CalAmp to Record Non-Cash Impairment Charge
January 10 2008 - 6:09PM
Business Wire
CalAmp Corp. (NASDAQ: CAMP), a leading provider of wireless
products, services and solutions, today filed with the U.S.
Securities and Exchange Commission for a five day extension to file
its Form 10-Q for its fiscal 2008 third quarter ended December 1,
2007. In today's filing the Company reported that as a result of a
significant decrease in recent business with a key Direct Broadcast
Satellite (DBS) customer due to a product performance issue as
previously disclosed, coupled with the recent substantial decline
in the Company's market capitalization, the Company engaged an
independent valuation specialist to conduct an interim goodwill
impairment analysis as of December 1, 2007, the end of its fiscal
third quarter, in accordance with the applicable accounting rules.
This analysis indicated that the Company's goodwill has been
impaired, notwithstanding the fact that the Company entered into a
settlement agreement with this key DBS customer on December 14,
2007. Based on this analysis, the Company expects to record a
non-cash impairment charge in the range of $64 million to $68
million for the quarter ended December 1, 2007, which net of tax
represents a charge in the range of $2.38 to $2.48 per diluted
share. The Company also expects to report fiscal 2008 third quarter
revenues of $32.1 million, which is within its previously reported
guidance range. In addition, fiscal 2008 third quarter Adjusted
Basis income (loss) from continuing operations is expected to be
approximately breakeven, compared to the previously reported
guidance range of $(0.01) to $(0.05) loss per diluted share.
Adjusted Basis income (loss) from continuing operations excludes
the impact of amortization of intangible assets, stock-based
compensation expense and the aforementioned impairment charge, each
net of tax where applicable. CalAmp will release final results for
the Company's fiscal 2008 third quarter after close of market on
January 15, 2008, as previously announced. The Company will discuss
its third quarter financial results and current business status
during its quarterly conference call to be held on January 15,
2008, at 1:30 p.m. Pacific Time. A live audio webcast of the
quarterly conference call can be accessed on the Company's web
site, www.calamp.com. This link requires listeners to install
either RealPlayer or Windows Media Player to access the event. An
online replay of the audio broadcast will be available on the
Company's web site after the completion of the live call. About
CalAmp Corp. CalAmp is a leading provider of wireless
communications products that enable anytime/anywhere access to
critical information, data and entertainment content. With
comprehensive capabilities ranging from product design and
development through volume production, CalAmp delivers
cost-effective high quality solutions to a broad array of customers
and end markets. CalAmp is a supplier of Direct Broadcast Satellite
(DBS) outdoor customer premise equipment to the U.S. satellite
television market. The Company also provides wireless data
communication solutions for the telemetry and asset tracking
markets, private wireless networks, public safety communications
and critical infrastructure and process control applications. For
additional information, please visit the Company's website at
www.calamp.com. Forward-Looking Statement Statements in this press
release that are not historical in nature are forward-looking
statements, which involve known and unknown risks and
uncertainties. Words such as "may", "will", "expect", "intend",
"plan", "believe", "seek", "could", "estimate", "judgment",
"targeting", "should", "anticipate", "goal" and variations of these
words and similar expressions, are intended to identify
forward-looking statements. Actual results could differ materially
from those implied by such forward-looking statements due to a
variety of factors, including general and industry economic
conditions, product demand, increased competition, competitive
pricing and continued pricing declines in the DBS market, the
timing of customer approvals of new product designs, operating
costs, the Company's ability to efficiently and cost-effectively
integrate its acquired businesses, the Company's ability to obtain
a waiver from the lenders under its bank credit agreement in the
event of default under the credit agreement, the Company's ability
to successfully requalify with respect to the sale of products to
one of its key DBS customers, the risk that the ultimate cost of
resolving a product performance issue with that DBS customer may
exceed the amount of reserves established for that purpose, and
other risks or uncertainties that are described in the Company's
fiscal 2007 Annual Report on Form 10-K on May 17, 2007 with the
Securities and Exchange Commission. Although the Company believes
the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, it can give no assurance that
its expectations will be attained. The Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
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