CalAmp Corp. (NASDAQ: CAMP), a leading provider of wireless
products, services and solutions, today reported results for its
fiscal fourth quarter and full year ended February 28, 2011. Key
elements include:
-- Consolidated fourth quarter revenues of $28.9 million; wireless datacom
fourth quarter revenues up 48% year-over-year to $23.4 million.
-- Consolidated full year revenues of $114.3 million; wireless datacom
full year revenues up 37% year-over-year to $78.4 million.
-- Consolidated fourth quarter gross margin percentage of 28.9%, up from
20.2% in fourth quarter of prior year; consolidated full year gross
margin percentage of 25.9%, up from 20.0% in prior year.
-- Fourth quarter GAAP net income of $0.3 million, or $0.01 per diluted
share; Adjusted Basis (non-GAAP) net income of $0.7 million, or $0.02
per diluted share.
Commenting on the fiscal 2011 fourth quarter and full year
results, Rick Gold, CalAmp's Chief Executive Officer said, "CalAmp
returned to profitability on a GAAP basis this quarter for the
first time in four years. Our wireless datacom business continued
its strong momentum, with quarterly revenues increasing 48%
year-over-year. This growth is now being driven by both our mobile
resource management (MRM) products and our wireless networks
products. We are seeing strong demand for our MRM products from the
local fleet management, vehicle finance, asset tracking and stolen
vehicle recovery verticals. Our wireless networks products also
showed strong growth with contributions from projects in the public
safety, railroad and energy sectors. We are making significant
investments in R&D to expand and strengthen our footprint in
wireless data, and we're encouraged by the traction our new
products are getting in the market."
Mr. Gold continued, "In our satellite business, fourth quarter
revenue was softer than expected. During the quarter, we began the
production ramps of one older product and one new product, but
those ramps did not occur until late in the quarter. Volume
shipments of both products are now underway and are expected to
drive significantly higher satellite revenue during our fiscal 2012
first quarter. In addition, we are on track with our recently
announced plans for enhancing the operational flexibility and cost
structure of our satellite business. We are continuing to work on
additional new products that we expect to launch this year and we
expect improved financial results from this business in fiscal
2012."
Fiscal 2011 Fourth Quarter Results
Total revenue for the fiscal 2011 fourth quarter was $28.9
million compared to $34.5 million for the fourth quarter of fiscal
2010 as higher revenues in the Company's wireless datacom segment
were offset by lower satellite segment revenues. Wireless datacom
revenue increased 48% to $23.4 million from $15.8 million in the
same period last year, while satellite revenue decreased to $5.6
million from $18.7 million in the same period last year.
Consolidated gross profit for the fiscal 2011 fourth quarter was
$8.4 million, or a 28.9% gross margin, compared to gross profit of
$7.0 million, or a 20.2% gross margin, for the same period last
year. The increases in gross profit and gross margin percentage in
the latest quarter were due primarily to higher wireless datacom
revenues.
An income tax benefit of $172,000 was recorded in the fiscal
2011 fourth quarter relating to the carryback of net operating
losses of the Company's French subsidiary. Excluding this item, no
income tax provision or benefit was recorded in fiscal 2011, and no
income tax provision or benefit is expected to be recorded in
fiscal 2012 due to the existence of net operating loss
carryforwards for U.S. federal and state tax purposes.
Results of operations for the fiscal 2011 fourth quarter as
determined in accordance with GAAP was net income of $0.3 million,
or $0.01 per diluted share, compared to a net loss of $1.3 million,
or $0.05 per diluted share, in the fourth quarter of last year.
The Adjusted Basis (non-GAAP) net income for the fiscal 2011
fourth quarter was $0.7 million, or $0.02 per diluted share,
compared to Adjusted Basis net loss of $0.5 million, or $0.02 loss
per diluted share, for the same period last year. The Adjusted
Basis net income (loss) excludes intangible asset amortization and
stock-based compensation expense, and includes a pro forma income
tax provision or benefit computed without giving effect to
increases or decreases in the deferred income tax valuation
allowance that are recognized for GAAP basis financial reporting. A
reconciliation of the GAAP basis pretax income (loss) to the
Adjusted Basis net income (loss) is provided in the table at the
end of this press release.
