Westell Reports Fiscal 2018 Year-End and Fourth Quarter Results

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Westell Technologies Inc (NASDAQ:WSTL), a leading provider of high performance wireless infrastructure solutions announced results for its fiscal 2018 fourth quarter ended March 31, 2018 and its fiscal year ended March 31, 2018. As quoted in the press release: “Fiscal 2018 was a significant turn-around year for Westell. Gross margin expanded to 43.0% from 37.7%, …

As quoted in the press release:

“Fiscal 2018 was a significant turn-around year for Westell. Gross margin expanded to 43.0% from 37.7%, net income improved by $15.9 million, and we generated positive operating cash flow of $6.9 million,” said Kirk Brannock, Westell’s Chairman of the Board of Directors. “While 4Q18 revenue was impacted by in-building wireless carrier spending shifts, on a FY18 year-over-year basis, sales of new public safety products grew significantly, revenue from our remote units for intelligent site management increased by a double-digit percentage, and we grew sales of integrated cabinets and power distribution products.”

4Q18
3 months
ended
03/31/18

3Q18
3 months
ended
12/31/17

+ increase /
– decrease

FY18
12 months
ended
03/31/18

FY17
12 months
ended
03/31/17

+ increase /
– decrease

Revenue

$11.1M

$13.7M

-$2.6M

$58.6M

$63.0M

-$4.4M

Gross Margin

45.5%

44.4%

+1.1%

43.0%

37.7%

+5.3%

Operating Margin

-8.5%

0.3%

-8.8%

-2.5%

-25.5%

+23.0%

Net Income

-$0.9M

$0.8M

-$1.7M

$—M

-$15.9M

+$15.9M

Earnings Per Share

-$0.06

$0.05

-$0.11

$0.00

-$1.04

+$1.04

Non-GAAP Operating Margin ⁽¹⁾

+3.5%

+10.2%

-6.7%

+7.1%

-5.6%

+12.7%

Non-GAAP Net Income ⁽¹⁾

$0.4M

$1.5M

-$1.1M

$4.4M

-$3.4M

+$7.8M

Non-GAAP Earnings Per Share ⁽¹⁾

$0.03

$0.09

-$0.06

$0.28

-$0.22

+$0.50

Non-GAAP Adjusted EBITDA ⁽¹⁾

$0.6M

$1.6M

-$1.0M

$4.9M

-$2.1M

+$7.0M

Ending Cash & ST Investments

$27.7M

$26.0M

+$1.7M

$27.7M

$21.8M

+$5.9M

“Westell began FY19 strong with its largest beginning-of-year backlog in three years,” said Stephen John, Westell’s newly appointed President and CEO. “We are approaching the testing phase of an expanded suite of new products for the growing public safety market that we expect to introduce soon, and we continue to refresh the existing product portfolio to address the needs of the emerging network densification architecture and eventual 5G roll-outs. Also, as previously announced, we’ve added a new VP of Global Business Development and M&A to focus on expanding our product offering and customer relationships across existing and adjacent markets.”

Click here for the full press release.

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