Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2020 | Jan. 29, 2021 | |
Entity Central Index Key | 0001002135 | |
Current Fiscal Year End Date | --03-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-27266 | |
Entity Registrant Name | Westell Technologies, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3154957 | |
Entity Address, Address Line One | 750 North Commons Drive | |
Entity Address, City or Town | Aurora | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60504 | |
City Area Code | 630 | |
Local Phone Number | 898-2500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 7,521,271 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 3,484,287 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 14,756 | $ 20,869 |
Accounts receivable (net of allowance of $100 at December 31, 2020, and March 31, 2020) | 4,923 | 4,047 |
Inventories | 5,742 | 6,807 |
Prepaid expenses and other current assets | 961 | 1,298 |
Total current assets | 26,382 | 33,021 |
Land, property and equipment, gross | 7,694 | 7,987 |
Less accumulated depreciation and amortization | (6,736) | (6,911) |
Land, property and equipment, net | 958 | 1,076 |
Intangible assets, net | 1,933 | 2,728 |
Right-of-use assets on operating leases, net | 2,573 | 628 |
Other non-current assets | 79 | 73 |
Total assets | 31,925 | 37,526 |
Current liabilities: | ||
Accounts payable | 1,379 | 1,065 |
Accrued expenses | 3,220 | 3,136 |
Deferred revenue | 1,089 | 1,099 |
NotesPayableSBAPPPLoanCurrent | 1,138 | 0 |
Total current liabilities | 6,826 | 5,300 |
NotesPayableSBAPPPLoanNoncurrent | 510 | 0 |
Deferred revenue non-current | 129 | 221 |
Lease liabilities non-current | 2,023 | 250 |
Other non-current liabilities | 293 | 94 |
Total liabilities | 9,781 | 5,865 |
Commitments and contingencies (Note 11) | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, par $0.01, Authorized - 1,000,000 shares. Issued and outstanding - none | 0 | 0 |
Additional paid-in capital | 420,037 | 419,630 |
Treasury Stock, Value | (44,559) | (37,326) |
Accumulated deficit | (353,444) | (350,800) |
Total stockholders’ equity | 22,144 | 31,661 |
Total liabilities and stockholders’ equity | 31,925 | 37,526 |
Class A Common Stock | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock, value | 75 | 122 |
Class B Common Stock | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock, value | $ 35 | $ 35 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenue | $ 7,649 | $ 7,159 | $ 23,319 | $ 23,730 | |
Cost of revenue | 5,443 | 4,379 | 15,480 | 16,125 | |
Gross profit | 2,206 | 2,780 | 7,839 | 7,605 | |
Operating expenses | |||||
Research and development | 1,006 | 1,222 | 2,865 | 4,227 | |
Sales and marketing | 1,200 | 1,556 | 4,024 | 6,147 | |
General and administrative | 863 | 1,093 | 3,175 | 3,706 | |
Intangible amortization | 226 | 308 | 677 | 924 | |
Restructuring Charges | 0 | 234 | 0 | 234 | |
Total operating expenses | 3,295 | 4,413 | 10,741 | 15,238 | |
Operating profit (loss) | (1,089) | (1,633) | (2,902) | (7,633) | |
Other income, net | 178 | 109 | 223 | 398 | |
Income (loss) before income taxes | (911) | (1,524) | (2,679) | (7,235) | |
Income tax benefit (expense) | (23) | (20) | 35 | (27) | |
Net income (loss) (1) | [1] | $ (934) | $ (1,544) | $ (2,644) | $ (7,262) |
Basic | $ (0.09) | $ (0.10) | $ (0.19) | $ (0.47) | |
Diluted | $ (0.09) | $ (0.10) | $ (0.19) | $ (0.47) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 700 | 1,000 | 800 | 900 | |
Weighted-average number of common shares outstanding: | |||||
Basic (shares) | 10,984 | 15,575 | 14,125 | 15,514 | |
Effect of dilutive securities: restricted stock, restricted stock units, performance stock units and stock options (2) | [2] | 0 | 0 | 0 | 0 |
Diluted (shares) | 10,984 | 15,575 | 14,125 | 15,514 | |
[1] | Net income (loss) and comprehensive income (loss) are the same for the periods reported. | ||||
[2] | The Company had 0.7 million shares and 0.8 million shares, represented by common stock equivalents for the three and nine months ended December 31, 2020, and 1.0 million shares and 0.9 million shares for the three and nine months ended December 31, 2019, respectively, which were not included in the computation of average dilutive shares outstanding because they were anti-dilutive. In periods with a net loss from continuing operations, the basic loss per share equals the diluted loss per share as all common stock equivalents are excluded from the per share calculation. |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) Statement - USD ($) $ in Thousands | Total | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | ||
Stockholders' Equity Attributable to Parent at Mar. 31, 2019 | $ 41,180 | $ 119 | $ 35 | $ 418,859 | $ (37,135) | $ (340,698) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (2,157) | (2,157) | ||||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 0 | 3 | (3) | |||||
Treasury Stock, Value, Acquired, Cost Method | (173) | (1) | (172) | |||||
Stock-based compensation | 244 | 244 | ||||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2019 | 39,094 | 121 | 35 | 419,100 | (37,307) | (342,855) | ||
Stockholders' Equity Attributable to Parent at Mar. 31, 2019 | 41,180 | 119 | 35 | 418,859 | (37,135) | (340,698) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | [1] | (7,262) | ||||||
Stock-based compensation | 597 | |||||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2019 | 34,325 | 122 | 35 | 419,453 | (37,325) | (347,960) | ||
Stockholders' Equity Attributable to Parent at Jun. 30, 2019 | 39,094 | 121 | 35 | 419,100 | (37,307) | (342,855) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (3,561) | (3,561) | ||||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 1 | 1 | 0 | |||||
Treasury Stock, Value, Acquired, Cost Method | (16) | 0 | (16) | |||||
Stock-based compensation | 201 | 201 | ||||||
Stockholders' Equity Attributable to Parent at Sep. 30, 2019 | 35,719 | 122 | 35 | 419,301 | (37,323) | (346,416) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (1,544) | [1] | (1,544) | |||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 0 | 0 | ||||||
Treasury Stock, Value, Acquired, Cost Method | (2) | (2) | ||||||
Stock-based compensation | 152 | 152 | ||||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2019 | 34,325 | 122 | 35 | 419,453 | (37,325) | (347,960) | ||
Stockholders' Equity Attributable to Parent at Mar. 31, 2020 | 31,661 | 122 | 35 | 419,630 | (37,326) | (350,800) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (825) | (825) | ||||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 0 | 2 | (2) | |||||
Treasury Stock, Value, Acquired, Cost Method | (42) | (1) | (41) | |||||
Stock-based compensation | 162 | 162 | ||||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2020 | 30,956 | 123 | 35 | 419,790 | (37,367) | (351,625) | ||
Stockholders' Equity Attributable to Parent at Mar. 31, 2020 | 31,661 | 122 | 35 | 419,630 | (37,326) | (350,800) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | [1] | (2,644) | ||||||
Stock-based compensation | 410 | |||||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2020 | 22,144 | 75 | 35 | 420,037 | (44,559) | (353,444) | ||
Stockholders' Equity Attributable to Parent at Jun. 30, 2020 | 30,956 | 123 | 35 | 419,790 | (37,367) | (351,625) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (885) | (885) | ||||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 0 | 1 | (1) | |||||
Treasury Stock, Value, Acquired, Cost Method | (11) | (11) | ||||||
Stock-based compensation | 148 | 148 | ||||||
Stockholders' Equity Attributable to Parent at Sep. 30, 2020 | 30,208 | 124 | 35 | 419,937 | (37,378) | (352,510) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (934) | [1] | (934) | |||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 0 | 0 | ||||||
Treasury Stock, Value, Acquired, Cost Method | (7,230) | (49) | (7,181) | |||||
Stock-based compensation | 100 | 100 | ||||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2020 | $ 22,144 | $ 75 | $ 35 | $ 420,037 | $ (44,559) | $ (353,444) | ||
[1] | Net income (loss) and comprehensive income (loss) are the same for the periods reported. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash flows from operating activities: | |||
Net income (loss) | [1] | $ (2,644) | $ (7,262) |
Reconciliation of net loss to net cash used in operating activities: | |||
Depreciation and amortization | 986 | 1,426 | |
Stock-based compensation | 410 | 597 | |
Gain (Loss) on Sale of Fixed Assets | 0 | (11) | |
Restructuring Costs | 0 | 234 | |
Exchange rate loss (gain) | (18) | (2) | |
Changes in assets and liabilities: | |||
Accounts receivable | (858) | 1,934 | |
Inventories | 1,065 | 2,179 | |
Prepaid expenses and other current assets | 337 | 3 | |
Other assets | (1,951) | (575) | |
Deferred revenue | (102) | (79) | |
Accounts payable and accrued expenses | 2,381 | 332 | |
Net cash provided by (used in) operating activities | (394) | (1,224) | |
Cash flows from investing activities: | |||
Gain (Loss) on Disposition of Assets | 0 | 11 | |
Payments to Acquire Intangible Assets | 0 | (1,950) | |
Purchases of property and equipment | (73) | (113) | |
Net cash provided by (used in) investing activities | (73) | (2,052) | |
Cash flows from financing activities: | |||
Proceeds from Bank Debt | 1,637 | 0 | |
Purchases of treasury stock | (7,283) | (191) | |
Net cash provided by (used in) financing activities | (5,646) | (191) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (6,113) | (3,467) | |
Cash and cash equivalents, beginning of period | 20,869 | 25,457 | |
Cash and cash equivalents, end of period | $ 14,756 | $ 21,990 | |
[1] | Net income (loss) and comprehensive income (loss) are the same for the periods reported. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Preferred Stock, Shares Authorized | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Treasury Stock, Shares | 10,169,753 | 5,215,453 |
Accounts receivable, allowance | $ 100 | $ 100 |
Class A Common Stock | ||
Common Stock, Shares, Outstanding | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 109,000,000 | 109,000,000 |
Common Stock, Shares, Outstanding | 7,521,271 | 12,224,450 |
Class B Common Stock | ||
Common Stock, Shares, Outstanding | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Common Stock, Shares, Outstanding | 3,484,287 | |
