10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 0-18706

Black Box Corporation

(Exact name of registrant as specified in its charter)

Delaware	95-3086563
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1000 Park Drive, Lawrence, Pennsylvania	15055
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 724-746-5500

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o Accelerated filer þ Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company o Emerging growth company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes þ No

As of October 13, 2017, there were 15,137,708 shares of common stock, par value $.001 (the "common stock"), outstanding.

1

BLACK BOX CORPORATION

FOR THE QUARTER ENDED SEPTEMBER 30, 2017

INDEX

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements.
	Consolidated Balance Sheets.	3
	Consolidated Statements of Operations.	4
	Consolidated Statements of Comprehensive Income (Loss).	5
	Consolidated Statements of Cash Flows.	6
	Notes to the Consolidated Financial Statements.	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	19
Item 3.	Quantitative and Qualitative Disclosures about Market Risk.	27
Item 4.	Controls and Procedures.	28
PART II. OTHER INFORMATION
Item 6.	Exhibits.	29
SIGNATURE		30

2

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

BLACK BOX CORPORATION

CONSOLIDATED BALANCE SHEETS

	(Unaudited)
In thousands, except par value	September 30, 2017			March 31, 2017
Assets
Cash and cash equivalents	$	30,462		$	14,247
Accounts receivable, net of allowance for doubtful accounts of $4,600 and $4,084	124,408			128,544
Inventories, net	26,839			25,382
Costs/estimated earnings in excess of billings on uncompleted contracts	72,564			71,930
Assets held for sale	2,081			—
Other assets	30,952			28,544
Total current assets	287,306			268,647
Property, plant and equipment, net	25,064			29,103
Intangibles, net	63,084			68,820
Deferred tax asset	55,541			53,539
Other assets	8,224			7,008
Total assets	$	439,219		$	427,117
Liabilities
Accounts payable	$	71,412		$	69,858
Accrued compensation and benefits	17,379			21,576
Deferred revenue	28,316			31,624
Billings in excess of costs/estimated earnings on uncompleted contracts	13,637			16,536
Short-term debt	5,756			964
Other liabilities	35,350			36,955
Total current liabilities	171,850			177,513
Long-term debt	123,409			88,782
Other liabilities	16,835			19,173
Total liabilities	$	312,094		$	285,468
Stockholders’ equity
Preferred stock authorized 5,000, par value $1.00, none issued	$	—		$	—
Common stock authorized 100,000, par value $.001, 15,138 and 14,960 shares outstanding, 26,876 and 26,654 issued	26			26
Additional paid-in capital	509,688			506,449
Retained earnings	43,284			66,246
Accumulated other comprehensive income (loss)	(9,889		)	(15,481		)
Treasury stock, at cost 11,738 and 11,694 shares	(415,984		)	(415,591		)
Total stockholders’ equity	$	127,125		$	141,649
Total liabilities and stockholders’ equity	$	439,219		$	427,117

SeeNotes to the Consolidated Financial Statements

3

BLACK BOX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three-months ended						Six-months ended
	September 30 and October 1						September 30 and October 1
In thousands, except per share amounts	2017			2016			2017			2016
Revenues
Products	$	37,248		$	42,263		$	70,136		$	82,144
Services	156,916			176,486			315,672			355,085
Total	194,164			218,749			385,808			437,229
Cost of sales *
Products	21,166			27,213			40,193			50,146
Services	116,505			137,092			236,519			264,986
Total	137,671			164,305			276,712			315,132
Gross profit	56,493			54,444			109,096			122,097
Selling, general & administrative expenses	60,330			58,142			123,600			120,624
Asset impairment loss	1,426			536			1,426			536
Intangibles amortization	2,109			2,304			4,339			4,755
Operating income (loss)	(7,372		)	(6,538		)	(20,269		)	(3,818		)
Interest expense, net	1,801			1,050			3,019			2,257
Other expenses (income), net	(207		)	41			(77		)	(302		)
Income (loss) before provision for income taxes	(8,966		)	(7,629		)	(23,211		)	(5,773		)
Provision (benefit) for income taxes	2,434			(1,524		)	(2,064		)	808
Net income (loss)	$	(11,400	)	$	(6,105	)	$	(21,147	)	$	(6,581	)
Earnings (loss) per common share
Basic	$	(0.75	)	$	(0.40	)	$	(1.40	)	$	(0.44	)
Diluted	$	(0.75	)	$	(0.40	)	$	(1.40	)	$	(0.44	)
Weighted-average common shares outstanding
Basic	15,138			15,149			15,057			15,088
Diluted	15,138			15,149			15,057			15,088
Dividends declared per share	$	—		$	0.12		$	0.12		$	0.24

*Exclusive of depreciation and intangibles amortization.

SeeNotes to the Consolidated Financial Statements

4

BLACK BOX CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three-months ended						Six-months ended
	September 30 and October 1						September 30 and October 1
In thousands	2017			2016			2017			2016
Net income (loss)	$	(11,400	)	$	(6,105	)	$	(21,147	)	$	(6,581	)
Other comprehensive income (loss)
Foreign Currency Translation Adjustment	2,063			19			5,172			(1,803		)
Defined Benefit Pension
Actuarial gain (loss), net of taxes of $41, $137, $95, and $138	64			215			149			216
Amounts reclassified into results of operations, net of taxes of $12, ($70), $24, and ($207)	19			(110		)	37			(324		)
Derivative Instruments
Net change in fair value of cash flow hedges, net of taxes of ($141), ($189), ($568), and ($283)	(221		)	(295		)	(888		)	(443		)
Amounts reclassified into results of operations, net of taxes of $470, $185, $717, and $330	736			289			1,122			516
Other comprehensive income (loss)	$	2,661		$	118		$	5,592		$	(1,838	)
Comprehensive income (loss)	$	(8,739	)	$	(5,987	)	$	(15,555	)	$	(8,419	)

SeeNotes to the Consolidated Financial Statements

5

BLACK BOX CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six-months ended
	September 30 and October 1
In thousands	2017			2016
Operating Activities
Net income (loss)	$	(21,147	)	$	(6,581	)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities
Intangibles amortization	4,339			4,755
Depreciation	4,759			4,600
Loss (gain) on sale of property	28			(1,223		)
Deferred taxes	(1,842		)	2,119
Stock compensation expense	3,238			3,172
Asset impairment loss	1,426			536
Provision for obsolete inventory	262			9,688
Provision for (recovery of) doubtful accounts	545			277
Changes in operating assets and liabilities (net of acquisitions)
Accounts receivable	5,179			(7,607		)
Inventories	(986		)	6,824
Costs/estimated earnings in excess of billings on uncompleted contracts	(337		)	(5,108		)
All other assets	(1,000		)	(326		)
Accounts payable	1,942			4,866
Billings in excess of costs/estimated earnings on uncompleted contracts	(2,923		)	1,971
All other liabilities	(9,107		)	(2,281		)
Net cash provided by (used for) operating activities	$	(15,624	)	$	15,682
Investing Activities
Capital expenditures	(2,688		)	(3,875		)
Capital disposals	69			1,422
Net cash provided by (used for) investing activities	$	(2,619	)	$	(2,453	)
Financing Activities
Proceeds (repayments) from long-term debt	$	34,576		$	(17,922	)
Proceeds (repayments) from short-term debt	4,950			1,620
Deferred financing costs	(632		)	(1,049		)
Purchase of treasury stock	(393		)	(477		)
Payment of dividends	(3,611		)	(3,465		)
Increase (decrease) in cash overdrafts	(1,086		)	379
Net cash provided by (used for) financing activities	33,804			(20,914		)
Foreign currency exchange impact on cash	$	654		$	312
Increase/(decrease) in cash and cash equivalents	$	16,215		$	(7,373	)
Cash and cash equivalents at beginning of period	$	14,247		$	23,497
Cash and cash equivalents at end of period	$	30,462		$	16,124
Supplemental cash flow
Cash paid for interest	$	2,375		$	1,784
Cash paid for income taxes	224			(818		)
Non-cash financing activities
Dividends payable	—			1,818
Capital leases	19			166

SeeNotes to the Consolidated Financial Statements

6

BLACK BOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1: Business and Basis of Presentation

Business

Black Box Corporation ("Black Box," or "the Company”) is a leading digital solutions provider dedicated to helping customers design, build, manage, and secure their IT infrastructure. The Company offers Services and Products that it distributes through two platforms it has built over its 41-year history. The Services platform is comprised of engineering and design, network operations centers, technical certifications, national and international sales teams, remote monitoring, on-site service teams and technology partner centers of excellence which includes dedicated sales and engineering resources. The primary services offered through this platform include: (i) communications lifecycle services, (ii) unified communications, (iii) structured cabling, (iv) video/AV services (v) in-building wireless and (vi) data center services. The Products platform provides networking solutions through the sale of products including: (i) IT infrastructure, (ii) specialty networking, (iii) multimedia and (iv) keyboard/video/mouse ("KVM") switching. Founded in 1976, Black Box, a Delaware corporation, is headquartered near Pittsburgh in Lawrence, Pennsylvania.

Basis of Presentation

The accompanying unaudited interim consolidated financial statements of Black Box have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Company believes that these consolidated financial statements reflect all normal, recurring adjustments needed to present fairly the Company’s results for the interim periods presented. The results as of and for interim periods presented may not be indicative of the results of operations for any other interim period or for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission ("SEC") for the fiscal year ended March 31, 2017 (the "Form 10-K").

The Company’s fiscal year ends on March 31. The fiscal quarters consist of 13 weeks and end on the Saturday generally nearest each calendar quarter end, adjusted to provide relatively equivalent business days for each fiscal quarter. The actual ending dates for the periods presented in these Notes to the Consolidated Financial Statements as of September 30, 2017 and 2016 were September 30, 2017 and October 1, 2016, respectively. References herein to "Fiscal Year" or "Fiscal" mean the Company’s fiscal year ended March 31 for the year referenced. All references to dollar amounts herein are presented in thousands, except per share amounts, unless otherwise noted.

The consolidated financial statements include the accounts of the parent company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain items in the consolidated financial statements of prior years have been reclassified to conform to the current year’s presentation. These reclassifications had no effect on reported net income (loss), comprehensive income (loss), cash flows, total assets or total stockholders' equity.

The preparation of financial statements in conformity with GAAP requires Company management ("Management") to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include project progress towards completion to estimated budget, allowances for doubtful accounts receivable, sales returns, net realizable value of inventories, loss contingencies, warranty reserves, property, plant and equipment, intangible assets and goodwill. Actual results could differ from those estimates. Management believes the estimates made are reasonable.

In the second quarter of Fiscal 2018, Management completed a plan to sell the Company's current headquarters' building and adjacent vacant land and move to another local facility that better aligns to the needs of the business. Management believes it is probable that the sale will occur in the next twelve months. Assets associated with the sale, all of which are Property, plant and equipment, are presented as "Assets held for sale" on the Consolidated Balance Sheet as of September 30, 2017. There was no asset impairment charge, as these assets were already valued at the lower of net book value and fair value less estimated costs to sell. These assets are reported under the North America Products operating segment.

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Note 2: Significant Accounting Policies

Significant Accounting Policies

The significant accounting policies used in the preparation of the Company’s consolidated financial statements are disclosed in Note 2 of the Notes to the Consolidated Financial Statements within the Form 10-K. No additional significant accounting policies have been adopted during Fiscal 2018.

Recent Accounting Pronouncements

There have been no accounting pronouncements adopted during Fiscal 2018 that have had a material impact on the Company's consolidated financial statements.

In May 2014, the FASB issued ASC Update No. 2014-09, "Revenue from Contracts with Customers" ("ASC 2014-09"), with subsequent amendments, that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of ASC 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expected to be entitled in exchange for those goods or services. ASC 2014-09 is effective for annual reporting periods (including interim periods therein) beginning after December 15, 2017 for public companies with early adoption permitted for annual reporting periods (including interim periods therein) beginning after December 15, 2016. Entities can use either of two methods: (i) retrospective to each prior period presented with the option to elect certain practical expedients as defined within ASC 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASC 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASC 2014-09.

Given the work required to implement the recognition and disclosure requirements under the new standard, the Company has made progress through the second quarter of Fiscal 2018, including the application of the new standard in our new US-based ERP. The Company has not yet selected which transition method we will apply. We will continue to assess all potential impacts of the standard, and any preliminary conclusions are subject to change.

Note 3: Inventories

The Company’s Inventories consist of the following:

	September 30, 2017			March 31, 2017
Raw materials	$	1,910		$	1,708
Finished goods	35,307			35,036
Inventory, gross	$	37,217		$	36,744
Excess and obsolete inventory reserves	(10,378		)	(11,362		)
Inventories, net	$	26,839		$	25,382

Note 4: Intangible Assets

The following table summarizes the gross carrying amount, accumulated amortization and net carrying amount by intangible asset class:

	September 30, 2017						March 31, 2017
	Gross Carrying Amount		Accum. Amort.		Net Carrying Amount		Gross Carrying Amount		Accum. Amort.		Net Carrying Amount
Definite-lived
Non-compete agreements	$	842	$	842	$	—	$	833	$	833	$	—
Customer relationships	122,396		85,083		37,313		122,301		80,678		41,623
Total	$	123,238	$	85,925	$	37,313	$	123,134	$	81,511	$	41,623
Indefinite-lived
Trademarks	34,024		8,253		25,771		35,450		8,253		27,197
Total	$	157,262	$	94,178	$	63,084	$	158,584	$	89,764	$	68,820

The Company’s indefinite-lived intangible assets consist solely of the Company’s trademark portfolio. The Company’s definite-lived intangible assets consist solely of customer relationships.

During the second quarter of Fiscal 2018, the Company lowered its projections of revenue and profitability outlook for the foreseeable future. As a result, the Company conducted an interim assessment of both our definite-lived and indefinite lived intangible assets and determined such assets, with the exception of Trademarks, were recoverable as of July 1, 2017. For Trademarks, the Company recorded an Intangible asset impairment loss of $1,426 to reduce book value to fair value which is recorded in Asset impairment loss within the Company’s Consolidated Statements of Operations. The fair value of Trademarks was determined using an income approach that included level 3 inputs.

8

The following table summarizes the changes to the net carrying amounts by intangible asset class:

	Trademarks			Customer relationships			Total
March 31, 2017	$	27,197		$	41,623		$	68,820
Intangibles amortization	—			(4,339		)	(4,339		)
Foreign currency translation adjustment	—			29			29
Intangible asset impairment loss	(1,426		)	—			(1,426		)
September 30, 2017	$	25,771		$	37,313		$	63,084

The following table details the estimated intangibles amortization expense for the remainder of Fiscal 2018, each of the succeeding four fiscal years and the periods thereafter.

Fiscal
2018	$	3,253
2019	5,616
2020	5,119
2021	4,658
2022	3,057
Thereafter	15,610
Total	$	37,313

Note 5: Indebtedness

The Company’s Long-term debt consists of the following:

	September 30, 2017			March 31, 2017
Revolving credit agreement (1)	$	78,000		$	88,400
Term loan (1)	50,000			—
Other	1,165			1,346
Total debt	$	129,165		$	89,746
Less: current portion (2)	(5,756		)	(964		)
Long-term debt	$	123,409		$	88,782

(1) Refer below for additional details regarding the Company's amended credit agreement which includes a revolving credit agreement and a term loan.

(2) The Company's current portion of total debt primarily consists of minimum repayments of the term loan that are due in the next 12 months, which are $5,000 as of September 30, 2017.

In addition, the Company finances certain vendor-specific inventory under an unsecured revolving arrangement through third parties which provide extended payment terms beyond those offered by the vendor at no incremental cost to the Company. The outstanding balance for these unsecured revolving arrangements was $3,584 as of September 30, 2017, $3,366 of which is classified as a current liability, and $3,387 as of March 31, 2017, $3,169 of which was classified as a current liability. These balances are recorded as Other liabilities within the Company's Consolidated Balance Sheets.

On May 9, 2016, the Company refinanced its then existing $200,000 credit facility in the form of a line of credit pursuant to a new credit agreement (the "Credit Agreement") with PNC Bank, National Association, as administrative agent, Bank of America, N.A., as syndication agent, and certain other lender parties (the "Banks"). The Credit Agreement expires on May 9, 2021. Borrowings under the Credit Agreement were permitted up to a maximum amount of $200,000, and included up to $15,000 of swing-line loans and $25,000 of letters of credit. Interest on outstanding indebtedness under the Credit Agreement accrued, at the Company’s option, at a rate based on either: (a) a Base Rate Option equal to the highest of (i) the federal funds open rate, plus fifty (50) basis points (0.5%), (ii) the bank’s prime rate, and (iii) the daily LIBOR rate, plus 100 basis points (1.0%), in each case plus 0% to 1.00% (determined by a leverage ratio based on the Company’s consolidated EBITDA) or (b) a rate per annum equal to the LIBOR rate plus 1.00% to 2.00% (determined by a leverage ratio based on the Company’s consolidated EBITDA). The

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Credit Agreement required the Company to maintain compliance with certain non-financial and financial covenants such as leverage and interest coverage ratios.

The Company’s obligations under the Credit Agreement were secured by substantially all of the assets of the Company’s material direct and indirect subsidiaries that are incorporated (or organized) under the laws of the District of Columbia or under the laws of any state or commonwealth of the United States and are guaranteed by such domestic subsidiaries.

On August 9, 2017, the Company and certain of the Banks entered into an Amendment and Joinder Agreement to amend and restate the Credit Agreement (as amended and restated, the “Amended Credit Agreement”) in order to avoid a default of its leverage covenant. Under the Amended Credit Agreement, the credit facility has been reduced to $170,000 comprised of a $50,000 term loan and $120,000 line of credit. As of August 9, 2017, $50,000 was borrowed under the term loan and $52,528 remained outstanding under the line of credit. The amortization of the term loan is $1,250 per quarter for four (4) quarters beginning in the quarter ending December 31, 2017 and $2,500 per quarter beginning in the quarter ending December 31, 2018 through the end of the Amended Credit Agreement on May 9, 2021, the same expiration date of the Credit Agreement. Mandatory prepayments of the term loan are required with the net proceeds from certain asset sales, insurance recoveries and debt or equity issuances, as well as from 75% to 50% of any excess cash flow generated in Fiscal 2019 and Fiscal 2020. Interest on the term loan is, at the Company’s option: (i) a Base Rate Option equal to the highest of (i) the federal funds open rate, plus fifty (50) basis points (0.5%), (ii) the bank’s prime rate, and (iii) the daily LIBOR rate, plus 100 basis points (1.0%), in each case plus 2.5% or (ii) LIBOR plus 3.5%. Interest on outstanding indebtedness under the line of credit accrues, at the Company’s option, at a rate based on either: (a) the Base Rate Option plus 0.25% to 2.00% (determined by a leverage ratio based on the Company’s consolidated EBITDA) or (b) a rate per annum equal to the LIBOR rate plus 1.25% to 3.00% (determined by a leverage ratio based on the Company’s consolidated EBITDA).

Under the Amended Credit Agreement, the leverage ratio covenant is suspended until the second quarter of Fiscal 2019. The Amended Credit Agreement contains a minimum Adjusted EBITDA covenant and a provision requiring the Company to repay revolving credit loans with any excess cash. During that same period, a covenant will limit capital expenditures to an agreed upon amount. The ability of the Company to make dividends or other distributions (including stock repurchases other than up to a limited dollar amount for tax payments from vested equity awards) has been eliminated.

