暖暖直播 Delivers Continued Profitability and $1.8M of Cash for Fiscal 3Q18

暖暖直播

AURORA, Ill., Feb. 07, 2018 (GLOBE NEWSWIRE) -- (NASDAQ:WSTL), a leading provider of high-performance wireless infrastructure solutions, announced results for its fiscal 2018 third quarter ended December听31, 2017 (3Q18).听 Management will host a conference call to discuss financial and business results tomorrow, Thursday, February听8, 2018, at 9:30 AM Eastern Time (details below).

Revenue was $13.7 million and comprised $5.2 million from the In-Building Wireless (IBW) segment, a strong $5.8 million performance from the Intelligent Site Management and Services (ISMS) segment, and a seasonally low $2.7 million from the Communication Network Solutions (CNS) segment.听 Cash and short-term investments grew to $26.0 million at December听31, 2017, up from $24.2 million at September 30, 2017.

鈥溑�暖直播 continued to generate positive operating profit margin and net income, and increase cash, even with the revenue seasonality that typifies our December quarters.听 These positive results demonstrate the tremendous operating leverage we have in the business,鈥� said Kirk Brannock, 暖暖直播鈥檚 President and Chief Executive Officer.

鈥淭he momentum of the efficiencies created over the past year resulted in our fifth consecutive quarter of positive non-GAAP operating profit margin.听 Along with our healthy cost structure, we are encouraged by the revenue growth opportunities we have in the IBW public safety market, which grew sequentially this quarter, and in emerging wireless network densification applications like centralized radio access networks (CRAN).听 At the same time, we continue to evaluate new growth opportunities to increase shareholder value,鈥� Brannock added.

In-Building Wireless (IBW) Segment

IBW鈥檚 sequential revenue decrease was driven by lower sales of our Universal DAS Interface Tray (UDIT) and passive system components, both of which achieved record quarterly revenue levels last quarter.听 IBW鈥檚 segment gross margin increase was driven primarily by lower costs.

Intelligent Site Management & Services (ISMS) Segment

ISMS鈥檚 sequential revenue increase was driven primarily by higher support services revenue and increased sales of Remote units, resulting in ISMS attaining its highest revenue level since the December 2015 quarter.听 ISMS鈥檚 segment gross margin increase was primarily due to a more favorable mix.

Communication Network Solutions (CNS) Segment

CNS product lines are used primarily in the outdoor communication network; as a result, the December quarter tends to be its lowest performing quarter.听 In 3Q18, CNS鈥檚 sequential revenue decrease was most affected by lower sales of Integrated Cabinets and Tower Mounted Amplifiers.听 CNS鈥檚 gross margin decrease was primarily due to the lower revenue.

Conference Call Information
Management will discuss financial and business results during the quarterly conference call on Thursday, February听8, 2018, at 9:30 AM Eastern Time.听 Investors may quickly register online in advance of the call at .听 After registering, participants receive dial-in numbers, a passcode and a registration ID that is used to uniquely identify their presence and automatically join them into the audio conference.听 A participant may also register by telephone on February听8, 2018, by calling 888-206-4073 no later than 8:15 AM Central Time (9:15 AM Eastern Time) and providing the operator confirmation number 46315825.

This news release and related information that may be discussed on the conference call will be posted on the Investor Relations section of 暖暖直播's website: .听 A digital recording of the entire conference will be available for replay on 暖暖直播's website by approximately 1:00 PM Eastern Time following the conclusion of the conference.

暖暖直播 暖暖直播 Technologies
暖暖直播 is a leading provider of high-performance wireless infrastructure solutions focused on innovation and differentiation at the edge of communication networks where end users connect.听 The Company's portfolio of products and solutions enable service providers and network operators to improve performance and reduce operating expenses.听 With millions of products successfully deployed worldwide, 暖暖直播 is a trusted partner for transforming networks into high-quality reliable systems. For more information, please visit www.westell.com.

鈥淪afe Harbor鈥� Statement under the Private Securities Litigation Reform Act of 1995

Certain statements contained herein that are not historical facts or that contain the words 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渋ntend,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥減lan,鈥� 鈥渟hould,鈥� or derivatives thereof and other words of similar meaning are forward-looking statements that involve risks and uncertainties.听 Actual results may differ materially from those expressed in or implied by such forward-looking statements.听 Factors that could cause actual results to differ materially include, but are not limited to, product demand and market acceptance risks, customer spending patterns, need for financing and capital, economic weakness in the United States (鈥淯.S.鈥�) economy and telecommunications market, the effect of international economic conditions and trade, legal, social and economic risks (such as import, licensing and trade restrictions), the impact of competitive products or technologies, competitive pricing pressures, customer product selection decisions, product cost increases, component supply shortages, new product development, excess and obsolete inventory, commercialization and technological delays or difficulties (including delays or difficulties in developing, producing, testing and selling new products and technologies), the ability to successfully consolidate and rationalize operations, the ability to successfully identify, acquire and integrate acquisitions, the effect of the Company's accounting policies, retention of key personnel and other risks more fully described in the Company's SEC filings, including the Form 10-K for the fiscal year ended March听31, 2017, under Item听1A - Risk Factors.听 The Company undertakes no obligation to publicly update these forward-looking statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events, or otherwise.