Common Stock, Shares, Issued | 3,484,287 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Reverse/Forward Stock Split On September 29, 2020, the Company filed amendments to the Company’s amended and restated certificate of incorporation to effect a 1-for-1,000 reverse stock split of the Company’s Class A and Class B Common Stock, followed immediately by an 1,000-for-1 forward stock split (the “Transaction”). The stockholders approved the Transaction at the Annual Meeting of Stockholders held on September 29, 2020. The effective date of the Transaction was October 1, 2020. As a result of the Transaction, the Company paid $7.2 million to repurchase approximately 4.9 million shares of the Class A Common Stock at a purchase price of $1.48 per share. On October 9, 2020, in conjunction with the process of terminating the Company’s public company reporting obligations and delisting the Company’s Class A Common Stock from the NASDAQ Capital Market, the Company filed a Form 25 with the SEC. On October 21, 2020, the Financial Industry Regulatory Authority (“FINRA”) notified the Company that the Class A Common Stock may be quoted and traded in the market for unlisted securities (the "over-the-counter-market or "OTC"). Information concerning the Transaction is set forth in the definitive proxy statement for the Company's 2020 Annual Meeting of Stockholders, which was filed with the SEC on Schedule 14A on August 11, 2020. Stockholders are urged to read the definitive proxy statement carefully. Description of Business Westell Technologies, Inc. (the Company) is a holding company. Its wholly owned subsidiary, Westell, Inc., designs and distributes telecommunications products, which are sold primarily to major telephone companies. COVID-19 Impact In March 2020, the World Health Organization declared the spread of a new strain of coronavirus (“COVID-19”) a pandemic. This outbreak continues to spread throughout the U.S. and around the world. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and work force participation, while creating significant disruption and volatility of financial markets. The COVID-19 pandemic has impacted and may continue to impact the Company’s sales, supply chain availability and sourcing costs, our workforce and operations, as well as that for our customers, contract manufacturers and other supply chain partners. Basis of Presentation and Reporting The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. The Condensed Consolidated Financial Statements have been prepared using generally accepted accounting principles (GAAP) in the United States for interim financial reporting, and is consistent with the instructions of Form 10-Q and Article 10 of Regulation S-X and, accordingly, they do not include all of the information and footnotes required in the annual consolidated financial statements and accompanying footnotes. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2020. All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the unaudited interim financial statements included herein reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company’s condensed consolidated financial position and the results of operations, comprehensive income (loss) and cash flows at December 31, 2020, and for all periods presented. The results of operations for the periods presented are not necessarily indicative of the results that may be expected for fiscal year 2021. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and that affect revenue and expenses during the periods reported. Estimates are used when accounting for the allowance for uncollectible accounts receivable, net realizable value of inventory, product warranty accrued, relative selling prices, stock-based compensation, intangible assets fair value, depreciation, income taxes, right-of-use lease assets and related lease liabilities, and contingencies, among other things. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The amendments in ASU 2019-12 seek to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application and simplify GAAP in other areas of Topic 740. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company early adopted ASU 2019-12 effective April 1, 2020, with no immediate impact to the Company’s Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (“ASU 2018-13”). This update modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. Certain disclosure requirements established in Topic 820 have been removed, some have been modified and new disclosure requirements were added. This new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted 2018-13 effective April 1, 2020, with no immediate impact to the Company’s Condensed Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (“ASU 2018-15”). The main objective of ASU 2018-15 is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this update require that a customer in a hosting arrangement that is a service contract follow the guidance in Subtopic 350-40 to determine which implementation costs should be capitalized as an asset and which costs should be expensed and states that any capitalized implementation costs should be expensed over the term of the hosting arrangement. This new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted ASU 2018-15 effective April 1, 2020, with no immediate impact to the Company’s Condensed Consolidated Financial Statements. In November 2018, the FASB issued ASU 2018-18 Collaborative Arrangements (Topic 808) (“ASU 2018-18”). The update provides guidance on the interaction between Revenue Recognition (Topic 606) and Collaborative Arrangements (Topic 808) by aligning the unit of account guidance between the two topics and clarifying whether certain transactions between collaborative participants should be accounted for as revenue under Topic 606. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted ASU 2018-18 effective April 1, 2020, with no immediate impact to the Company's Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”). ASU 2016-13 will replace the current incurred loss approach with a new expected credit loss impairment model for trade receivables, loans, and other financial instruments. Under the new model, the estimate of expected credit losses will be based on historical experience, current conditions and reasonable and supportable forecasts. For the Company, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. E arly adoption is permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of ASU 2016-13 on the Company's Condensed Consolidated Financial Statements. |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases The Company accounts for leases under ASC 842. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets. The Company also made the accounting policy election to account for each separate lease component and non-lease component associated with that lease component as a single lease component, thus causing all fixed payments to be capitalized. The Company determines lease terms based on whether or not it is reasonably certain to exercise the lease extensions. The Company determines at inception whether an arrangement is a lease. Right-of-use (“ROU”) assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the net present value of remaining fixed lease payments over the lease term. Lease terms used to calculate the present value of the lease payments include any options to extend, renew, or terminate the lease, when it is reasonably certain that these options will be exercised. ROU assets also include any advance lease payments made and exclude any lease incentives. As the implicit interest rate for our leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease arrangements with non-lease components that are not in-substance fixed and considered variable, which were not included in the carrying balances of the ROU asset and lease liability. The Company does not have any finance leases. No leases require residual value guarantees. The Company reviews the impairment ROU assets consistent with the approach applied to other long-lived assets. ROU assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset’s carrying amount over its fair value. The Company's operating leases primarily include building leases for the corporate headquarters in Aurora, IL, an engineering and service center in Dublin, OH, and office space in Manchester, NH. Future minimum lease payments as of December 31, 2020, consisted of the following (in thousands): Fiscal Year Operating Leases 2021 (1) $ 97 2022 587 2023 587 2024 593 2025 604 Thereafter 276 Total lease payments 2,744 Less: imputed interest (281) Total operating lease liabilities $ 2,463 _______ (1) Represents the future minimum operating lease payments expected to be made over the remaining balance of the fiscal year. As of December 31, 2020, the weighted-average remaining lease term was 4.8 years and the weighted-average discount rate was 4.5%. During the first quarter of fiscal year 2021, the Company executed a lease extension for the Manchester, New Hampshire facility with the lease term extended to August 31, 2022 with an option to further extend the lease for one additional term of two years (the “NH extension”). The Company also executed a lease extension for the Aurora, IL facility in the quarter ended June 30, 2020 that extended the lease to November 30, 2025 with an option to extend the lease for one additional term of five years (the “IL extension”). The IL extension required a deposit, which is expected to be applied to the final two lease payments and is included in the calculation of the total lease liability. Prior to the extension, additional rent payments covering the Company’s portion of operating expenses and taxes were fixed and included in the lease liability balance. The amendment to extend the lease changed these fixed additional rent payments to variable payments with adjustments made based on actual operating expenses and taxes and, as such, would no longer be included in the lease liability balances beginning October 1, 2020. During the second quarter of fiscal year 2020, as a cost savings effort, the Company executed a new 63 month lease for the Dublin, OH design service center rather than executing the two year option to extend the existing lease as previously assumed. The new lease commenced on December 1, 2019 and has a reduced footprint which is more suitable to our current operation. The new lease includes a renewal option to extend the initial lease term for an additional three years. The lease also includes a termination option effective the last day of the 39th month of the lease term. The cost to terminate under this option would be approximately $70,000. At this time, the Company does not expect to terminate the lease at the end of the 39 th month of the lease term and so the cost to terminate is not included in the ROU asset and lease liability balance. Our building leases include variable lease payments that are not included in the lease liability balances as they are based on the expenses which can vary during the term of each lease. At this time, the Company is not reasonably certain to exercise any of the options for further lease extensions so they are not included in the ROU asset and lease liability balance. Lease expenses are included in Cost of revenue, Sales and marketing, Research and development, and General and administrative in the Company's Condensed Consolidated Statements of Operations. The components of lease expense are as follows: Three months