The leverage ratio covenant that starts in the second quarter of Fiscal 2019 will be 4.00 to 1.00 and will reduce to 3.00 to 1.00 over the remaining life of the credit facility. A fixed charge coverage ratio of 1.00 to 1.00 begins in the second quarter of Fiscal 2019 increasing to 1.10 to 1.00 in the fourth quarter of Fiscal 2019 and thereafter.

The Company’s obligations under the Amended Credit Agreement are secured by substantially all of the assets of the Company and the Company’s direct and indirect subsidiaries that are incorporated (or organized) under the laws of the District of Columbia or under the laws of any state or commonwealth of the United States (a “U.S. Entity”) and are guaranteed by such domestic subsidiaries. Under the Amended Credit Agreement, the Company and each U.S. Entity pledged 65% of the voting ownership interests and 100% of the non-voting ownership interests of its foreign subsidiaries.

The cost of the Amended Credit Agreement was approximately $632, substantially all of which will be amortized over the remaining term of the Amended Credit Agreement. In 2Q18, we recognized expense of $204 related to the write-off of deferred amortization costs of our Credit Agreement due to the reduction in size of the facility in the Amended Credit Agreement.

Our Amended Credit Agreement contains covenants requiring us to achieve a certain minimum adjusted EBITDA during each quarter through the first quarter of Fiscal 2019. A leverage ratio and a fixed charge coverage ratio commence in the second quarter of Fiscal 2019 through maturity in May 2021. The covenants in our Amended Credit Agreement were determined based upon our current expectation of revenues and profitability. If we fail to achieve our expected revenues and profitability, we could fail to maintain compliance with the covenants in our Amended Credit Agreement. There can be no assurance that we will be able to remain in compliance with these or other covenants in our Amended Credit Agreement.

The maximum amount of debt outstanding under the Credit Agreement, the weighted-average balance outstanding under the Credit Agreement and the weighted-average interest rate on all outstanding debt for the three-months ended September 30, 2017 was $140,648, $133,615 and 3.9%, respectively, compared to $145,100, $131,973 and 2.6%, respectively, for the three-months ended September 30, 2016. The maximum amount of debt outstanding under the Credit Agreement, the weighted-average balance outstanding under the Credit Agreement and the weighted-average interest rate on all outstanding debt for the six-months ended September 30, 2017 was $171,237, $137,054 and 3.3%, respectively, compared to $150,075, $132,643 and 2.5%, respectively, for the six-months ended September 30, 2016.

As of September 30, 2017, the Company had $4,850 outstanding in letters of credit and $37,150 in unused commitments, which are limited by a financial covenant, under the Amended Credit Agreement.

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Note 6: Derivative Instruments and Hedging Activities

The Company is exposed to certain market risks, including the effect of changes in foreign currency exchange rates and interest rates. The Company uses derivative instruments to manage financial exposures that occur in the normal course of business. It does not hold or issue derivatives for speculative trading purposes. The Company is exposed to non-performance risk from the counterparties in its derivative instruments. This risk would be limited to any unrealized gains on current positions. To help mitigate this risk, the Company transacts only with counterparties that are rated as investment grade or higher and all counterparties are monitored on a continuous basis. The fair value of the Company’s derivatives reflects this credit risk.

The Company enters into foreign currency contracts to hedge exposure to variability in expected fluctuations in foreign currencies. All of the foreign currency contracts have been designated and qualify as cash flow hedges. The effective portion of any changes in the fair value of the derivative instruments is recorded in Accumulated Other Comprehensive Income ("AOCI") until the hedged forecasted transaction occurs or the recognized currency transaction affects earnings. Once the forecasted transaction occurs or the recognized currency transaction affects earnings, the effective portion of any related gains or losses on the cash flow hedge is reclassified from AOCI to the Company’s Consolidated Statements of Operations.

As of September 30, 2017, the Company had open contracts in Australian and Canadian dollars, Danish krone, Euros, Mexican pesos, Norwegian kroner, British pounds sterling, Swedish krona, Swiss francs and Japanese yen, all of which have been designated as cash flow hedges. These contracts had a notional amount of $43,012 and will expire within 4 months. There was no hedge ineffectiveness during Fiscal 2018 or Fiscal 2017.

The following tables summarize the carrying amounts of derivative assets/liabilities and the impact on the Company’s Consolidated Statements of Operations:

		Asset Derivatives				Liability Derivatives
		September 30,		March 31,		September 30,		March 31,
	Classification	2017		2017		2017		2017
Derivatives designated as hedging instruments
Foreign currency contracts	Other liabilities (current)					$	966	$	573
Foreign currency contracts	Other assets (current)	$	160	$	87

		Three-months ended						Six-months ended
		September 30						September 30
	Classification	2017			2016			2017			2016
Derivatives designated as hedging instruments
Gain (loss) recognized in other comprehensive income (effective portion), net of taxes	Other comprehensive income	$	(221	)	$	(295	)	$	(888	)	$	(443	)
Amounts reclassified from AOCI into results of operations (effective portion), net of taxes	Selling, general & administrative expenses	736			289			1,122			516

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Note 7: Fair Value Disclosures

Recurring fair value measurements

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2017, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value:

	Level 1		Level 2		Level 3		Total
Assets at Fair Value
Defined benefit pension plan assets(1)	$	22,261	$	11,667	$	—	$	33,928
Foreign currency contracts	$	—	$	160	$	—	$	160
Total Assets at Fair Value	$	22,261	$	11,827	$	—	$	34,088
Liabilities at Fair Value
Foreign currency contracts	$	—	$	966	$	—	$	966

(1) The fair value of pension plan assets is measured annually, thus this value is as of March 31, 2017.

Non-recurring fair value measurements

The Company's assets and liabilities that are measured at fair value on a non-recurring basis include non-financial assets and liabilities initially measured at fair value in a business combination.

Note 8: Stockholder's Equity

Accumulated Other Comprehensive Income

The components of AOCI consisted of the following for the periods presented:

	September 30, 2017			March 31, 2017
Foreign Currency Translation Adjustment	$	1,329		$	(3,843	)
Derivative Instruments	(114		)	(348		)
Defined Benefit Pension	(11,104		)	(11,290		)
Accumulated other comprehensive income	$	(9,889	)	$	(15,481	)

Common Stock Repurchases

The following table presents information about the Company's common stock repurchases:

	Three-months ended				Six-months ended
	September 30				September 30
	2017		2016		2017		2016
Shares of common stock purchased	—		—		44,507		39,735
Aggregate purchase price	$	—	$	—	$	393	$	477
Average purchase price	$	—	$	—	$	8.84	$	12.01

During the six-month period ended September 30, 2017, the Company made tax payments of $393 and withheld 44,507 shares of common stock, which were designated as treasury shares, at an average price per share of $8.84, in order to satisfy employee income taxes due as a result of the vesting of certain restricted stock units. During the six-month period ended September 30, 2016, the Company made tax payments of $477 and withheld 39,735 shares of common stock, which were designated as treasury shares, at an average price per share of $12.01, in order to satisfy employee income taxes due as a result of the vesting of certain restricted stock units.

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Since the inception of its repurchase programs beginning in April 1999 and through September 30, 2017, the Company has repurchased 11,392,851 shares of common stock for an aggregate purchase price of $408,621, or an average purchase price per share of $35.87. These shares do not include the treasury shares withheld for tax payments due upon the vesting of certain restricted stock units and performance shares. As of September 30, 2017, 1,107,149 shares were available under the most recent repurchase programs.

Under the Amended Credit Agreement, the Company is no longer permitted to repurchase common stock through its repurchase program but is allowed to repurchase a limited amount of shares for tax payments related to the vesting certain restricted stock units and performance shares, as applicable. This restriction is in effect until May 9, 2021. The Company expects to use the funds that were previously available for stock repurchases to supplement spending for our previously announced US-based ERP project and to develop and implement growth initiatives for the Company, both of which we believe will create long-term shareholder value. See Note 5 for additional information regarding our Amended Credit Agreement.

Note 9: Income Taxes

The Company's provision for income taxes for the three-months ended September 30, 2017 was $2,434, an effective tax rate of (27.1)% on a loss before provision for income taxes of $8,966, compared to a benefit from income taxes of $1,524, an effective tax rate of 20.0% on a loss before benefit from income taxes of $7,629 for the three-months ended September 30, 2016. The effective tax rate decrease from 20.0% to (27.1)% was primarily due to the mix of income and losses across various taxing jurisdictions along with valuation allowances recorded against federal foreign tax credits and state and foreign net operating losses. The Company's benefit from income taxes for the six-months ended September 30, 2017 was $2,064, an effective tax rate of 8.9% on a loss before benefit from income taxes of $23,211, compared to a provision for income taxes of $808, an effective tax rate of (14.0)% on a loss before provision for income taxes of $5,773 for the six-months ended September 30, 2016. The effective tax rate increase from (14.0)% to 8.9% was primarily due to the mix of income and losses across various taxing jurisdictions along with valuation allowances recorded against federal foreign tax credits and state and foreign net operating losses. The effective tax rate for the six-months ended September 30, 2017 of (27.1)% differs from the federal statutory rate primarily due to valuation allowances recorded against federal foreign tax credits and state and foreign net operating losses along with the reduction of deferred tax assets associated with equity awards and the mix of income across various taxing jurisdictions.

The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate adjusted for certain discrete items for the full fiscal year. Cumulative adjustments to the Company's estimate are recorded in the interim period in which a change in the estimated annual effective rate is determined.

Fiscal 2013 through Fiscal 2017 remain open to examination by the Internal Revenue Service ("IRS") and Fiscal 2011 through Fiscal 2017 remain open to examination by certain state and foreign taxing jurisdictions.

A valuation allowance is provided on deferred tax assets if determined that it is more likely than not that the asset will not be realized. The Company considers all available evidence, both positive and negative, in assessing the need for a valuation allowance in each taxing jurisdiction. The evidence considered in evaluating deferred tax assets includes but is not limited to cumulative financial income over the three-year period ended September 30, 2017, excluding significant one-time charges for impairment (goodwill and other), the composition and reversal patterns of existing taxable and deductible temporary differences between financial reporting and tax, and subjective projected future income.

Based on the available evidence, a valuation allowance of $5,192 has been recorded against deferred tax assets relating to U.S. Federal foreign tax credits for $3,800, and state and foreign net operating losses for $1,000 and $392, respectively. Future positive and negative events, such as the significant underperformance relative to projected or future operating results, will be monitored accordingly and a determination will be made on the ability to realize deferred tax assets at that time.

Note 10: Stock-based Compensation

In August 2008, the Company’s stockholders approved the 2008 Long-Term Incentive Plan, as amended (the "Incentive Plan"), which replaced the 1992 Stock Option Plan, as amended, and the 1992 Director Stock Option Plan, as amended. As of September 30, 2017, the Incentive Plan is authorized to issue stock options, restricted stock units and performance shares, among other types of awards, for up to 6,491,631 shares of common stock, par value $0.001 per share (the "common stock").

The Company recognized stock-based compensation expense of $1,040 and $939 for the three-months ended September 30, 2017 and 2016, respectively, and $3,238 and $3,172 for the six-months ended September 30, 2017 and 2016, respectively. The Company recognized total income tax benefit for stock-based compensation arrangements of $387 and $349 for the three-months ended September 30, 2017 and 2016, respectively, and $1,205 and $1,180 for the six-months ended September 30, 2017 and 2016,

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respectively. Stock-based compensation expense is recorded in Selling, general & administrative expenses within the Company’s Consolidated Statements of Operations.

Stock options

Stock option awards are granted with an exercise price equal to the closing market price of the common stock on the date of grant; such stock options generally become exercisable in equal amounts over a three-year period and have a contractual life of ten years from the grant date. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model, which includes the following weighted-average assumptions.

	Six-months ended
	September 30
	2017		2016
Expected life (in years)	6.1		6.8
Risk-free interest rate	2.1	%	1.6	%
Annual forfeiture rate	2.7	%	1.8	%
Expected volatility	45.3	%	41.7	%
Dividend yield	3.9	%	3.1	%

The following table summarizes the Company’s stock option activity:

	Shares (in 000’s)		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Intrinsic Value (000’s)
March 31, 2017	1,080		$	21.84
Granted	609		8.10
Exercised	—		—
Forfeited or cancelled	(110	)	20.02
September 30, 2017	1,579		$	16.67	6.4	$	—
Exercisable	744		$	24.93	3.2	$	—

The weighted-average grant-date fair value of options granted during the six-months ended September 30, 2017 and 2016 was $2.51 and $3.74, respectively. The intrinsic value of options exercised during the six-months ended September 30, 2017 and 2016 was $0 and $0, respectively. The aggregate intrinsic value in the preceding table is based on the closing stock price of the common stock on September 29, 2017, which was $3.25.

The following table summarizes certain information regarding the Company’s non-vested stock options:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
March 31, 2017	419		$	4.45
Granted	609		2.51
Vested	(159	)	4.99
Forfeited	(33	)	4.45
September 30, 2017	836		$	2.93

As of September 30, 2017, there was $1,958 of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options, which is expected to be recognized over a weighted-average period of 2.3 years.

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Restricted stock units

Restricted stock unit awards are subject to a service condition and typically vest in equal amounts over a three-year period from the grant date. The fair value of restricted stock units is determined based on the number of restricted stock units granted and the closing market price of the common stock on the date of grant.

The following table summarizes the Company’s restricted stock unit activity:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
March 31, 2017	340		$	14.24
Granted	420		8.03
Vested	(223	)	12.38
Forfeited	(25	)	13.66
September 30, 2017	512		$	9.99

The total fair value of shares that vested during the six-months ended September 30, 2017 and 2016 was $1,894 and $2,039, respectively.

As of September 30, 2017, there was $3,636 of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock units, which is expected to be recognized over a weighted-average period of 2.1 years.

Performance share awards

Performance share awards are subject to one of the performance goals - the Company's Relative Total Shareholder Return ("TSR") Ranking or cumulative Adjusted EBITDA - each over a three-year period. The Company’s Relative TSR Ranking metric is based on the three-year cumulative return to stockholders from the change in stock price and dividends paid between the starting and ending dates. The fair value of performance share awards (subject to cumulative Adjusted EBITDA) is determined based on the number of performance shares granted and the closing market price of the common stock on the date of grant. The fair value of performance share awards (subject to the Company’s Relative TSR Ranking) is estimated on the grant date using the Monte-Carlo simulation valuation method which includes the following weighted-average assumptions.

	Six-months ended
	September 30
	2017		2016
Risk-free interest rate	1.4	%	0.9	%
Expected volatility	46.7	%	45.1	%
Dividend yield	3.9	%	3.4	%

The following table summarizes the Company’s performance share award activity:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
March 31, 2017	319		$	15.93
Granted	309		8.26
Vested	(68	)	23.05
Forfeited	(33	)	14.66
September 30, 2017	527		$	10.60

The total fair value of shares that vested during the six-months ended September 30, 2017 and 2016 was $0 and $0, respectively, as there were no payouts because certain performance obligations were not met.

As of September 30, 2017, there was $2,319 of total unrecognized pre-tax stock-based compensation expense related to non-

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vested performance share awards, which is expected to be recognized over a weighted-average period of 2.3 years.

Note 11: Earnings (loss) Per Share

The following table details the computation of basic and diluted earnings (loss) per common share from continuing operations for the periods presented (share numbers in table in thousands):

	Three-months ended						Six-months ended
	September 30						September 30
	2017			2016			2017			2016
Net income (loss)	$	(11,400	)	$	(6,105	)	$	(21,147	)	$	(6,581	)
Weighted-average common shares outstanding (basic)	15,138			15,149			15,057			15,088
Effect of dilutive securities from equity awards	—			—			—			—
Weighted-average common shares outstanding (diluted)	15,138			15,149			15,057			15,088
Basic earnings (loss) per common share	$	(0.75	)	$	(0.40	)	$	(1.40	)	$	(0.44	)
Dilutive earnings (loss) per common share	$	(0.75	)	$	(0.40	)	$	(1.40	)	$	(0.44	)

The Weighted-average common shares outstanding (diluted) computation is not impacted during any period where the exercise price of a stock option is greater than the average market price. There were 2,507,792 and 1,333,272 non-dilutive equity awards outstanding for the three-months ended September 30, 2017 and 2016, respectively, and 2,507,792 and 1,339,604 non-dilutive equity awards outstanding for the six-months ended September 30, 2017 and 2016, respectively, that are not included in the corresponding period Weighted-average common shares outstanding (diluted) computation.

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Note 12: Segment Information

The Company conducts business globally and is managed on a geographic-service type basis consisting of four operating segments which are (i) North America Products, (ii) North America Services, (iii) International Products and (iv) International Services. These operating segments are also the Company's reporting units for purposes of testing goodwill for impairment and its reporting segments for financial reporting purposes. Revenues within our North America segments are primarily attributed to the United States while revenues within our International segments are attributed to countries in Europe, the Pacific Rim and Latin America.

The accounting policies of the operating segments are the same as those of the Company. The Company allocates resources to its operating segments and evaluates the performance of the operating segments based upon operating income.

During the second quarter of Fiscal 2018, as a result of changes in our management structure of certain segments, several entities were realigned to different segments. The segment information outlined below is reflective of this realignment for the second quarter. If the first quarter of Fiscal 2018 results were included in the 2QYTD18 Revenues and Gross profit, Revenues would be $36,650, $31,591, and $16,404, and Gross profit would be $16,763, $12,757, and $3,511 for North America Products, International Products, and International Services, respectively.

The financial results for the Company's reporting segments are as follows:

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	North America Products			North America Services			International Products			International Services			Total
2Q18
Revenues	$	19,858		$	148,533		$	17,390		$	8,383		$	194,164
Gross profit	9,145			38,536			6,937			1,875			56,493
Operating income (loss)	1,848			(7,177		)	(361		)	(1,682		)	(7,372		)
Depreciation	451			1,702			175			107			2,435
Intangibles amortization	—			1,984			125			—			2,109
Restructuring expense	(659		)	697			(1,073		)	1,182			147
Asset impairment loss	—			1,426			—			—			1,426
Capital expenditures	204			1,009			120			258			1,591
Assets (as of September 30)	62,527			318,149			43,112			15,431			439,219
2Q17
Revenues	$	20,954		$	169,782		$	21,309		$	6,704		$	218,749
Gross profit	6,533			37,955			8,517			1,439			54,444
Operating income (loss)	(749		)	(6,106		)	65			252			(6,538		)
Depreciation	417			1,691			187			60			2,355
Intangibles amortization	—			2,189			115			—			2,304
Restructuring expense	125			2,125			671			20			2,941
Asset impairment loss	—			536			—			—			536
Capital expenditures	(449		)	1,728			107			417			1,803
Assets (as of September 30)	46,752			354,715			36,033			17,002			454,502
2QYTD18
Revenues	$	37,121		$	301,163		$	33,015		$	14,509		$	385,808
Gross profit	16,924			76,066			13,019			3,087			109,096
Operating income (loss)	374			(14,533		)	(4,102		)	(2,008		)	(20,269		)
Depreciation	900			3,336			339			184			4,759
Intangibles amortization	—			4,101			238			—			4,339
Restructuring expense	647			1,975			640			1,207			4,469
Asset impairment loss	—			1,426			—			—			1,426
Capital expenditures	333			1,708			373			274			2,688
Assets (as of September 30)	62,527			318,149			43,112			15,431			439,219
2QYTD17
Revenues	$	40,039		$	341,517		$	42,105		$	13,568		$	437,229
Gross profit	15,467			87,098			16,531			3,001			122,097
Operating income (loss)	194			(4,959		)	396			551			(3,818		)
Depreciation	822			3,306			369			103			4,600
Intangibles amortization	—			4,523			232			—			4,755
Restructuring expense	125			2,125			671			20			2,941
Asset impairment loss	—			536			—			—			536
Capital expenditures	826			2,416			201			432			3,875
Assets (as of September 30)	46,752			354,715			36,033			17,002			454,502

Note 13: Commitments and Contingencies

In connection with the Amended Credit Agreement disclosed in Note 5, the Company is required to make payments of $5,000 on its term loan over the next 12 months. Correspondingly, the Company expects its long-term payments (greater than 1 year) under the credit facility to decrease by $5,000.

