Westell Delivers $2.9 Million Positive Cash Flow for Fiscal 3Q17

AURORA, Ill., Feb. 08, 2017 (GLOBE NEWSWIRE) -- Westell Technologies, Inc. (NASDAQ:WSTL), a leading provider of high-performance wireless infrastructure solutions, today announced results for its fiscal 2017 third quarter ended December 31, 2016 (3Q17).  Management will host a conference call to discuss financial and business results tomorrow, Thursday, February 9, 2017, at 9:30 AM Eastern Time (details below).

GAAP operating expenses were $7.8 million in 3Q17, a 36% reduction compared to $12.2 million in 2Q17.  Non-GAAP operating expenses, which exclude stock-based compensation, amortization of acquired intangible assets, and restructuring and restructuring-related charges, were $5.9 million in 3Q17, a 24% reduction compared to $7.8 million in 2Q17.

  3Q17
3 months ended
12/31/16
2Q17
3 months ended
9/30/16
 + favorable /
- unfavorable
Consolidated Revenue $15.0M $17.8M -16%
Net Income (Loss) ($1.8M) ($5.8M) +69%
Gross Margin  40.4%  35.8% +4.6%
Earnings (Loss) Per Share ($0.03) ($0.09) +69%
Non-GAAP Net Income (Loss) (1) $0.2M ($1.1M) +120%
Non-GAAP Earnings (Loss) Per Share (1) $0.00  ($0.02) +120%
Non-GAAP Adjusted EBITDA (1) $0.5M ($0.7M) +174%
(1)  Please refer to the schedule at the end of this press release for a complete GAAP to non-GAAP reconciliation and other information related to non-GAAP financial measures.

 “We substantially exceeded our goal for positive cash flow and lower operating expenses, and generated a healthy gross margin greater than our 40% target,” said Kirk Brannock, President and CEO of Westell Technologies.  “In the process, we have largely reset the Company’s expense structure that is designed to significantly improve profitability.  As a result, in 3Q17, bottom line performance improved by $4.0 million, or 69% sequentially, and we achieved positive non-GAAP profitability for the first time since 3Q14.” 

Consolidated revenue in 3Q17 was $15.0 million, and comprised $6.2 million from the In-Building Wireless (IBW) segment, $5.5 million from the Intelligent Site Management and Services (ISMS) segment, and $3.2 million from the Communication Network Solutions (CNS) segment.

“On the revenue side, despite a seasonally low CNS quarter, ISMS increased sequentially and had its best quarter since 3Q16.  In addition, IBW was strong again in 3Q17, including robust quarterly sales of our UDIT (Universal DAS Interface Tray) and continued favorable momentum for our half-watt public safety repeater.  In 3Q17, we also announced our new two-watt public safety repeater, which is expected to be available for customers in fiscal 4Q17,” Brannock said.

Cash grew 14% to $23.8 million at December 31, 2016, compared to $20.9 million at September 30, 2016, driven by the profitable non-GAAP results and improved working capital.

In-Building Wireless (IBW) Segment

IBW’s sequential revenue decrease was due primarily to lower sales of commercial repeaters.  IBW’s segment gross margin increase was driven primarily by lower costs and a more favorable mix.

  3Q17
3 months ended
12/31/16
2Q17
3 months ended
9/30/16
 + favorable /
- unfavorable
IBW Segment Revenue $6.2M $6.6M -6%
IBW Segment Gross Margin (1) 40.3% 33.6% +6.7%
IBW Segment R&D Expense $1.3M $1.6M +18%
IBW Segment Profit $1.2M $0.6M +88%
(1)  Excluding charges of $0.2 million in 2Q17 related to the previously announced discontinuation of the ClearLink DAS, IBW segment 2Q17 gross margin was 36.5%.  Please refer to the schedule at the end of this press release for a complete GAAP to non-GAAP reconciliation.

Intelligent Site Management & Services (ISMS) Segment

ISMS’s sequential revenue increase was driven primarily by higher deployment services revenue.  ISMS’s segment gross margin increase was driven primarily by a more favorable mix.

