommended, and its Board of Directors has approved, a plan for a proposed transaction whereby the Company would effect a reverse/forward stock split of the Company’s shares of Class A Common Stock and Class B Common Stock, in conjunction with terminating the Company’s public company reporting obligations and delisting the Company’s Class A Common Stock from the NASDAQ Capital Market. It is expected that this transaction would be effectuated late in the third quarter or early in the fourth quarter of calendar year 2020, subject to stockholders approving the proposed transaction at the Annual Meeting of Stockholders. The Company is taking these steps to avoid the substantial cost and expense of being a public reporting company and to focus the Company’s resources on enhancing long-term stockholder value. Information concerning the proposed transaction is set forth in the definitive proxy statement for the Company's 2020 Annual Meeting of Stockholders, which was filed with the SEC on Schedule 14A on August 11, 2020. Stockholders are urged to read the definitive proxy statement carefully. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed consolidated financial statements | The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. The Condensed Consolidated Financial Statements have been prepared using generally accepted accounting principles (GAAP) in the United States for interim financial reporting, and consistent with the instructions of Form 10-Q and Article 10 of Regulation S-X and, accordingly, they do not include all of the information and footnotes required in the annual consolidated financial statements and accompanying footnotes. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2020 . All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | 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, intangible assets fair value, depreciation, income taxes, right-of-use lease assets and related lease liabilities, and contingencies, among other things. Actual results could differ from those estimates. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The amendments in ASU 2019-12 seek to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application and simplify GAAP in other areas of Topic 740. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company early adopted ASU 2019-12 effective April 1, 2020, with no immediate impact to the Company’s Condensed 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 adopted 2018-13 effective April 1, 2020, with no immediate impact to the Company’s Condensed 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”). The main objective of ASU 2018-15 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 adopted ASU 2018-15 effective April 1, 2020, with no immediate impact to the Company’s Condensed Consolidated Financial Statements. In November 2018, the FASB issued ASU 2018-18 Collaborative Arrangements (Topic 808) (“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 adopted ASU 2018-18 effective April 1, 2020, with no immediate impact to the Company's Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Inst rument s -Credit Losses (Topic 326) (“ASU 2016-13”). ASU 2016-13 will replace the current incurred loss approach with a new expected credit loss impairment model for trade receivables, loans, and other financial instruments. Under the new model, the estimate of expected credit losses will be based on historical experience, current conditions and reasonable and supportable forecasts. For the Company, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. E arly adoption permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of ASU 2016-13 on the Company's Condensed Consolidated Financial Statements. |
Revenue [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. |
Inventory | Inventories are stated at the lower of cost, on a first-in, first-out basis, or net realizable value. |
Fair Value Measurement | Fair value is defined by ASC 820, Fair Value Measurements and Disclosures (“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. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future minimum lease payments as of June 30, 2020 , consisted of the following (in thousands): Fiscal Year Operating Leases 2021 (1) $ 335 2022 577 2023 577 2024 582 2025 593 Thereafter 268 Total lease payments 2,932 Less: imputed interest (331 ) Total operating lease liabilities $ 2,601 _______ (1) Represents the future minimum operating lease payments expected to be made over the remaining balance of the fiscal year. |