^(1)听听 2Q18 restructuring expense related to severance costs for terminated employees.
^(2)听听 The Company recorded restructuring expense primarily relating to abandonment of excess office space at its headquarters and in New Hampshire, and severance costs for terminated employees.
^(3)听听 1Q17 non-cash impairment related to long-lived assets associated with the discontinuation of ClearLink DAS.
⁽⁴⁾听 听During the quarter ended September 30, 2017, the Company dissolved the NoranTel legal entity which triggered a one-time $0.6 million foreign currency gain with the reversal of a cumulative translation adjustment.
⁽⁵⁾听 听During the quarter ended December 31, 2017, the Company had an income tax benefit of $697K from the release of the tax valuation allowance associated with previously generated alternative minimum tax (AMT) credits due to the enactment of the Tax Cuts and Jobs Act of 2017.
⁽⁶⁾听 听All common stock, equity, share and per share amounts have been retroactively adjusted to reflect a one-for-four reverse stock split which was effective June 7, 2017.听

听

⁽¹⁾听 听1Q17 non-cash impairment related to long-lived assets associated with the discontinuation of ClearLink DAS.
⁽²⁾听 听During the quarter ended September 30, 2017, the Company dissolved the NoranTel legal entity which triggered a one-time $0.6 million foreign currency gain with the reversal of a cumulative translation adjustment.
⁽³⁾听 听As of December 31, 2017, the Company has $4.5 million of short-term investments in addition to cash and cash equivalents.

听

The Company conforms to U.S. Generally Accepted Accounting Principles (GAAP) in the preparation of its financial statements.听 The schedules above reconcile the Company's non-GAAP financial measures to the most directly comparable GAAP measure.听 The adjustments share one or more of the following characteristics: they are unusual and the Company does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of the Company's control.听 Management believes that the non-GAAP financial information provides meaningful supplemental information to investors.听 Management also believes the non-GAAP financial information reflects the Company's core ongoing operating performance and facilitates comparisons across reporting periods.听 The Company uses these non-GAAP measures when evaluating its financial results.听 Non-GAAP measures should not be viewed as a substitute for the Company's GAAP results.

Footnotes:

^{(1)听 听}On April听1, 2013, the Company purchased Kentrox.听 The acquisition required the step-down on acquired deferred revenue, which resulted in lower revenue that will not recur once those liabilities have fully settled.听 The adjustment removes the step-down on acquired deferred revenue that was recognized.
⁽²⁾听 听Stock-based compensation is a non-cash expense incurred in accordance with share-based compensation accounting standards.
⁽³⁾听 听Non-cash impairment related to tangible long-lived assets associated with the previously announced strategic decision related to the discontinuation of ClearLink DAS.
⁽⁴⁾听 听 Amortization of intangibles is a non-cash expense arising from previously acquired intangible assets.
⁽⁵⁾听 听Restructuring expenses are not directly related to the ongoing performance of our fundamental business operations, including costs relating to abandonment of excess office space at our headquarters and in New Hampshire, and severance costs for terminated employees. This adjustment also includes severance benefits related to the departure of certain former executives.
⁽⁶⁾听 听Non-recurring excess and obsolete inventory charges on inventory and firm purchase commitments associated with the previously announced strategic decision related to the discontinuation of ClearLink DAS.
⁽⁷⁾听 听EBITDA is a non-GAAP measure that represents Earnings Before Interest, Taxes, Depreciation, and Amortization.听 The Company presents Adjusted EBITDA.
⁽⁸⁾听 听Non-recurring foreign currency translation gain related to the wind-up of the NoranTel legal entity during the quarter ended September 30, 2017.
⁽⁹⁾听 听Adjustment removes one-time tax effect of changes in valuation allowance reserves associated with previously generated alternative minimum tax (AMT) credits due to the enactment of the Tax Cuts and Jobs Act of 2017.

For additional information, contact:

Tom Minichiello
Chief Financial Officer
暖暖直播.
+1 (630) 375 4740

Released February 7, 2018