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Westell Technologies Reports Second Quarter Revenue Of

The following excerpt is from the company's SEC filing.

$25.5 million

Sequential revenue growth of 18% and gross margin of

AURORA, IL,

October 28, 2015

– Westell Technologies, Inc. (NASDAQ: WSTL), a leading provider of in-building wireless, intelligent site management, cell site optimization, and outside plant solutions, today announced results for its fiscal

second quarter

ended

September 30, 2015

Consolidated revenue was

, consisting of

$10.8 million

from the In-Building Wireless (IBW) segment and

$14.7 million

from the Communication Solutions Group (CSG) segment. B oth IBW and CSG segment revenues were up sequentially, increasing

, respectively.

“We made good progress in the fiscal second quarter in executing our growth and operational turnaround strategy. We achieved solid top and bottom line improvements, including double-digit sequential revenue increases for our intelligent site management and tower-mounted amplifier product lines,” said Tom Gruenwald, Chairman and CEO of Westell Technologies. “Our non-GAAP operating expenses rose this quarter as we are making the necessary changes in our sales organization to increase customer engagement, and we also recently appointed a Chief Technology Officer to guide our product evolution strategy. These are important investments that position Westell to expand market opportunities and drive future revenue growth.”

On a GAAP basis, the Company recorded a net loss in the quarter ended

$2.5 million

per share, compared to a net loss of $3.9 million or $0.06 per share in the quarter ended June 30, 2015. On a non-GAAP basis, the Company recorded a net loss in the quarter ended

$0.7 million

per share, compared to a non-GAAP net loss of

$2.0 million

per share in the prior quarter. Please refer to the schedule at the end of this release for a complete GAAP to non-GAAP reconciliation and other information related to non-GAAP measures.

Cash and short-term investments were

$36.4 million

, compared to $36.9 million at June 30, 2015. The net cash use during the quarter was primarily the result of capital expenditures associated with our ClearLink DAS project, partly offset by positive operating cash flow due to a reduced net loss and lower inventory.

In-Building Wireless (IBW) Segment

IBW segment revenue was

from $9.1 million in the quarter ended June 30, 2015. The sequential increase was driven by higher revenues across all product categories - DAS conditioners, repeaters, and ancillary products - and included record quarterly sales of our active DAS conditioner, the Universal DAS Interface Tray (UDIT). Gross profit was

and gross margin was

, compared to $4.0 million and 44.1% in the prior quarter. Gross profit increased due to the higher revenue while gross margin decreased slightly due to a less favorable mix. IBW R&D expenses were

$2.8 million

, compared to $3.2 million in the prior quarter. As a result, IBW segment profit was

$1.8 million

, compared to segment profit of $0.8 million in the quarter ended June 30, 2015.

Communication Solutions Group (CSG) Segment

CSG segment revenue was

from $12.5 million in the quarter ended June 30, 2015. The sequential increase was driven by higher revenues across all product categories - intelligent site management (ISM), tower mounted amplifiers, and outside plant solutions - including the highest quarterly revenue level for ISM since December 2013. Gross profit was

$5.7 million

compared to $4.4 million and 35.4% in the prior quarter. Gross profit and gross margin increased due primarily to the higher revenue. CSG R&D expenses were

$1.9 million

in both the current and prior quarter. As a result, CSG segment profit was

$3.8 million

, compared to $2.5 million in the quarter ended June 30, 2015.

Conference Call Information

Management will discuss financial and business results during the quarterly conference call on Thursday, October 29, 2015 at 9:30 AM Eastern Time. Investors may quickly register online in advance of the call at

https://www.conferenceplus.com/westell

. After registering, participants receive dial-in numbers, a passcode and a registration ID that is used to uniquely identify their presence and automatically join them into the audio conference. A participant may also register by telephone on October 29 by calling 888-206-4073 no later than 9:15 AM Eastern Time (8:15 AM Central Time) and providing the operator confirmation number 40912997.

This news release and related information that may be discussed on the conference call, will be posted on the Investor Relations section of Westell's website:

www.westell.com

. A digital recording of the entire...


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