ended December 31, Nine months ended December 31 (in thousands) 2020 2019 2020 2019 Operating lease expense $ 150 $ 202 $ 448 $ 610 Variable lease expense (1) 64 25 103 88 Total lease expense (2) $ 214 $ 227 $ 551 $ 698 _______ (1) Variable lease expense is related to our leased real estate and primarily includes labor and operational costs as well as taxes and insurance. (2) Short-term lease expense is immaterial. For the three and nine months ended December 31, 2020, cash paid for operating leases included in the measurement of lease liabilities was $0.2 million and $0.6 million, respectively, compared to $0.1 million and $0.5 million for the three and nine months ended December 31, 2019, respectively. The increase in cash paid for operating leases in the nine months ended December 31, 2020 is primarily due to the deposit from the IL extension. All of these payments are presented in Operating activities cash flows on the Condensed Consolidated Statements of Cash Flows. In addition, the Company obtained approximately $2.4 million of ROU assets in exchange for related operating lease liabilities during the nine months ending December 31, 2020. The following table summarizes the classification of ROU assets and lease liabilities as of December 31, 2020 and March 31, 2020: (in thousands) December 31, 2020 March 31, 2020 Balance Sheet Classification Assets: ROU assets $ 2,573 $ 628 Right-of-use assets on operating leases, net Liabilities: Current operating lease liability 440 339 Accrued expenses Non-current operating lease liabilities 2,023 250 Lease liabilities non-current Total lease liabilities $ 2,463 $ 589 |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 2 years Deferred Revenue $ 1,089 $ 90 $ 39 During the nine months ended December 31, 2020, and December 31, 2019, the Company recognized $1.0 million and $1.1 million, respectively, of revenue related to contract liabilities at the beginning of the periods. The Company allows certain customers to return unused product under specified terms and conditions. The Company estimates product returns based on historical sales and return trends and records a corresponding refund liability. The refund liability is included within Accrued expenses on the accompanying Condensed Consolidated Balance Sheets. Additionally, the Company records an asset based on historical experience for the amount of product we expect to return to inventory as a result of the return, which is recorded in Prepaid and other current assets in the Condensed Consolidated Balance Sheets. The gross product return asset was $0.1 million at both December 31, 2020, and March 31, 2020. The product returns liability was $0.2 million at both December 31, 2020 and March 31, 2020." id="sjs-B4">Revenue Recognition and Deferred Revenue The Company records revenue based on a five-step model in accordance with ASC Topic 606, Revenue From Contracts With Customers (“ASC 606"). The Company's revenue is derived from the sale of products, software, and services identified in contracts. A contract exists when both parties have an approved agreement that creates enforceable rights and obligations, identifies performance obligations and payment terms and has commercial substance. The Company records revenue from these contracts when control of the products or services transfer to the customer. The amount of revenue to be recognized is based upon the consideration, including the impact of any variable consideration, that the Company expects to be entitled to receive in exchange for these products and services. Disaggregation of revenue The following table disaggregates our revenue by major source: (in thousands) Three months ended December 31, Nine months ended December 31, 2020 2019 2020 2019 Revenue: Products $ 6,227 $ 5,842 $ 19,386 $ 19,974 Software 15 92 179 272 Services 1,407 1,225 3,754 3,484 Total revenue $ 7,649 $ 7,159 $ 23,319 $ 23,730 Deferred Revenue The following is the expected future revenue recognition timing of deferred revenue as of December 31, 2020: (in thousands) < 1 year 1-2 years > 2 years Deferred Revenue $ 1,089 $ 90 $ 39 During the nine months ended December 31, 2020, and December 31, 2019, the Company recognized $1.0 million and $1.1 million, respectively, of revenue related to contract liabilities at the beginning of the periods. The Company allows certain customers to return unused product under specified terms and conditions. The Company estimates product returns based on historical sales and return trends and records a corresponding refund liability. The refund liability is included within Accrued expenses on the accompanying Condensed Consolidated Balance Sheets. Additionally, the Company records an asset based on historical experience for the amount of product we expect to return to inventory as a result of the return, which is recorded in Prepaid and other current assets in the Condensed Consolidated Balance Sheets. The gross product return asset was $0.1 million at both December 31, 2020, and March 31, 2020. The product returns liability was $0.2 million at both December 31, 2020 and March 31, 2020. |
Notes Payable and Long-term Deb
Notes Payable and Long-term Debt (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Long-term Debt and Note Payable to BankThe Company has a Paycheck Protection Program loan (“PPP Loan”) implemented by the United States Small Business Administration (“SBA”). On April 14, 2020, the Company obtained an unsecured PPP Loan through JPMorgan Chase Bank, N.A. (“JPM”) in the amount of $1,637,522. The loan was made through the SBA as part of the Paycheck Protection Program under the 2020 Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). The interest rate is fixed at 0.98% per year. Under the CARES Act, all or a portion of this loan may be forgiven if certain requirements are met. The Company believes that it has used 100% of the PPP Loan proceeds to fund allowable expenses permitted by the PPP loan, but no assurance can be given that the Company will obtain forgiveness of the PPP Loan, in whole or in part. The Company applied for loan forgiveness with JPM on December 21, 2020, and is awaiting a determination from the SBA. If all or a portion of a loan is ultimately forgiven, the Company plans to record income from the extinguishment of its loan obligation when it is legally released from the PPP Loan in accordance with ASC 405-20-40-1. Based on original terms of the loan, if the loan is not forgiven, the Company will pay principal and interest payments of approximately $92,000 every month, beginning seven months from the effective date of the PPP Loan, but not before the SBA forgiveness determination. The Company can repay the PPP Loan without any prepayment penalty. All remaining principal and accrued interest is due and payable 2 years from the effective date of the PPP Loan. The current portion and non-current portions of the PPP Loan is $1,138,000 and $510,000 respectively, based on the original terms of the loan. The Company had no other debt as of December 31, 2020 or March 31, 2020. On January 22, 2021, the Company applied for a second draw PPP loan (the “PPP2”) pursuant to the Consolidated Appropriations Act, 2021 (the “CAA”) that was signed into law in December 2020, but the Company can provide no assurance that the Company will obtain the PPP2. |
Interim Segment Information (No
Interim Segment Information (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Interim Segment Information | Interim Segment Information Segment information is presented in accordance with a “management approach", which designates the internal reporting used by the chief operating decision-maker (“CODM") for making decisions and assessing performance as the source of the Company's reportable segments. Westell’s Chief Executive Officer is the CODM. The CODM defines segment profit as gross profit less research and development expenses. The accounting policies of the segments are the same as those for Westell Technologies, Inc. described in the summary of significant accounting policies included in the Company's Annual Report on Form 10-K for year ended March 31, 2020, and as updated in this filing. The Company’s three reportable segments are as follows: In-Building Wireless ( “ IBW " ) Segment The IBW segment solutions enable cellular and public safety coverage in stadiums, arenas, malls, buildings, and other indoor areas not served well or at all by the existing "macro" outdoor wireless network. For cellular service, solutions include distributed antenna system (“DAS") conditioners and digital repeaters. For the public safety market, solutions include Class A repeaters, Class B repeaters, and battery backup units. IBW also offers ancillary products that consist of passive system components and antennas for both the cellular service and public safety markets. Intelligent Site Management ( “ ISM " ) Segment ISM segment solutions include a suite of remote units, which provide machine-to-machine (“M2M") communications that enable operators to remotely monitor, manage, and control physical site infrastructure and support systems. Remote units can be and often are combined with the Company's Optima management software system. ISM also offers support services (i.e., maintenance agreements) and deployment services (i.e., installation). Communications Network Solutions ( “ CNS " ) Segment CNS segment solutions include a broad range of hardened network infrastructure offerings suitable for both indoor and outdoor use. The offerings consist of integrated cabinets, power distribution products, copper and fiber network connectivity panels, and T1 network interface units (“NIUs"). Segment information for the three and nine months ended December 31, 2020, and 2019, is set forth below: Three months ended December 31, 2020 (in thousands) IBW ISM CNS Total Revenue $ 1,648 $ 2,677 $ 3,324 $ 7,649 Cost of revenue 1,564 1,242 2,637 5,443 Gross profit 84 1,435 687 2,206 Gross margin 5.1 % 53.6 % 20.7 % 28.8 % Research and development 404 409 193 1,006 Segment profit $ (320) $ 1,026 $ 494 1,200 Operating expenses: Sales and marketing 1,200 General and administrative 863 Intangible amortization 226 Operating profit (loss) (1,089) Other income, net 178 Income tax benefit (expense) (23) Net income (loss) $ (934) Three months ended December 31, 2019 (in thousands) IBW ISM CNS Total Revenue $ 2,466 $ 2,456 $ 2,237 $ 7,159 Cost of revenue 1,657 991 1,731 4,379 Gross profit 809 1,465 506 2,780 Gross margin 32.8 % 59.6 % 22.6 % 38.8 % Research and development 470 505 247 1,222 Segment profit (loss) $ 339 $ 960 $ 259 1,558 Operating expenses: Sales and marketing 1,556 General and administrative 1,093 Intangible amortization 308 Restructuring 234 Operating profit (loss) (1,633) Other income, net 109 Income tax benefit (expense) (20) Net income (loss) $ (1,544) Nine months ended December 31, 2020 (in thousands) IBW ISM CNS Total Revenue $ 7,618 $ 6,632 $ 9,069 $ 23,319 Cost of revenue 5,300 3,017 7,163 15,480 Gross profit 2,318 3,615 1,906 7,839 Gross margin 30.4 % 54.5 % 21.0 % 33.6 % Research and development 1,068 1,195 602 2,865 Segment profit $ 1,250 $ 2,420 $ 1,304 4,974 Operating expenses: Sales and marketing 4,024 General and administrative 3,175 Intangible amortization 677 Operating profit (loss) (2,902) Other income, net 223 Income tax benefit (expense) 35 Net income (loss) $ (2,644) Nine months ended December 31, 2019 (in thousands) IBW ISM CNS Total Revenue $ 8,007 $ 8,197 $ 7,526 $ 23,730 Cost of revenue 5,813 4,111 6,201 16,125 Gross profit 2,194 4,086 1,325 7,605 Gross margin 27.4 % 49.8 % 17.6 % 32.0 % Research and development 1,272 1,825 1,130 4,227 Segment profit (loss) $ 922 $ 2,261 $ 195 3,378 Operating expenses: Sales and marketing 6,147 General and administrative 3,706 Intangible amortization 924 Restructuring 234 Operating profit (loss) (7,633) Other income, net 398 Income tax benefit (expense) (27) Net income (loss) $ (7,262) |