  3Q17
3 months ended
12/31/16
2Q17
3 months ended
9/30/16
 + favorable /
- unfavorable
ISMS Segment Revenue $5.5M $5.1M +8%
ISMS Segment Gross Margin 50.6% 47.1% +3.5%
ISMS Segment R&D Expense $0.8M $1.2M +35%
ISMS Segment Profit $2.0M $1.2M +70%

Communication Network Solutions Group (CNS) Segment

CNS’s product lines are used primarily in the outside communication networks; as a result, the December quarter tends to be CNS’s lowest revenue quarter.  In 3Q17, CNS’s sequential revenue decrease was most affected by sequential drops in sales of Integrated Cabinets and Tower Mounted Amplifiers.  CNS’s gross margin decrease was due primarily to the lower revenue.

  3Q17
3 months ended
12/31/16
2Q17
3 months ended
9/30/16
 + favorable /
- unfavorable
CNS Segment Revenue $3.2M $6.0M -46%
CNS Segment Gross Margin 23.1% 28.7% -5.6%
CNS Segment R&D Expense $0.3M $0.5M +39%
CNS Segment Profit $0.4M $1.2M -64%

Conference Call Information
Management will discuss financial and business results during the quarterly conference call on Thursday, February 9, 2017, at 9:30 AM Eastern Time.  Investors may quickly register online in advance of the call at https://www.conferenceplus.com/Westell.  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.  A participant may also register by telephone on February 9, 2017, by calling 888-206-4065 no later than 8:15 AM Central Time (9:15 AM Eastern Time) and providing the operator confirmation number 44112765.

This news release and related information that may be discussed on the conference call will be posted on the Investor Relations section of Westell's website: http://www.westell.com/about-us/investor-relations.  A digital recording of the entire conference will be available for replay on Westell's website by approximately 1:00 PM Eastern Time following the conclusion of the conference.

About Westell Technologies
Westell 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.  The Company's comprehensive set of products and solutions enable service providers and network operators to improve performance and reduce operating expenses.  With millions of products successfully deployed worldwide, Westell is a trusted partner for transforming networks into high quality, reliable systems.  For more information, please visit www.westell.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

Certain statements contained herein that are not historical facts or that contain the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “may,” “will,” “plan,” “should,” or derivatives thereof and other words of similar meaning are forward-looking statements that involve risks and uncertainties.  Actual results may differ materially from those expressed in or implied by such forward-looking statements.  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 (“U.S.”) 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 31, 2016, under Item 1A - Risk Factors.  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.

Financial Tables to Follow:

 
Westell Technologies, Inc.
Condensed Consolidated Statement of Operations
(Amounts in thousands, except per share amounts)
(Unaudited)
 
    Three months ended   Nine months ended  
    December 31,   September 30,   December 31,   December 31,   December 31,  
    2016   2016   2015   2016   2015  
Revenue   $ 14,983     $ 17,780     $ 20,215     $ 47,579     $ 67,299    
Gross profit   6,054     6,367     7,963     16,986     26,623    
Gross margin   40.4 %   35.8 %   39.4 %   35.7 %   39.6 %  
Operating expenses:                      
R&D   2,414     3,327     4,893     10,018     14,604    
Sales and marketing   1,943     2,896     3,900     8,220     11,209    
General and administrative   1,777     2,218     2,627     6,340     8,089    
Intangible amortization   1,212     1,201     1,418     3,613     4,249    
Restructuring   490   (1 ) 2,601   (1 )     3,055   (1 ) 17    
Long-lived assets impairment               1,181   (2 )    
Total operating expenses   7,836     12,243     12,838     32,427     38,168    
Operating profit (loss)   (1,782 )   (5,876 )   (4,875 )   (15,441 )   (11,545 )  
Other income (expense), net   (15 )   74     85     76     62    
Income (loss) before income taxes and discontinued operations   (1,797 )   (5,802 )   (4,790 )   (15,365 )   (11,483 )  
Income tax benefit (expense)   (10 )   (8 )   (7 )   (20 )   75    
Net income (loss) from continuing operations   (1,807 )   (5,810 )   (4,797 )   (15,385 )   (11,408 )  
Income from discontinued operations (3)                   272    
Net income (loss)   $ (1,807 )   $ (5,810 )   $ (4,797 )   $ (15,385 )   $ (11,136 )  
Basic net income (loss) per share:                      
Basic net income (loss) from continuing operations   $ (0.03 )   $ (0.09 )   $ (0.08 )   $ (0.25 )   $ (0.19 )  
Basic net income (loss) from discontinued operations                      
Basic net income (loss) (4)   $ (0.03 )   $ (0.09 )   $ (0.08 )   $ (0.25 )   $ (0.18 )  
Diluted net income (loss) per share:                      
Diluted net income (loss) from continuing operations   $ (0.03 )   $ (0.09 )   $ (0.08 )   $ (0.25 )   $ (0.19 )  
Diluted net income (loss) from discontinued operations                      
Diluted net income (loss) (4)   $ (0.03 )   $ (0.09 )   $ (0.08 )   $ (0.25 )   $ (0.18 )  
Weighted-average number of common shares outstanding:                      
Basic   61,564     61,199     60,810     61,260     60,765    
Diluted   61,564     61,199     60,810     61,260     60,765    
 