Lease, Cost [Table Text Block] | The components of lease expense are as follows: (in thousands) Three months ended June 30, 2020 Three months ended June 30, 2019 Operating lease expense $ 148 $ 204 Variable lease expense (1) 22 40 Total lease expense (2) $ 170 $ 244 _______ (1) Variable lease expense is related to our leased real estate and primarily includes labor and operational costs as well as taxes and insurance. (2) Short-term lease expense is immaterial. |
ScheduleOfClassificationOfRightOfUseAssetsAndLeaseLiabilities [Table Text Block] | The following table summarizes the classification of ROU assets and lease liabilities as of June 30, 2020 and March 31, 2020: (in thousands) June 30, 2020 March 31, 2020 Balance Sheet Classification Assets: ROU assets $ 2,771 $ 628 Right-of-use assets on operating leases, net Liabilities: Current operating lease liability 375 339 Accrued expenses Non-current operating lease liabilities 2,226 250 Lease liabilities non-current Total lease liabilities $ 2,601 $ 589 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table disaggregates our revenue by major source: (in thousands) Three months ended June 30, 2020 2019 Revenue: Products $ 6,198 $ 7,815 Software 17 19 Services 1,135 1,168 Total revenue $ 7,350 $ 9,002 |
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 June 30, 2020 : (in thousands) < 1 year 1-2 years > 2 years Deferred Revenue $ 955 $ 109 $ 76 |
Interim Segment Information (Ta
Interim Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment information | Segment information for the three months ended June 30, 2020 , and 2019 , is set forth below: Three months ended June 30, 2020 (in thousands) IBW ISM CNS Total Revenue $ 2,949 $ 2,047 $ 2,354 $ 7,350 Cost of revenue 1,749 892 1,867 4,508 Gross profit 1,200 1,155 487 2,842 Gross margin 40.7 % 56.4 % 20.7 % 38.7 % Research and development 349 382 214 945 Segment profit $ 851 $ 773 $ 273 1,897 Operating expenses: Sales and marketing 1,376 General and administrative 1,210 Intangible amortization 226 Operating profit (loss) (915 ) Other income, net 30 Income tax benefit (expense) 60 Net income (loss) $ (825 ) Three months ended June 30, 2019 (in thousands) IBW ISM CNS Total Revenue $ 2,923 $ 3,095 $ 2,984 $ 9,002 Cost of revenue 1,951 1,516 2,289 5,756 Gross profit 972 1,579 695 3,246 Gross margin 33.3 % 51.0 % 23.3 % 36.1 % Research and development 399 701 456 1,556 Segment profit $ 573 $ 878 $ 239 1,690 Operating expenses: Sales and marketing 2,332 General and administrative 1,364 Intangible amortization 308 Operating profit (loss) (2,314 ) Other income, net 164 Income tax benefit (expense) (7 ) Net income (loss) $ (2,157 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Inventory, Net [Abstract] | |
Components of inventories | The components of net inventories are as follows: (in thousands) June 30, 2020 March 31, 2020 Raw materials $ 2,369 $ 2,188 Work-in-process — — Finished goods 4,985 4,619 Total inventories $ 7,354 $ 6,807 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-based compensation expense | The following table is a summary of total stock-based compensation expense resulting from stock options, restricted stock, RSUs and PSUs, during the three months ended June 30, 2020 , and 2019 : Three months ended June 30, (in thousands) 2020 2019 Stock-based compensation expense $ 162 $ 244 Income tax benefit — — Total stock-based compensation expense, after taxes $ 162 $ 244 |
Stock option activity | Stock option activity for the three months ended June 30, 2020 , 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, 2020 221,812 $ 1.87 5.4 $ — Granted — — Exercised — — Forfeited — — Expired — — Outstanding on June 30, 2020 221,812 $ 1.87 5.1 $ — _______ (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 respective reporting date |
