Westell Technologies, Inc. (NASDAQ:WSTL) Q1 2020 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 09:30 am ET


Westell Technologies, Inc. (NASDAQ:WSTL) Q1 2020 Earnings Conference Call - Final Transcript


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Welcome to the Westell Fiscal Year 2020 First Quarter Earnings Call. My name is Ellen, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session. [Operator Instructions] Please note that this conference call is being recorded.

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

Thomas Minichiello

Thank you, Ellen. Good morning, and welcome to our conference call to discuss the fiscal year 2020 first 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 a discussion of our business and growth initiatives. 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, 2019, 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.

Steven Busch

Thank you, Tom. Good morning, everyone. As described in our news release, on a sequential quarter basis, increased revenue from our IBW business in 1Q was more than offset by lower revenue from our ISM and CNS segments. While we achieved increased sales across all IBW product lines, we were particularly pleased to recognize our first revenue from public safety products that are now part of a suite of new Class A repeaters we've been working to bring to market under an OEM partnership agreement.

As mentioned during our last call in May, we had testing delays with some of these products that I'm happy to now report have since been resolved. In our other two business segments, lower sales of remote units affected ISM revenue, while the CNS