(1) 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.
(2) Non-cash impairment related to long-lived assets associated with the previously announced strategic decision related to the discontinuation of ClearLink DAS.
(3) Income from discontinued operations resulted from the expiration of indemnity periods and release of contingency reserves related to the sale of ConferencePlus.
(4) Totals may not sum due to rounding. 


 
Westell Technologies, Inc.
Condensed Consolidated Balance Sheet
(Amounts in thousands)
 
    December 31, 2016
(Unaudited)
  March 31, 2016
Assets        
Cash and cash equivalents   $ 23,842     $ 19,169  
Short-term investments       10,555  
Accounts receivable, net   11,212     16,361  
Inventories   12,989     13,498  
Prepaid expenses and other current assets   1,407     1,900  
Total current assets   49,450     61,483  
Land, property and equipment, net   2,212     3,977  
Intangible assets, net   16,775     20,388  
Other non-current assets   190     183  
Total assets   $ 68,627     $ 86,031  
Liabilities and Stockholders’ Equity        
Accounts payable   $ 6,417     $ 7,856  
Accrued expenses   4,036     5,932  
Accrued restructuring   1,755     1,537  
Contingent consideration payable       311  
Deferred revenue   2,276     1,601  
Total current liabilities   14,484     17,237  
Deferred revenue non-current   1,247     1,236  
Deferred income tax liability   30     10  
Accrued restructuring non-current   111     550  
Other non-current liabilities   257     314  
Total liabilities   16,129     19,347  
Total stockholders’ equity   52,498     66,684  
Total liabilities and stockholders’ equity   $ 68,627     $ 86,031  


Westell Technologies, Inc.
Condensed Consolidated Statement of Cash Flows
(Amounts in thousands)
(Unaudited)
 
    Three months
ended
December 31,
  Nine months
 ended
 December 31,
    2016   2016   2015
Cash flows from operating activities:    
Net income (loss)   $ (1,807 )   $ (15,385 )   $ (11,136 )
Reconciliation of net loss to net cash used in operating activities:            
Depreciation and amortization   1,484     4,714     5,335  
Long-lived assets impairment       1,181      
Stock-based compensation   253     1,346     974  
Restructuring   490     3,055     17  
Deferred taxes   6     20     29  
Other loss (gain)   44     55     17  
Changes in assets and liabilities:            
Accounts receivable   2,376     5,098     (791 )
Inventory   (311 )   509     2,134  
Accounts payable and accrued expenses   (893 )   (6,802 )   2,562  
Deferred revenue   817     686     (813 )
Other   495     487     916  
Net cash provided by (used in) operating activities   2,954     (5,036 )   (756 )
Cash flows from investing activities:            
Net maturity (purchase) of short-term investments and debt securities       10,555     22,664  
Proceeds from sale of land           264  
Purchases of property and equipment, net   (29 )   (527 )   (1,776 )
Net cash provided by (used in) investing activities   (29 )   10,028     21,152  
Cash flows from financing activities:            
Purchase of treasury stock   (5 )   (146 )   (87 )
Payment of contingent consideration       (175 )   (770 )
Net cash provided by (used in) financing activities   (5 )   (321 )   (857 )
(Gain) loss of exchange rate changes on cash   5     2     (6 )
Net increase (decrease) in cash and cash equivalents   2,925     4,673     19,533  
Cash and cash equivalents, beginning of period   20,917     19,169     14,026  
Cash and cash equivalents, end of period   $ 23,842     $ 23,842     $ 33,559  
                         


