All posts by xialiangzhang2017

LSC misses estimate, shares drop

By Charlene Zhang
Medill Reports

Shares of commercial printer LSC Communications Inc. (NYSE: LKSD), one of two spinoffs from R. R. Donnelley & Sons Co., plummeted 7 percent as adjusted earnings missed Wall Street’s estimate and the company reported a GAAP net loss of $58 million, or $1.68 per diluted share, in the fourth quarter ended Dec. 31, compared with net income of $9 million, or 26 cents per diluted share, in the fourth quarter of 2016.

But sales increased 8.7 percent to $999 million from $919 in the year-earlier period, boosted by recent acquisitions of a supply chain solutions provider The Clark Group and a producer of envelopes and mailing supplies Quality Park.

The net loss was largely explained by goodwill impairment charges of $33 million and onetime provisional tax charges of $24 million resulting from the enactment of the 2017 tax reform legislation.

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Westell swings to profit despite revenue drop

By Charlene Zhang
Medill Reports

Westell Technologies Inc. (NASDAQ: WSTL), a wireless infrastructure solutions provider, earned $799,000, or 5 cents per diluted share, in its third quarter ended Dec. 31, compared with a loss of $1.8 million, or 12 cents per share, slightly beating the lone analyst’s estimate of a profit of 3 cents per share, despite a shrinkage of revenue.

In a conference call the company emphasized a sequential improvement from earnings of $720,000 in the prior quarter ended Sept. 30.

Third-quarter revenues declined 8.7 percent to $13.7 million from $15 million in the year-earlier period.

“We generated even higher profit margins and cash flow in a historically low revenue quarter,” said Westell’s interim CEO Kirk Brannock in a prepared statement. “These positive results illustrate the tremendous operating leverage we now have in the business.”

Brannock added in a conference call that sequentially decreasing revenue of the In-Building Wireless segment is expected to be boosted by Westell’s current set of public safety products and growing original equipment manufacturer (OEM) initiatives that will bring certified solutions from third parties to increase market share.

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