CalAmp Corp. (NASDAQ: CAMP), a leading
provider of wireless products, services and solutions, today
reported results for its fiscal 2012 third quarter ended November
30, 2011. Key elements include:
- Consolidated revenue of $32.8 million, up 10.8% over prior year
period; wireless datacom revenue of $25.9 million, up 22.3% over
prior year period
- GAAP net income of $1.7 million, or $0.06 per diluted share;
Adjusted Basis (non-GAAP) net income of $2.6 million, or $0.09 per
diluted share, both at the high end of the Company's guidance
range
- $2.1 million net cash provided from operations; net debt
balance reduced by $1.9 million to $2.1 million at November 30,
2011
Michael Burdiek, CalAmp's President and Chief Executive Officer,
commented, "This quarter marks our third consecutive quarter of
year-over-year revenue growth, and our fourth consecutive quarter
of increasingly profitable operations. The fundamental driver for
revenue growth and increasing profitability continues to be our
wireless datacom business segment. We experienced continued
momentum within the mobile resource management (MRM) group where
our products are gaining share in a rapidly growing market. In
addition we saw significant contribution from our ongoing Positive
Train Control project where we started delivering initial
pre-production radios."
Mr. Burdiek continued, "In our satellite business, even though
we had somewhat lower revenue in the third quarter compared to the
second quarter, we did see sequential quarter improvement in
satellite gross margins as a result of our recently instituted
variable cost operating model. In addition, last week we began
shipping a new home video and data networking product to our key
satellite customer. We expect this new product as part of an
expanded product portfolio will drive improved revenue and profit
for the satellite business segment in our fiscal 2012 fourth
quarter."
Fiscal 2012 Third Quarter Results Total
revenue for the fiscal 2012 third quarter was $32.8 million
compared with $29.6 million for the third quarter of fiscal 2011.
The year-over-year increase in consolidated revenue was primarily
due to higher sales in the Company's wireless datacom business
segment. Wireless datacom revenue increased 22.3% to $25.9 million
from $21.2 million in the same period last year, while satellite
revenue declined to $6.8 million from $8.4 million in the same
period last year.
Consolidated gross profit for the fiscal 2012 third quarter was
$10.2 million or 31.0% of revenue, compared to gross profit of $7.7
million or 26.1% of revenue for the same period last year. The
increases in gross profit and gross margin percentage in the latest
quarter compared to the fiscal 2011 third quarter were due
primarily to the increase in wireless datacom revenue, which has
higher margins than the satellite business.
Results of operations for the fiscal 2012 third quarter as
determined in accordance with U.S. generally accepted accounting
principles ("GAAP") was net income of $1.7 million, or $0.06 per
diluted share, compared to a net loss of $0.2 million, or $0.01
loss per diluted share, in the third quarter of last year.
The Adjusted Basis (non-GAAP) net income for the fiscal 2012
third quarter was $2.6 million, or $0.09 per diluted share,
compared to Adjusted Basis net income of $0.7 million, or $0.02 per
diluted share for the same period last year. The Adjusted Basis net
income excludes the impact of amortization of intangible assets and
stock-based compensation expense and includes an income tax
provision or benefit that reflects income taxes paid/payable (or
received/receivable) based on the non-GAAP pretax income (loss) for
the period. 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 At November 30, 2011, the
Company had total cash of $4.4 million and total debt of $6.5
million consisting of $3.5 million drawn under the bank revolver
and $3.0 million outstanding under a bank term loan. Net cash
provided by operating activities in the three- and nine-month
periods ended November 30, 2011 was $2.1 million and $7.5 million,
respectively, and the unused borrowing capacity on the bank
revolver at that date was $5.5 million.
Business Outlook Commenting on the
Company's business outlook, Mr. Burdiek said, "Based on our most
recent projections, we expect fiscal 2012 fourth quarter
consolidated revenues in the range of $34 to $38 million. We expect
satellite revenues to more than double on a year-over-year basis
and wireless datacom revenues to be marginally lower from the third
quarter but up year over year. We anticipate fourth quarter GAAP
Basis net income per share in the range of $0.03 to $0.07 per
diluted share. The Adjusted Basis (non-GAAP) net income for the
fiscal 2012 fourth quarter is expected to be in the range of $0.06
to $0.10 per diluted share."