Restricted stock activity | Restricted Stock The following table sets forth restricted stock activity for the three months ended June 30, 2020 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2020 128,584 $ 1.39 Granted — — Vested (2,500 ) 1.72 Forfeited — — Non-vested as of June 30, 2020 126,084 $ 1.38 RSUs The following table sets forth the RSU activity for the three months ended June 30, 2020 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2020 441,108 $ 2.31 Granted 271,140 0.78 Vested (160,597 ) 2.87 Forfeited — — Non-vested as of June 30, 2020 551,651 $ 1.39 PSUs PSUs will be earned primarily based upon achievement of performance goals tied to growing revenue and to non-GAAP profitability targets for fiscal year 2021. Upon vesting, the PSUs convert into shares of Class A Common Stock of the Company on a one-for-one basis. The following table sets forth the PSU activity for the three months ended June 30, 2020 : Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2020 (at target) 5,000 $ 1.38 Granted, at target 229,303 0.78 Vested — — Forfeited (5,000 ) 1.38 Non-vested as of June 30, 2020 (at target) 229,303 $ 0.78 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Changes in Company's product warranty reserve | The following table presents the changes in the Company’s product warranty reserve: Three months ended June 30, (in thousands) 2020 2019 Total product warranty reserve at the beginning of the period $ 160 $ 130 Warranty expense to cost of revenue 32 12 Utilization (62 ) (12 ) Total product warranty reserve at the end of the period $ 130 $ 130 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 : (in thousands) Total Fair Value Quoted Prices in Significant Other Significant Balance Sheet Assets: Money market funds $ 21,891 $ 21,891 — — Cash and cash The following table presents available-for-sale securities measured at fair value on a recurring basis as of March 31, 2020 : (in thousands) Total Fair Value Quoted Prices in Significant Other Significant Balance Sheet Assets: Money market funds $ 20,690 $ 20,690 — — Cash and cash |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | The components of accrued expenses are as follows: (in thousands) June 30, 2020 March 31, 2020 Accrued compensation $ 586 $ 596 Accrued contractual obligation 1,445 1,445 Current operating lease liability 375 339 Other accrued expenses 622 756 Total accrued expenses $ 3,028 $ 3,136 |
Land Property and Equipment (Ta
Land Property and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment [Table Text Block] | The components of fixed assets are as follows: (in thousands) June 30, 2020 March 31, 2020 Land $ 672 $ 672 Machinery and equipment 1,421 1,415 Office, computer and research equipment 5,129 5,112 Leasehold improvements 788 788 Land, property and equipment, gross 8,010 7,987 Less accumulated depreciation and amortization (6,982 ) (6,911 ) Land, property and equipment, net $ 1,028 $ 1,076 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | [1] | $ 335 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 577 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Three | 577 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Four | 582 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Five | 593 | ||
Lessee, Operating Liabilty, Payments Due Thereafter year 5 | 268 | ||
Lessee, Operating Lease, Liability, to be Paid | 2,932 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (331) | ||
Total lease liabilities | $ 2,601 | $ 589 | |
[1] | Represents the future minimum operating lease payments expected to be made over the remaining balance of the fiscal year. |
Leases (Details 2)
Leases (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Leases [Abstract] | |||
Operating Lease, Cost | $ 148 | $ 204 | |
Variable Lease, Cost | [1] | 22 | 40 |
Lease, Cost | [2] | $ 170 | $ 244 |
[1] | Variable lease expense is related to our leased real estate and primarily includes labor and operational costs as well as taxes and insurance. | ||
[2] | Short-term lease expense is immaterial. |
Leases (Details 3)
Leases (Details 3) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
ScheduleOfClassificationOfRightOfUseAssetsAndLeaseLiabilities [Line Items] | ||
Right-of-use assets on operating leases, net | $ 2,771 | $ 628 |
Accrued expenses | 375 | 339 |