Westell Technologies, Inc.
Segment Statement of Operations
(Amounts in thousands)
(Unaudited)
 
Sequential Quarter Comparison
 
    Three months ended December 31, 2016   Three months ended September 30, 2016
    IBW   ISMS   CNS   Total   IBW   ISMS   CNS   Total
Revenue   $ 6,224     $ 5,525     $ 3,234     $ 14,983     $ 6,644     $ 5,109     $ 6,027     $ 17,780  
Gross profit   2,511     2,795     748     6,054     2,233     2,407     1,727     6,367  
Gross margin (1)   40.3 %   50.6 %   23.1 %   40.4 %   33.6 %   47.1 %   28.7 %   35.8 %
R&D expenses   1,307     805     302     2,414     1,594     1,237     496     3,327  
Segment profit (loss)   $ 1,204     $ 1,990     $ 446     $ 3,640     $ 639     $ 1,170     $ 1,231     $ 3,040  
 
(1)  Excluding charges of $0.2 million in 2Q17 related to the previously announced discontinuation of the ClearLink DAS, IBW segment 2Q17 gross margin was 36.5%.  Please refer to the schedule at the end of this press release for a complete GAAP to non-GAAP reconciliation.


Year-over-Year Quarter Comparison
 
    Three months ended December 31, 2016   Three months ended December 31, 2015
    IBW   ISMS   CNS   Total   IBW   ISMS   CNS   Total
Revenue   $ 6,224     $ 5,525     $ 3,234     $ 14,983     $ 8,680     $ 6,147     $ 5,388     $ 20,215  
Gross profit   2,511     2,795     748     6,054     3,319     2,938     1,706     7,963  
Gross margin   40.3 %   50.6 %   23.1 %   40.4 %   38.2 %   47.8 %   31.7 %   39.4 %
R&D expenses   1,307     805     302     2,414     2,701     1,363     829     4,893  
Segment profit (loss)   $ 1,204     $ 1,990     $ 446     $ 3,640     $ 618     $ 1,575     $ 877     $ 3,070  


Year-to-Date Comparison
 
    Nine months ended December 31, 2016   Nine months ended December 31, 2015
    IBW   ISMS   CNS   Total   IBW   ISMS   CNS   Total
Revenue   $ 18,989     $ 14,773     $ 13,817     $ 47,579     $ 28,569     $ 16,538     $ 22,192     $ 67,299  
Gross profit   5,738     7,221     4,027     16,986     11,867     8,313     6,443     26,623  
Gross margin (1)   30.2 %   48.9 %   29.1 %   35.7 %   41.5 %   50.3 %   29.0 %   39.6 %
R&D expenses   5,265     3,336     1,417     10,018     8,638     3,946     2,020     14,604  
Segment profit (loss)   $ 473     $ 3,885     $ 2,610     $ 6,968     $ 3,229     $ 4,367     $ 4,423     $ 12,019  
 
(1)  For the nine months ended December 31, 2016, IBW Segment Gross Margin was 38.6% when excluding a charge of $1.6 million related to the previously announced discontinuation of the ClearLink DAS and stock-based compensation.  Please refer to the GAAP to non-GAAP reconciliation of IBW segment gross margin at the end of the Segment Statement of Operations section.


