Westell Technologies Inc. (WSTL, Financial) filed Quarterly Report for the period ended 2012-09-30.
Westell Technologies, Inc. has a market cap of $126.6 million; its shares were traded at around $2.03 with and P/S ratio of 1.8.
CNS revenue in the three and six months ended September 30, 2012 decreased compared to the same periods in the prior fiscal year due to the CNS asset sale, which closed on April 15, 2011, and the deliberate wind-down of business transacted with the sole customer remaining thereafter. Revenue for the three and six months ended September 30, 2012 was derived from one remaining customer and consisted primarily of project-based software revenue. Revenue for the six months ended September 30, 2011 contained pre-closing revenue of $1.0 million related to customers that transferred with the CNS asset sale. The remaining revenue was from a single customer that did not transfer with the sale and represents revenue from modem, gateway, ancillary products and product screening.
CNS gross margin decreased in the three months ended September 30, 2012 compared to the same period in the prior year because the current quarter had ancillary products sales of $68,000 and $51,000 of obsolete inventory expense resulting in no gross profits. CNS gross margin increased in the six months ended September 30, 2012 compared to the same period in the prior year primarily due to project-based high margin software revenue, which was the majority of the revenue in fiscal year 2013, compared to lower-margin product revenue, which was the majority of the revenue in fiscal year 2012.
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Westell Technologies, Inc. has a market cap of $126.6 million; its shares were traded at around $2.03 with and P/S ratio of 1.8.
Highlight of Business Operations:
Westell revenue decreased 5% and 24% in the three and six months ended September 30, 2012, respectively, compared to the same periods in the prior fiscal year due primarily to lower demand resulting from a combination of a shift from T1 to Ethernet technology for the backhaul of cellular traffic and customer programs to constrain spending, manage inventory levels, and re-use decommissioned products.CNS revenue in the three and six months ended September 30, 2012 decreased compared to the same periods in the prior fiscal year due to the CNS asset sale, which closed on April 15, 2011, and the deliberate wind-down of business transacted with the sole customer remaining thereafter. Revenue for the three and six months ended September 30, 2012 was derived from one remaining customer and consisted primarily of project-based software revenue. Revenue for the six months ended September 30, 2011 contained pre-closing revenue of $1.0 million related to customers that transferred with the CNS asset sale. The remaining revenue was from a single customer that did not transfer with the sale and represents revenue from modem, gateway, ancillary products and product screening.
CNS gross margin decreased in the three months ended September 30, 2012 compared to the same period in the prior year because the current quarter had ancillary products sales of $68,000 and $51,000 of obsolete inventory expense resulting in no gross profits. CNS gross margin increased in the six months ended September 30, 2012 compared to the same period in the prior year primarily due to project-based high margin software revenue, which was the majority of the revenue in fiscal year 2013, compared to lower-margin product revenue, which was the majority of the revenue in fiscal year 2012.
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