Liquidity
As of February 28, 2011, the Company had total cash of $4.2
million and total debt of $11.9 million. Total debt at that date
consisted of $7.49 million drawn under the Company's revolving bank
credit facility and subordinated debt of $4.46 million. The unused
borrowing capacity on the bank revolver was $3.8 million at
February 28, 2011. Net cash provided by operating activities during
the three- and twelve-month periods ended February 28, 2011 was
$51,000 and $857,000, respectively.
Business Outlook
Commenting on the Company's business outlook, Mr. Gold said,
"Based on our latest projections, we expect fiscal 2012 first
quarter consolidated revenues in the range of $31 to $34 million.
First quarter satellite revenues are expected to increase
significantly on a sequential quarter basis. Wireless datacom
revenues are expected to increase significantly on a year-over-year
basis, but be down slightly on a sequential basis. We expect fiscal
first quarter GAAP basis net income (loss) in the range of a $0.01
loss to $0.02 income per diluted share. The Adjusted Basis
(non-GAAP) net income for the first quarter is expected to be in
the range of breakeven to $0.03 income per diluted share."
Mr. Gold continued, "Based on our current forecast, we expect
fiscal 2012 revenue to trend higher compared to fiscal 2011 with
growth in both our satellite and wireless datacom businesses, and
we expect to be profitable on a GAAP basis for the year as a
whole."
Conference Call and Webcast
A conference call and simultaneous webcast to discuss fiscal
2011 fourth quarter and full year financial results and business
outlook will be held today at 4:30 p.m. Eastern / 1:30 p.m.
Pacific. CalAmp's CEO Rick Gold, President/COO Michael Burdiek and
CFO Rick Vitelle will host the conference call. Participants can
dial into the live conference call by calling 800-762-8779
(480-629-9771 for international callers). An audio replay will be
available through May 5, 2011, by calling 800-406-7325
(303-590-3030 for international callers) and entering the access
code 4430187.
Additionally, a live webcast of the call will be available on
CalAmp's web site at www.calamp.com. Participants are encouraged to
visit the web site at least 15 minutes prior to the start of the
call to register, download and install any necessary audio
software. After the live webcast, a replay will remain available
until the next quarterly conference call in the Investor Relations
section of CalAmp's web site.
About CalAmp
CalAmp develops and markets wireless communications solutions
that deliver data, voice and video for critical networked
communications and other applications. The Company's two business
segments are Wireless Datacom, which serves utility, governmental
and enterprise customers, and Satellite, which focuses on the North
American Direct Broadcast Satellite market. For more information,
please visit www.calamp.com.
Forward-Looking Statements
Statements in this press release that are not historical in
nature are forward-looking statements that 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 product demand, competitive
pressures and pricing declines in the Company's satellite and
wireless datacom markets, the timing of customer approvals of new
product designs, the length and extent of the global economic
downturn that has and may continue to adversely affect the
Company's business, and other risks or uncertainties that are
described in the Company's Report on Form 10-K for fiscal 2011 as
filed today with the Securities and Exchange Commission. Although
the Company believes the expectations reflected in such f
orward-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.