Inventories (Notes)
Inventories (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost, on a first-in, first-out basis, or net realizable value. The components of net inventories are as follows: (in thousands) December 31, 2020 March 31, 2020 Raw materials $ 1,841 $ 2,188 Finished goods 3,901 4,619 Total inventories $ 5,742 $ 6,807 The Company records provisions against inventory for excess and obsolete inventory, which are determined based on the Company's best estimates of future demand, product lifecycle status and product development plans. These provisions reduce the inventory cost basis. The charges for the provision for excess and obsolete inventory for the three months ended December 31, 2020 and December 31, 2019, were both negligible. The Company recorded provisions for excess and obsolete inventory with charges of $0.3 million and $2.0 million in the nine months ended December 31, 2020, and December 31, 2019, respectively. These costs are presented in Cost of revenue on the Condensed Consolidated Statements of Operations. The Company believes the estimates and assumptions underlying its provisions are reasonable. However, there is risk that additional charges may be necessary if future demand is less than current forecasts due to rapid technological changes, uncertain customer requirements, or other factors . |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Westell Technologies, Inc. 2019 Omnibus Incentive Compensation Plan (the “2019 Plan”) was approved at the annual meeting of stockholders on September 17, 2019. The 2019 Plan replaced the Westell Technologies, Inc. 2015 Omnibus Incentive Compensation Plan (the “2015 Plan”). The 2019 Plan includes a total of 1,000,000 shares of Class A Common Stock (Shares) plus the number of Shares reserved for issuance under the 2015 Plan that have not been granted or reserved for issuance under an outstanding award that may be issued under the 2019 Omnibus Plan. If any award granted under the 2019 Plan or the 2015 Plan is canceled, terminates, expires, or lapses for any reason, any Shares subject to such award shall again be available for the grant of an award under the 2019 Plan. Shares subject to an award shall not again be made available for issuance under the Plan if such Shares are: (a) delivered to or withheld by the Company to pay the grant or purchase price of an award, or (b) delivered to or withheld by the Company to pay the withholding taxes related to an award. Any awards or portions thereof that are settled in cash and not in Shares shall not be counted against the foregoing Share limit. The stock options, restricted stock awards, and restricted stock units (“RSUs”) awarded under the 2019 Plan generally vest in equal annual installments over 3 years for employees and 1 year for non-employee directors. Performance stock units (“PSUs”) earned vest over the performance period. Certain awards provide for accelerated vesting if there is a change in control (as defined in the 2019 Plan), or when provided within individual employment contracts. The Company accounts for forfeitures as they occur. The Company issues new shares for stock awards under the 2019 Plan. The following table is a summary of total stock-based compensation expense resulting from stock options, restricted stock, RSUs and PSUs, during the three and nine months ended December 31, 2020, and 2019: Three months ended December 31, Nine months ended December 31, (in thousands) 2020 2019 2020 2019 Stock-based compensation expense $ 100 $ 152 $ 410 $ 597 Income tax benefit — — — — Total stock-based compensation expense, after taxes $ 100 $ 152 $ 410 $ 597 Stock Options Stock option activity for the nine months ended December 31, 2020, is as follows: Shares Weighted-Average Weighted-Average Aggregate Intrinsic Value (1) (in thousands) Outstanding on March 31, 2020 221,812 $ 1.87 5.4 $ — Granted — — Exercised — — Forfeited (5,000) 4.73 Expired — — Outstanding on December 31, 2020 216,812 $ 1.80 4.7 $ — _______ (1) The intrinsic value for the stock options is calculated based on the difference between the exercise price of the underlying awards and the Westell Technologies’ closing stock price as of the respective reporting date. Restricted Stock The following table sets forth restricted stock activity for the nine months ended December 31, 2020: Shares Weighted-Average Non-vested as of March 31, 2020 128,584 $ 1.39 Granted 24,192 1.24 Vested (128,584) 1.39 Forfeited (4,032) 1.24 Non-vested as of December 31, 2020 20,160 $ 1.24 RSUs The following table sets forth the RSU activity for the nine months ended December 31, 2020: Shares Weighted-Average Non-vested as of March 31, 2020 441,108 $ 2.31 Granted 271,140 0.78 Vested (226,929) 2.51 Forfeited (40,000) 1.17 Non-vested as of December 31, 2020 445,319 $ 1.38 PSUs PSUs will be earned primarily based upon achievement of performance goals tied to growing revenue and to non-GAAP profitability targets for fiscal year 2021. Upon vesting, the PSUs convert into shares of Class A Common Stock of the Company on a one-for-one basis. The following table sets forth the PSU activity for the nine months ended December 31, 2020: Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2020 (at target) 5,000 $ 1.38 Granted, at target 229,303 0.78 Vested — — Forfeited (5,000) 1.38 Non-vested as of December 31, 2020 (at target) 229,303 $ 0.78 |
Product Warranties (Notes)
Product Warranties (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product WarrantiesThe Company’s products carry a limited warranty ranging from one to five years for the products within the IBW segment, typically one year for products within the ISM segment, and one to seven years for products within the CNS segment. The specific terms and conditions of these warranties vary depending upon the customer and the products sold. Factors that affect the estimate of the Company’s warranty reserve include: the number of units shipped, anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the reserve as necessary. The current portions of the warranty reserve are $88,000 and $120,000 as of December 31, 2020, and March 31, 2020, respectively, and are presented on the Condensed Consolidated Balance Sheets in Accrued expenses. The non-current portions of the warranty reserves are $42,000 and $40,000 as of December 31, 2020, and March 31, 2020, respectively, and are presented on the Condensed Consolidated Balance Sheets in Other non-current liabilities. The following table presents the changes in the Company’s product warranty reserve: Three months ended December 31, Nine months ended December 31, (in thousands) 2020 2019 2020 2019 Total product warranty reserve at the beginning of the period $ 130 $ 130 $ 160 $ 130 Warranty expense to cost of revenue 11 17 90 51 Utilization (11) (17) (120) (51) Total product warranty reserve at the end of the period $ 130 $ 130 $ 130 $ 130 |
Variable Interest Entity and Gu
Variable Interest Entity and Guarantee (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Guarantees [Abstract] | |
Equity Method Investment [Text Block] | Variable Interest Entity and Guarantee The Company has a 50% equity ownership in AccessTel Kentrox Australia PTY LTD (AKA). AKA distributes network management solutions provided by the Company and the other 50% owner to one customer. The Company holds equal voting control with the other owner. All actions of AKA are decided at the board level by majority vote. The Company evaluated ASC 810, Consolidations , and concluded that AKA is a variable interest entity (VIE) and the Company has a variable interest in the VIE. The Company has concluded that it is not the primary beneficiary of AKA and, therefore, consolidation is not required. The carrying amount of the Company's investment in AKA was approximately $0.1 million as of both December 31, 2020, and March 31, 2020, which is presented on the Condensed Consolidated Balance Sheets within Other non-current assets. In the quarter ended December 31, 2020, the Company received a cash dividend payment of $36,000 from AKA. |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At the end of each interim period, the Company makes its best estimate of the effective tax rate expected to be applicable for the full fiscal year and uses that rate to provide for income taxes on a current year-to-date basis before discrete items. If a reliable estimate cannot be made, the Company may make a reasonable estimate of the annual effective tax rate, including use of the actual effective rate for the year-to-date. The impact of discrete items is recorded in the quarter in which they occur. The Company utilizes the liability method of accounting for income taxes and deferred taxes, which are determined based on the differences between the financial statements and tax basis of assets and liabilities given the enacted tax laws. The Company evaluates the need for valuation allowances on the net deferred tax assets under the rules of ASC 740, Income Taxes. In assessing the realizability of the Company's deferred tax assets, the Company considers whether it is more likely than not that some or all of the deferred tax assets will be realized through the generation of future taxable income. In making this determination, the Company assessed all of the evidence available at the time, including recent earnings, forecasted income projections and historical performance. The Company determined that the negative evidence outweighed the objectively verifiable positive evidence and previously recorded a full valuation allowance against deferred tax assets. The Company will continue to reassess realizability going forward. As of December 31, 2020, the Company had net deferred tax assets of approximately $40.8 million before a valuation allowance of $40.8 million. The Company’s ability to utilize NOL carryforwards and other tax attributes to reduce future federal taxable income is subject to potential limitations under Internal Revenue Code Section 382 (“Section 382”) and its related tax regulations. The utilization of these attributes may be limited if certain ownership changes by 5% stockholders (as defined in Treasury regulations pursuant to Section 382) and the effects of stock issuances by the Company during any three-year period result in a cumulative change of more than 50% in the beneficial ownership of the Company. The Company is currently conducting Section 382 analysis to determine if an ownership change has occurred. If it is determined that an ownership change has occurred under these rules, the Company would generally be subject to an annual limitation on the use of pre-ownership change NOL carryforwards and certain other losses and/or credits. In addition, certain future transactions regarding the Company's equity, including the cumulative effects of small transactions as well as transactions beyond the Company’s control, could cause an ownership change and therefore a potential limitation on the annual utilization of the deferred tax assets. As of March 31, 2020, the Company had $348,000 of tax receivables associated with a prior AMT credit carryforward. The Company recovered the entire amount of the receivable in the quarter ended June 30, 2020 via a tax refund. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Contingency Reserves The Company and its subsidiaries are involved in various assertions, claims, proceedings and requests for indemnification concerning intellectual property, including patent infringement suits involving technologies that may be incorporated in the Company’s products, which are being handled and defended in the ordinary course of business. These matters are in various stages of investigation and litigation, and they are being vigorously defended. Although the Company does not expect that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial condition or results of operations, litigation is inherently unpredictable. Therefore, judgments could be rendered, or settlements entered, that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and it records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. As of December 31, 2020, and March 31, 2020, the Company has not recorded any contingent liability attributable to existing litigation. Lease Obligations The Company currently occupies office space under operating leases, with various expiration dates through November 2025. The Company’s office leases provide for rental payments on a graduated scale. Lease expense is recognized on a straight-line basis over the lease term. For further details, refer to Note 2. Leases . |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined by ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) , as the price that would be received upon selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted prices in active markets for identical assets and liabilities. • Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company’s money market funds are measured using Level 1 inputs. The following table presents available-for-sale securities measured at fair value on a recurring basis as of December 31, 2020: (in thousands) Total Fair Value Quoted Prices in Significant Other Significant Balance Sheet Assets: Money market funds $ 11,441 $ 11,441 — — Cash and cash The following table presents available-for-sale securities measured at fair value on a recurring basis as of March 31, 2020: (in thousands) Total Fair Value Quoted Prices in Significant Other Significant Balance Sheet Assets: Money market funds $ 20,690 $ 20,690 — — Cash and cash |
Share Repurchases (Notes)
Share Repurchases (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Payments for Repurchase of Equity [Abstract] | |
Share Repurchases | Share Repurchases Reverse/Forward Stock Split On September 29, 2020, the Company filed amendments to the Company’s amended and restated certificate of incorporation to effect a 1-for-1,000 reverse stock split of the Company’s Class A and Class B Common Stock, followed immediately by an 1,000-for-1 forward stock split (the “Transaction”). The stockholders approved the Transaction at the Annual Meeting of Stockholders held on September 29, 2020. The effective date of the Transaction was October 1, 2020. As a result of the Transaction, the Company paid $7.2 million to repurchase approximately 4.9 million shares of the Class A Common Stock at a purchase price of $1.48 per share. Share Repurchase Programs In May 2017, the Board of Directors authorized a share repurchase program whereby the Company may repurchase up to an aggregate of $2.0 million of its outstanding Class A Common Stock (the “2017 authorization”). The 2017 authorization is in addition to the $0.1 million that was remaining from the August 2011 $20.0 million authorization (the “2011 authorization”). There were no shares repurchased under the 2017 authorization during the nine months ended December 31, 2020 or December 31, 2019. As of December 31, 2020, there was approximately $0.7 million remaining for additional share repurchases under the 2017 authorization. |
Intangibles Assets (Notes)
Intangibles Assets (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | Intangible Assets Intangible assets include customer relationships, trade names, developed technology, product licensing rights, and other intangibles. Intangible assets with determinable lives are amortized over their estimated useful lives. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset’s carrying amount over its fair value. During the quarter ended September 30, 2020, the Company determined there were indications of impairment on the intangible assets primarily due to the duration of the COVID-19, which have delayed construction projects impacting the amount and timing of revenue. The Company performed the recoverability test described above and concluded the carrying amounts were recoverable. The Company concluded it was not necessary to perform a recoverability test during the quarter ended December 31, 2020. There was no intangible asset impairment during the nine months ended December 31, 2020, or the nine months ended December 31, 2019. The Company amortizes intangible assets with finite lives using either a straight line method or the consumption period based on expected cash flows from the underlying intangible asset, with an initial range from 2 to 10 years. The summary of amortization expense in the condensed consolidated statement of operations is as follows: (in thousands) Three months ended December 31, Nine months ended December 31, 2020 2019 2020 2019 Cost of revenue 39 98 118 163 Operating expenses 226 308 677 924 Total $ 265 $ 406 $ 795 $ 1,087 The summary of other intangible assets, net, is as follows: December 31, 2020 March 31, 2020 (in thousands) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Backlog $ 1,530 $ (1,530) $ — $ 1,530 $ (1,530) $ — Customer relationships 23,260 (22,289) 971 23,260 (21,872) 1,388 Licensing agreement 1,950 (1,385) 565 1,950 (1,267) 683 Product technology 45,195 (44,798) 397 45,195 (44,538) 657 Non-compete 510 (510) — 510 (510) — Trade name and trademark 1,473 (1,473) — 1,473 (1,473) — Total finite-lived intangible, assets, net $ 73,918 $ (71,985) $ 1,933 $ 73,918 $ (71,190) $ 2,728 The following is the expected future amortization by fiscal year: (in thousands) 2021 (1) 2022 2023 2024 2025 Thereafter Intangible amortization expense $ 266 $ 923 $ 535 $ 157 $ 52 $ — (1) Represents the future intangible amortization expense expected to be made over the remaining balance of the fiscal year. |
Accrued Expenses (Notes)
Accrued Expenses (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
accrued expenses [Text Block] | Accrued Expenses The components of accrued expenses are as follows: (in thousands) December 31, 2020 March 31, 2020 Accrued compensation $ 858 $ 596 Accrued contractual obligation 1,445 1,445 Current operating lease liability 440 339 Other accrued expenses 477 756 Total accrued expenses $ 3,220 $ 3,136 |
Land Property and Equipment (No
Land Property and Equipment (Notes) | 9 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment Disclosure [Text Block] | Land, Property, and Equipment Long-lived assets consist of land, property and equipment. Long-lived assets that are held and used should be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived assets might not be recoverable. There was no long-lived asset impairment during the nine months ended December 31, 2020, or December 31, 2019. The components of fixed assets are as follows: (in thousands) December 31, 2020 March 31, 2020 Land $ 672 $ 672 Machinery and equipment 1,430 1,415 Office, computer and research equipment 4,804 5,112 Leasehold improvements 788 788 Land, property and equipment, gross 7,694 7,987 Less accumulated depreciation and amortization (6,736) (6,911) Land, property and equipment, net $ 958 $ 1,076 |
Restructuring and Related Activ
Restructuring and Related Activities | 9 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring ChargesIn the three and nine months ended December 31, 2019, the Company recorded a restructuring expense of $234,000 related to employee termination costs that spanned all three segments. The Company did not record any restructuring expense in the three and nine months ended December 31, 2020. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed consolidated financial statements | The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. The Condensed Consolidated Financial Statements have been prepared using generally accepted accounting principles (GAAP) in the United States for interim financial reporting, and is consistent with the instructions of Form 10-Q and Article 10 of Regulation S-X and, accordingly, they do not include all of the information and footnotes required in the annual consolidated financial statements and accompanying footnotes. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2020. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and that affect revenue and expenses during the periods reported. Estimates are used when accounting for the allowance for uncollectible accounts receivable, net realizable value of inventory, product warranty accrued, relative selling prices, stock-based compensation, intangible assets fair value, depreciation, income taxes, right-of-use lease assets and related lease liabilities, and contingencies, among other things. Actual results could differ from those estimates. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The amendments in ASU 2019-12 seek to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application and simplify GAAP in other areas of Topic 740. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company early adopted ASU 2019-12 effective April 1, 2020, with no immediate impact to the Company’s Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (“ASU 2018-13”). This update modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. Certain disclosure requirements established in Topic 820 have been removed, some have been modified and new disclosure requirements were added. This new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted 2018-13 effective April 1, 2020, with no immediate impact to the Company’s Condensed Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (“ASU 2018-15”). The main objective of ASU 2018-15 is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this update require that a customer in a hosting arrangement that is a service contract follow the guidance in Subtopic 350-40 to determine which implementation costs should be capitalized as an asset and which costs should be expensed and states that any capitalized implementation costs should be expensed over the term of the hosting arrangement. This new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted ASU 2018-15 effective April 1, 2020, with no immediate impact to the Company’s Condensed Consolidated Financial Statements. In November 2018, the FASB issued ASU 2018-18 Collaborative Arrangements (Topic 808) (“ASU 2018-18”). The update provides guidance on the interaction between Revenue Recognition (Topic 606) and Collaborative Arrangements (Topic 808) by aligning the unit of account guidance between the two topics and clarifying whether certain transactions between collaborative participants should be accounted for as revenue under Topic 606. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted ASU 2018-18 effective April 1, 2020, with no immediate impact to the Company's Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”). ASU 2016-13 will replace the current incurred loss approach with a new expected credit loss impairment model for trade receivables, loans, and other financial instruments. Under the new model, the estimate of expected credit losses will be based on historical experience, current conditions and reasonable and supportable forecasts. For the Company, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. E arly adoption is permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of ASU 2016-13 on the Company's Condensed Consolidated Financial Statements. |
Revenue [Policy Text Block] | Revenue Recognition and Deferred Revenue The Company records revenue based on a five-step model in accordance with ASC Topic 606, Revenue From Contracts With Customers |
Inventory | Inventories are stated at the lower of cost, on a first-in, first-out basis, or net realizable value. |
Fair Value Measurement | Fair value is defined by ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) , as the price that would be received upon selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted prices in active markets for identical assets and liabilities. • Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
Revenue from Contract with Cust
Revenue from Contract with Customer (Policies) | 9 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue [Policy Text Block] | Revenue Recognition and Deferred Revenue The Company records revenue based on a five-step model in accordance with ASC Topic 606, Revenue From Contracts With Customers |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future minimum lease payments as of December 31, 2020, consisted of the following (in thousands): Fiscal Year Operating Leases 2021 (1) $ 97 2022 587 2023 587 2024 593 2025 604 Thereafter 276 Total lease payments 2,744 Less: imputed interest (281) Total operating lease liabilities $ 2,463 _______ (1) Represents the future minimum operating lease payments expected to be made over the remaining balance of the fiscal year. |
Lease, Cost [Table Text Block] | The components of lease expense are as follows: Three months ended December 31, Nine months ended December 31 (in thousands) 2020 2019 2020 2019 Operating lease expense $ 150 $ 202 $ 448 $ 610 Variable lease expense (1) 64 25 103 88 Total lease expense (2) $ 214 $ 227 $ 551 $ 698 _______ (1) Variable lease expense is related to our leased real estate and primarily includes labor and operational costs as well as taxes and insurance. (2) Short-term lease expense is immaterial. |
ScheduleOfClassificationOfRightOfUseAssetsAndLeaseLiabilities [Table Text Block] | The following table summarizes the classification of ROU assets and lease liabilities as of December 31, 2020 and March 31, 2020: (in thousands) December 31, 2020 March 31, 2020 Balance Sheet Classification Assets: ROU assets $ 2,573 $ 628 Right-of-use assets on operating leases, net Liabilities: Current operating lease liability 440 339 Accrued expenses Non-current operating lease liabilities 2,023 250 Lease liabilities non-current Total lease liabilities $ 2,463 $ 589 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table disaggregates our revenue by major source: (in thousands) Three months ended December 31, Nine months ended December 31, 2020 2019 2020 2019 Revenue: Products $ 6,227 $ 5,842 $ 19,386 $ 19,974 Software 15 92 179 272 Services 1,407 1,225 3,754 3,484 Total revenue $ 7,649 $ 7,159 $ 23,319 $ 23,730 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following is the expected future revenue recognition timing of deferred revenue as of December 31, 2020: (in thousands) < 1 year 1-2 years > 2 years Deferred Revenue $ 1,089 $ 90 $ 39 |
Interim Segment Information (Ta
Interim Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment information | Segment information for the three and nine months ended December 31, 2020, and 2019, is set forth below: Three months ended December 31, 2020 (in thousands) IBW ISM CNS Total Revenue $ 1,648 $ 2,677 $ 3,324 $ 7,649 Cost of revenue 1,564 1,242 2,637 5,443 Gross profit 84 1,435 687 2,206 Gross margin 5.1 % 53.6 % 20.7 % 28.8 % Research and development 404 409 193 1,006 Segment profit $ (320) $ 1,026 $ 494 1,200 Operating expenses: Sales and marketing 1,200 General and administrative 863 Intangible amortization 226 Operating profit (loss) (1,089) Other income, net 178 Income tax benefit (expense) (23) Net income (loss) $ (934) Three months ended December 31, 2019 (in thousands) IBW ISM CNS Total Revenue $ 2,466 $ 2,456 $ 2,237 $ 7,159 Cost of revenue 1,657 991 1,731 4,379 Gross profit 809 1,465 506 2,780 Gross margin 32.8 % 59.6 % 22.6 % 38.8 % Research and development 470 505 247 1,222 Segment profit (loss) $ 339 $ 960 $ 259 1,558 Operating expenses: Sales and marketing 1,556 General and administrative 1,093 Intangible amortization 308 Restructuring 234 Operating profit (loss) (1,633) Other income, net 109 Income tax benefit (expense) (20) Net income (loss) $ (1,544) Nine months ended December 31, 2020 (in thousands) IBW ISM CNS Total Revenue $ 7,618 $ 6,632 $ 9,069 $ 23,319 Cost of revenue 5,300 3,017 7,163 15,480 Gross profit 2,318 3,615 1,906 7,839 Gross margin 30.4 % 54.5 % 21.0 % 33.6 % Research and development 1,068 1,195 602 2,865 Segment profit $ 1,250 $ 2,420 $ 1,304 4,974 Operating expenses: Sales and marketing 4,024 General and administrative 3,175 Intangible amortization 677 Operating profit (loss) (2,902) Other income, net 223 Income tax benefit (expense) 35 Net income (loss) $ (2,644) Nine months ended December 31, 2019 (in thousands) IBW ISM CNS Total Revenue $ 8,007 $ 8,197 $ 7,526 $ 23,730 Cost of revenue 5,813 4,111 6,201 16,125 Gross profit 2,194 4,086 1,325 7,605 Gross margin 27.4 % 49.8 % 17.6 % 32.0 % Research and development 1,272 1,825 1,130 4,227 Segment profit (loss) $ 922 $ 2,261 $ 195 3,378 Operating expenses: Sales and marketing 6,147 General and administrative 3,706 Intangible amortization 924 Restructuring 234 Operating profit (loss) (7,633) Other income, net 398 Income tax benefit (expense) (27) Net income (loss) $ (7,262) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Inventory, Net [Abstract] | |
Components of inventories | The components of net inventories are as follows: (in thousands) December 31, 2020 March 31, 2020 Raw materials $ 1,841 $ 2,188 Finished goods 3,901 4,619 Total inventories $ 5,742 $ 6,807 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-based compensation expense | The following table is a summary of total stock-based compensation expense resulting from stock options, restricted stock, RSUs and PSUs, during the three and nine months ended December 31, 2020, and 2019: Three months ended December 31, Nine months ended December 31, (in thousands) 2020 2019 2020 2019 Stock-based compensation expense $ 100 $ 152 $ 410 $ 597 Income tax benefit — — — — Total stock-based compensation expense, after taxes $ 100 $ 152 $ 410 $ 597 |
Stock option activity | Stock option activity for the nine months ended December 31, 2020, is as follows: Shares Weighted-Average Weighted-Average Aggregate Intrinsic Value (1) (in thousands) Outstanding on March 31, 2020 221,812 $ 1.87 5.4 $ — Granted — — Exercised — — Forfeited (5,000) 4.73 Expired — — Outstanding on December 31, 2020 216,812 $ 1.80 4.7 $ — _______ |
Restricted stock activity | Restricted Stock The following table sets forth restricted stock activity for the nine months ended December 31, 2020: Shares Weighted-Average Non-vested as of March 31, 2020 128,584 $ 1.39 Granted 24,192 1.24 Vested (128,584) 1.39 Forfeited (4,032) 1.24 Non-vested as of December 31, 2020 20,160 $ 1.24 RSUs The following table sets forth the RSU activity for the nine months ended December 31, 2020: Shares Weighted-Average Non-vested as of March 31, 2020 441,108 $ 2.31 Granted 271,140 0.78 Vested (226,929) 2.51 Forfeited (40,000) 1.17 Non-vested as of December 31, 2020 445,319 $ 1.38 PSUs PSUs will be earned primarily based upon achievement of performance goals tied to growing revenue and to non-GAAP profitability targets for fiscal year 2021. Upon vesting, the PSUs convert into shares of Class A Common Stock of the Company on a one-for-one basis. The following table sets forth the PSU activity for the nine months ended December 31, 2020: Shares Weighted-Average Grant Date Fair Value Non-vested as of March 31, 2020 (at target) 5,000 $ 1.38 Granted, at target 229,303 0.78 Vested — — Forfeited (5,000) 1.38 Non-vested as of December 31, 2020 (at target) 229,303 $ 0.78 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Changes in Company's product warranty reserve | The following table presents the changes in the Company’s product warranty reserve: Three months ended December 31, Nine months ended December 31, (in thousands) 2020 2019 2020 2019 Total product warranty reserve at the beginning of the period $ 130 $ 130 $ 160 $ 130 Warranty expense to cost of revenue 11 17 90 51 Utilization (11) (17) (120) (51) Total product warranty reserve at the end of the period $ 130 $ 130 $ 130 $ 130 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis and their related valuation inputs | The following table presents available-for-sale securities measured at fair value on a recurring basis as of December 31, 2020: (in thousands) Total Fair Value Quoted Prices in Significant Other Significant Balance Sheet Assets: Money market funds $ 11,441 $ 11,441 — — Cash and cash The following table presents available-for-sale securities measured at fair value on a recurring basis as of March 31, 2020: (in thousands) Total Fair Value Quoted Prices in Significant Other Significant Balance Sheet Assets: Money market funds $ 20,690 $ 20,690 — — Cash and cash |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-lived Intangible Assets Amortization Expense | The summary of amortization expense in the condensed consolidated statement of operations is as follows: (in thousands) Three months ended December 31, Nine months ended December 31, 2020 2019 2020 2019 Cost of revenue 39 98 118 163 Operating expenses 226 308 677 924 Total $ 265 $ 406 $ 795 $ 1,087 |