Lease liabilities non-current | 2,226 | 250 |
Total lease liabilities | 2,601 | 589 |
Right-of-use assets on operating leases, net [Member] | ||
ScheduleOfClassificationOfRightOfUseAssetsAndLeaseLiabilities [Line Items] | ||
Right-of-use assets on operating leases, net | 2,771 | 628 |
Accrued Expenses [Member] | ||
ScheduleOfClassificationOfRightOfUseAssetsAndLeaseLiabilities [Line Items] | ||
Accrued expenses | 375 | 339 |
Other Noncurrent Liabilities [Member] | ||
ScheduleOfClassificationOfRightOfUseAssetsAndLeaseLiabilities [Line Items] | ||
Lease liabilities non-current | $ 2,226 | $ 250 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) | Jan. 31, 2023 | Dec. 01, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 |
Subsequent Event [Line Items] | |||||
Operating Lease, Payments | $ 300,000 | $ 100,000 | |||
Operating Lease, Weighted Average Remaining Lease Term | 5 years 3 months | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 4.50% | ||||
Right-of-use assets on operating leases, net | $ 2,771,000 | $ 628,000 | |||
Lessee, Operating Lease, Term of Contract | 63 months | ||||
Operating Lease Commencement Date | Dec. 1, 2019 | ||||
Total lease liabilities | $ 2,601,000 | $ 589,000 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Lessee, Operating Lease, Option to Terminate | $ 70,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 7,350 | $ 9,002 |
Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6,198 | 7,815 |
License and Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 17 | 19 |
Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,135 | $ 1,168 |
Revenue Recognition (Details 2)
Revenue Recognition (Details 2) $ in Thousands | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
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 | $ 955 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
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 | $ 109 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
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 | $ 76 |
Revenue Recognition (Details Te
Revenue Recognition (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Contract with Customer, Liability, Revenue Recognized | $ 0.4 | $ 0.4 | |
ContractWithCustomerProductReturnAsset | $ 0.1 | $ 0.1 |
Notes Payable and Long-term D_2
Notes Payable and Long-term Debt (Details) - USD ($) | 24 Months Ended | ||
Apr. 07, 2022 | Jun. 30, 2020 | Apr. 14, 2020 | |
Debt Disclosure [Abstract] | |||
NotesPayableSBAPPPLoanNoncurrent | $ 917,000 | ||
ProceedsFromPaycheckProtectionProgramUnderCaresAct | $ 1,637,522 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.98% | ||
NotesPayableSBAPPPLoanPeriodicPayment | $ 92,000 | ||
Debt Instrument, Term | 2 years | ||
NotesPayableSBAPPPLoanCurrent | $ 723,000 |
Interim Segment Information (De
Interim Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Segment information | |||
Revenue | $ 7,350 | $ 9,002 | |
Cost of revenue | 4,508 | 5,756 | |
Gross profit | $ 2,842 | $ 3,246 | |
Gross margin | 38.70% | 36.10% | |
Research and development | $ 945 | $ 1,556 | |
Segment Profit Loss | 1,897 | 1,690 | |
Operating expenses | |||
Sales and marketing | 1,376 | 2,332 | |
General and administrative | 1,210 | 1,364 | |
Intangible amortization | 226 | 308 | |
Operating profit (loss) | (915) | (2,314) | |
Other Nonoperating Income (Expense) | 30 | 164 | |
Income tax benefit (expense) | 60 | (7) | |
Net income (loss) | [1] | (825) | (2,157) |
IBW [Member] | |||
Segment information | |||
Revenue | 2,949 | 2,923 | |
Cost of revenue | 1,749 | 1,951 | |
Gross profit | $ 1,200 | $ 972 | |
Gross margin | 40.70% | 33.30% | |
Research and development | $ 349 | $ 399 | |
Segment Profit Loss | 851 | 573 | |
ISM [Member] | |||
Segment information | |||
Revenue | 2,047 | 3,095 | |
Cost of revenue | 892 | 1,516 | |
Gross profit | $ 1,155 | $ 1,579 | |
Gross margin | 56.40% | 51.00% | |
Research and development | $ 382 | $ 701 | |
Segment Profit Loss | 773 | 878 | |
CNS [Member] | |||
Segment information | |||
Revenue | 2,354 | 2,984 | |
Cost of revenue | 1,867 | 2,289 | |
Gross profit | $ 487 | $ 695 | |
Gross margin | 20.70% | 23.30% | |
Research and development | $ 214 | $ 456 | |
Segment Profit Loss | $ 273 | $ 239 | |