The Company is involved in, or has pending, various legal proceedings, claims, suits and complaints arising out of the normal course of business. Based on the facts currently available to the Company, Management believes these matters are adequately provided for, covered by insurance, without merit or not probable that an unfavorable material outcome will result.

There has been no other significant or unusual activity during Fiscal 2018.

Note 14: Restructuring

The Company has incurred and continues to incur costs related to facility consolidations, such as idle facility rent obligations and the write-off of leasehold improvements, and employee severance (collectively referred to as “restructuring expense”) in a continued effort to consolidate back office functions and to make its organization more efficient. These restructuring activities are compartmentalized and are not part of an overall plan and therefore the Company cannot estimate the total amount to be incurred in connection with the activity. Employee severance is generally payable within the next twelve months with certain facility costs extending through Fiscal 2019.

The following table summarizes the changes to the restructuring liability for the periods presented.

	Employee Severance			Facility Closures			Total
Balance at March 31, 2017	$	4,850		$	286		$	5,136
Restructuring expense	4,133			336			4,469
Cash expenditures	(4,462		)	(286		)	(4,748		)
Balance at September 30, 2017	$	4,521		$	336		$	4,857

Of the $4,857 above, $4,793 is classified as a current liability under Other liabilities on the Company’s Consolidated Balance Sheets for the period ended September 30, 2017.

The following table summarizes restructuring expense, which is recorded in Selling, general & administrative expenses in the Company’s Consolidated Statements of Operations, for the six months ended September 30, 2017, for the Company’s reporting segments:

	North America Products		North America Services		International Products		International Services		Total
Employee Severance	$	647	$	1,651	$	628	$	1,207	$	4,133
Facility Closures	—		324		12		—		336
Total	$	647	$	1,975	$	640	$	1,207	$	4,469

Company management is considering initiatives to reset the business model and align costs with revenue to improve profitability. As a result, during FY18, our profits could be negatively impacted by restructuring expenses resulting from such initiatives, which are designed to maximize the efficiency of the cost structure for each of our segments to enhance the Company's profitability. The Company believes there is a significant cost savings for such restructuring initiatives that will provide a return on investment in a relatively short period of time. However, there can be no assurance that we would realize adequate returns on this investment nor that we would be able to maintain such cost savings in the future. Such restructuring initiatives have not been formalized and the Company cannot state with any certainty the timing or whether or not such events will occur.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A").

The discussion and analysis for the three-months and six-months ended September 30, 2017 and 2016 as set forth below in this Part I, Item 2 should be read in conjunction with the response to Part I, Item 1 of this report and the consolidated financial statements of Black Box Corporation ("Black Box," the "Company," "we" or "our"), including the related notes, and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" included in the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission ("SEC") for the fiscal year ended March 31, 2017 (the "Form 10-K"). References to “2Q18” mean the three-month period ended September 30, 2017 while references to “2Q17” mean the three-month period ended September 30, 2016. References to “2QYTD18” mean the six-month period ended September 30, 2017 while references to “2QYTD17” mean the six-month period ended September 30, 2016. The Company’s fiscal year ends on March 31. The fiscal quarters consist of 13 weeks and generally end on the Saturday nearest each calendar quarter end, adjusted to provide relatively equivalent business days for each fiscal quarter. The actual ending dates for the periods presented as of September 30, 2017 and 2016 were September 30, 2017 and October 1, 2016, respectively. References to "Fiscal Year" or "Fiscal" mean the Company’s fiscal year ended March 31 for the year referenced. All dollar amounts are presented in thousands except for per share amounts or unless otherwise noted.

The Company

Black Box is a leading digital solutions provider dedicated to helping customers design, build, manage and secure their IT infrastructure. The Company offers Services and Products that it distributes through two platforms that it has built over its 41-year history.

Our Services platform is comprised of engineering and design, project management, field service management, network operations centers, our national technology team, national and international sales teams and technology solutions centers which include dedicated sales and engineering resources. The primary services offered through this platform include managed services, infrastructure services (including wired and wireless network solutions, structured cabling and video/AV services), communications lifecycle services, unified communications and data center services.

The Company generates revenues in its Services business from the design, sale and/or installation of new communications and network infrastructure systems, the support of existing systems and moves, adds and changes ("MAC work"). We periodically generate revenues from contracts performed over time that may result in an asset on our balance sheet for multiple periods constituting part of our working capital. We have not experienced significant collectability issues related to such contracts. For the sale and implementation of new communications systems or other major projects, most significant orders are subject to competitive bidding processes and, generally, competition can be significant for such new orders. The Company is continually bidding on new projects for service revenues. Projects account for the majority of Services revenues and are primarily driven by the overall economic environment and information technology capital spending. The Company also serves government clients whose revenues are not as dependent on the overall economic environment as commercial clients but are subject to governmental budgetary constraints.

New communications systems orders often generate post-implementation maintenance via a fixed fee model where revenues are earned ratably over the term of the agreement (generally 1-3 years for commercial clients and 3-5 years for government clients) or a variable fee model that is based on time and materials per occurrence, similar to MAC work. Maintenance revenues generally are not dependent on the economy as clients contract for maintenance to extend the life of their existing equipment and delay capital spending on new communications systems. Maintenance and MAC work revenues are also dependent upon the Company's relationship with its clients and its long track record of providing high-quality service.

The Company's Services business generates backlog which is defined by the Company as orders and contracts considered to be firm. At September 30, 2017, the Company's total backlog, which relates primarily to Services, was $353,076, of which $236,419is expected to be completed within the next twelve months.

Under our Products platform, we provide networking solutions through the sale of products for KVM switching, IT infrastructure, specialty networking and multimedia.

Our Products' revenues are generated from sales to key channel partners and system integrators and through a global distribution network. Products sells through a direct sales team as well as through its internet site and catalogs. In order to meet client demand, we keep a moderate level of inventory which consumes part of our working capital. The market for these products is a highly fragmented and competitive. The Company has participated in this market for 40+ years and has earned a reputation for providing

19

high quality products, rapid order fulfillment and free 24/7/365 technical support. The Company's Products revenue is driven both by general information technology spending and capital budgets.

Our platforms introduce scale, flexibility and leverage to the business, and provide the following competitive advantages:

• A diversified client base: We have built a diversified client base that ranges from small organizations to many of the world's largest corporations and institutions. Black Box clients participate in many industries, including government, technology, business services, healthcare, manufacturing, banking and retail, among others. Revenues from our clients are segmented with approximately 60% from large companies (i.e., revenues greater than $1 billion, including federal governments), approximately 20% from medium-sized companies (i.e., revenues between $50 million and $1 billion, including state governments) and approximately 20% from small companies (i.e., revenues less than $50 million, including local governments). We strive to develop extensive and long-term relationships with high-quality clients as we believe that satisfied clients will demand quality services and product offerings even in economic downturns. Also, we believe that our distinctive portfolio of products and services will allow us to leverage the relationships and introduce additional offerings to satisfied clients.

• Key relationships with leading technology partners: We have built long-term relationships with all major communications equipment manufacturers and we are a top partner with the market leaders.

• Broad geographic footprint: We have built a global footprint with offices throughout the world.

• Deep organic resources: We have 3,351 team members world-wide, with the collective experience and certifications to serve our clients with on-site and remote capabilities.

• Dedicated sales force: We have a team of direct sales people world-wide.

The Company services a variety of clients within most major industries, with the highest concentration in the government, business services, manufacturing, banking, retail, healthcare and technology industry verticals. Factors that impact those verticals, therefore, could have an impact on the Company. While the Company generates most of its revenues in North America, the Company also generates revenues from around the world, primarily Europe, such that factors that impact European markets could impact the Company. Management strives to develop extensive and long-term relationships with high-quality clients as Management believes that satisfied clients will demand quality services and product offerings from us even in economic downturns.

2QYTD18 vs 2QYTD17 Summary

	2QYTD18			2QYTD17			% Change
Revenues	$	385,808		$	437,229		(11.8	)%
Gross profit margin	28.3		%	27.9		%	1.4	%
Operating income (loss) margin	(5.3		)%	(0.9		)%	n/m
Diluted earnings (loss) per share	$	(1.40	)	$	(0.44	)	n/m
Net cash provided by (used for) operating activities	$	(15,624	)	$	15,682		n/m

n/m = not meaningful

Diluted loss per share was $1.40, compared to $0.44in the same period last year as a result of:

• a $51,421decrease in Revenues as a result of a $39,413 decrease in Service Revenues, primarily due to decreases in North America Services as a result of decreases in both unified communications and infrastructure, partially offset by an increase in government revenues due to market repositioning that was actioned over the past two years and a $12,008 decrease in Product Revenues primarily due to decrease in North America Products as a result of lower demand in the legacy run rate business and a decrease in International Products which was negatively impacted by an initiative to centralize back office and supply chain operations,

• a $13,001decrease in Gross profit as a result of a $10,946 decrease in Service Gross profit driven by the decline in Revenues noted above as well as a decrease in Gross profit margin due to lower revenues on higher margin unified communication business and aggressive pricing on certain incremental infrastructure projects for our commercial clients and higher volume of successful contract awards that carry a lower gross margin for our government clients, and a $2,055 decrease in Products Gross profit driven by the decline in Revenues noted above, all partially offset by a $9,137 Inventory impairment taken in the prior year,

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• a $2,976increase in Selling, general and administrative expenses which was primarily the result of $1,528 of additional restructuring expense, $1,175 of gain on the sale of a facility in the prior year, and $6,979 of costs related to the ongoing ERP implementation, partially offset by a decrease in variable compensation,

• an $890 increase in Asset impairment loss due to a $1,426 Trademark impairment in the current quarter,

• a $762increase in Interest expense (income) resulting from an increase in weighted-average outstanding debt and a $204 write-off of deferred amortization costs of our Credit Agreement due to the reduction in size of the facility in the Amended Credit Agreement,

• partially offset by a $2,872 increase in Benefit from income taxes and an increase in the effective rate from (14.0)% to 8.9% due to the mix of income and losses across various taxing jurisdictions along with valuation allowances recorded against federal foreign tax credits and state and foreign net operating losses.

Net cash used for operating activities was $15,624, which included Net loss of $21,147 and negative cash from working capital of $7,232, compared to net cash provided for operating activities of $15,682, which included Net loss of $6,581 and negative cash from working capital of $1,661, in the same period last year.

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Results of Operations

Segments

We conduct our business globally and manage our business by geographic-service type under the following four operating segments: North America Products, North America Services, International Products and International Services. The Revenues, Gross profit and Operating income (loss) amounts in the table below are presented on a basis consistent with GAAP.

	2Q18			2Q17			% Change		2QYTD18			2QYTD17			% Change
Revenues
North America Products	$	19,858		$	20,954		(5	)%	$	37,121		$	40,039		(7	)%
International Products	$	17,390		$	21,309		(18	)%	$	33,015		$	42,105		(22	)%
Products	$	37,248		$	42,263		(12	)%	$	70,136		$	82,144		(15	)%
North America Services	$	148,533		$	169,782		(13	)%	$	301,163		$	341,517		(12	)%
International Services	$	8,383		$	6,704		25	%	$	14,509		$	13,568		7	%
Services	$	156,916		$	176,486		(11	)%	$	315,672		$	355,085		(11	)%
Total Revenues	$	194,164		$	218,749		(11	)%	$	385,808		$	437,229		(12	)%
Gross Profit
North America Products	$	9,145		$	6,533		40	%	$	16,924		$	15,467		9	%
% of Revenues	46.1		%	31.2		%	48	%	45.6		%	38.6		%	18	%
International Products	$	6,937		$	8,517		(19	)%	$	13,019		$	16,531		(21	)%
% of Revenues	39.9		%	40.0		%	—	%	39.4		%	39.3		%	—	%
Products	$	16,082		$	15,050		7	%	$	29,943		$	31,998		(6	)%
% of Revenues	43.2		%	35.6		%	21	%	42.7		%	39.0		%	9	%
North America Services	$	38,536		$	37,955		2	%	$	76,066		$	87,098		(13	)%
% of Revenues	25.9		%	22.4		%	16	%	25.3		%	25.5		%	(1	)%
International Services	$	1,875		$	1,439		30	%	$	3,087		$	3,001		3	%
% of Revenues	22.4		%	21.5		%	4	%	21.3		%	22.1		%	(4	)%
Services	$	40,411		$	39,394		3	%	$	79,153		$	90,099		(12	)%
% of Revenues	25.8		%	22.3		%	16	%	25.1		%	25.4		%	(1	)%
Total Gross Profit	$	56,493		$	54,444		4	%	$	109,096		$	122,097		(11	)%
% of Revenues	29.1		%	24.9		%	17	%	28.3		%	27.9		%	1	%
Operating Income (Loss)
North America Products	$	1,848		$	(749	)	n/m		$	374		$	194		93	%
% of Revenues	9.3		%	(3.6		)%	n/m		1.0		%	0.5		%	100	%
International Products	$	(361	)	$	65		n/m		$	(4,102	)	$	396		n/m
% of Revenues	(2.1		)%	0.3		%	n/m		(12.4		)%	0.9		%	n/m
Products	$	1,487		$	(684	)	n/m		$	(3,728	)	$	590		n/m
% of Revenues	4.0		%	(1.6		)%	n/m		(5.3		)%	0.7		%	n/m
North America Services	$	(7,177	)	$	(6,106	)	n/m		$	(14,533	)	$	(4,959	)	n/m
% of Revenues	(4.8		)%	(3.6		)%	n/m		(4.8		)%	(1.5		)%	n/m
International Services	$	(1,682	)	$	252		n/m		$	(2,008	)	$	551		n/m
% of Revenues	(20.1		)%	3.8		%	n/m		(13.8		)%	4.1		%	n/m
Services	$	(8,859	)	$	(5,854	)	n/m		$	(16,541	)	$	(4,408	)	n/m
% of Revenues	(5.6		)%	(3.3		)%	n/m		(5.2		)%	(1.2		)%	n/m
Total Operating Income (Loss)	$	(7,372	)	$	(6,538	)	n/m		$	(20,269	)	$	(3,818	)	n/m
% of Revenues	(3.8		)%	(3.0		)%	n/m		(5.3		)%	(0.9		)%	n/m

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2Q18 vs 2Q17

Total Revenues were $194,164, a decrease of 11% from $218,749 in the same period last year. Service Revenues were $156,916, a decrease of 11% from $176,486 in the same period last year due to a decrease in commercial revenues partially offset by an increase in government revenues. The decrease in commercial revenues within North America is due to a decline in the legacy unified communication business, which we expect will continue for the foreseeable future, and a decrease in the infrastructure business, which is the result of a change in sales leadership and other transformational activities. Government revenues increased due to market repositioning that was actioned over the past two years. Product Revenues were $37,248, a decrease of 12% from $42,263 in the same period last year primarily due to a decrease in North America Products' sales as a result of lower demand in the legacy run rate business and a decline in International Products which was negatively impacted by a large one time deal (Norway) in the prior year.

Total Gross profit margin was 29.1%, an increase of 17% from 24.9% in the same period last year. The same period last year included Inventory impairment losses of $6,327 for Services and $2,810 for Products. Excluding these impairment charges, the prior year total Gross profit margin was 29.1%. Service Gross profit margin was 25.8%, an increase of 16% from 22.3% in the same period last year and a 1% decrease after adjusting for the impairment charge. Product Gross profit margin was 43.2%, an increase of 21% from 35.6% in the same period last year and a 2% increase after adjusting for the impairment charge.

Total Operating loss margin was 3.8%, compared to a Total Operating loss margin of 3.0% in the same period last year. Service Operating loss margin was 5.6%, compared to Service Operating loss margin of 3.3% in the same period last year, primarily due to higher spending on the U.S.-based ERP project and $1,426 in Asset Impairment relating to Trademarks, partially offset by lower variable compensations costs and the increase in Gross profit margin referenced above. The Company will continue to incur costs associated with the U.S.-based ERP project during the remainder of FY18 that will have a negative impact on our profits and cash flows. Product Operating margin was 4.0%, compared to Product Operating loss margin of 1.6% in the same period last year, primarily due to lower variable compensation costs and the increase in Gross profit margin as referenced above.

2QYTD18 vs 2QYTD17

Total Revenues were $385,808, a decrease of 12% from $437,229 in the same period last year. Service Revenues were $315,672, a decrease of 11% from $355,085 in the same period last year primarily due to decreases in both unified communications and infrastructure, partially offset by an increase in government revenues due to market repositioning that was actioned over the past two years. Product Revenues were $70,136, a decrease of 15% from $82,144 in the same period last year, primarily due to a decrease in North America Products' sales as a result of lower demand in the legacy run rate business and a decline in International Products which was negatively impacted by a large one time deal (Norway) in the prior year and an initiative to centralize back office and supply chain operations.

Total Gross profit margin was 28.3%, an increase of 1% from 27.9% in the same period last year. As noted above, the same period last year included Inventory impairment losses of $6,327 for Services and $2,810 for Products. Excluding these impairment charges, the prior year total Gross profit margin was 30.0%. Service Gross profit margin was 25.1%, a decrease of 1% from 25.4% in the same period last year and an 8% decrease after adjusting for the impairment charge. This decrease was primarily due to lower revenues on higher margin unified communication business and aggressive pricing on certain incremental infrastructure projects for our commercial clients and higher volume of successful contract awards that carry a lower gross margin for our government clients. Product Gross profit margin was 42.7%, an increase of 9% from 39.0% in the same period last year and a 1% increase after adjusting for the impairment charge.

Total Operating loss margin was 5.3%, a decrease compared to 0.9% in the same period last year. Service Operating loss margin was 5.2%, a decrease compared to 1.2% in the same period last year, primarily due to higher spending on the U.S.-based ERP project and $1,426 in Asset Impairment relating to Trademarks, partially offset by lower variable compensation costs. The Company will continue to incur costs associated with the U.S.-based ERP project during the remainder of FY18 that will have a negative impact on our profits and cash flows. Product Operating loss margin was 5.3%, a decrease compared to Product Operating profit margin of 0.7% in the same period last year, primarily due to higher restructuring costs partially offset by the increase in Gross profit margin as referenced above.

Company management continues to review initiatives to align costs with revenue to improve profitability. As a result, during FY18, our profits could be negatively impacted by restructuring expenses resulting from such initiatives, which are designed to maximize the efficiency of the cost structure for each of our segments to enhance the Company's profitability. The Company believes there is a significant cost savings for such restructuring initiatives that will provide a return on investment in a relatively short period of time. However, there can be no assurance that we would realize adequate returns on this investment nor that we

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would be able to maintain such cost savings in the future. Such restructuring initiatives have not been formalized and the Company cannot state with any certainty the timing or whether or not such events will occur.

