Westell Technologies, Inc. (NASDAQ:WSTL) Q3 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 09:30 am ET


Westell Technologies, Inc. (NASDAQ:WSTL) Q3 2019 Earnings Conference Call Transcript


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Good morning and welcome to the Westell Fiscal Year 2019 Third Quarter Earnings Call. My name is Cheryl and I will be your operator for today's call. (Operator Instructions) Please note that this conference is being recorded.

I will now turn the call over to Tom Minichiello, Westell's Chief Financial Officer. Sir, you may begin.

Tom Minichiello

Thank you, Cheryl. Good morning and welcome to our conference call to discuss the fiscal year 2019 third quarter results for Westell Technologies. The news release we issued yesterday afternoon is posted on our website, westell.com. On this call, Stephen John, Westell's President and Chief Executive Officer, will begin with the discussion of our business and growth initiatives and I'll then update you on our financial results for the quarter and we'll conclude by taking questions.

Before we begin, please note that our presentation and discussion contain forward-looking statements about future results, performance or achievements, financial and otherwise. Words such as should, believe, expect, trend and similar expressions are intended to identify such forward-looking statements. These statements reflect management's current expectations, estimates, and assumptions. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Westell's actual results, performance or achievements to differ materially from those discussed. A description of factors that may affect our future results is provided in the Company's SEC filings including Form 10-K for the fiscal year ended March 31, 2018 under the section Risk Factors. The forward-looking statements made in this presentation are being made as of the date and time of this conference call. Westell disclaims any obligation to update or revise any forward-looking statements based on new information, future events or other factors.

Please also note that we present non-GAAP financial information in our news releases, because we believe that non-GAAP measures provide meaningful supplemental information to both management and investors. The non-GAAP information reflects the Company's core ongoing operating performance and facilitates comparisons across reporting periods. Our discussion of results today will include non-GAAP financial measures. We've provided reconciliations to the most comparable GAAP measures in our news release.

I will now turn the call over to Steve.

Stephen John

Thank you, Tom. Good morning, everyone. For fiscal 3Q, the sequential revenue increasess was attributed to the strong performance of our ISM segment. This was driven by increased demand for remote monitoring from two of our larger customers. First, business rebounded from the quarter before with the one domestic customer we noted during our last call.

Secondly, another one of our long-standing global customers increased their pace of upgrades to existing tower sites in two markets. This included both shipments of remote units and additional software licenses for our Optima Management System. On the flip side, overall revenue for our IBW and CNS segments declined on a sequential quarter basis. IBW was affected by low sales of DAS conditioners and the CNS product line, which primarily serve the outdoor network, were seasonally down. Within both of these business segments, however, revenue increased sequentially for