CAL AMP CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
Three Months Ended Year Ended
February 28, February 28,
-------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ---------
/----(Unaudited)---/
Revenues $ 28,944 $ 34,481 $ 114,333 $ 112,113
Cost of revenues 20,576 27,499 84,775 89,723
--------- --------- --------- ---------
Gross profit 8,368 6,982 29,558 22,390
--------- --------- --------- ---------
Operating expenses:
Research and development 2,850 2,686 11,125 10,943
Selling 2,633 2,422 10,503 9,542
General and administrative 2,168 2,512 8,858 10,523
Intangible asset amortization 275 342 1,132 1,367
--------- --------- --------- ---------
7,926 7,962 31,618 32,375
--------- --------- --------- ---------
Operating income (loss) 442 (980) (2,060) (9,985)
Non-operating expense, net (311) (352) (1,395) (2,240)
--------- --------- --------- ---------
Income (loss) before income
taxes 131 (1,332) (3,455) (12,225)
Income tax benefit 172 - 172 1,374
--------- --------- --------- ---------
Net income (loss) $ 303 $ (1,332) $ (3,283) $ (10,851)
========= ========= ========= =========
Earnings (loss) per share -
basic $ 0.01 $ (0.05) $ (0.12) $ (0.43)
Earnings (loss) per share -
diluted $ 0.01 $ (0.05) $ (0.12) $ (0.43)
Shares used in basic per
share calculations 27,325 26,442 27,181 25,309
Shares used in diluted per
share calculations 28,072 26,442 27,181 25,309
BUSINESS SEGMENT INFORMATION
(In thousands)
Three Months Ended Year Ended
February 28, February 28,
-------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ---------
/----(Unaudited)---/
Revenues
Satellite $ 5,583 $ 18,700 $ 35,899 $ 54,715
Wireless DataCom 23,361 15,781 78,434 57,398
--------- --------- --------- ---------
Total revenues $ 28,944 $ 34,481 $ 114,333 $ 112,113
========= ========= ========= =========
Gross profit (loss)
Satellite $ (493) $ 1,853 $ 1,636 $ 4,258
Wireless DataCom 8,861 5,129 27,922 18,132
--------- --------- --------- ---------
Total gross profit $ 8,368 $ 6,982 $ 29,558 $ 22,390
========= ========= ========= =========
Operating income (loss)
Satellite $ (1,459) $ 740 $ (2,460) $ (111)
Wireless DataCom 2,876 (1,076) 4,922 (5,867)
Corporate expenses (975) (644) (4,522) (4,007)
--------- --------- --------- ---------
Total operating income
(loss) $ 442 $ (980) $ (2,060) $ (9,985)
========= ========= ========= =========
CAL AMP CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands)
February 28, February 28,
2011 2010
---------- ----------
Assets
Current assets:
Cash and cash equivalents $ 4,241 $ 2,986
Accounts receivable, net 16,814 16,520
Inventories 9,890 10,608
Deferred income tax assets 1,961 2,656
Prepaid expenses and other current assets 5,197 4,720
---------- ----------
Total current assets 38,103 37,490
Equipment and improvements, net 1,877 2,055
Deferred income tax assets, less current portion 9,887 10,017
Intangible assets, net 4,012 5,144
Other assets 1,606 2,247
---------- ----------
$ 55,485 $ 56,953
========== ==========
Liabilities and Stockholders' Equity
Current liabilities:
Bank working capital line of credit $ 7,489 $ 5,901
Accounts payable 14,103 16,186
Accrued payroll and employee benefits 3,341 2,742
Deferred revenue 5,796 4,740
Other current liabilities 2,140 3,526
---------- ----------
Total current liabilities 32,869 33,095
---------- ----------
Long-term debt 4,460 4,170
Other non-current liabilities 554 489
Stockholders' equity:
Common stock 281 277
Additional paid-in capital 153,135 151,453
Accumulated deficit (134,948) (131,665)
Accumulated other comprehensive loss (866) (866)
---------- ----------
Total stockholders' equity 17,602 19,199
---------- ----------
$ 55,485 $ 56,953
========== ==========
CAL AMP CORP.