[1] | Net income (loss) and comprehensive income (loss) are the same for the periods reported. |
Interim Segment Information (_2
Interim Segment Information (Details Textual) | 3 Months Ended |
Jun. 30, 2020segments | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Components of inventories | ||
Raw materials | $ 2,369 | $ 2,188 |
Inventory, Work in Process, Gross | 0 | 0 |
Finished goods | 4,985 | 4,619 |
Total inventories | $ 7,354 | $ 6,807 |
Inventories (Details Textual)
Inventories (Details Textual) $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Inventory Disclosure [Abstract] | |
Inventory Write-down | $ 0.6 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Stock-based compensation expense | ||
Stock-based compensation expense | $ 162 | $ 244 |
Income tax benefit | 0 | 0 |
Total stock-based compensation expense, after taxes | $ 162 | $ 244 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details 1) - Share-based Payment Arrangement, Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding on March 31, 2020 | 221,812 | ||
Granted | 0 | ||
Exercised | 0 | ||
Forfeited | 0 | ||
Expired | 0 | ||
Outstanding on June 30, 2020 | 221,812 | 221,812 | |
Weighted-Average Exercise Price Per Share, Outstanding on March 31, 2020 | $ 1.87 | ||
Weighted-Average Exercise Price Per Share, Granted | 0 | ||
Weighted-Average Exercise Price Per Share, Exercised | 0 | ||
Weighted-Average Exercise Price Per Share, Forfeited | 0 | ||
Weighted-Average Exercise Price Per Share, Expired | 0 | ||
Weighted-Average Exercise Price Per Share, Outstanding on June 30, 2020 | $ 1.87 | $ 1.87 | |
Weighted-Average Remaining Contractual Term (in years), Outstanding on March 31, 2020 | 5 years 1 month 1 day | 5 years 4 months 24 days | |
Weighted-Average Remaining Contractual Term (in years), Outstanding on June 30, 2020 | 5 years 1 month 1 day | 5 years 4 months 24 days | |
Aggregate Intrinsic Value, Outstanding on March 31, 2020 | [1] | $ 0 | |
Aggregate Intrinsic Value, Outstanding on June 30, 2020 | [1] | $ 0 | $ 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 respective reporting date |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details 2) | 3 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Restricted Stock [Member] | |
Restricted stock activity | |
Non-vested as of March 31, 2020 | shares | 128,584 |
Vested | shares | 0 |
Vested | shares | (2,500) |
Forfeited | shares | 0 |
Non-vested as of June 30, 2020 | shares | 126,084 |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2020 | $ / shares | $ 1.39 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 1.72 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Non-vested as of June 30, 2020 | $ / shares | $ 1.38 |
Restricted Stock Units (RSUs) [Member] | |
Restricted stock activity | |
Non-vested as of March 31, 2020 | shares | 441,108 |
Vested | shares | 271,140 |
Vested | shares | (160,597) |
Forfeited | shares | 0 |
Non-vested as of June 30, 2020 | shares | 551,651 |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2020 | $ / shares | $ 2.31 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 0.78 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 2.87 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Non-vested as of June 30, 2020 | $ / shares | $ 1.39 |
Performance Shares [Member] | |
Restricted stock activity | |
Non-vested as of March 31, 2020 | shares | 5,000 |
Vested | shares | 229,303 |
Vested | shares | 0 |
Forfeited | shares | (5,000) |
Non-vested as of June 30, 2020 | shares | 229,303 |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2020 | $ / shares | $ 1.38 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 0.78 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 1.38 |
Weighted-Average Grant Date Fair Value, Non-vested as of June 30, 2020 | $ / shares | $ 0.78 |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Details Textual) - 2019 Omnibus Incentive Compensation Plan [Member] | 3 Months Ended |
Jun. 30, 2020 | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting schedule of equal annual installments | 3 years |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting schedule of equal annual installments | 1 year |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Changes in Company's standard product warranty reserve [Roll Forward] | ||