Interest expense, net and Income Taxes

	2Q18			2Q17			% Change		2QYTD18			2QYTD17			% Change
Interest expense	$	1,801		$	1,050		72	%	$	3,019		$	2,257		34	%
% of Revenues	0.9		%	0.5		%	80	%	0.8		%	0.5		%	60	%
Income taxes	$	2,434		$	(1,524	)	n/m		$	(2,064	)	$	808		n/m
Effective income tax rate	(27.1		)%	20.0		%	n/m		8.9		%	(14.0		)%	n/m

2Q18 vs 2Q17

Interest expense was $1,801, an increase of 72% from $1,050 in the same period last year primarily as a result of higher interest rates and a $204 write-off of deferred amortization costs of our Credit Agreement due to the reduction in size of the facility in the Amended Credit Agreement. The weighted-average outstanding debt and weighted-average interest rate was $133,615 and 3.9%, respectively, compared to $131,973 and 2.6% in the same period last year.

Provision for income taxes was $2,434, compared to a benefit from income taxes of $1,524 in the same period last year. The effective income tax rate was (27.1)%, a decrease from 20.0% in the same period last year. The effective income tax rate decrease from 20.0% to (27.1)% was primarily due to the mix of income and losses across various taxing jurisdictions along with valuation allowances recorded against federal foreign tax credits and state and foreign net operating losses along with the reduction of deferred tax assets associated with equity awards and the mix of income across various taxing jurisdictions.

2QYTD18 vs 2QYTD17

Interest expense was $3,019, an increase of 34% from $2,257 in the same period last year primarily as a result of higher interest rates, a $204 write-off of deferred amortization costs as referenced above, and to a lesser extent, higher average debt. The weighted-average outstanding debt and weighted-average interest rate was $137,054 and 3.3%, respectively, compared to $132,643 and 2.5% in the same period last year.

Benefit from income taxes was $2,064, compared to a provision for income taxes of $808 in the same period last year. The effective income tax rate was 8.9%, an increase compared to the effective income tax rate of (14.0)% in the same period last year. The effective income tax rate increase from (14.0)% to 8.9% was primarily due to the mix of income and losses across various taxing jurisdictions along with valuation allowances recorded against federal foreign tax credits and state and foreign net operating losses.

Liquidity and Capital Resources

Overview

A majority of our revenue is generated through individual sales of services and products. Approximately 20% of our revenue is generated from long-term support contracts. We depend on repeat client business, as well as our ability to develop new client business, to sustain and grow our revenue. Most significant orders are subject to a competitive bidding process and, generally, competition can be significant for such new orders. Our business model provides us with flexibility in terms of capital expenditures and other required operating expenses. For the foreseeable future, we expect that the combination of net cash provided by operating activities and the available borrowings under our line of credit will be sufficient to fund our capital expenditures and other required operating expenses.

We seek to allocate company resources in a manner that will enhance our operating results. Our discretionary investments include: investments in growth programs and infrastructure and repaying our debt.

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Liquidity Position

The following is a summary of our capitalization and liquidity position.

	2Q18		4Q17		2Q17
Cash and cash equivalents	$	30,462	$	14,247	$	16,124
Working Capital	$	115,456	$	91,134	$	105,303
Debt	$	129,165	$	89,746	$	103,037
Stockholders’ equity	$	127,125	$	141,649	$	146,881
Unused commitments of the Credit Agreement	$	37,150	$	106,750	$	93,750
Cash and Unused commitments of the Credit Agreement	$	67,612	$	120,997	$	109,874

On August 9, 2017, the Company and certain of the Banks entered into an Amendment and Joinder Agreement which reduced the capacity of the credit facility from $200,000 to $170,000. As a result of the $30,000 decrease in facility size, the Company's liquidity (cash and cash equivalents and unused credit commitments) was $67,612 at the end of the second quarter of Fiscal 2018, compared to $120,997 at the end of Fiscal 2017. Net debt (debt less cash and cash equivalents) was $98,703 at the end of the second quarter of Fiscal 2018, an increase of $23,204 from the end of Fiscal 2017 as a result of spending on our previously announced US-based ERP project as well as increased working capital. The ERP project spending is expected to increase in the third quarter and then decline during the next two successive quarters. Additionally, the Company is emphasizing working capital initiatives in order to bring working capital levels in line with revenue and activity levels.

We anticipate that cash on hand, the available unused commitments of the Credit Agreement and cash provided by operating activities should be sufficient to cover the Company's working capital requirements, capital expenditures, and other cash needs for at least the next 12 months.

Sources and Uses of Cash

The following is a summary of our sources and uses of cash.

	2QYTD18			2QYTD17
Net cash provided by (used for) operating activities	$	(15,624	)	$	15,682
Net cash provided by (used for) investing activities	$	(2,619	)	$	(2,453	)
Net cash provided by (used for) financing activities	$	33,804		$	(20,914	)

Net cash provided by (used for) operating activities

Net cash used for operating activities was $15,624, due primarily to Net loss of $21,147, inclusive of non-cash charges, cash outflows of $9,107 and $2,923 for All other liabilities and Billings in excess of costs, respectively, partially offset by cash inflows of $5,179 for Accounts receivable, compared to net cash provided by operating activities of $15,682 in the same period last year, due primarily to Net loss of $6,581, inclusive of non-cash charges, cash inflows of $6,824 and $4,866 from Inventory and Accounts payable, respectively, partially offset by cash outflows of $7,607 and $5,108 from Accounts receivable and Costs in excess of billings, respectively. Changes in the above accounts are based on average Fiscal 2018 and Fiscal 2017 exchange rates, as applicable.

Changes in working capital, and particularly changes in Accounts receivable, Costs in excess of billings and Billings in excess of cost, can have a significant impact on net cash provided by operating activities, largely due to the timing of payments and receipts.

Net cash provided by (used for) investing activities

Capital expenditures

The Company made investments of $2,688 compared to $3,875 in the same period last year which primarily related to information technology infrastructure, computer hardware and software and service vehicles.

Net cash provided by (used for) financing activities

Long-term debt

Proceeds from long-term debt was $34,576 compared to repayments of long-term debt of $17,922 in the same period last year.

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Common stock repurchases

The Company did not make any discretionary investments in the form of common stock repurchases in the current period nor in the same period last year. The Company withheld shares in the amount of $393, compared to $477 in the prior year, to satisfy employee income taxes due as a result of the vesting of certain restricted stock units.

Since the inception of the repurchase program beginning in April 1999 through September 30, 2017, the Company has repurchased 11,392,851 shares of common stock for an aggregate purchase price of $408,621, or an average purchase price per share of $35.87. These shares do not include the treasury shares withheld for tax payments due upon the vesting of certain restricted stock units and performance shares. Under the Amended Credit Agreement, the Company is no longer permitted to repurchase common stock through its repurchase program but is allowed to repurchase a limited amount of shares for tax payments related to the vesting certain restricted stock units and performance shares, as applicable. This restriction is in effect until May 9, 2021. The Company expects to use the funds that were previously available for stock repurchases to supplement spending for our previously announced U.S.-based ERP project and to develop and implement growth initiatives for the Company, both of which we believe will create long-term shareholder value. See Note 5 of the Notes to the Consolidated Financial Statements contained in Part I of this Quarterly Report for additional information.

Dividends

The Company is no longer permitted to pay dividends under the Amended Credit Agreement. The Company expects to use the funds that were previously available for dividends to supplement spending for our previously announced US-based ERP project and to develop and implement growth initiatives for the Company, both of which we believe will create long-term shareholder value. This restriction is in effect until May 9, 2021. The Company paid dividends of $7.1 million in Fiscal 2017.

Credit Agreement

On August 9, 2017, the Company and certain Banks entered into an Amendment and Joinder Agreement. See Note 5 of the Notes to the Consolidated Financial Statements contained in Part I of this Quarterly Report and Item 1A. Risk Factors contained in Part II of the Form 10-Q for the first quarter of Fiscal 2018 for additional information.

Valuation of long-lived assets

During the second quarter of Fiscal 2018, the Company lowered its projections of revenue and profitability outlook for the foreseeable future. As a result, the Company conducted an interim assessment of both our definite-lived and indefinite lived intangible assets and determined such assets, with the exception of Trademarks, were recoverable as of July 1, 2017. For Trademarks, the Company recorded an Intangible asset impairment loss of $1,426 to reduce book value to fair value which is recorded in Asset impairment loss within the Company’s Consolidated Statements of Operations. The fair value of Trademarks was determined using an income approach that included level 3 inputs. See Note 4 of the Notes to the Consolidated Financial Statements contained in Part I of this Quarterly Report for additional information.

Legal Proceedings

See Note 13 of the Notes to the Consolidated Financial Statements of this Form 10-Q, which information is incorporated herein by reference.

Inflation

The overall effects of inflation on the Company have been nominal. Although long-term inflation rates are difficult to predict, the Company continues to strive to minimize the effect of inflation through improved productivity and cost reduction programs as well as price adjustments within the constraints of market competition.

Critical Accounting Policies/Impact of Recently Issued Accounting Pronouncements

Critical Accounting Policies

The Company’s critical accounting policies require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and are the most important to the portrayal of the Company’s consolidated financial statements. The Company’s critical accounting policies are disclosed in Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" of the Form 10-K. The significant accounting policies used in the preparation of the Company’s consolidated financial statements are disclosed in Note 2 of the Notes to the Consolidated Financial Statements within the Form 10-K. No additional significant accounting policies have been adopted during Fiscal 2018.

Impact of Recently Issued Accounting Pronouncements

There have been no accounting pronouncements adopted during Fiscal 2018 that have had a material impact on the Company's consolidated financial statements.

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Cautionary Forward Looking Statements

Any forward-looking statements contained in this Quarterly Report on Form 10-Q or in documents incorporated herein by reference are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this Form 10-Q. You can identify these forward-looking statements by the fact that they use words such as "should," "anticipate," "estimate," "approximate," "expect," "target," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Although it is not possible to predict or identify all risk factors, they may include levels of business activity and operating expenses, liquidity, expenses relating to corporate compliance requirements, cash flows, global economic and business conditions, the timing, costs, and benefits of restructuring programs and other initiatives, successful marketing of the Company's product and services offerings, successful implementation of the Company's integration initiatives, such as our enterprise resource planning system initiatives, successful implementation of the Company's government contracting programs, competition, changes in foreign, political and economic conditions, fluctuating foreign currencies compared to the U.S. dollar, rapid changes in technologies, client preferences, the Company's arrangements with suppliers of voice equipment and technology, government budgetary constraints and various other matters, many of which are beyond the Company's control. Additional risk factors are included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2017 and our quarterly reports on Form 10-Q for Fiscal 2018. We can give no assurance that any goal, plan or target set forth in forward-looking statements will be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments and caution you not to unduly rely on any such forward-looking statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The Company is exposed to market risks in the ordinary course of business that include interest-rate volatility and foreign currency exchange rates volatility. Market risk is measured as the potential negative impact on earnings, cash flows or fair values resulting from a hypothetical change in interest rates or foreign currency exchange rates over the next year. The Company does not hold or issue any other financial derivative instruments (other than those specifically noted below) nor does it engage in speculative trading of financial derivatives.

Interest-rate Risk

The Company’s primary interest-rate risk relates to its long-term debt obligations under the Credit Agreement which was $128,000 as of September 30, 2017. As of September 30, 2017, an instantaneous 100 basis point increase in the interest rate of the variable rate debt would reduce the Company’s earnings in the subsequent fiscal quarter by $324 ($199 net of tax) assuming the Company employed no intervention strategies. The Company expects that its interest rates under the Amended Credit Agreement will be higher than the interest rates under the Credit Agreement thus increasing its exposure to interest on variable rate debt.

Foreign Exchange Rate Risk

The Company has operations, clients and suppliers worldwide, thereby exposing the Company’s financial results to foreign currency fluctuations. In an effort to reduce this risk of foreign currency fluctuations, the Company generally sells and purchases inventory based on prices denominated in U.S. dollars. Intercompany sales to subsidiaries are generally denominated in the subsidiaries’ local currency. The Company has entered and will continue in the future, on a selective basis, to enter into foreign currency contracts to reduce the foreign currency exposure related to certain intercompany transactions, primarily trade receivables and loans. All of the foreign currency contracts have been designated and qualify as cash flow hedges. The effective portion of any changes in the fair value of the derivative instruments is recorded in Accumulated Other Comprehensive Income ("AOCI") until the hedged forecasted transaction occurs or the recognized currency transaction affects earnings. Once the forecasted transaction occurs or the recognized currency transaction affects earnings, the effective portion of any related gains or losses on the cash flow hedge is reclassified from AOCI to the Company’s Consolidated Statements of Operations. In the event it becomes probable that the hedged forecasted transaction will not occur, the ineffective portion of any gain or loss on the related cash flow hedge would be reclassified from AOCI to the Company’s Consolidated Statements of Operations.

As of September 30, 2017, the Company had open foreign currency contracts in Australian and Canadian dollars, Danish krone, Euros, Mexican pesos, Norwegian kroner, British pounds sterling, Swedish krona, Swiss francs and Japanese yen. The open contracts have contract rates ranging from 1.26 to 1.29 Australian dollar, 1.26 to 1.36 Canadian dollar, 6.17 to 6.17 Danish krone, 0.83 to 0.85 Euro, 18.30 to 18.30 Mexican peso, 7.62 to 7.62 Norwegian kroner, 0.75 to 0.77 British pound sterling, 7.81 to 7.81 Swedish krona, 0.94 to 0.94 Swiss franc and 108.72 to 113.56 Japanese yen, all per U.S. dollar. The total open contracts had a notional amount of $43,012 and will expire within four months.

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Item 4. Controls and Procedures.

Conclusions Regarding the Effectiveness of Disclosure Controls and Procedures

Management, including the Company’s Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")), for the Company. Management assessed the effectiveness of the Company’s disclosure controls and procedures as of September 30, 2017. Based upon this assessment, Management has concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2017 to provide reasonable assurance that information required to be disclosed by the Company in the reports filed or submitted by it under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and to provide reasonable assurance that information required to be disclosed by the Company in such reports is accumulated and communicated to Management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules  13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.

Limitations on the Effectiveness of Controls

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of its inherent limitations, the Company’s internal control over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

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PART II. OTHER INFORMATION

Item 6. Exhibits.

Exhibit Number	Description
10.1	Amendment and Joinder Agreement, dated as of August 9, 2017, by and among Black Box Corporation, the Guarantors, the Lenders and PNC Bank, National Association, as Administrative Agent (1)
21.1	Subsidiaries of the Registrant (2)
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 (2)
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 (2)
32.1	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (2)
101	Interactive Data File
(1)	Filed as an exhibit to the Current Report on Form 8-K of the Company, file number 0-18706, filed with the SEC on August 10, 2017, and incorporated herein by reference.
(2)	Filed herewith.

29

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

BLACK BOX CORPORATION

Date: November 3, 2017

/s/ DAVID J. RUSSO                                

David J. Russo

Senior Vice President, Chief Financial Officer,

Treasurer and Principal Accounting Officer

30

EX-21.1

Exhibit 21.1

SUBSIDIARIES OF THE REGISTRANT
Legal Name	Doing Business As	State or Other Jurisdiction of Incorporation or Organization
Black Box Corporation	Black Box Corporation	Delaware
ACS Communications, Inc.	ACS Communications, Inc.	Texas
ACS Dataline of the Northwest, Inc.	Black Box Network Services Black Box Network Services - Northwest Black Box Network Services - West	Oregon
ACS Investors, LLC	ACS Investors, LLC	Delaware
ACS Dataline, LP	Black Box Network Services Black Box Network Services - West	Texas
BBOX Holdings Puebla LLC	BBOX Holdings Puebla LLC	Delaware
Black Box Chile S.A.	Black Box Chile S.A.	Chile
Black Box Corporation of Pennsylvania	Black Box Network Services Black Box Network Services - Technology Product Solutions	Delaware
BB Technologies, Inc.	BB Technologies, Inc.	Delaware
Black Box A/S	Black Box A/S	Denmark
Black Box Canada Corporation	Black Box Canada Corporation	Canada
Black Box Comunicaciones, S.A.	Black Box Comunicaciones, S.A.	Spain
Black Box do Brasil Industria e Comercio Ltda.	Black Box do Brasil Industria e Comercio Ltda.	Brazil
Black Box France	Black Box France	France
Black Box GmbH	Black Box GmbH	Austria
Black Box Holdings Ltd.	Black Box Holdings Ltd.	Cayman Islands
Black Box E-Commerce (Shanghai) Co., Ltd.	Black Box E-Commerce (Shanghai) Co., Ltd.	China
Black Box International Holdings B.V.	Black Box International Holdings B.V.	Netherlands
BBOX Holdings Mexico LLC	BBOX Holdings Mexico LLC	Delaware
Black Box de Mexico, S. de R.L. de C.V.	Black Box de Mexico, S. de R.L. de C.V.	Mexico
Black Box Deutschland GmbH	Black Box Deutschland GmbH	Germany
Black Box International B.V.	Black Box International B.V.	Netherlands
Black Box Software Development Services Limited	Black Box Software Development Services Limited	Ireland

1

Exhibit 21.1

SUBSIDIARIES OF THE REGISTRANT
Legal Name	Doing Business As	State or Other Jurisdiction of Incorporation or Organization
Black Box Network Services AG	Black Box Network Services AG	Switzerland
Black Box Network Services Australia Pty Ltd	Black Box Network Services Australia Pty Ltd	Australia
Black Box Network Services New Zealand Limited	Black Box Network Services New Zealand Limited	New Zealand
Black Box Network Services Co., Ltd.	Black Box Network Services Co., Ltd.	Japan
Black Box Network Services India Private Limited	Black Box Network Services India Private Limited	India
Black Box Network Services Korea Limited	Black Box Network Services Korea Limited	Korea
Black Box Network Services NV	Black Box Network Services NV	Belgium
Black Box Network Services S.r.l.	Black Box Network Services S.r.l.	Italy
Black Box Network Services (UK) Limited	Black Box Network Services (UK) Limited	England
Black Box P.R. Corp.	Black Box P.R. Corp.	Puerto Rico
Black Box Finland OY	Black Box Finland OY	Finland
Black Box Network Services AB	Black Box Network Services AB	Sweden
Black Box Network Services Corporation	Black Box Network Services Corporation	Taiwan
Black Box Network Services (Dublin) Limited	Black Box Network Services (Dublin) Limited	Ireland
Black Box Network Services SDN. BHD.	Black Box Network Services SDN. BHD.	Malaysia
Black Box Network Services Singapore Pte Ltd	Black Box Network Services Singapore Pte Ltd	Singapore
Black Box Network Services, Inc. - Government Solutions	Black Box Network Services, Inc. - Government Solutions	Tennessee
Black Box Norge AS	Black Box Norge AS	Norway
Black Box Services Company	Black Box Services Company	Delaware
Black Box Ventures Holding Company	Black Box Ventures Holding Company	Delaware
CBS Technologies Corp.	Black Box Network Services	New York
Delaney Telecom, Inc.	Black Box Network Services Black Box Network Services - East	Pennsylvania
InnerWireless, Inc.	Black Box Network Services Black Box Network Services - Wireless	Delaware

2

Exhibit 21.1

SUBSIDIARIES OF THE REGISTRANT
Legal Name	Doing Business As	State or Other Jurisdiction of Incorporation or Organization
Midwest Communications Technologies, Inc.	Black Box Network Services Black Box Network Services - Midwest Black Box Network Services - Ohio	Ohio
Nu-Vision Technologies, LLC	Black Box Network Services Black Box Network Services - Oregon	New York
Mutual Telecom Services Inc.	Black Box Network Services Black Box Network Services - Needham	Delaware
Norstan Communications, Inc.	Black Box Network Services Black Box Network Services - Minnesota Black Box Network Services - Montana Black Box Network Services - Northeast	Minnesota
NextiraOne, LLC	Black Box Network Services Black Box Network Services - Illinois Black Box Network Services - Midwest Black Box Network Services - Northeast Black Box Network Services - Northwest Black Box Network Services - South	Delaware
NextiraOne Federal, LLC	Black Box Network Services Black Box Network Services - Federal	Delaware
NextiraOne New York, LLC	Black Box Network Services	Delaware
Norstan Canada, Ltd./Norstan Canada, Ltee	Black Box Network Services	Canada
Vibes Technologies, Inc.	Black Box Resale Services	Minnesota
Scottel Voice & Data, Inc.	Black Box Network Services Black Box Network Services - Pacific	California

3

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Eslie C. Sykes, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Black Box Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 3, 2017

/s/ Eslie C. Sykes                               

Eslie C. Sykes

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, David J. Russo, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Black Box Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 3, 2017

/s/ David J. Russo           

David J. Russo

Senior Vice President, Chief Financial Officer and

Treasurer (Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Black Box Corporation (the "Company") on Form 10-Q for the period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned officers of the Company, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, certifies that to his knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Eslie C. Sykes                               

Eslie C. Sykes

Chief Executive Officer

November 3, 2017

/s/ David J. Russo                      

David J. Russo

Senior Vice President, Chief Financial Officer and

Treasurer (Principal Accounting Officer)

November 3, 2017

This certification is made solely for purposes of 18 U.S.C. Section 1350, subject to the knowledge standard contained therein, and not for any other purpose.