CONSOLIDATED CASH FLOW STATEMENTS
(In thousands)
Year Ended
February 28,
----------------------
2011 2010
---------- ----------
Cash flows from operating activities:
Net loss $ (3,283) $ (10,851)
Depreciation and amortization 2,543 2,522
Stock-based compensation expense 2,109 1,981
Amortization of debt issue costs and discount 536 -
Loss on sale of investment - 1,008
Deferred tax assets, net 807 39
Changes in operating working capital (1,835) 7,792
Other (20) 104
---------- ----------
Net cash provided by operating activities 857 2,595
---------- ----------
Cash flows from investing activities:
Capital expenditures (1,245) (1,066)
Proceeds from sale of investment - 992
Collections on note receivable 428 325
Other 32 (36)
---------- ----------
Net cash (used in) provided by investing
activities (785) 215
---------- ----------
Cash flows from financing activities:
Net proceeds from line of credit borrowing 1,588 7,551
Proceeds from issuance of subordinated debt - 5,000
Net proceeds from sale of common stock - 3,968
Debt repayments - (22,728)
Payment of debt issue costs - (544)
Taxes paid related to net share settlement of
vested equity awards (405) (123)
---------- ----------
Net cash provided by (used in) financing
activities 1,183 (6,876)
---------- ----------
Effect of exchange rate changes on cash - 139
---------- ----------
Net change in cash and cash equivalents 1,255 (3,927)
Cash and cash equivalents at beginning of period 2,986 6,913
---------- ----------
Cash and cash equivalents at end of period $ 4,241 $ 2,986
========== ==========
CAL AMP CORP.
NON-GAAP EARNINGS RECONCILIATION
(Unaudited, in thousands except per share amounts)
Non-GAAP Earnings Reconciliation
"GAAP" refers to financial information presented in accordance
with Generally Accepted Accounting Principles in the United States.
This press release includes historical non-GAAP financial measures,
as defined in Regulation G promulgated by the Securities and
Exchange Commission. CalAmp believes that its presentation of
historical non-GAAP financial measures provides useful
supplementary information to investors. The presentation of
historical non-GAAP financial measures is not meant to be
considered in isolation from or as a substitute for results
prepared in accordance with GAAP.
In this press release, CalAmp reports the non-GAAP financial
measures of Adjusted Basis Net Income (Loss) and Adjusted Basis Net
Income (Loss) Per Diluted Share. CalAmp uses these non-GAAP
financial measures to enhance the investor's overall understanding
of the financial performance and future prospects of CalAmp's core
business activities. Specifically, CalAmp believes that a report of
Adjusted Basis Net Income (Loss) and Adjusted Basis Net Income
(Loss) Per Diluted Share provides consistency in its financial
reporting and facilitates the comparison of results of core
business operations between its current and past periods.
The reconciliation of the GAAP Basis Pretax Income (Loss) to
Adjusted Basis (non-GAAP) Net Income (Loss) is as follows:
Three Months Ended Year Ended
February 28, February 28,
-------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ---------
GAAP basis pretax income (loss) $ 131 $ (1,332) $ (3,455) $ (12,225)
Amortization of intangible assets 275 342 1,132 1,367
Stock-based compensation expense 550 565 2,109 1,981
--------- --------- --------- ---------
Pretax income (loss) (non-GAAP
basis) 956 (425) (214) (8,877)
Income tax benefit (provision)
(non-GAAP basis) (a) (288) (29) 29 3,919
--------- --------- --------- ---------
Non-GAAP net income (loss) $ 668 $ (454) $ (185) $ (4,958)
========= ========= ========= =========
Non-GAAP net income (loss) per
diluted share $ 0.02 $ (0.02) $ (0.01) $ (0.20)
Non-GAAP weighted average common
shares outstanding on diluted
basis 28,072 26,442 27,181 25,309
(a) The non-GAAP income tax benefit (provision) is computed using the
Company's combined U.S. federal and state statutory tax rate of 40.0%
and 40.7% in fiscal 2011 and 2010, respectively, excluding the pretax
losses of foreign operations for which no income tax benefit is
recognized and excluding the effects of increases and decreases in the
deferred income tax valuation allowance.
AT THE COMPANY: Rick Vitelle Chief Financial Officer (805)
987-9000 AT FINANCIAL RELATIONS BOARD: Lasse Glassen General
Information (213) 486-6546 lglassen@mww.com
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