Total product warranty reserve at the beginning of the period | $ 160 | $ 130 |
Warranty expense to cost of revenue | 32 | 12 |
Utilization | (62) | (12) |
Total product warranty reserve at the end of the period | $ 130 | $ 130 |
Product Warranties (Details Tex
Product Warranties (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Product Warranties (Textual) [Abstract] | ||
Current portions of warranty reserve | $ 88 | $ 120 |
Non-current portions of the warranty reserve | $ 42 | $ 40 |
IBW [Member] | Minimum [Member] | ||
Product Warranties (Textual) [Abstract] | ||
Standard Product Warranty Description | P1Y | |
IBW [Member] | Maximum [Member] | ||
Product Warranties (Textual) [Abstract] | ||
Standard Product Warranty Description | P5Y | |
ISM [Member] | ||
Product Warranties (Textual) [Abstract] | ||
Standard Product Warranty Description | P1Y | |
CNS [Member] | Minimum [Member] | ||
Product Warranties (Textual) [Abstract] | ||
Standard Product Warranty Description | P1Y | |
CNS [Member] | Maximum [Member] | ||
Product Warranties (Textual) [Abstract] | ||
Standard Product Warranty Description | P7Y |
Variable Interest Entity and _2
Variable Interest Entity and Guarantee (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Apr. 02, 2013 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 7,350 | $ 9,002 | ||
AKA [Member] | ||||
Concentration Risk [Line Items] | ||||
Equity Method Investments | 100 | $ 100 | ||
Revenue | 300 | $ 400 | ||
Accounts Receivable, Net, Current | 200 | 200 | ||
Deferred Revenue | 400 | $ 500 | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 700 | |||
AKA [Member] | ||||
Concentration Risk [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Deferred Tax Assets, Gross | $ 40,800,000 | ||
Deferred Tax Assets, Valuation Allowance | 40,800,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 348,000 | ||
Income tax benefit (expense) | $ 60,000 | $ (7,000) | |
Effective tax rate | (0.18%) | (0.30%) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - Cash and cash equivalents [Member] - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 21,891 | $ 20,690 |
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 | $ 21,891 | $ 20,690 |
Share Repurchases (Details Text
Share Repurchases (Details Textual) - Class A Common Stock - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | May 17, 2017 | Aug. 31, 2011 | |
MayTwoThousandSeventeenAuthorization [Member] | ||||
Share Repurchases (Textual) [Abstract] | ||||
Stock Repurchase Program | $ 2 | |||
Treasury Stock, Shares, Acquired | 0 | 0 | ||
Stock Repurchase Program Remaining Authorized Repurchases Amount | $ 0.7 | |||
August 2011 authorization [Member] | ||||
Share Repurchases (Textual) [Abstract] | ||||
Stock Repurchase Program | $ 20 | |||
Stock Repurchase Program Remaining Authorized Repurchases Amount | $ 0.1 | |||
Outside of Publically Announced Repurchase Program [Member] | ||||
Share Repurchases (Textual) [Abstract] | ||||
Treasury Stock, Shares, Acquired | 55,167 | 80,936 | ||
Treasury stock acquired volume weighted-average price | $ 0.76 | $ 2.15 |
Intangibles Assets (Details)
Intangibles Assets (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of Intangible Assets, Finite-lived | $ 0 | $ 0 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Accrued Liabilities [Abstract] | ||
Accrued compensation | $ 586 | $ 596 |
Accrued contractual obligation | 1,445 | 1,445 |
Accrued expenses | 375 | 339 |
Other accrued expenses | 622 | 756 |
Total accrued expenses | $ 3,028 | $ 3,136 |
Land Property and Equipment (De
Land Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 672 | $ 672 |
Machinery and equipment | 1,421 | 1,415 |
Office, computer and research equipment | 5,129 | 5,112 |
Leasehold improvements | 788 | 788 |
Land, property and equipment, gross | 8,010 | 7,987 |
Less accumulated depreciation and amortization | (6,982) | (6,911) |
Land, property and equipment, net | $ 1,028 | $ 1,076 |
Land Property and Equipment Tex
Land Property and Equipment Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Impairment of Long-Lived Assets to be Disposed of | $ 0 | $ 0 |