XML

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2017	Oct. 13, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	BLACK BOX CORP
Entity Central Index Key	0000849547
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		15,137,708

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Assets
Cash and cash equivalents	$ 30,462	$ 14,247
Accounts receivable, net of allowance for doubtful accounts of $4,600 and $4,084	124,408	128,544
Inventories, net	26,839	25,382
Costs/estimated earnings in excess of billings on uncompleted contracts	72,564	71,930
Assets held for sale	2,081	0
Other assets	30,952	28,544
Total current assets	287,306	268,647
Property, plant and equipment, net	25,064	29,103
Intangibles, net	63,084	68,820
Deferred tax asset	55,541	53,539
Other assets	8,224	7,008
Total assets	439,219	427,117
Liabilities
Accounts payable	71,412	69,858
Accrued compensation and benefits	17,379	21,576
Deferred revenue	28,316	31,624
Billings in excess of costs/estimated earnings on uncompleted contracts	13,637	16,536
Short-term debt	5,756	964
Other liabilities	35,350	36,955
Total current liabilities	171,850	177,513
Long-term debt	123,409	88,782
Other liabilities	16,835	19,173
Total liabilities	312,094	285,468
Stockholders’ equity
Preferred stock authorized 5,000, par value $1.00, none issued	0	0
Common stock authorized 100,000, par value $.001, 15,138 and 14,960 shares outstanding, 26,876 and 26,654 issued	26	26
Additional paid-in capital	509,688	506,449
Retained earnings	43,284	66,246
Accumulated other comprehensive income (loss)	(9,889)	(15,481)
Treasury stock, at cost 11,738 and 11,694 shares	(415,984)	(415,591)
Total stockholders’ equity	127,125	141,649
Total liabilities and stockholders’ equity	$ 439,219	$ 427,117

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 4,600	$ 4,084
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares issued (in shares)	0	0
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares outstanding (in shares)	15,138,000	14,960,000
Common stock, shares issued (in shares)	26,876,000	26,654,000
Treasury stock, shares (in shares)	11,738,000	11,694,000

XML

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Revenues
Products		$ 37,248	$ 42,263	$ 70,136	$ 82,144
Services		156,916	176,486	315,672	355,085
Total		194,164	218,749	385,808	437,229
Cost of sales
Products	[1]	21,166	27,213	40,193	50,146
Services	[1]	116,505	137,092	236,519	264,986
Total	[1]	137,671	164,305	276,712	315,132
Gross profit		56,493	54,444	109,096	122,097
Selling, general & administrative expenses		60,330	58,142	123,600	120,624
Asset impairment loss		1,426	536	1,426	536
Intangibles amortization		2,109	2,304	4,339	4,755
Operating income (loss)		(7,372)	(6,538)	(20,269)	(3,818)
Interest expense, net		1,801	1,050	3,019	2,257
Other expenses (income), net		(207)	41	(77)	(302)
Income (loss) before provision for income taxes		(8,966)	(7,629)	(23,211)	(5,773)
Provision (benefit) for income taxes		2,434	(1,524)	(2,064)	808
Net income (loss)		$ (11,400)	$ (6,105)	$ (21,147)	$ (6,581)
Earnings (loss) per common share
Basic (in dollars per share)		$ (0.75)	$ (0.40)	$ (1.40)	$ (0.44)
Diluted (in dollars per share)		$ (0.75)	$ (0.40)	$ (1.40)	$ (0.44)
Weighted-average common shares outstanding
Basic (in shares)		15,138	15,149	15,057	15,088
Diluted (in shares)		15,138	15,149	15,057	15,088
Dividends per share (in dollars per share)		$ 0	$ 0.12	$ 0.12	$ 0.24

[1] Exclusive of depreciation and intangibles amortization.

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (11,400)	$ (6,105)	$ (21,147)	$ (6,581)
Other comprehensive income (loss)
Foreign Currency Translation Adjustment	2,063	19	5,172	(1,803)
Defined Benefit Pension
Actuarial gain (loss), net of taxes of $41, $137, $95, and $138	64	215	149	216
Amounts reclassified into results of operations, net of taxes of $12, ($70), $24, and ($207)	19	(110)	37	(324)
Derivative Instruments
Net change in fair value of cash flow hedges, net of taxes of ($141), ($189), ($568), and ($283)	(221)	(295)	(888)	(443)
Amounts reclassified into results of operations, net of taxes of $470, $185, $717, and $330	736	289	1,122	516
Other comprehensive income (loss)	2,661	118	5,592	(1,838)
Comprehensive income (loss)	$ (8,739)	$ (5,987)	$ (15,555)	$ (8,419)

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) Parenthetical - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Pension
Actuarial gain (loss), taxes	$ 41	$ 137	$ 95	$ 138
Actuarial gain (loss) reclassified into results of operations, taxes	12	(70)	24	(207)
Derivative instruments
Net change in fair value of cash flow hedges, taxes	(141)	(189)	(568)	(283)
Amounts reclassified into results of operations, taxes	$ 470	$ 185	$ 717	$ 330

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Operating Activities
Net income (loss)	$ (21,147)	$ (6,581)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities
Intangibles amortization	4,339	4,755
Depreciation	4,759	4,600
Loss (gain) on sale of property	28	(1,223)
Deferred taxes	(1,842)	2,119
Stock compensation expense	3,238	3,172
Asset impairment loss	1,426	536
Provision for obsolete inventory	262	9,688
Provision for (recovery of) doubtful accounts	545	277
Changes in operating assets and liabilities (net of acquisitions)
Accounts receivable	5,179	(7,607)
Inventories	(986)	6,824
Costs/estimated earnings in excess of billings on uncompleted contracts	(337)	(5,108)
All other assets	(1,000)	(326)
Accounts payable	1,942	4,866
Billings in excess of costs/estimated earnings on uncompleted contracts	(2,923)	1,971
All other liabilities	(9,107)	(2,281)
Net cash provided by (used for) operating activities	(15,624)	15,682
Investing Activities
Capital expenditures	(2,688)	(3,875)
Capital disposals	69	1,422
Net cash provided by (used for) investing activities	(2,619)	(2,453)
Financing Activities
Proceeds (repayments) from long-term debt	34,576	(17,922)
Proceeds (repayments) from short-term debt	4,950	1,620
Deferred financing costs	(632)	(1,049)
Purchase of treasury stock	(393)	(477)
Payment of dividends	(3,611)	(3,465)
Increase (decrease) in cash overdrafts	(1,086)	379
Net cash provided by (used for) financing activities	33,804	(20,914)
Foreign currency exchange impact on cash	654	312
Increase/(decrease) in cash and cash equivalents	16,215	(7,373)
Cash and cash equivalents at beginning of period	14,247	23,497
Cash and cash equivalents at end of period	30,462	16,124
Supplemental cash flow
Cash paid for interest	2,375	1,784
Cash paid for income taxes	224	(818)
Non-cash financing activities
Dividends payable	0	1,818
Capital leases	$ 19	$ 166

XML

Business and Basis of Presentation

6 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Basis of Presentation

Business and Basis of Presentation

Business

Black Box Corporation ("Black Box," or "the Company”) is a leading digital solutions provider dedicated to helping customers design, build, manage, and secure their IT infrastructure. The Company offers Services and Products that it distributes through two platforms it has built over its 41-year history. The Services platform is comprised of engineering and design, network operations centers, technical certifications, national and international sales teams, remote monitoring, on-site service teams and technology partner centers of excellence which includes dedicated sales and engineering resources. The primary services offered through this platform include: (i) communications lifecycle services, (ii) unified communications, (iii) structured cabling, (iv) video/AV services (v) in-building wireless and (vi) data center services. The Products platform provides networking solutions through the sale of products including: (i) IT infrastructure, (ii) specialty networking, (iii) multimedia and (iv) keyboard/video/mouse ("KVM") switching. Founded in 1976, Black Box, a Delaware corporation, is headquartered near Pittsburgh in Lawrence, Pennsylvania.

Basis of Presentation

The accompanying unaudited interim consolidated financial statements of Black Box have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Company believes that these consolidated financial statements reflect all normal, recurring adjustments needed to present fairly the Company’s results for the interim periods presented. The results as of and for interim periods presented may not be indicative of the results of operations for any other interim period or for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission ("SEC") for the fiscal year ended March 31, 2017 (the "Form 10-K").

The Company’s fiscal year ends on March 31. The fiscal quarters consist of 13 weeks and end on the Saturday generally nearest each calendar quarter end, adjusted to provide relatively equivalent business days for each fiscal quarter. The actual ending dates for the periods presented in these Notes to the Consolidated Financial Statements as of September 30, 2017 and 2016 were September 30, 2017 and October 1, 2016, respectively. References herein to "Fiscal Year" or "Fiscal" mean the Company’s fiscal year ended March 31 for the year referenced. All references to dollar amounts herein are presented in thousands, except per share amounts, unless otherwise noted.

The consolidated financial statements include the accounts of the parent company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain items in the consolidated financial statements of prior years have been reclassified to conform to the current year’s presentation. These reclassifications had no effect on reported net income (loss), comprehensive income (loss), cash flows, total assets or total stockholders' equity.

The preparation of financial statements in conformity with GAAP requires Company management ("Management") to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include project progress towards completion to estimated budget, allowances for doubtful accounts receivable, sales returns, net realizable value of inventories, loss contingencies, warranty reserves, property, plant and equipment, intangible assets and goodwill. Actual results could differ from those estimates. Management believes the estimates made are reasonable.

In the second quarter of Fiscal 2018, Management completed a plan to sell the Company's current headquarters' building and adjacent vacant land and move to another local facility that better aligns to the needs of the business. Management believes it is probable that the sale will occur in the next twelve months. Assets associated with the sale, all of which are Property, plant and equipment, are presented as "Assets held for sale" on the Consolidated Balance Sheet as of September 30, 2017. There was no asset impairment charge, as these assets were already valued at the lower of net book value and fair value less estimated costs to sell. These assets are reported under the North America Products operating segment.

XML

Significant Accounting Policies

6 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

Significant Accounting Policies

The significant accounting policies used in the preparation of the Company’s consolidated financial statements are disclosed in Note 2 of the Notes to the Consolidated Financial Statements within the Form 10-K. No additional significant accounting policies have been adopted during Fiscal 2018.

Recent Accounting Pronouncements

There have been no accounting pronouncements adopted during Fiscal 2018 that have had a material impact on the Company's consolidated financial statements.

In May 2014, the FASB issued ASC Update No. 2014-09, "Revenue from Contracts with Customers" ("ASC 2014-09"), with subsequent amendments, that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of ASC 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expected to be entitled in exchange for those goods or services. ASC 2014-09 is effective for annual reporting periods (including interim periods therein) beginning after December 15, 2017 for public companies with early adoption permitted for annual reporting periods (including interim periods therein) beginning after December 15, 2016. Entities can use either of two methods: (i) retrospective to each prior period presented with the option to elect certain practical expedients as defined within ASC 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASC 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASC 2014-09.

Given the work required to implement the recognition and disclosure requirements under the new standard, the Company has made progress through the second quarter of Fiscal 2018, including the application of the new standard in our new US-based ERP. The Company has not yet selected which transition method we will apply. We will continue to assess all potential impacts of the standard, and any preliminary conclusions are subject to change.

XML

Inventories

6 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories

The Company’s Inventories consist of the following:

	September 30, 2017			March 31, 2017
Raw materials	$	1,910		$	1,708
Finished goods	35,307			35,036
Inventory, gross	$	37,217		$	36,744
Excess and obsolete inventory reserves	(10,378		)	(11,362		)
Inventories, net	$	26,839		$	25,382

XML

Intangible Assets

6 Months Ended

Sep. 30, 2017

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets

Intangible Assets

The following table summarizes the gross carrying amount, accumulated amortization and net carrying amount by intangible asset class:

	September 30, 2017						March 31, 2017
	Gross Carrying Amount		Accum. Amort.		Net Carrying Amount		Gross Carrying Amount		Accum. Amort.		Net Carrying Amount
Definite-lived
Non-compete agreements	$	842	$	842	$	—	$	833	$	833	$	—
Customer relationships	122,396		85,083		37,313		122,301		80,678		41,623
Total	$	123,238	$	85,925	$	37,313	$	123,134	$	81,511	$	41,623
Indefinite-lived
Trademarks	34,024		8,253		25,771		35,450		8,253		27,197
Total	$	157,262	$	94,178	$	63,084	$	158,584	$	89,764	$	68,820

The Company’s indefinite-lived intangible assets consist solely of the Company’s trademark portfolio. The Company’s definite-lived intangible assets consist solely of customer relationships.

During the second quarter of Fiscal 2018, the Company lowered its projections of revenue and profitability outlook for the foreseeable future. As a result, the Company conducted an interim assessment of both our definite-lived and indefinite lived intangible assets and determined such assets, with the exception of Trademarks, were recoverable as of July 1, 2017. For Trademarks, the Company recorded an Intangible asset impairment loss of $1,426 to reduce book value to fair value which is recorded in Asset impairment loss within the Company’s Consolidated Statements of Operations. The fair value of Trademarks was determined using an income approach that included level 3 inputs.

The following table summarizes the changes to the net carrying amounts by intangible asset class:

	Trademarks			Customer relationships			Total
March 31, 2017	$	27,197		$	41,623		$	68,820
Intangibles amortization	—			(4,339		)	(4,339		)
Foreign currency translation adjustment	—			29			29
Intangible asset impairment loss	(1,426		)	—			(1,426		)
September 30, 2017	$	25,771		$	37,313		$	63,084

The following table details the estimated intangibles amortization expense for the remainder of Fiscal 2018, each of the succeeding four fiscal years and the periods thereafter.

Fiscal
2018	$	3,253
2019	5,616
2020	5,119
2021	4,658
2022	3,057
Thereafter	15,610
Total	$	37,313

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Indebtedness

6 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Indebtedness

Indebtedness

The Company’s Long-term debt consists of the following:

	September 30, 2017			March 31, 2017
Revolving credit agreement (1)	$	78,000		$	88,400
Term loan (1)	50,000			—
Other	1,165			1,346
Total debt	$	129,165		$	89,746
Less: current portion (2)	(5,756		)	(964		)
Long-term debt	$	123,409		$	88,782

(1) Refer below for additional details regarding the Company's amended credit agreement which includes a revolving credit agreement and a term loan.

(2) The Company's current portion of total debt primarily consists of minimum repayments of the term loan that are due in the next 12 months, which are $5,000 as of September 30, 2017.

In addition, the Company finances certain vendor-specific inventory under an unsecured revolving arrangement through third parties which provide extended payment terms beyond those offered by the vendor at no incremental cost to the Company. The outstanding balance for these unsecured revolving arrangements was $3,584 as of September 30, 2017, $3,366 of which is classified as a current liability, and $3,387 as of March 31, 2017, $3,169 of which was classified as a current liability. These balances are recorded as Other liabilities within the Company's Consolidated Balance Sheets.

On May 9, 2016, the Company refinanced its then existing $200,000 credit facility in the form of a line of credit pursuant to a new credit agreement (the "Credit Agreement") with PNC Bank, National Association, as administrative agent, Bank of America, N.A., as syndication agent, and certain other lender parties (the "Banks"). The Credit Agreement expires on May 9, 2021. Borrowings under the Credit Agreement were permitted up to a maximum amount of $200,000, and included up to $15,000 of swing-line loans and $25,000 of letters of credit. Interest on outstanding indebtedness under the Credit Agreement accrued, at the Company’s option, at a rate based on either: (a) a Base Rate Option equal to the highest of (i) the federal funds open rate, plus fifty (50) basis points (0.5%), (ii) the bank’s prime rate, and (iii) the daily LIBOR rate, plus 100 basis points (1.0%), in each case plus 0% to 1.00% (determined by a leverage ratio based on the Company’s consolidated EBITDA) or (b) a rate per annum equal to the LIBOR rate plus 1.00% to 2.00% (determined by a leverage ratio based on the Company’s consolidated EBITDA). The Credit Agreement required the Company to maintain compliance with certain non-financial and financial covenants such as leverage and interest coverage ratios.

The Company’s obligations under the Credit Agreement were secured by substantially all of the assets of the Company’s material direct and indirect subsidiaries that are incorporated (or organized) under the laws of the District of Columbia or under the laws of any state or commonwealth of the United States and are guaranteed by such domestic subsidiaries.

On August 9, 2017, the Company and certain of the Banks entered into an Amendment and Joinder Agreement to amend and restate the Credit Agreement (as amended and restated, the “Amended Credit Agreement”) in order to avoid a default of its leverage covenant. Under the Amended Credit Agreement, the credit facility has been reduced to $170,000 comprised of a $50,000 term loan and $120,000 line of credit. As of August 9, 2017, $50,000 was borrowed under the term loan and $52,528 remained outstanding under the line of credit. The amortization of the term loan is $1,250 per quarter for four (4) quarters beginning in the quarter ending December 31, 2017 and $2,500 per quarter beginning in the quarter ending December 31, 2018 through the end of the Amended Credit Agreement on May 9, 2021, the same expiration date of the Credit Agreement. Mandatory prepayments of the term loan are required with the net proceeds from certain asset sales, insurance recoveries and debt or equity issuances, as well as from 75% to 50% of any excess cash flow generated in Fiscal 2019 and Fiscal 2020. Interest on the term loan is, at the Company’s option: (i) a Base Rate Option equal to the highest of (i) the federal funds open rate, plus fifty (50) basis points (0.5%), (ii) the bank’s prime rate, and (iii) the daily LIBOR rate, plus 100 basis points (1.0%), in each case plus 2.5% or (ii) LIBOR plus 3.5%. Interest on outstanding indebtedness under the line of credit accrues, at the Company’s option, at a rate based on either: (a) the Base Rate Option plus 0.25% to 2.00% (determined by a leverage ratio based on the Company’s consolidated EBITDA) or (b) a rate per annum equal to the LIBOR rate plus 1.25% to 3.00% (determined by a leverage ratio based on the Company’s consolidated EBITDA).