Reconciliation of GAAP to non-GAAP IBW Segment Gross Margin
 
    Three months ended
 December 31, 2016
  Three months ended
September 30, 2016
  Three months ended
December 31, 2015
    Revenue   Gross
Profit
  Gross
Margin
  Revenue   Gross
Profit
  Gross
Margin
  Revenue   Gross
Profit
  Gross
Margin
GAAP - IBW segment   $ 6,224     $ 2,511     40.3 %   $ 6,644     $ 2,233     33.6 %   $ 8,680     $ 3,319     38.2 %
ClearLink DAS E&O (1)                   192                  
Stock-based compensation (2)       2             2             9      
Non-GAAP - IBW segment   $ 6,224     $ 2,513     40.4 %   $ 6,644     $ 2,427     36.5 %   $ 8,680     $ 3,328     38.3 %
 
(1)  Excess and Obsolete inventory charges on ClearLink DAS inventory and firm purchase commitments.
(2)  Stock-based compensation is a non-cash expense incurred in accordance with share-based compensation accounting standards.


    Nine months ended December 31, 2016   Nine months ended December 31, 2015
    Revenue   Gross
Profit
  Gross
Margin
  Revenue   Gross Profit   Gross
Margin
GAAP - IBW segment   $ 18,989     $ 5,738     30.2 %   $ 28,569     $ 11,867     41.5 %
ClearLink DAS E&O (1)       1,581                  
Stock-based compensation (2)       7             28      
Non-GAAP - IBW segment   $ 18,989     $ 7,326     38.6 %   $ 28,569     $ 11,895     41.6 %
 
(1)  Excess and Obsolete inventory charges on ClearLink DAS inventory and firm purchase commitments.
(2)  Stock-based compensation is a non-cash expense incurred in accordance with share-based compensation accounting standards.


Westell Technologies, Inc.
Reconciliation of GAAP to non-GAAP Financial Measures
(Amounts in thousands, except per share amounts)
(Unaudited)
             
    Three months ended
 December 31, 2016
  Three months ended
 September 30, 2016
  Three months ended
 December 31, 2015
    Revenue   Gross
Profit
  Gross
Margin
  Revenue   Gross
Profit
  Gross
Margin
  Revenue   Gross
Profit
  Gross
Margin
GAAP - Consolidated   $ 14,983     $ 6,054     40.4 %   $ 17,780     6,367     35.8 %   $ 20,215     $ 7,963     39.4 %
Deferred revenue adjustment (1)   64     64         63     63         73     73      
ClearLink DAS E&O (2)                   192                  
Stock-based compensation (3)       10             8             13      
Non-GAAP - Consolidated   $ 15,047     $ 6,128     40.7 %   $ 17,843     $ 6,630     37.2 %   $ 20,288     $ 8,049     39.7 %


    Three months ended   Nine months ended
    December 31,   September 30,   December 31,   December 31,   December 31,
    2016   2016   2015   2016   2015
GAAP consolidated operating expenses   $ 7,836     $ 12,243     $ 12,838     $ 32,427     $ 38,168  
Adjustments:                    
Stock-based compensation (3)   (243 )   (679 )   (251 )   (1,322 )   (950 )
Long-lived asset impairment (4)               (1,181 )    
Amortization of intangibles (5)   (1,212 )   (1,201 )   (1,418 )   (3,613 )   (4,249 )
Restructuring, separation, and transition (6)   (490 )   (2,601 )       (3,055 )   (223 )
Total adjustments   (1,945 )   (4,481 )   (1,669 )   (9,171 )   (5,422 )
Non-GAAP consolidated operating expenses   $ 5,891     $ 7,762     $ 11,169     $ 23,256     $ 32,746  