Schedule of Finite-Lived Intangible Assets | The summary of other intangible assets, net, is as follows: December 31, 2020 March 31, 2020 (in thousands) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Backlog $ 1,530 $ (1,530) $ — $ 1,530 $ (1,530) $ — Customer relationships 23,260 (22,289) 971 23,260 (21,872) 1,388 Licensing agreement 1,950 (1,385) 565 1,950 (1,267) 683 Product technology 45,195 (44,798) 397 45,195 (44,538) 657 Non-compete 510 (510) — 510 (510) — Trade name and trademark 1,473 (1,473) — 1,473 (1,473) — Total finite-lived intangible, assets, net $ 73,918 $ (71,985) $ 1,933 $ 73,918 $ (71,190) $ 2,728 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following is the expected future amortization by fiscal year: (in thousands) 2021 (1) 2022 2023 2024 2025 Thereafter Intangible amortization expense $ 266 $ 923 $ 535 $ 157 $ 52 $ — (1) Represents the future intangible amortization expense expected to be made over the remaining balance of the fiscal year. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | The components of accrued expenses are as follows: (in thousands) December 31, 2020 March 31, 2020 Accrued compensation $ 858 $ 596 Accrued contractual obligation 1,445 1,445 Current operating lease liability 440 339 Other accrued expenses 477 756 Total accrued expenses $ 3,220 $ 3,136 |
Land Property and Equipment (Ta
Land Property and Equipment (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment [Table Text Block] | The components of fixed assets are as follows: (in thousands) December 31, 2020 March 31, 2020 Land $ 672 $ 672 Machinery and equipment 1,430 1,415 Office, computer and research equipment 4,804 5,112 Leasehold improvements 788 788 Land, property and equipment, gross 7,694 7,987 Less accumulated depreciation and amortization (6,736) (6,911) Land, property and equipment, net $ 958 $ 1,076 |
Basis of Presentation (Details
Basis of Presentation (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Payments for Repurchase of Common Stock | $ 7,283 | $ 191 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | [1] | $ 97 | |
Lessee, Operating Lease, Liability, to be Paid, Year One | 587 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Two | 587 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Three | 593 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Four | 604 | ||
Lessee, Operating Liabilty, Payments Due Thereafter | 276 | ||
Lessee, Operating Lease, Liability, to be Paid | 2,744 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (281) | ||
Total lease liabilities | $ 2,463 | $ 589 | |
[1] | Represents the future minimum operating lease payments expected to be made over the remaining balance of the fiscal year. |
Leases (Details 2)
Leases (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Leases [Abstract] | |||||
Operating Lease, Cost | $ 150 | $ 202 | $ 448 | $ 610 | |
Variable Lease, Cost | [1] | 64 | 25 | 103 | 88 |
Lease, Cost | [2] | $ 214 | $ 227 | $ 551 | $ 698 |
[1] | Variable lease expense is related to our leased real estate and primarily includes labor and operational costs as well as taxes and insurance. | ||||
[2] | Short-term lease expense is immaterial. |
Leases (Details 3)
Leases (Details 3) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | |
ScheduleOfClassificationOfRightOfUseAssetsAndLeaseLiabilities [Line Items] | ||
Right-of-use assets on operating leases, net | $ 2,573 | $ 628 |
Accrued expenses | 440 | 339 |
Lease liabilities non-current | 2,023 | 250 |
Total lease liabilities | 2,463 | 589 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 2,400 | |
Right-of-use assets on operating leases, net [Member] | ||
ScheduleOfClassificationOfRightOfUseAssetsAndLeaseLiabilities [Line Items] | ||
Right-of-use assets on operating leases, net | 2,573 | 628 |
Accrued Expenses [Member] | ||
ScheduleOfClassificationOfRightOfUseAssetsAndLeaseLiabilities [Line Items] | ||
Accrued expenses | 440 | 339 |
Other Noncurrent Liabilities [Member] | ||
ScheduleOfClassificationOfRightOfUseAssetsAndLeaseLiabilities [Line Items] | ||
Lease liabilities non-current | $ 2,023 | $ 250 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) | Jan. 31, 2023 | Dec. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||||
Operating Lease, Payments | $ 200,000 | $ 100,000 | $ 600,000 | $ 500,000 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 2,400,000 | |||||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 9 months 18 days | 4 years 9 months 18 days | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 4.50% | 4.50% | ||||
Lessee, Operating Lease, Term of Contract | 63 months | |||||
Operating Lease Commencement Date | Dec. 1, 2019 | |||||
Operating Lease, Payments | $ 200,000 | $ 100,000 | $ 600,000 | $ 500,000 | ||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Lessee, Operating Lease, Option to Terminate | $ 70,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 7,649 | $ 7,159 | $ 23,319 | $ 23,730 |
Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,227 | 5,842 | 19,386 | 19,974 |
License and Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 15 | 92 | 179 | 272 |
Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,407 | $ 1,225 | $ 3,754 | $ 3,484 |
Revenue Recognition (Details 2)
Revenue Recognition (Details 2) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,089 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 90 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 39 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years 10 months 30 days |
Revenue Recognition (Details Te
Revenue Recognition (Details Textual) - USD ($) $ in Millions | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Contract with Customer, Liability, Revenue Recognized | $ 1 | $ 1.1 | |
ContractWithCustomerProductReturnAsset | 0.1 | $ 0.1 | |
ProductReturnsLiability | $ 0.2 | $ 0.2 |
Notes Payable and Long-term D_2
Notes Payable and Long-term Debt (Details) - USD ($) | 24 Months Ended | |||
Apr. 07, 2022 | Dec. 31, 2020 | Apr. 14, 2020 | Mar. 31, 2020 | |
Debt Disclosure [Abstract] | ||||
ProceedsFromPaycheckProtectionProgramUnderCaresAct | $ 1,637,522 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.98% | |||
NotesPayableSBAPPPLoanPeriodicPayment | $ 92,000 | |||
Debt Instrument, Term | 2 years | |||
NotesPayableSBAPPPLoanCurrent | 1,138,000 | $ 0 | ||
NotesPayableSBAPPPLoanNoncurrent | $ 510,000 | $ 0 |
Interim Segment Information (De
Interim Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Segment information | ||||||||||||
Revenue | $ 7,649 | $ 7,159 | $ 23,319 | $ 23,730 | ||||||||
Cost of revenue | 5,443 | 4,379 | 15,480 | 16,125 | ||||||||
Gross profit | $ 2,206 | $ 2,780 | $ 7,839 | $ 7,605 | ||||||||
Gross margin | 28.80% | 38.80% | 33.60% | 32.00% | ||||||||
Research and development | $ 1,006 | $ 1,222 | $ 2,865 | $ 4,227 | ||||||||
Segment Profit Loss | 1,200 | 1,558 | 4,974 | 3,378 | ||||||||
Operating expenses | ||||||||||||
Sales and marketing | 1,200 | 1,556 | 4,024 | 6,147 | ||||||||
General and administrative | 863 | 1,093 | 3,175 | 3,706 | ||||||||
Intangible amortization | 226 | 308 | 677 | 924 | ||||||||
Restructuring Charges | 0 | 234 | 0 | 234 | ||||||||
Operating profit (loss) | (1,089) | (1,633) | (2,902) | (7,633) | ||||||||
Other Nonoperating Income (Expense) | 178 | 109 | 223 | 398 | ||||||||
Income tax benefit (expense) | (23) | (20) | 35 | (27) | ||||||||
Net income (loss) | (934) | [1] | $ (885) | $ (825) | (1,544) | [1] | $ (3,561) | $ (2,157) | (2,644) | [1] | (7,262) | [1] |
IBW [Member] | ||||||||||||
Segment information | ||||||||||||
Revenue | 1,648 | 2,466 | 7,618 | 8,007 | ||||||||
Cost of revenue | 1,564 | 1,657 | 5,300 | 5,813 | ||||||||
Gross profit | $ 84 | $ 809 | $ 2,318 | $ 2,194 | ||||||||
Gross margin | 5.10% | 32.80% | 30.40% | 27.40% | ||||||||
Research and development | $ 404 | $ 470 | $ 1,068 | $ 1,272 | ||||||||
Segment Profit Loss | (320) | 339 | 1,250 | 922 | ||||||||
ISM [Member] | ||||||||||||
Segment information | ||||||||||||
Revenue | 2,677 | 2,456 | 6,632 | 8,197 | ||||||||
Cost of revenue | 1,242 | 991 | 3,017 | 4,111 | ||||||||
Gross profit | $ 1,435 | $ 1,465 | $ 3,615 | $ 4,086 | ||||||||
Gross margin | 53.60% | 59.60% | 54.50% | 49.80% | ||||||||
Research and development | $ 409 | $ 505 | $ 1,195 | $ 1,825 | ||||||||
Segment Profit Loss | 1,026 | 960 | 2,420 | 2,261 | ||||||||
CNS [Member] | ||||||||||||
Segment information | ||||||||||||
Revenue | 3,324 | 2,237 | 9,069 | 7,526 | ||||||||
Cost of revenue | 2,637 | 1,731 | 7,163 | 6,201 | ||||||||
Gross profit | $ 687 | $ 506 | $ 1,906 | $ 1,325 | ||||||||
Gross margin | 20.70% | 22.60% | 21.00% | 17.60% | ||||||||
Research and development | $ 193 | $ 247 | $ 602 | $ 1,130 | ||||||||
Segment Profit Loss | $ 494 | $ 259 | $ 1,304 | $ 195 | ||||||||
[1] | Net income (loss) and comprehensive income (loss) are the same for the periods reported. |
Interim Segment Information (_2
Interim Segment Information (Details Textual) | 9 Months Ended |
Dec. 31, 2020segments | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Components of inventories | ||
Raw materials | $ 1,841 | $ 2,188 |
Finished goods | 3,901 | 4,619 |
Total inventories | $ 5,742 | $ 6,807 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | ||
Inventory Write-down | $ 0.3 | $ 2 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-based compensation expense | ||||
Stock-based compensation expense | $ 100 | $ 152 | $ 410 | $ 597 |
Income tax benefit | 0 | 0 | 0 | 0 |
Total stock-based compensation expense, after taxes | $ 100 | $ 152 | $ 410 | $ 597 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details 1) - Share-based Payment Arrangement, Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding on March 31, 2020 | 221,812 | ||
Granted | 0 | ||
Exercised | 0 | ||
Forfeited | (5,000) | ||
Expired | 0 | ||
Outstanding on September 30, 2020 | 216,812 | 221,812 | |
Weighted-Average Exercise Price Per Share, Outstanding on March 31, 2020 | $ 1.87 | ||
Weighted-Average Exercise Price Per Share, Granted | 0 | ||
