暖暖直播 Reports Fiscal 2019 Second Quarter Results

暖暖直播

AURORA, Ill., Oct. 31, 2018 (GLOBE NEWSWIRE) -- (NASDAQ: WSTL), a leading provider of high-performance network infrastructure solutions, announced results for its fiscal 2019 second quarter ended September听30, 2018 (2Q19).听 Management will host a conference call to discuss 2Q19 results and plans for future growth tomorrow, Thursday, November听1, 2018, at 9:30 AM Eastern Time (details below).

Revenue was $10.1 million and comprised $3.6 million from the In-Building Wireless (IBW) segment, $2.6 million from the Intelligent Site Management (ISM) segment, and $3.8 million from the Communication Network Solutions (CNS) segment.听 Cash and short-term investments grew to $28.5 million at September 30, 2018, up from $25.8 million at June 30, 2018, driven by improved working capital, partly offset by an operating loss and share repurchases.

鈥淲e grew cash significantly and continued to exceed our gross margin target of 40% or greater.听 While 2Q19 sequential IBW and CNS segment revenues were up slightly, overall results were affected by lower ISM revenue from one of our larger customers,鈥� said Stephen John, President and Chief Executive Officer.听 鈥淲e continue to aggressively pursue growth opportunities through organic initiatives, partnerships, and acquisitions.听 In 2Q19, we received initial customer orders and recognized our first revenue for the fiber access solutions we began developing in April of this year.听 In addition, our recently announced small cell product agreement positions us to expand in the market for private LTE networks using the emerging OnGo spectrum.鈥�

In-Building Wireless (IBW) Segment

IBW鈥檚 revenue was up slightly in 2Q19 when compared to 1Q19, driven primarily by higher sales of DAS conditioners and passive system components, partly offset by lower repeater revenue.听 IBW鈥檚 segment profit decrease was due primarily to the increased R&D expense associated with the OnGo small cell development.

Intelligent Site Management (ISM) Segment

ISM鈥檚 revenue decrease was due primarily to lower product revenue as one major domestic customer spent significantly less on remote monitoring than in previous quarters, partly offset by increased support services revenue.听 ISM鈥檚 segment profit decrease was due to the lower revenue.

Communication Network Solutions (CNS) Segment

CNS鈥檚 revenue increase was driven primarily by higher sales of integrated cabinets.听 CNS鈥檚 segment profit decrease was due primarily to a lower gross margin due to the revenue mix and slightly higher R&D expense related to product development activities for the fiber access solutions.

Conference Call Information
Management will discuss financial and business results and plans for future growth during the quarterly conference call on Thursday, November听1, 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 November听1, 2018, by calling (877) 875-0056 no later than 8:15 AM Central Time (9:15 AM Eastern Time) and providing the operator confirmation number 47737770.

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 12:00 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 network 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 .

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, and the imposition of new, or changes in existing duties and tariffs), 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, 2018, 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) During the quarter ended September 30, 2017, the Company recorded restructuring expense related to severance costs for terminated employees.
(2) 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 the cumulative translation adjustment.
(3)听 During the quarter ended September 30, 2018, the Company recorded indemnification expense related to probable loss contingencies associated with a major customer contract related to a business which was previously sold and therefore is presented as discontinued operations.

^(1)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 the cumulative translation adjustment.
⁽²⁾听 Includes the cumulative effect adjustment of the ASC 606 adoption.
⁽³⁾ As of June 30, 2018, March 31, 2018, and September 30, 2017, the Company had $1.3 million, $2.8 million and $5.0 million, respectively, of short-term investments in addition to cash and cash equivalents.

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 Stock-based compensation is a non-cash expense incurred in accordance with share-based compensation accounting standards.
⁽²⁾听 Amortization of intangibles is a non-cash expense arising from previously acquired intangible assets.
^(3)听 听Restructuring, separation, and transition expenses are not directly related to the ongoing performance of our fundamental business operations.
⁽⁴⁾听 During the quarter ended September 30, 2018, the Company recorded indemnification expense related to probable loss contingencies associated with a major customer contract related to a business which was previously sold and therefore is presented as discontinued operations.
⁽⁵⁾听 EBITDA is a non-GAAP measure that represents Earnings Before Interest, Taxes, Depreciation, and Amortization.听 The Company presents Adjusted EBITDA.
⁽⁶⁾听 Non-recurring foreign currency translation gain related to the wind-up of the NoranTel legal entity during the quarter ended September 30, 2017.

For additional information, contact:

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

听

Released October 31, 2018