    Three months ended   Nine months ended
    December 31,   September 30,   December 31,   December 31,   December 31,
    2016   2016   2015   2016   2015
GAAP consolidated net income (loss)   $ (1,807 )   $ (5,810 )   $ (4,797 )   $ (15,385 )   $ (11,136 )
Income tax benefit (expense)   (10 )   (8 )   (7 )   (20 )   75  
Other income (expense), net   (15 )   74     85     76     62  
GAAP consolidated operating profit (loss)   $ (1,782 )   $ (5,876 )   $ (4,875 )   $ (15,441 )   $ (11,273 )
Adjustments:                    
Deferred revenue adjustment (1)   64     63     73     190     218  
ClearLink DAS E&O (2)       192         1,581      
Stock-based compensation (3)   253     687     264     1,346     974  
Long-lived asset impairment (4)               1,181      
Amortization of intangibles (5)   1,212     1,201     1,418     3,613     4,249  
Restructuring, separation, and transition (6)   490     2,601         3,055     223  
Total adjustments   2,019     4,744     1,755     10,966     5,664  
Non-GAAP consolidated operating profit (loss) from continuing operations   $ 237     $ (1,132 )   $ (3,120 )   $ (4,475 )   $ (5,609 )
Depreciation   272     444     422     1,101     1,086  
Non-GAAP consolidated Adjusted EBITDA (7) from continuing operations   $ 509     $ (688 )   $ (2,698 )   $ (3,374 )   $ (4,523 )


    Three months ended   Nine months ended
    December 31,   September 30,   December 31,   December 31,   December 31,
    2016   2016   2015   2016   2015
GAAP consolidated net income (loss)   $ (1,807 )   $ (5,810 )   $ (4,797 )   $ (15,385 )   $ (11,136 )
Adjustments:                    
Deferred revenue adjustment (1)   64     63     73     190     218  
ClearLink DAS E&O (2)       192         1,581      
Stock-based compensation (3)   253     687     264     1,346     974  
Amortization of intangibles (5)   1,212     1,201     1,418     3,613     4,249  
Restructuring, separation, and transition (6)   490     2,601         3,055     223  
(Income) loss from discontinued operations (8)                   (272 )
  Total adjustments   2,019     4,744     1,755     9,785     5,392  
Non-GAAP consolidated net income (loss)   $ 212     $ (1,066 )   $ (3,042 )   $ (5,600 )   $ (5,744 )
GAAP consolidated net income (loss) per common share:                    
Diluted   $ (0.03 )   $ (0.09 )   $ (0.08 )   $ (0.25 )   $ (0.18 )
Non-GAAP consolidated net income (loss) per common share:                    
Diluted   $ 0.00     $ (0.02 )   $ (0.05 )   $ (0.09 )   $ (0.09 )
Average number of common shares outstanding:                    
Diluted   61,700     61,199     60,810     61,260     60,765  

The Company conforms to U.S. Generally Accepted Accounting Principles (GAAP) in the preparation of its financial statements.  The schedules above reconcile the Company's non-GAAP financial measures to the most directly comparable GAAP measure.  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.  Management believes that the non-GAAP financial information provides meaningful supplemental information to investors.  Management also believes the non-GAAP financial information reflects the Company's core ongoing operating performance and facilitates comparisons across reporting periods.  The Company uses these non-GAAP measures when evaluating its financial results.  Non-GAAP measures should not be viewed as a substitute for the Company's GAAP results.

Footnotes:

(1) On April 1, 2013, the Company purchased Kentrox.  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.  The adjustment removes the step-down on acquired deferred revenue that was recognized.
(2) 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.
(3) Stock-based compensation is a non-cash expense incurred in accordance with share-based compensation accounting standards.
(4) Non-cash impairment related to tangible long-lived assets associated with the previously announced strategic decision related to the discontinuation of ClearLink DAS.
(5) Amortization of intangibles is a non-cash expense arising from previously acquired intangible assets.
(6) 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.
(7) EBITDA is a non-GAAP measure that represents Earnings Before Interest, Taxes, Depreciation, and Amortization.  The Company presents Adjusted EBITDA.
(8) This adjustment is a non-recurring charge related to the release of contingent liabilities related to the sale of ConferencePlus which is presented as discontinued operations.

CONTACT: For additional information, contact:

Tom Minichiello 
Chief Financial Officer 
Westell Technologies, Inc. 
+1 (630) 375 4740  tminichiello@westell.com

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