Westell Technologies, Inc. (WSTL) saw its loss widen to $5.81 million, or $0.09 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $2.47 million, or $0.04 a share. On the other hand, adjusted net loss for the quarter widened to $1.07 million, or $0.02 a share from a loss of $0.66 million or $0.01 a share, a year ago.
Revenue during the quarter plunged 30.31 percent to $17.78 million from $25.51 million in the previous year period. Gross margin for the quarter contracted 429 basis points over the previous year period to 35.81 percent. Operating margin for the quarter stood at negative 33.05 percent as compared to a negative 9.53 percent for the previous year period.
Operating loss for the quarter was $5.88 million, compared with an operating loss of $2.43 million in the previous year period.
"As anticipated, 2Q17 revenue was up significantly from 1Q17, and all three segments grew sequentially with IBW up 9%, ISMS up 23%, and CNS up 32%," said Kirk Brannock, president and chief executive officer of Westell Technologies. "We also made great progress on the expense side and the bottom line, as we are now seeing the positive effects of our initial actions to reduce expenses."
Operating cash flow turns negative
Westell Technologies, Inc. has spent $7.99 million cash to meet operating activities during the first half as against cash inflow of $0.23 million in the last year period.
Cash flow from investing activities was $10.06 million for the first half, down 47.52 percent or $9.11 million, when compared with the last year period.
The company has spent $0.32 million cash to carry out financing activities during the first six months as against cash outgo of $0.54 million in the last year period.
Cash and cash equivalents stood at $20.92 million as on Sep. 30, 2016, down 36.38 percent or $11.96 million from $32.88 million on Sep. 30, 2015.
Working capital drops significantly
Westell Technologies, Inc. has witnessed a decline in the working capital over the last year. It stood at $35.30 million as at Sep. 30, 2016, down 32.11 percent or $16.69 million from $52 million on Sep. 30, 2015. Current ratio was at 3.55 as on Sep. 30, 2016, down from 4.03 on Sep. 30, 2015.
Days sales outstanding went up to 73 days for the quarter compared with 57 days for the same period last year.
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