Under the Amended Credit Agreement, the leverage ratio covenant is suspended until the second quarter of Fiscal 2019. The Amended Credit Agreement contains a minimum Adjusted EBITDA covenant and a provision requiring the Company to repay revolving credit loans with any excess cash. During that same period, a covenant will limit capital expenditures to an agreed upon amount. The ability of the Company to make dividends or other distributions (including stock repurchases other than up to a limited dollar amount for tax payments from vested equity awards) has been eliminated.

The leverage ratio covenant that starts in the second quarter of Fiscal 2019 will be 4.00 to 1.00 and will reduce to 3.00 to 1.00 over the remaining life of the credit facility. A fixed charge coverage ratio of 1.00 to 1.00 begins in the second quarter of Fiscal 2019 increasing to 1.10 to 1.00 in the fourth quarter of Fiscal 2019 and thereafter.

The Company’s obligations under the Amended Credit Agreement are secured by substantially all of the assets of the Company and the Company’s direct and indirect subsidiaries that are incorporated (or organized) under the laws of the District of Columbia or under the laws of any state or commonwealth of the United States (a “U.S. Entity”) and are guaranteed by such domestic subsidiaries. Under the Amended Credit Agreement, the Company and each U.S. Entity pledged 65% of the voting ownership interests and 100% of the non-voting ownership interests of its foreign subsidiaries.

The cost of the Amended Credit Agreement was approximately $632, substantially all of which will be amortized over the remaining term of the Amended Credit Agreement. In 2Q18, we recognized expense of $204 related to the write-off of deferred amortization costs of our Credit Agreement due to the reduction in size of the facility in the Amended Credit Agreement.

Our Amended Credit Agreement contains covenants requiring us to achieve a certain minimum adjusted EBITDA during each quarter through the first quarter of Fiscal 2019. A leverage ratio and a fixed charge coverage ratio commence in the second quarter of Fiscal 2019 through maturity in May 2021. The covenants in our Amended Credit Agreement were determined based upon our current expectation of revenues and profitability. If we fail to achieve our expected revenues and profitability, we could fail to maintain compliance with the covenants in our Amended Credit Agreement. There can be no assurance that we will be able to remain in compliance with these or other covenants in our Amended Credit Agreement.

The maximum amount of debt outstanding under the Credit Agreement, the weighted-average balance outstanding under the Credit Agreement and the weighted-average interest rate on all outstanding debt for the three-months ended September 30, 2017 was $140,648, $133,615 and 3.9%, respectively, compared to $145,100, $131,973 and 2.6%, respectively, for the three-months ended September 30, 2016. The maximum amount of debt outstanding under the Credit Agreement, the weighted-average balance outstanding under the Credit Agreement and the weighted-average interest rate on all outstanding debt for the six-months ended September 30, 2017 was $171,237, $137,054 and 3.3%, respectively, compared to $150,075, $132,643 and 2.5%, respectively, for the six-months ended September 30, 2016.

As of September 30, 2017, the Company had $4,850 outstanding in letters of credit and $37,150 in unused commitments, which are limited by a financial covenant, under the Amended Credit Agreement.

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Derivative Instruments and Hedging Activities

6 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

The Company is exposed to certain market risks, including the effect of changes in foreign currency exchange rates and interest rates. The Company uses derivative instruments to manage financial exposures that occur in the normal course of business. It does not hold or issue derivatives for speculative trading purposes. The Company is exposed to non-performance risk from the counterparties in its derivative instruments. This risk would be limited to any unrealized gains on current positions. To help mitigate this risk, the Company transacts only with counterparties that are rated as investment grade or higher and all counterparties are monitored on a continuous basis. The fair value of the Company’s derivatives reflects this credit risk.

The Company enters into foreign currency contracts to hedge exposure to variability in expected fluctuations in foreign currencies. All of the foreign currency contracts have been designated and qualify as cash flow hedges. The effective portion of any changes in the fair value of the derivative instruments is recorded in Accumulated Other Comprehensive Income ("AOCI") until the hedged forecasted transaction occurs or the recognized currency transaction affects earnings. Once the forecasted transaction occurs or the recognized currency transaction affects earnings, the effective portion of any related gains or losses on the cash flow hedge is reclassified from AOCI to the Company’s Consolidated Statements of Operations.

As of September 30, 2017, the Company had open contracts in Australian and Canadian dollars, Danish krone, Euros, Mexican pesos, Norwegian kroner, British pounds sterling, Swedish krona, Swiss francs and Japanese yen, all of which have been designated as cash flow hedges. These contracts had a notional amount of $43,012 and will expire within 4 months. There was no hedge ineffectiveness during Fiscal 2018 or Fiscal 2017.

The following tables summarize the carrying amounts of derivative assets/liabilities and the impact on the Company’s Consolidated Statements of Operations:

		Asset Derivatives				Liability Derivatives
		September 30,		March 31,		September 30,		March 31,
	Classification	2017		2017		2017		2017
Derivatives designated as hedging instruments
Foreign currency contracts	Other liabilities (current)					$	966	$	573
Foreign currency contracts	Other assets (current)	$	160	$	87

		Three-months ended						Six-months ended
		September 30						September 30
	Classification	2017			2016			2017			2016
Derivatives designated as hedging instruments
Gain (loss) recognized in other comprehensive income (effective portion), net of taxes	Other comprehensive income	$	(221	)	$	(295	)	$	(888	)	$	(443	)
Amounts reclassified from AOCI into results of operations (effective portion), net of taxes	Selling, general & administrative expenses	736			289			1,122			516

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Fair Value Disclosures

6 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Disclosures

Recurring fair value measurements

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2017, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value:

	Level 1		Level 2		Level 3		Total
Assets at Fair Value
Defined benefit pension plan assets(1)	$	22,261	$	11,667	$	—	$	33,928
Foreign currency contracts	$	—	$	160	$	—	$	160
Total Assets at Fair Value	$	22,261	$	11,827	$	—	$	34,088
Liabilities at Fair Value
Foreign currency contracts	$	—	$	966	$	—	$	966

(1) The fair value of pension plan assets is measured annually, thus this value is as of March 31, 2017.

Non-recurring fair value measurements

The Company's assets and liabilities that are measured at fair value on a non-recurring basis include non-financial assets and liabilities initially measured at fair value in a business combination.

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Stockholder's Equity

6 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Stockholder's Equity

Stockholder's Equity

Accumulated Other Comprehensive Income

The components of AOCI consisted of the following for the periods presented:

	September 30, 2017			March 31, 2017
Foreign Currency Translation Adjustment	$	1,329		$	(3,843	)
Derivative Instruments	(114		)	(348		)
Defined Benefit Pension	(11,104		)	(11,290		)
Accumulated other comprehensive income	$	(9,889	)	$	(15,481	)

Common Stock Repurchases

The following table presents information about the Company's common stock repurchases:

	Three-months ended				Six-months ended
	September 30				September 30
	2017		2016		2017		2016
Shares of common stock purchased	—		—		44,507		39,735
Aggregate purchase price	$	—	$	—	$	393	$	477
Average purchase price	$	—	$	—	$	8.84	$	12.01

During the six-month period ended September 30, 2017, the Company made tax payments of $393 and withheld 44,507 shares of common stock, which were designated as treasury shares, at an average price per share of $8.84, in order to satisfy employee income taxes due as a result of the vesting of certain restricted stock units. During the six-month period ended September 30, 2016, the Company made tax payments of $477 and withheld 39,735 shares of common stock, which were designated as treasury shares, at an average price per share of $12.01, in order to satisfy employee income taxes due as a result of the vesting of certain restricted stock units.

Since the inception of its repurchase programs beginning in April 1999 and through September 30, 2017, the Company has repurchased 11,392,851 shares of common stock for an aggregate purchase price of $408,621, or an average purchase price per share of $35.87. These shares do not include the treasury shares withheld for tax payments due upon the vesting of certain restricted stock units and performance shares. As of September 30, 2017, 1,107,149 shares were available under the most recent repurchase programs.

Under the Amended Credit Agreement, the Company is no longer permitted to repurchase common stock through its repurchase program but is allowed to repurchase a limited amount of shares for tax payments related to the vesting certain restricted stock units and performance shares, as applicable. This restriction is in effect until May 9, 2021. The Company expects to use the funds that were previously available for stock repurchases to supplement spending for our previously announced US-based ERP project and to develop and implement growth initiatives for the Company, both of which we believe will create long-term shareholder value. See Note 5 for additional information regarding our Amended Credit Agreement.

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Income Taxes

6 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company's provision for income taxes for the three-months ended September 30, 2017 was $2,434, an effective tax rate of (27.1)% on a loss before provision for income taxes of $8,966, compared to a benefit from income taxes of $1,524, an effective tax rate of 20.0% on a loss before benefit from income taxes of $7,629 for the three-months ended September 30, 2016. The effective tax rate decrease from 20.0% to (27.1)% was primarily due to the mix of income and losses across various taxing jurisdictions along with valuation allowances recorded against federal foreign tax credits and state and foreign net operating losses. The Company's benefit from income taxes for the six-months ended September 30, 2017 was $2,064, an effective tax rate of 8.9% on a loss before benefit from income taxes of $23,211, compared to a provision for income taxes of $808, an effective tax rate of (14.0)% on a loss before provision for income taxes of $5,773 for the six-months ended September 30, 2016. The effective tax rate increase from (14.0)% to 8.9% was primarily due to the mix of income and losses across various taxing jurisdictions along with valuation allowances recorded against federal foreign tax credits and state and foreign net operating losses. The effective tax rate for the six-months ended September 30, 2017 of (27.1)% differs from the federal statutory rate primarily due to valuation allowances recorded against federal foreign tax credits and state and foreign net operating losses along with the reduction of deferred tax assets associated with equity awards and the mix of income across various taxing jurisdictions.

The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate adjusted for certain discrete items for the full fiscal year. Cumulative adjustments to the Company's estimate are recorded in the interim period in which a change in the estimated annual effective rate is determined.

Fiscal 2013 through Fiscal 2017 remain open to examination by the Internal Revenue Service ("IRS") and Fiscal 2011 through Fiscal 2017 remain open to examination by certain state and foreign taxing jurisdictions.

A valuation allowance is provided on deferred tax assets if determined that it is more likely than not that the asset will not be realized. The Company considers all available evidence, both positive and negative, in assessing the need for a valuation allowance in each taxing jurisdiction. The evidence considered in evaluating deferred tax assets includes but is not limited to cumulative financial income over the three-year period ended September 30, 2017, excluding significant one-time charges for impairment (goodwill and other), the composition and reversal patterns of existing taxable and deductible temporary differences between financial reporting and tax, and subjective projected future income.

Based on the available evidence, a valuation allowance of $5,192 has been recorded against deferred tax assets relating to U.S. Federal foreign tax credits for $3,800, and state and foreign net operating losses for $1,000 and $392, respectively. Future positive and negative events, such as the significant underperformance relative to projected or future operating results, will be monitored accordingly and a determination will be made on the ability to realize deferred tax assets at that time.

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Stock-based Compensation

6 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation

Stock-based Compensation

In August 2008, the Company’s stockholders approved the 2008 Long-Term Incentive Plan, as amended (the "Incentive Plan"), which replaced the 1992 Stock Option Plan, as amended, and the 1992 Director Stock Option Plan, as amended. As of September 30, 2017, the Incentive Plan is authorized to issue stock options, restricted stock units and performance shares, among other types of awards, for up to 6,491,631 shares of common stock, par value $0.001 per share (the "common stock").

The Company recognized stock-based compensation expense of $1,040 and $939 for the three-months ended September 30, 2017 and 2016, respectively, and $3,238 and $3,172 for the six-months ended September 30, 2017 and 2016, respectively. The Company recognized total income tax benefit for stock-based compensation arrangements of $387 and $349 for the three-months ended September 30, 2017 and 2016, respectively, and $1,205 and $1,180 for the six-months ended September 30, 2017 and 2016, respectively. Stock-based compensation expense is recorded in Selling, general & administrative expenses within the Company’s Consolidated Statements of Operations.

Stock options

Stock option awards are granted with an exercise price equal to the closing market price of the common stock on the date of grant; such stock options generally become exercisable in equal amounts over a three-year period and have a contractual life of ten years from the grant date. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model, which includes the following weighted-average assumptions.

	Six-months ended
	September 30
	2017		2016
Expected life (in years)	6.1		6.8
Risk-free interest rate	2.1	%	1.6	%
Annual forfeiture rate	2.7	%	1.8	%
Expected volatility	45.3	%	41.7	%
Dividend yield	3.9	%	3.1	%

The following table summarizes the Company’s stock option activity:

	Shares (in 000’s)		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Intrinsic Value (000’s)
March 31, 2017	1,080		$	21.84
Granted	609		8.10
Exercised	—		—
Forfeited or cancelled	(110	)	20.02
September 30, 2017	1,579		$	16.67	6.4	$	—
Exercisable	744		$	24.93	3.2	$	—

The weighted-average grant-date fair value of options granted during the six-months ended September 30, 2017 and 2016 was $2.51 and $3.74, respectively. The intrinsic value of options exercised during the six-months ended September 30, 2017 and 2016 was $0 and $0, respectively. The aggregate intrinsic value in the preceding table is based on the closing stock price of the common stock on September 29, 2017, which was $3.25.

The following table summarizes certain information regarding the Company’s non-vested stock options:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
March 31, 2017	419		$	4.45
Granted	609		2.51
Vested	(159	)	4.99
Forfeited	(33	)	4.45
September 30, 2017	836		$	2.93

As of September 30, 2017, there was $1,958 of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options, which is expected to be recognized over a weighted-average period of 2.3 years.

Restricted stock units

Restricted stock unit awards are subject to a service condition and typically vest in equal amounts over a three-year period from the grant date. The fair value of restricted stock units is determined based on the number of restricted stock units granted and the closing market price of the common stock on the date of grant.

The following table summarizes the Company’s restricted stock unit activity:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
March 31, 2017	340		$	14.24
Granted	420		8.03
Vested	(223	)	12.38
Forfeited	(25	)	13.66
September 30, 2017	512		$	9.99

The total fair value of shares that vested during the six-months ended September 30, 2017 and 2016 was $1,894 and $2,039, respectively.

As of September 30, 2017, there was $3,636 of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock units, which is expected to be recognized over a weighted-average period of 2.1 years.

Performance share awards

Performance share awards are subject to one of the performance goals - the Company's Relative Total Shareholder Return ("TSR") Ranking or cumulative Adjusted EBITDA - each over a three-year period. The Company’s Relative TSR Ranking metric is based on the three-year cumulative return to stockholders from the change in stock price and dividends paid between the starting and ending dates. The fair value of performance share awards (subject to cumulative Adjusted EBITDA) is determined based on the number of performance shares granted and the closing market price of the common stock on the date of grant. The fair value of performance share awards (subject to the Company’s Relative TSR Ranking) is estimated on the grant date using the Monte-Carlo simulation valuation method which includes the following weighted-average assumptions.

	Six-months ended
	September 30
	2017		2016
Risk-free interest rate	1.4	%	0.9	%
Expected volatility	46.7	%	45.1	%
Dividend yield	3.9	%	3.4	%

The following table summarizes the Company’s performance share award activity:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
March 31, 2017	319		$	15.93
Granted	309		8.26
Vested	(68	)	23.05
Forfeited	(33	)	14.66
September 30, 2017	527		$	10.60

The total fair value of shares that vested during the six-months ended September 30, 2017 and 2016 was $0 and $0, respectively, as there were no payouts because certain performance obligations were not met.

As of September 30, 2017, there was $2,319 of total unrecognized pre-tax stock-based compensation expense related to non-vested performance share awards, which is expected to be recognized over a weighted-average period of 2.3 years.

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Earnings (loss) Per Share

6 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings (loss) Per Share

Earnings (loss) Per Share

The following table details the computation of basic and diluted earnings (loss) per common share from continuing operations for the periods presented (share numbers in table in thousands):

	Three-months ended						Six-months ended
	September 30						September 30
	2017			2016			2017			2016
Net income (loss)	$	(11,400	)	$	(6,105	)	$	(21,147	)	$	(6,581	)
Weighted-average common shares outstanding (basic)	15,138			15,149			15,057			15,088
Effect of dilutive securities from equity awards	—			—			—			—
Weighted-average common shares outstanding (diluted)	15,138			15,149			15,057			15,088
Basic earnings (loss) per common share	$	(0.75	)	$	(0.40	)	$	(1.40	)	$	(0.44	)
Dilutive earnings (loss) per common share	$	(0.75	)	$	(0.40	)	$	(1.40	)	$	(0.44	)

The Weighted-average common shares outstanding (diluted) computation is not impacted during any period where the exercise price of a stock option is greater than the average market price. There were 2,507,792 and 1,333,272 non-dilutive equity awards outstanding for the three-months ended September 30, 2017 and 2016, respectively, and 2,507,792 and 1,339,604 non-dilutive equity awards outstanding for the six-months ended September 30, 2017 and 2016, respectively, that are not included in the corresponding period Weighted-average common shares outstanding (diluted) computation.

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Segment Information

6 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company conducts business globally and is managed on a geographic-service type basis consisting of four operating segments which are (i) North America Products, (ii) North America Services, (iii) International Products and (iv) International Services. These operating segments are also the Company's reporting units for purposes of testing goodwill for impairment and its reporting segments for financial reporting purposes. Revenues within our North America segments are primarily attributed to the United States while revenues within our International segments are attributed to countries in Europe, the Pacific Rim and Latin America.

The accounting policies of the operating segments are the same as those of the Company. The Company allocates resources to its operating segments and evaluates the performance of the operating segments based upon operating income.

During the second quarter of Fiscal 2018, as a result of changes in our management structure of certain segments, several entities were realigned to different segments. The segment information outlined below is reflective of this realignment for the second quarter. If the first quarter of Fiscal 2018 results were included in the 2QYTD18 Revenues and Gross profit, Revenues would be $36,650, $31,591, and $16,404, and Gross profit would be $16,763, $12,757, and $3,511 for North America Products, International Products, and International Services, respectively.

