Westell Technologies, Inc. (NASDAQ: WSTL), a leading provider of telecommunications equipment for wireline, wireless and home networks, today announced results for its fiscal 2013 first quarter, which ended June 30, 2012.
Consolidated revenue from continuing operations for the fiscal 2013 first quarter was $10.5 million compared to $23.2 million in the fiscal first quarter of the prior year. The revenue decrease resulted primarily from the sale in the fiscal 2012 first quarter of certain assets of the Company's Customer Networking Solutions (CNS) division, along with continued soft demand for T1 products from carrier customers. Net loss for the quarter was $1.7 million, or a net loss of $0.03 per share, compared with net income of $21.1 million, or $0.30 per share, in the first quarter of the prior year.
Prior-year net income includes a gain on the CNS sale and income from discontinued operations that relate to the sale in fiscal 2012 of the Conference Plus (CP) division. Adjusting for the CNS and CP sales transactions, the $0.03 net loss for the fiscal 2013 first quarter compares to non-GAAP net income of $0.02 in the first quarter of the prior year.
Total cash and short-term investments on June 30, 2012 were $131.9 million, down $10.9 million compared to $142.7 million at March 31, 2012. $2.5 million was used for the previously announced acquisition of ANTONE Wireless. The Company also repurchased 2.3 million shares at a cost of $5.1 million during the fiscal first quarter of 2013. As of June 30, 2012, there was $7.7 million remaining for share repurchases under the current authorization.
“As with last quarter, we continue to see steady business in the areas of fuse panels, custom systems integration and outdoor cabinets,” said Chairman and CEO Rick Gilbert. “We are also seeing increasing momentum for products that are applicable to wireless installations. However, we continue to experience weakness in demand for legacy T1 products, including repeaters, network interface units and related enclosures. While our legacy product revenue is down, we are optimistic about the progress we are making to gain acceptance and traction with our new products, including Ethernet switches, components for distributed antenna systems, and cell-site optimization. In addition, we have completed internal beta testing and are currently preparing for a limited release of Homecloud Digital Home Manager devices this quarter.”
The Company renamed its OSPlant Systems division as the Westell division to help emphasize Westell’s focus on a broader array of products, including wireless products. Revenue for the Westell division was $9.4 million in the fiscal first quarter compared to $14.8 million in the same quarter of the prior year. On a combined basis, sales of fuse panels, custom systems integration services and related products held steady during the first quarter, as compared with the prior year, while the T1 product categories were soft across the board. Demand continues to be affected by customer programs to constrain spending, manage inventory levels, and re-use decommissioned products and by the transition from T1 to Ethernet technology for the backhaul of cellular traffic.