Learn how to read an income statement sometime, wouldja? Gross Margins for Equipment sales DECLINED 50% year over year:
Westell Technologies, Inc.
Pro forma Financial Results
Excluding Amortization of Goodwill and Inventory Step-up
(Dollars in thousands except per share amounts)
Three Months ended June 30,
2000 1999(A) % Change
(unaudited)
Revenues
TAP $30,221 $13,824 119%
Transport systems 6,017 2,189 175%
CPE 61,880 1,175 5166%
Services 9,758 6,971 40%
Total revenues 107,876 24,159 347%
Gross profit
Equipment 20,477(B) 5,277
Services 3,650 2,228
Total gross profit 24,127 7,505 221%
Gross margin
Equipment 20.9% (2) 30.7%
Services 37.4% 32.0%
Total gross margin 22.4% 31.1%
Operating expenses
Sales & marketing 7,379 3,697 100%
Expense to revenue 6.8% 15.3%
General & administrative 5,664 3,240 75%
Expense to revenue 5.3% 13.4%
Research & development 7,438 3,597 107%
Expense to revenue 6.9% 14.9%
Goodwill amortization - (C) -
Total operating expenses 20,481 10,534 94%
Expense to revenue 19.0% 43.6%
Operating income (loss) 3,646 (3,029) -220%
Other income 169 (159) -206%
Interest expense 119 244 -51%
Income (loss) before tax benefit 3,696 (3,432) -208%
Benefit for income taxes -(D) - NM
Effective tax rate 0.0% 0.0%
Net income (loss) $3,696 $(3,432) NM
Loss per common share:
Basic 0.06 (0.09) NM
Diluted 0.06 - (E) NM
Average number of common
shares outstanding:
Basic 62,652 36,468
Diluted 66,114 - (E)
Footnotes:
(A) Year over year comparisons effected by the acquisition of Teltrend,
Inc.
(B) Pro forma impact of excluding approximately $970,000 of inventory
revaluation related to the Teltrend acquisition.
(C) Pro forma impact of excluding approximately $8 million of goodwill
amortization related to Teltrend acquisition.
(D) A valuation reduction in the reserve of $1.5 million would have been
recorded during the current quarter.
(E) Loss year impact of dilution is anti-dilutive, therefore dilutive
presentation is not applicable. |