The financial results for the Company's reporting segments are as follows:

	North America Products			North America Services			International Products			International Services			Total
2Q18
Revenues	$	19,858		$	148,533		$	17,390		$	8,383		$	194,164
Gross profit	9,145			38,536			6,937			1,875			56,493
Operating income (loss)	1,848			(7,177		)	(361		)	(1,682		)	(7,372		)
Depreciation	451			1,702			175			107			2,435
Intangibles amortization	—			1,984			125			—			2,109
Restructuring expense	(659		)	697			(1,073		)	1,182			147
Asset impairment loss	—			1,426			—			—			1,426
Capital expenditures	204			1,009			120			258			1,591
Assets (as of September 30)	62,527			318,149			43,112			15,431			439,219
2Q17
Revenues	$	20,954		$	169,782		$	21,309		$	6,704		$	218,749
Gross profit	6,533			37,955			8,517			1,439			54,444
Operating income (loss)	(749		)	(6,106		)	65			252			(6,538		)
Depreciation	417			1,691			187			60			2,355
Intangibles amortization	—			2,189			115			—			2,304
Restructuring expense	125			2,125			671			20			2,941
Asset impairment loss	—			536			—			—			536
Capital expenditures	(449		)	1,728			107			417			1,803
Assets (as of September 30)	46,752			354,715			36,033			17,002			454,502
2QYTD18
Revenues	$	37,121		$	301,163		$	33,015		$	14,509		$	385,808
Gross profit	16,924			76,066			13,019			3,087			109,096
Operating income (loss)	374			(14,533		)	(4,102		)	(2,008		)	(20,269		)
Depreciation	900			3,336			339			184			4,759
Intangibles amortization	—			4,101			238			—			4,339
Restructuring expense	647			1,975			640			1,207			4,469
Asset impairment loss	—			1,426			—			—			1,426
Capital expenditures	333			1,708			373			274			2,688
Assets (as of September 30)	62,527			318,149			43,112			15,431			439,219
2QYTD17
Revenues	$	40,039		$	341,517		$	42,105		$	13,568		$	437,229
Gross profit	15,467			87,098			16,531			3,001			122,097
Operating income (loss)	194			(4,959		)	396			551			(3,818		)
Depreciation	822			3,306			369			103			4,600
Intangibles amortization	—			4,523			232			—			4,755
Restructuring expense	125			2,125			671			20			2,941
Asset impairment loss	—			536			—			—			536
Capital expenditures	826			2,416			201			432			3,875
Assets (as of September 30)	46,752			354,715			36,033			17,002			454,502

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Commitments and Contingencies

6 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

In connection with the Amended Credit Agreement disclosed in Note 5, the Company is required to make payments of $5,000 on its term loan over the next 12 months. Correspondingly, the Company expects its long-term payments (greater than 1 year) under the credit facility to decrease by $5,000.

The Company is involved in, or has pending, various legal proceedings, claims, suits and complaints arising out of the normal course of business. Based on the facts currently available to the Company, Management believes these matters are adequately provided for, covered by insurance, without merit or not probable that an unfavorable material outcome will result.

There has been no other significant or unusual activity during Fiscal 2018.

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Restructuring

6 Months Ended

Sep. 30, 2017

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

The Company has incurred and continues to incur costs related to facility consolidations, such as idle facility rent obligations and the write-off of leasehold improvements, and employee severance (collectively referred to as “restructuring expense”) in a continued effort to consolidate back office functions and to make its organization more efficient. These restructuring activities are compartmentalized and are not part of an overall plan and therefore the Company cannot estimate the total amount to be incurred in connection with the activity. Employee severance is generally payable within the next twelve months with certain facility costs extending through Fiscal 2019.

The following table summarizes the changes to the restructuring liability for the periods presented.

	Employee Severance			Facility Closures			Total
Balance at March 31, 2017	$	4,850		$	286		$	5,136
Restructuring expense	4,133			336			4,469
Cash expenditures	(4,462		)	(286		)	(4,748		)
Balance at September 30, 2017	$	4,521		$	336		$	4,857

Of the $4,857 above, $4,793 is classified as a current liability under Other liabilities on the Company’s Consolidated Balance Sheets for the period ended September 30, 2017.

The following table summarizes restructuring expense, which is recorded in Selling, general & administrative expenses in the Company’s Consolidated Statements of Operations, for the six months ended September 30, 2017, for the Company’s reporting segments:

	North America Products		North America Services		International Products		International Services		Total
Employee Severance	$	647	$	1,651	$	628	$	1,207	$	4,133
Facility Closures	—		324		12		—		336
Total	$	647	$	1,975	$	640	$	1,207	$	4,469

Company management is considering initiatives to reset the business model and align costs with revenue to improve profitability. As a result, during FY18, our profits could be negatively impacted by restructuring expenses resulting from such initiatives, which are designed to maximize the efficiency of the cost structure for each of our segments to enhance the Company's profitability. The Company believes there is a significant cost savings for such restructuring initiatives that will provide a return on investment in a relatively short period of time. However, there can be no assurance that we would realize adequate returns on this investment nor that we would be able to maintain such cost savings in the future. Such restructuring initiatives have not been formalized and the Company cannot state with any certainty the timing or whether or not such events will occur.

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Inventories (Tables)

6 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Schedule of Inventories

The Company’s Inventories consist of the following:

	September 30, 2017			March 31, 2017
Raw materials	$	1,910		$	1,708
Finished goods	35,307			35,036
Inventory, gross	$	37,217		$	36,744
Excess and obsolete inventory reserves	(10,378		)	(11,362		)
Inventories, net	$	26,839		$	25,382

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Intangible Assets (Tables)

6 Months Ended

Sep. 30, 2017

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Schedule of Definite-lived and Indefinite-lived Intangible Assets

The following table summarizes the gross carrying amount, accumulated amortization and net carrying amount by intangible asset class:

	September 30, 2017						March 31, 2017
	Gross Carrying Amount		Accum. Amort.		Net Carrying Amount		Gross Carrying Amount		Accum. Amort.		Net Carrying Amount
Definite-lived
Non-compete agreements	$	842	$	842	$	—	$	833	$	833	$	—
Customer relationships	122,396		85,083		37,313		122,301		80,678		41,623
Total	$	123,238	$	85,925	$	37,313	$	123,134	$	81,511	$	41,623
Indefinite-lived
Trademarks	34,024		8,253		25,771		35,450		8,253		27,197
Total	$	157,262	$	94,178	$	63,084	$	158,584	$	89,764	$	68,820

Schedule of Changes in Net Carrying Amounts of Intangible Assets

The following table summarizes the changes to the net carrying amounts by intangible asset class:

	Trademarks			Customer relationships			Total
March 31, 2017	$	27,197		$	41,623		$	68,820
Intangibles amortization	—			(4,339		)	(4,339		)
Foreign currency translation adjustment	—			29			29
Intangible asset impairment loss	(1,426		)	—			(1,426		)
September 30, 2017	$	25,771		$	37,313		$	63,084

Schedule of Expected Amortization Expense

The following table details the estimated intangibles amortization expense for the remainder of Fiscal 2018, each of the succeeding four fiscal years and the periods thereafter.

Fiscal
2018	$	3,253
2019	5,616
2020	5,119
2021	4,658
2022	3,057
Thereafter	15,610
Total	$	37,313

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Indebtedness (Tables)

6 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The Company’s Long-term debt consists of the following:

	September 30, 2017			March 31, 2017
Revolving credit agreement (1)	$	78,000		$	88,400
Term loan (1)	50,000			—
Other	1,165			1,346
Total debt	$	129,165		$	89,746
Less: current portion (2)	(5,756		)	(964		)
Long-term debt	$	123,409		$	88,782

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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments and Impact on Statements of Operations

The following tables summarize the carrying amounts of derivative assets/liabilities and the impact on the Company’s Consolidated Statements of Operations:

		Asset Derivatives				Liability Derivatives
		September 30,		March 31,		September 30,		March 31,
	Classification	2017		2017		2017		2017
Derivatives designated as hedging instruments
Foreign currency contracts	Other liabilities (current)					$	966	$	573
Foreign currency contracts	Other assets (current)	$	160	$	87

		Three-months ended						Six-months ended
		September 30						September 30
	Classification	2017			2016			2017			2016
Derivatives designated as hedging instruments
Gain (loss) recognized in other comprehensive income (effective portion), net of taxes	Other comprehensive income	$	(221	)	$	(295	)	$	(888	)	$	(443	)
Amounts reclassified from AOCI into results of operations (effective portion), net of taxes	Selling, general & administrative expenses	736			289			1,122			516

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Fair Value Disclosures (Tables)

6 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2017, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value:

	Level 1		Level 2		Level 3		Total
Assets at Fair Value
Defined benefit pension plan assets(1)	$	22,261	$	11,667	$	—	$	33,928
Foreign currency contracts	$	—	$	160	$	—	$	160
Total Assets at Fair Value	$	22,261	$	11,827	$	—	$	34,088
Liabilities at Fair Value
Foreign currency contracts	$	—	$	966	$	—	$	966

(1) The fair value of pension plan assets is measured annually, thus this value is as of March 31, 2017.

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Stockholder's Equity (Tables)

6 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive Income

The components of AOCI consisted of the following for the periods presented:

	September 30, 2017			March 31, 2017
Foreign Currency Translation Adjustment	$	1,329		$	(3,843	)
Derivative Instruments	(114		)	(348		)
Defined Benefit Pension	(11,104		)	(11,290		)
Accumulated other comprehensive income	$	(9,889	)	$	(15,481	)

Schedule of Dividends

Schedule of Common Stock Repurchases

The following table presents information about the Company's common stock repurchases:

	Three-months ended				Six-months ended
	September 30				September 30
	2017		2016		2017		2016
Shares of common stock purchased	—		—		44,507		39,735
Aggregate purchase price	$	—	$	—	$	393	$	477
Average purchase price	$	—	$	—	$	8.84	$	12.01

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Stock-based Compensation (Tables)

6 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock Options, Valuation Assumptions

The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model, which includes the following weighted-average assumptions.

	Six-months ended
	September 30
	2017		2016
Expected life (in years)	6.1		6.8
Risk-free interest rate	2.1	%	1.6	%
Annual forfeiture rate	2.7	%	1.8	%
Expected volatility	45.3	%	41.7	%
Dividend yield	3.9	%	3.1	%

Schedule of Stock Options, Activity

The following table summarizes the Company’s stock option activity:

	Shares (in 000’s)		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Intrinsic Value (000’s)
March 31, 2017	1,080		$	21.84
Granted	609		8.10
Exercised	—		—
Forfeited or cancelled	(110	)	20.02
September 30, 2017	1,579		$	16.67	6.4	$	—
Exercisable	744		$	24.93	3.2	$	—

Schedule of Stock Options, Nonvested Share Activity

The following table summarizes certain information regarding the Company’s non-vested stock options:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
March 31, 2017	419		$	4.45
Granted	609		2.51
Vested	(159	)	4.99
Forfeited	(33	)	4.45
September 30, 2017	836		$	2.93

Schedule of Restricted Stock Units, Activity

The following table summarizes the Company’s restricted stock unit activity:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
March 31, 2017	340		$	14.24
Granted	420		8.03
Vested	(223	)	12.38
Forfeited	(25	)	13.66
September 30, 2017	512		$	9.99

Schedule of Performance Share Units, Valuation Assumptions

The fair value of performance share awards (subject to the Company’s Relative TSR Ranking) is estimated on the grant date using the Monte-Carlo simulation valuation method which includes the following weighted-average assumptions.

	Six-months ended
	September 30
	2017		2016
Risk-free interest rate	1.4	%	0.9	%
Expected volatility	46.7	%	45.1	%
Dividend yield	3.9	%	3.4	%

Schedule of Performance Share Units, Activity

The following table summarizes the Company’s performance share award activity:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
March 31, 2017	319		$	15.93
Granted	309		8.26
Vested	(68	)	23.05
Forfeited	(33	)	14.66
September 30, 2017	527		$	10.60

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Earnings (loss) Per Share (Tables)

6 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) Per Share, Basic and Diluted

The following table details the computation of basic and diluted earnings (loss) per common share from continuing operations for the periods presented (share numbers in table in thousands):

	Three-months ended						Six-months ended
	September 30						September 30
	2017			2016			2017			2016
Net income (loss)	$	(11,400	)	$	(6,105	)	$	(21,147	)	$	(6,581	)
Weighted-average common shares outstanding (basic)	15,138			15,149			15,057			15,088
Effect of dilutive securities from equity awards	—			—			—			—
Weighted-average common shares outstanding (diluted)	15,138			15,149			15,057			15,088
Basic earnings (loss) per common share	$	(0.75	)	$	(0.40	)	$	(1.40	)	$	(0.44	)
Dilutive earnings (loss) per common share	$	(0.75	)	$	(0.40	)	$	(1.40	)	$	(0.44	)

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Segment Information (Tables)

6 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The financial results for the Company's reporting segments are as follows:

	North America Products			North America Services			International Products			International Services			Total
2Q18
Revenues	$	19,858		$	148,533		$	17,390		$	8,383		$	194,164
Gross profit	9,145			38,536			6,937			1,875			56,493
Operating income (loss)	1,848			(7,177		)	(361		)	(1,682		)	(7,372		)
Depreciation	451			1,702			175			107			2,435
Intangibles amortization	—			1,984			125			—			2,109
Restructuring expense	(659		)	697			(1,073		)	1,182			147
Asset impairment loss	—			1,426			—			—			1,426
Capital expenditures	204			1,009			120			258			1,591
Assets (as of September 30)	62,527			318,149			43,112			15,431			439,219
2Q17
Revenues	$	20,954		$	169,782		$	21,309		$	6,704		$	218,749
Gross profit	6,533			37,955			8,517			1,439			54,444
Operating income (loss)	(749		)	(6,106		)	65			252			(6,538		)
Depreciation	417			1,691			187			60			2,355
Intangibles amortization	—			2,189			115			—			2,304
Restructuring expense	125			2,125			671			20			2,941
Asset impairment loss	—			536			—			—			536
Capital expenditures	(449		)	1,728			107			417			1,803
Assets (as of September 30)	46,752			354,715			36,033			17,002			454,502
2QYTD18
Revenues	$	37,121		$	301,163		$	33,015		$	14,509		$	385,808
Gross profit	16,924			76,066			13,019			3,087			109,096
Operating income (loss)	374			(14,533		)	(4,102		)	(2,008		)	(20,269		)
Depreciation	900			3,336			339			184			4,759
Intangibles amortization	—			4,101			238			—			4,339
Restructuring expense	647			1,975			640			1,207			4,469
Asset impairment loss	—			1,426			—			—			1,426
Capital expenditures	333			1,708			373			274			2,688
Assets (as of September 30)	62,527			318,149			43,112			15,431			439,219
2QYTD17
Revenues	$	40,039		$	341,517		$	42,105		$	13,568		$	437,229
Gross profit	15,467			87,098			16,531			3,001			122,097
Operating income (loss)	194			(4,959		)	396			551			(3,818		)
Depreciation	822			3,306			369			103			4,600
Intangibles amortization	—			4,523			232			—			4,755
Restructuring expense	125			2,125			671			20			2,941
Asset impairment loss	—			536			—			—			536
Capital expenditures	826			2,416			201			432			3,875
Assets (as of September 30)	46,752			354,715			36,033			17,002			454,502

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Restructuring (Tables)

6 Months Ended

Sep. 30, 2017

Restructuring and Related Activities [Abstract]

Changes to Restructuring Liability

The following table summarizes the changes to the restructuring liability for the periods presented.

	Employee Severance			Facility Closures			Total
Balance at March 31, 2017	$	4,850		$	286		$	5,136
Restructuring expense	4,133			336			4,469
Cash expenditures	(4,462		)	(286		)	(4,748		)
Balance at September 30, 2017	$	4,521		$	336		$	4,857

Restructuring and Related Costs

The following table summarizes restructuring expense, which is recorded in Selling, general & administrative expenses in the Company’s Consolidated Statements of Operations, for the six months ended September 30, 2017, for the Company’s reporting segments:

	North America Products		North America Services		International Products		International Services		Total
Employee Severance	$	647	$	1,651	$	628	$	1,207	$	4,133
Facility Closures	—		324		12		—		336
Total	$	647	$	1,975	$	640	$	1,207	$	4,469

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Business and Basis of Presentation (Details)	6 Months Ended
	Sep. 30, 2017 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of weeks in a fiscal quarter (expressed in days)	91 days
Impairment of assets held for sale	$ 0

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Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 1,910	$ 1,708
Finished goods	35,307	35,036
Inventory, gross	37,217	36,744
Excess and obsolete inventory reserves	(10,378)	(11,362)
Inventories, net	$ 26,839	$ 25,382

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Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Intangible Assets (Excluding Goodwill) [Line Items]
Definite-lived intangible assets, gross carrying amount	$ 123,238	$ 123,134
Definite-lived intangible assets, accumulated amortization	85,925	81,511
Total	37,313	41,623
Total intangible assets, gross carrying amount	157,262	158,584
Total intangible assets, accumulated amortization	94,178	89,764
Total intangible assets, net carrying amount	63,084	68,820
Non-compete agreements
Intangible Assets (Excluding Goodwill) [Line Items]
Definite-lived intangible assets, gross carrying amount	842	833
Definite-lived intangible assets, accumulated amortization	842	833
Total	0	0
Customer relationships
Intangible Assets (Excluding Goodwill) [Line Items]
Definite-lived intangible assets, gross carrying amount	122,396	122,301
Definite-lived intangible assets, accumulated amortization	85,083	80,678
Total	37,313	41,623
Total intangible assets, net carrying amount	37,313	41,623
Trademarks
Intangible Assets (Excluding Goodwill) [Line Items]
Indefinite-lived intangible assets, gross carrying amount	34,024	35,450
Indefinite-lived intangible assets, accumulated amortization	8,253	8,253
Indefinite-lived intangible assets, net carrying amount	25,771	27,197
Total intangible assets, net carrying amount	$ 25,771	$ 27,197

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Intangible Assets (Changes in Carrying Amount) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Intangible Assets [Roll Forward]
March 31, 2017			$ 68,820
Intangibles amortization	$ (2,109)	$ (2,304)	(4,339)	$ (4,755)
Foreign currency translation adjustment			29
Intangible asset impairment loss			(1,426)
September 30, 2017	63,084		63,084
Trademarks
Intangible Assets [Roll Forward]
March 31, 2017			27,197
Intangibles amortization			0
Foreign currency translation adjustment			0
Intangible asset impairment loss			(1,426)
September 30, 2017	25,771		25,771
Customer relationships
Intangible Assets [Roll Forward]
March 31, 2017			41,623
Intangibles amortization			(4,339)
Foreign currency translation adjustment			29
Intangible asset impairment loss			0
September 30, 2017	$ 37,313		$ 37,313

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Intangible Assets (Expected Future Amortization Expense) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2018	$ 3,253
2019	5,616
2020	5,119
2021	4,658
2022	3,057
Thereafter	15,610
Total	$ 37,313	$ 41,623

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Indebtedness (Long-Term Debt) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017	Mar. 31, 2017
Debt Instrument [Line Items]
Total debt	$ 129,165		$ 89,746
Less: current portion	(5,756)		(964)
Long-term debt	123,409		88,782
Revolving credit agreement
Debt Instrument [Line Items]
Total debt	78,000		88,400
Term loan
Debt Instrument [Line Items]
Total debt	50,000		0
Minimum repayments of debt in next 12 months	5,000
Unsecured revolving agreement
Debt Instrument [Line Items]
Total debt	3,584
Other
Debt Instrument [Line Items]
Total debt	1,165		1,346
Other liabilities (current) | Unsecured revolving agreement
Debt Instrument [Line Items]
Total debt	$ 3,366	$ 3,169	$ 3,387