Weighted-Average Exercise Price Per Share, Exercised | 0 | ||
Weighted-Average Exercise Price Per Share, Forfeited | 4.73 | ||
Weighted-Average Exercise Price Per Share, Expired | 0 | ||
Weighted-Average Exercise Price Per Share, Outstanding on December 31, 2020 | $ 1.80 | $ 1.87 | |
Weighted-Average Remaining Contractual Term (in years), Outstanding on March 31, 2020 | 4 years 8 months 12 days | 5 years 4 months 24 days | |
Weighted-Average Remaining Contractual Term (in years), Outstanding on December 31, 2020 | 4 years 8 months 12 days | 5 years 4 months 24 days | |
Aggregate Intrinsic Value, Outstanding on March 31, 2020 | [1] | $ 0 | |
Aggregate Intrinsic Value, Outstanding on December 31, 2020 | [1] | $ 0 | $ 0 |
[1] | The intrinsic value for the stock options is calculated based on the difference between the exercise price of the underlying awards and the Westell Technologies’ closing stock price as of the respective reporting date |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details 2) | 9 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Restricted Stock [Member] | |
Restricted stock activity | |
Non-vested as of March 31, 2020 | shares | 128,584 |
Vested | shares | 24,192 |
Vested | shares | (128,584) |
Forfeited | shares | (4,032) |
Non-vested as of December 31, 2020 | shares | 20,160 |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2020 | $ / shares | $ 1.39 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 1.24 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 1.39 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 1.24 |
Weighted-Average Grant Date Fair Value, Non-vested as of December 31, 2020 | $ / shares | $ 1.24 |
Restricted Stock Units (RSUs) [Member] | |
Restricted stock activity | |
Non-vested as of March 31, 2020 | shares | 441,108 |
Vested | shares | 271,140 |
Vested | shares | (226,929) |
Forfeited | shares | (40,000) |
Non-vested as of December 31, 2020 | shares | 445,319 |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2020 | $ / shares | $ 2.31 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 0.78 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 2.51 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 1.17 |
Weighted-Average Grant Date Fair Value, Non-vested as of December 31, 2020 | $ / shares | $ 1.38 |
Performance Shares [Member] | |
Restricted stock activity | |
Non-vested as of March 31, 2020 | shares | 5,000 |
Vested | shares | 229,303 |
Vested | shares | 0 |
Forfeited | shares | (5,000) |
Non-vested as of December 31, 2020 | shares | 229,303 |
Weighted-Average Grant Date Fair Value, Non-vested as of March 31, 2020 | $ / shares | $ 1.38 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 0.78 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 1.38 |
Weighted-Average Grant Date Fair Value, Non-vested as of December 31, 2020 | $ / shares | $ 0.78 |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Details Textual) - 2019 Omnibus Incentive Compensation Plan [Member] | 9 Months Ended |
Dec. 31, 2020 | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting schedule of equal annual installments | 3 years |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting schedule of equal annual installments | 1 year |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in Company's standard product warranty reserve [Roll Forward] | ||||
Total product warranty reserve at the beginning of the period | $ 130 | $ 130 | $ 160 | $ 130 |
Warranty expense to cost of revenue | 11 | 17 | 90 | 51 |
Utilization | (11) | (17) | (120) | (51) |
Total product warranty reserve at the end of the period | $ 130 | $ 130 | $ 130 | $ 130 |
Product Warranties (Details Tex
Product Warranties (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | |
Product Warranties (Textual) [Abstract] | ||
Current portions of warranty reserve | $ 88 | $ 120 |
Non-current portions of the warranty reserve | $ 42 | $ 40 |
IBW [Member] | Minimum [Member] | ||
Product Warranties (Textual) [Abstract] | ||
Standard Product Warranty Description | one | |
IBW [Member] | Maximum [Member] | ||
Product Warranties (Textual) [Abstract] | ||
Standard Product Warranty Description | five | |
ISM [Member] | ||
Product Warranties (Textual) [Abstract] | ||
Standard Product Warranty Description | one | |
CNS [Member] | Minimum [Member] | ||
Product Warranties (Textual) [Abstract] | ||
Standard Product Warranty Description | one | |
CNS [Member] | Maximum [Member] | ||
Product Warranties (Textual) [Abstract] | ||
Standard Product Warranty Description | seven years |
Variable Interest Entity and _2
Variable Interest Entity and Guarantee (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Apr. 02, 2013 | |
Concentration Risk [Line Items] | ||||||
Revenue | $ 7,649 | $ 7,159 | $ 23,319 | $ 23,730 | ||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, 50 Percent or Less Owned Persons | 36 | |||||
AKA [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Equity Method Investments | 100 | 100 | $ 100 | |||
Revenue | 300 | $ 300 | 900 | $ 1,000 | ||
Accounts Receivable, Net, Current | 200 | 200 | 200 | |||
Deferred Revenue | 300 | 300 | $ 500 | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 700 | $ 700 | ||||
AKA [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Deferred Tax Assets, Gross | $ 40,800,000 | $ 40,800,000 | |||
Deferred Tax Assets, Valuation Allowance | 40,800,000 | 40,800,000 | |||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 348,000 | ||||
Income tax benefit (expense) | $ (23,000) | $ (20,000) | $ 35,000 | $ (27,000) | |
Effective tax rate | (0.30%) | (0.10%) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - Cash and cash equivalents [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 11,441 | $ 20,690 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 11,441 | $ 20,690 |
Share Repurchases (Details Text
Share Repurchases (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | May 17, 2017 | Aug. 31, 2011 |
Share Repurchases (Textual) [Abstract] | |||||
Payments for Repurchase of Common Stock | $ 7,283 | $ 191 | |||
Class A Common Stock | |||||
Share Repurchases (Textual) [Abstract] | |||||
Treasury Stock, Shares, Acquired | 4,900,000 | ||||
Treasury stock acquired volume weighted-average price | $ 1.48 | ||||
Payments for Repurchase of Common Stock | $ 7,200 | ||||
Class A Common Stock | MayTwoThousandSeventeenAuthorization [Member] | |||||
Share Repurchases (Textual) [Abstract] | |||||
Treasury Stock, Shares, Acquired | 0 | 0 | |||
Stock Repurchase Program | $ 2,000 | ||||
Stock Repurchase Program Remaining Authorized Repurchases Amount | $ 700 | ||||
Class A Common Stock | August 2011 authorization [Member] | |||||
Share Repurchases (Textual) [Abstract] | |||||
Stock Repurchase Program | $ 20,000 | ||||
Stock Repurchase Program Remaining Authorized Repurchases Amount | $ 100 | ||||
Class A Common Stock | Outside of Publically Announced Repurchase Program [Member] | |||||
Share Repurchases (Textual) [Abstract] | |||||
Treasury Stock, Shares, Acquired | 65,488 | 92,183 | |||
Treasury stock acquired volume weighted-average price | $ 0.81 | $ 2.07 |
Intangibles Assets (Details 1)
Intangibles Assets (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible amortization | $ 226 | $ 308 | $ 677 | $ 924 |
costofrevenue [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible amortization | 39 | 98 | 118 | 163 |
totalamortization [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible amortization | $ 265 | $ 406 | $ 795 | $ 1,087 |
Intangibles Assets (Details 2)
Intangibles Assets (Details 2) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | $ 1,933 | $ 2,728 |
Finite-Lived Intangible Assets, Accumulated Amortization | (71,985) | (71,190) |
Finite-Lived Intangible Assets, Gross | 73,918 | 73,918 |
Order or Production Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | 0 | 0 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,530) | (1,530) |
Finite-Lived Intangible Assets, Gross | 1,530 | 1,530 |
Customer-Related Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | 971 | 1,388 |
Finite-Lived Intangible Assets, Accumulated Amortization | (22,289) | (21,872) |
Finite-Lived Intangible Assets, Gross | 23,260 | 23,260 |
License [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | 565 | 683 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,385) | (1,267) |
Finite-Lived Intangible Assets, Gross | 1,950 | 1,950 |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | 397 | 657 |
Finite-Lived Intangible Assets, Accumulated Amortization | (44,798) | (44,538) |
Finite-Lived Intangible Assets, Gross | 45,195 | 45,195 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | 0 | 0 |
Finite-Lived Intangible Assets, Accumulated Amortization | (510) | (510) |
Finite-Lived Intangible Assets, Gross | 510 | 510 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | 0 | 0 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,473) | (1,473) |
Finite-Lived Intangible Assets, Gross | $ 1,473 | $ 1,473 |
Intangibles Assets (Details 3)
Intangibles Assets (Details 3) $ in Thousands | Dec. 31, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | $ 266 | [1] |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 923 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 535 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 157 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 52 | |
FiniteLivedIntangibleAssetExpectedAmortizationAfterYearFour | $ 0 | |
[1] | Represents the future intangible amortization expense expected to be made over the remaining balance of the fiscal year. |
Intangibles Assets (Details Tex
Intangibles Assets (Details Textual) - USD ($) | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of Intangible Assets, Finite-lived | $ 0 | $ 0 |
Maximum [Member] | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Minimum [Member] | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 2 years |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Accrued Liabilities [Abstract] | ||
Accrued compensation | $ 858 | $ 596 |
Accrued contractual obligation | 1,445 | 1,445 |
Accrued expenses | 440 | 339 |
Other accrued expenses | 477 | 756 |
Total accrued expenses | $ 3,220 | $ 3,136 |
Land Property and Equipment (De
Land Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 672 | $ 672 |
Machinery and equipment | 1,430 | 1,415 |
Office, computer and research equipment | 4,804 | 5,112 |
Leasehold improvements | 788 | 788 |
Land, property and equipment, gross | 7,694 | 7,987 |
Less accumulated depreciation and amortization | (6,736) | (6,911) |
Land, property and equipment, net | $ 958 | $ 1,076 |
Land Property and Equipment Tex
Land Property and Equipment Textual (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Impairment of Long-Lived Assets to be Disposed of | $ 0 | $ 0 |
Restructuring and Related Act_2
Restructuring and Related Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring Charges | $ 0 | $ 234 | $ 0 | $ 234 |