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Indebtedness (Revolving Credit Agreement) (Details)			3 Months Ended		6 Months Ended
	Aug. 09, 2017 USD ($)	May 09, 2016 USD ($)	Sep. 30, 2017 USD ($)	Oct. 01, 2016 USD ($)	Sep. 30, 2017 USD ($)	Oct. 01, 2016 USD ($)	Mar. 31, 2017 USD ($)
Line of Credit Facility [Line Items]
Long-term Debt			$ 129,165,000		$ 129,165,000		$ 89,746,000
Revolving credit agreement
Line of Credit Facility [Line Items]
Long-term Debt			78,000,000		78,000,000		88,400,000
Term loan
Line of Credit Facility [Line Items]
Long-term Debt			50,000,000		50,000,000		$ 0
Revolving credit agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 200,000,000
Maximum amount outstanding			140,648,000	$ 145,100,000	171,237,000	$ 150,075,000
Weighted-average amount outstanding			$ 133,615,000	$ 131,973,000	$ 137,054,000	$ 132,643,000
Weighted-average interest rate			3.90%	2.60%	3.30%	2.50%
Unused commitments			$ 37,150,000		$ 37,150,000
Revolving credit agreement | Variable component | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate		0.00%
Revolving credit agreement | Variable component | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.00%
Revolving credit agreement | Federal Funds Effective Swap Rate | Variable component
Line of Credit Facility [Line Items]
Basis spread on variable rate		0.50%
Revolving credit agreement | LIBOR | Variable component
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.00%
Revolving credit agreement | LIBOR | Variable component | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.00%
Revolving credit agreement | LIBOR | Variable component | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.00%
Revolving credit agreement | Swing-line loans
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 15,000,000
Revolving credit agreement | Letters of credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 25,000,000
Amended Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 170,000,000
Percentage of voting interests required to be pledged	65.00%
Percentage of non-voting interests required to be pledged	100.00%
Expected debt issuance costs	$ 632,000
Write-off of deferred amortization costs					204,000
Amended Credit Agreement | Second quarter of Fiscal 2019
Line of Credit Facility [Line Items]
Consolidated leverage ratio	4.00
Fixed charge coverage ratio	1.00
Amended Credit Agreement | Remaining life of credit facility
Line of Credit Facility [Line Items]
Consolidated leverage ratio	3.00
Amended Credit Agreement | Fourth quarter of Fiscal 2019 and thereafter
Line of Credit Facility [Line Items]
Fixed charge coverage ratio	1.10
Amended Credit Agreement | Revolving credit agreement
Line of Credit Facility [Line Items]
Long-term Debt	$ 52,528,000
Amended Credit Agreement | Term loan
Line of Credit Facility [Line Items]
Maximum borrowing capacity	50,000,000
Long-term Debt	50,000,000
Amended Credit Agreement | Term loan | Quarterly for 4 quarters beginning the quarter ending December 31, 2017
Line of Credit Facility [Line Items]
Amortization of long term debt	1,250,000
Amended Credit Agreement | Term loan | Quarterly beginning the quarter ending December 31, 2018 through the end of the Amended Credit Agreement
Line of Credit Facility [Line Items]
Amortization of long term debt	$ 2,500,000
Amended Credit Agreement | Term loan | Option two
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%
Amended Credit Agreement | Term loan | Minimum
Line of Credit Facility [Line Items]
Percentage of excess cash flow required as a prepayment	75.00%
Amended Credit Agreement | Term loan | Maximum
Line of Credit Facility [Line Items]
Percentage of excess cash flow required as a prepayment	50.00%
Amended Credit Agreement | Term loan | Federal Funds Effective Swap Rate | Option one
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Amended Credit Agreement | Term loan | LIBOR | Option two
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%
Amended Credit Agreement | Term loan | LIBOR | Option three
Line of Credit Facility [Line Items]
Basis spread on variable rate	3.50%
Amended Credit Agreement | Line of credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 120,000,000
Amended Credit Agreement | Line of credit | LIBOR | Minimum | Option two
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
Amended Credit Agreement | Line of credit | LIBOR | Maximum | Option two
Line of Credit Facility [Line Items]
Basis spread on variable rate	3.00%
Amended Credit Agreement | Line of credit | Base rate | Minimum | Option one
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.25%
Amended Credit Agreement | Line of credit | Base rate | Maximum | Option one
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Letters of credit
Line of Credit Facility [Line Items]
Amount outstanding			$ 4,850,000		$ 4,850,000

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Derivative Instruments and Hedging Activities (Details) - Foreign currency contracts - Derivatives designated as hedging instruments - Cash flow hedging $ in Thousands	6 Months Ended
	Sep. 30, 2017 USD ($)
Derivative [Line Items]
Notional amount	$ 43,012
Remaining maturity	4 months

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Derivative Instruments and Hedging Activities (Effect on Consolidated Balance Sheets) (Details) - Derivatives designated as hedging instruments - Foreign currency contracts - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Other liabilities (current)
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 966	$ 573
Other assets (current)
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 160	$ 87

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Derivative Instruments and Hedging Activities (Effect on Consolidated Statements of Operations) (Details) - Derivatives designated as hedging instruments - Foreign currency contracts - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Other comprehensive income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive income (effective portion), net of taxes	$ (221)	$ (295)	$ (888)	$ (443)
Selling, general & administrative expenses
Derivative Instruments, Gain (Loss) [Line Items]
Amounts reclassified from AOCI into results of operations (effective portion), net of taxes	$ 736	$ 289	$ 1,122	$ 516

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Fair Value Disclosures (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Other assets (current) | Derivatives designated as hedging instruments | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, fair value	$ 160	$ 87
Other liabilities (current) | Derivatives designated as hedging instruments | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability, fair value	966	$ 573
Level 1 | Other assets (current) | Derivatives designated as hedging instruments | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, fair value	0
Level 1 | Other liabilities (current) | Derivatives designated as hedging instruments | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability, fair value	0
Level 2 | Other assets (current) | Derivatives designated as hedging instruments | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, fair value	160
Level 2 | Other liabilities (current) | Derivatives designated as hedging instruments | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability, fair value	966
Level 3 | Other assets (current) | Derivatives designated as hedging instruments | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, fair value	0
Level 3 | Other liabilities (current) | Derivatives designated as hedging instruments | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability, fair value	0
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Defined benefit pension plan assets, fair value	33,928
Derivative asset, fair value	34,088
Recurring | Derivatives designated as hedging instruments | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, fair value	160
Derivative liability, fair value	966
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Defined benefit pension plan assets, fair value	22,261
Derivative asset, fair value	22,261
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Defined benefit pension plan assets, fair value	11,667
Derivative asset, fair value	11,827
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Defined benefit pension plan assets, fair value	0
Derivative asset, fair value	$ 0

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Stockholder's Equity (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign Currency Translation Adjustment	$ 1,329	$ (3,843)
Derivative Instruments	(114)	(348)
Defined Benefit Pension	(11,104)	(11,290)
Accumulated other comprehensive income	$ (9,889)	$ (15,481)

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Stockholder's Equity (Dividends) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Oct. 01, 2016
Stockholders' Equity Note [Abstract]
Dividends, aggregate value	$ 0	$ 1,818

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Stockholder's Equity (Common Stock Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		222 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017
Stockholders' Equity Note [Abstract]
Shares of common stock purchased (in shares)	0	0	44,507	39,735	11,392,851
Aggregate purchase price	$ 0	$ 0	$ 393	$ 477	$ 408,621
Average purchase price (in dollars per share)	$ 0.00	$ 0.00	$ 8.84	$ 12.01	$ 35.87
Payment related to tax withholding for share-based compensation			$ 393	$ 477
Shares paid for tax withholding for share-based compensation (in shares)			44,507	39,735
Average price per share for shares repurchased from employees for tax payment for share-based compensation (in dollars per share)			$ 8.84	$ 12.01
Stock repurchase programs, remaining number of shares authorized to be repurchased (in shares)	1,107,149		1,107,149		1,107,149

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ 2,434	$ (1,524)	$ (2,064)	$ 808
Effective tax rate (as percent)	(27.10%)	20.00%	8.90%	(14.00%)
Income (loss) before provision for income taxes	$ (8,966)	$ (7,629)	$ (23,211)	$ (5,773)

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Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of common stock shares authorized to issue (shares)	6,491,631		6,491,631
Common stock, par value (in dollars per share)	$ 0.001		$ 0.001		$ 0.001
Stock-based compensation expense	$ 1,040	$ 939	$ 3,238	$ 3,172
Tax benefit from stock-based compensation expense	$ 387	$ 349	$ 1,205	$ 1,180

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Stock-based Compensation (Stock Options) (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Stock-based Compensation Arrangements [Line Items]
Vesting period	3 years
Contractual life	10 years
Stock-based Compensation, Fair Value Assumptions [Abstract]
Expected life (in years)	6 years 1 month	6 years 10 months
Risk-free interest rate	2.10%	1.60%
Annual forfeiture rate	2.70%	1.80%
Expected volatility	45.30%	41.70%
Dividend yield	3.90%	3.10%
Stock-based Compensation, Shares (in 000's) [Roll Forward]
Outstanding, beginning (in shares)	1,080
Granted (in shares)	609
Exercised (in shares)	0
Forfeited or cancelled (in shares)	(110)
Outstanding, ending (in shares)	1,579
Exercisable (in shares)	744
Stock-based Compensation, Weighted Average Exercise Price (Per Share) [Roll Forward]
Outstanding, beginning (in dollars per share)	$ 21.84
Granted (in dollars per share)	8.10
Exercised (in dollars per share)	0.00
Forfeited or cancelled (in dollars per share)	20.02
Outstanding, ending (in dollars per share)	16.67
Exercisable (in dollars per share)	$ 24.93
Stock-based Compensation, Additional Disclosures [Abstract]
Outstanding, Weighted Average Remaining Contractual Life	6 years 5 months
Exercisable, Weighted Average Remaining Contractual Life	3 years 2 months
Outstanding, Intrinsic Value	$ 0
Exercisable, Intrinsic Value	0
Total instrinsic value of options exercised	$ 0	$ 0
Closing stock price (in dollars per share)	$ 3.25
Stock-based Compensation, Nonvested, Shares (in 000's) [Roll Forward]
Non-vested, beginning (in shares)	419
Granted (in shares)	609
Vested (in shares)	(159)
Forfeited (in shares)	(33)
Non-vested, ending (in shares)	836
Stock-based Compensation, Nonvested, Weighted Average Grant Date Fair Value (Per Share) [Roll Forward]
Non-vested, beginning (in dollars per share)	$ 4.45
Granted (in dollars per share)	2.51	$ 3.74
Vested (in dollars per share)	4.99
Forfeited (in dollars per share)	4.45
Non-vested, ending (in dollars per share)	$ 2.93
Total unrecognized pre-tax stock-based compensation expense related to non-vested shares	$ 1,958
Weighted-average period of recognition	2 years 3 months

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Stock-based Compensation (Restricted Stock Units) (Details) - Restricted stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Stock-based Compensation Arrangements [Line Items]
Vesting period	3 years
Stock-based Compensation, Nonvested, Shares (in 000's) [Roll Forward]
Outstanding, beginning (in shares)	340
Granted (in shares)	420
Vested (in shares)	(223)
Forfeited (in shares)	(25)
Outstanding, ending (in shares)	512
Stock-based Compensation, Nonvested, Weighted Average Grant Date Fair Value (Per Share) [Roll Forward]
Outstanding, beginning (in dollars per share)	$ 14.24
Granted (in dollars per share)	8.03
Vested (in dollars per share)	12.38
Forfeited (in dollars per share)	13.66
Outstanding, ending (in dollars per share)	$ 9.99
Total fair value of shares vested	$ 1,894	$ 2,039
Total unrecognized pre-tax stock-based compensation expense related to non-vested shares	$ 3,636
Weighted-average period of recognition	2 years 1 month

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Stock-based Compensation (Performance Share Awards) (Details) - Performance share awards - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Stock-based Compensation Arrangements [Line Items]
Performance goals measuring period	3 years
Stock-based Compensation, Fair Value Assumptions [Abstract]
Risk-free interest rate	1.43%	0.90%
Expected volatility	46.70%	45.10%
Dividend yield	3.90%	3.40%
Stock-based Compensation, Nonvested, Shares (in 000's) [Roll Forward]
Outstanding, beginning (in shares)	319
Granted (in shares)	309
Vested (in shares)	(68)
Forfeited (in shares)	(33)
Outstanding, ending (in shares)	527
Stock-based Compensation, Nonvested, Weighted Average Grant Date Fair Value (Per Share) [Roll Forward]
Outstanding, beginning (in dollars per share)	$ 15.93
Granted (in dollars per share)	8.26
Vested (in dollars per share)	23.05
Forfeited (in dollars per share)	14.66
Outstanding, ending (in dollars per share)	$ 10.60
Total fair value of shares vested	$ 0	$ 0
Total unrecognized pre-tax stock-based compensation expense related to non-vested shares	$ 2,319
Weighted-average period of recognition	2 years 4 months

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Earnings (loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Earnings Per Share [Abstract]
Net income (loss)	$ (11,400)	$ (6,105)	$ (21,147)	$ (6,581)
Weighted-average common shares outstanding (basic) (in shares)	15,138,000	15,149,000	15,057,000	15,088,000
Effect of dilutive securities from equity awards (in shares)	0	0	0	0
Weighted-average common shares outstanding (diluted) (in shares)	15,138,000	15,149,000	15,057,000	15,088,000
Basic earnings (loss) per common share (in dollars per share)	$ (0.75)	$ (0.40)	$ (1.40)	$ (0.44)
Diluted earnings (loss) per common share (in dollars per share)	$ (0.75)	$ (0.40)	$ (1.40)	$ (0.44)
Non-dilutive equity awards excluded from computation of weighted-average common shares outstanding (shares)	2,507,792	1,333,272	2,507,792	1,339,604

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Segment Information (Details)	3 Months Ended		6 Months Ended
	Sep. 30, 2017 USD ($)	Oct. 01, 2016 USD ($)	Sep. 30, 2017 USD ($) segment	Oct. 01, 2016 USD ($)	Mar. 31, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment			4
Revenues	$ 194,164,000	$ 218,749,000	$ 385,808,000	$ 437,229,000
Gross profit	56,493,000	54,444,000	109,096,000	122,097,000
Operating income (loss)	(7,372,000)	(6,538,000)	(20,269,000)	(3,818,000)
Depreciation	2,435,000	2,355,000	4,759,000	4,600,000
Intangibles amortization	2,109,000	2,304,000	4,339,000	4,755,000
Restructuring expense	147,000	2,941,000	4,469,000	2,941,000
Asset impairment loss	1,426,000	536,000	1,426,000	536,000
Capital expenditures	1,591,000	1,803,000	2,688,000	3,875,000
Assets	439,219,000	454,502,000	439,219,000	454,502,000	$ 427,117,000
North America Products
Segment Reporting Information [Line Items]
Restructuring expense		125,000	647,000
North America Services
Segment Reporting Information [Line Items]
Restructuring expense		2,125,000	1,975,000
International Products
Segment Reporting Information [Line Items]
Restructuring expense		671,000	640,000
International Services
Segment Reporting Information [Line Items]
Restructuring expense		20,000	1,207,000
Operating Segments | North America Products
Segment Reporting Information [Line Items]
Revenues	19,858,000	20,954,000	37,121,000	40,039,000
Gross profit	9,145,000	6,533,000	16,924,000	15,467,000
Operating income (loss)	1,848,000	(749,000)	374,000	194,000
Depreciation	451,000	417,000	900,000	822,000
Intangibles amortization	0	0	0	0
Restructuring expense	(659,000)			125,000
Asset impairment loss	0	0	0	0
Capital expenditures	204,000	(449,000)	333,000	826,000
Assets	62,527,000	46,752,000	62,527,000	46,752,000
Operating Segments | North America Services
Segment Reporting Information [Line Items]
Revenues	148,533,000	169,782,000	301,163,000	341,517,000
Gross profit	38,536,000	37,955,000	76,066,000	87,098,000
Operating income (loss)	(7,177,000)	(6,106,000)	(14,533,000)	(4,959,000)
Depreciation	1,702,000	1,691,000	3,336,000	3,306,000
Intangibles amortization	1,984,000	2,189,000	4,101,000	4,523,000
Restructuring expense	697,000			2,125,000
Asset impairment loss	1,426,000	536,000	1,426,000	536,000
Capital expenditures	1,009,000	1,728,000	1,708,000	2,416,000
Assets	318,149,000	354,715,000	318,149,000	354,715,000
Operating Segments | International Products
Segment Reporting Information [Line Items]
Revenues	17,390,000	21,309,000	33,015,000	42,105,000
Gross profit	6,937,000	8,517,000	13,019,000	16,531,000
Operating income (loss)	(361,000)	65,000	(4,102,000)	396,000
Depreciation	175,000	187,000	339,000	369,000
Intangibles amortization	125,000	115,000	238,000	232,000
Restructuring expense	(1,073,000)			671,000
Asset impairment loss	0	0	0	0
Capital expenditures	120,000	107,000	373,000	201,000
Assets	43,112,000	36,033,000	43,112,000	36,033,000
Operating Segments | International Services
Segment Reporting Information [Line Items]
Revenues	8,383,000	6,704,000	14,509,000	13,568,000
Gross profit	1,875,000	1,439,000	3,087,000	3,001,000
Operating income (loss)	(1,682,000)	252,000	(2,008,000)	551,000
Depreciation	107,000	60,000	184,000	103,000
Intangibles amortization	0		0	0
Restructuring expense	1,182,000			20,000
Asset impairment loss	0	0	0	0
Capital expenditures	258,000	417,000	274,000	432,000
Assets	$ 15,431,000	$ 17,002,000	15,431,000	$ 17,002,000
Pro Forma [Member] | Operating Segments | North America Products
Segment Reporting Information [Line Items]
Revenues			36,650
Gross profit			17,000
Pro Forma [Member] | Operating Segments | International Products
Segment Reporting Information [Line Items]
Revenues			31,591
Gross profit			13,000
Pro Forma [Member] | Operating Segments | International Services
Segment Reporting Information [Line Items]
Revenues			16,404
Gross profit			$ 4,000

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Commitments and Contingencies a (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Revolving credit agreement
Debt Instrument [Line Items]
Expected decrease in debt payment	$ 5,000
Term loan
Debt Instrument [Line Items]
Debt payment	$ 5,000

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Restructuring - Summarized Changes to Restructuring Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Restructuring Reserve [Roll Forward]
Balance at March 31, 2017			$ 5,136
Restructuring expense	$ 147	$ 2,941	4,469	$ 2,941
Cash expenditures			(4,748)
Balance at September 30, 2017	4,857		4,857
Other Liabilities
Restructuring Reserve [Roll Forward]
Restructuring reserve, current	4,793		4,793
Employee Severance
Restructuring Reserve [Roll Forward]
Balance at March 31, 2017			4,850
Restructuring expense			4,133
Cash expenditures			(4,462)
Balance at September 30, 2017	4,521		4,521
Facility Closures
Restructuring Reserve [Roll Forward]
Balance at March 31, 2017			286
Restructuring expense			336
Cash expenditures			(286)
Balance at September 30, 2017	$ 336		$ 336

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Restructuring - Restructuring and Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring expense	$ 147	$ 2,941	$ 4,469	$ 2,941
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring expense			4,133
Facility Closures
Restructuring Cost and Reserve [Line Items]
Restructuring expense			336
North America Products
Restructuring Cost and Reserve [Line Items]
Restructuring expense		125	647
North America Products | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring expense			647
North America Products | Facility Closures
Restructuring Cost and Reserve [Line Items]
Restructuring expense			0
North America Services
Restructuring Cost and Reserve [Line Items]
Restructuring expense		2,125	1,975
North America Services | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring expense			1,651
North America Services | Facility Closures
Restructuring Cost and Reserve [Line Items]
Restructuring expense			324
International Products
Restructuring Cost and Reserve [Line Items]
Restructuring expense		671	640
International Products | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring expense			628
International Products | Facility Closures
Restructuring Cost and Reserve [Line Items]
Restructuring expense			12
International Services
Restructuring Cost and Reserve [Line Items]
Restructuring expense		$ 20	1,207
International Services | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring expense			1,207
International Services | Facility Closures
Restructuring Cost and Reserve [Line Items]
Restructuring expense			$ 0