Mr. Burdiek concluded, "We are quite pleased with our third
quarter results. We believe our business model positions us for
continued revenue growth with improving profitability going into
next fiscal year. We have completed the process of streamlining the
cost structure of our satellite business segment to generate free
cash flow, and our wireless datacom business is well positioned in
growing markets with products and technologies we believe can drive
sustained long term growth in the markets we serve."
Conference Call and Webcast A conference
call and simultaneous webcast to discuss fiscal 2012 third quarter
financial results and business outlook will be held today at 4:30
p.m. Eastern / 1:30 p.m. Pacific. CalAmp's President and CEO
Michael Burdiek and CFO Rick Vitelle will host the conference call.
Participants can dial into the live conference call by calling
877-218-7286 (615-800-6912 for international callers) and using the
Conference ID # 34442006. An audio replay will be available through
December 29, 2011, 855-859-2056 and entering the Conference ID #
34442006.
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 wireless and satellite
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 on April 28, 2011 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.
CAL AMP CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share amounts)
Three Months Ended Nine Months Ended
November 30, November 30,
------------------ ------------------
2011 2010 2011 2010
-------- -------- -------- --------
Revenues $ 32,752 $ 29,553 $101,107 $ 85,389
Cost of revenues 22,583 21,854 69,681 64,199
-------- -------- -------- --------
Gross profit 10,169 7,699 31,426 21,190
-------- -------- -------- --------
Operating expenses:
Research and development 2,622 2,733 8,405 8,275
Selling 2,731 2,573 8,175 7,870
General and administrative 2,606 1,981 8,135 6,690
Intangible asset amortization 310 275 972 857
-------- -------- -------- --------
8,269 7,562 25,687 23,692
-------- -------- -------- --------
Operating income (loss) 1,900 137 5,739 (2,502)
Non-operating expense, net (172) (316) (2,120) (1,084)
-------- -------- -------- --------
Income (loss) before income taxes 1,728 (179) 3,619 (3,586)
Income tax provision (28) - (43) -
-------- -------- -------- --------
Net income (loss) $ 1,700 $ (179) $ 3,576 $ (3,586)
======== ======== ======== ========
Earnings (loss) per share - basic
and diluted $ 0.06 $ (0.01) $ 0.13 $ (0.13)
======== ======== ======== ========
Shares used in computing earnings
(loss) per share:
Basic 27,869 27,321 27,583 27,133
Diluted 28,800 27,321 28,445 27,133
BUSINESS SEGMENT INFORMATION
(Unaudited, in thousands)
Three Months Ended Nine Months Ended
November 30, November 30,
------------------ ------------------
2011 2010 2011 2010
-------- -------- -------- --------
Revenues
Wireless DataCom $ 25,905 $ 21,180 $ 73,465 $ 55,073
Satellite 6,847 8,373 27,642 30,316
-------- -------- -------- --------
Total revenues $ 32,752 $ 29,553 $101,107 $ 85,389
======== ======== ======== ========
Gross profit
Wireless DataCom $ 9,503 $ 7,508 $ 29,487 $ 19,061
Satellite 666 191 1,939 2,129
-------- -------- -------- --------
Total gross profit $ 10,169 $ 7,699 $ 31,426 $ 21,190
======== ======== ======== ========
Operating income (loss)
Wireless DataCom $ 2,999 $ 1,700 $ 9,528 $ 1,564
Satellite (156) (821) (891) (1,388)
Corporate expenses (943) (742) (2,898) (2,678)
-------- -------- -------- --------
Total operating income (loss) $ 1,900 $ 137 $ 5,739 $ (2,502)
======== ======== ======== ========
CAL AMP CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands)
November 30, February 28,
2011 2011
------------ ------------
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 4,393 $ 4,241
Accounts receivable, net 15,755 16,814
Inventories 12,409 9,890
Deferred income tax assets 2,098 1,961
Prepaid expenses and other current assets 3,881 5,197
------------ ------------
Total current assets 38,536 38,103
Property, equipment and improvements, net 1,630 1,877
Deferred income tax assets, less current portion 9,733 9,887
Intangible assets, net 3,041 4,012
Other assets 865 1,606
------------ ------------
$ 53,805 $ 55,485
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Bank working capital line of credit $ 3,476 $ 7,489
Current portion of long-term debt 800 -
Accounts payable 12,081 14,103
Accrued payroll and employee benefits 3,569 3,341
Deferred revenue 5,512 5,796
Other current liabilities 2,575 2,140
------------ ------------
Total current liabilities 28,013 32,869
------------ ------------
Long-term debt 2,200 4,460
Other non-current liabilities 911 554
Stockholders' equity:
Common stock 287 281
Additional paid-in capital 153,831 153,135
Accumulated deficit (131,372) (134,948)
Accumulated other comprehensive loss (65) (866)
------------ ------------
Total stockholders' equity 22,681 17,602
------------ ------------
$ 53,805 $ 55,485
============ ============
CAL AMP CORP.
CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited - In thousands)
Nine Months Ended
November 30,
--------------------------
2011 2010
------------ ------------
Cash flows from operating activities:
Net income (loss) $ 3,576 $ (3,586)
Depreciation and amortization 1,899 1,860
Stock-based compensation expense 1,737 1,559
Non-cash interest expense 733 402
Write-off of cumulative foreign currency
translation account 801 -
Deferred tax assets, net - 807
Changes in operating working capital (1,248) (245)
Other 1 9
------------ ------------
Net cash provided by operating activities 7,499 806
------------ ------------
Cash flows from investing activities:
Capital expenditures (682) (884)
Collections on note receivable 431 348
------------ ------------
Net cash used in investing activities (251) (536)
------------ ------------
Cash flows from financing activities:
Proceeds (repayments) of bank line of credit (4,013) 1,398
Proceeds from bank term loan 3,000 -
Repayment of subordinated notes payable (5,000) -
Payment of debt issue costs (65) -
Taxes paid related to net share settlement of
vested equity awards (1,032) (403)
Proceeds from exercise of stock options 14 -
------------ ------------
Net cash provided by (used in) financing
activities (7,096) 995
------------ ------------
Net change in cash and cash equivalents 152 1,265
Cash and cash equivalents at beginning of period 4,241 2,986
------------ ------------
Cash and cash equivalents at end of period $ 4,393 $ 4,251
============ ============
CAL AMP CORP.
NON-GAAP EARNINGS RECONCILIATION
(Unaudited)
"GAAP" refers to financial information presented in accordance
with U.S. Generally Accepted Accounting Principles. 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 (in thousands
except per share amounts):
Three Months Ended Nine Months Ended
November 30, November 30,
-------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ---------
GAAP basis pretax income (loss) $ 1,728 $ (179) $ 3,619 $ (3,586)
Amortization of intangible
assets 310 275 972 857
Stock-based compensation expense 638 555 1,737 1,559
Write-off of cumulative foreign
currency translation account - - 801 -
--------- --------- --------- ---------
Pretax income (loss) (non-GAAP
basis) 2,676 651 7,129 (1,170)
Income tax provision (non-GAAP
basis) (a) (28) - (43) -
--------- --------- --------- ---------
Adjusted Basis net income (loss) $ 2,648 $ 651 $ 7,086 $ (1,170)
========= ========= ========= =========
Adjusted Basis net income (loss)
per diluted share $ 0.09 $ 0.02 $ 0.25 $ (0.04)
Weighted average common shares
outstanding on diluted basis 28,800 27,321 28,445 27,133
(a) The non-GAAP income tax provision reflects the income taxes paid/payable
(or received/receivable) based on on the non-GAAP pretax income (loss)
for the period. The Company has net operating loss carryforwards to
offset the pre-tax book income for the three- and nine-month periods
ended November 30, 2011.
COMPANY CONTACT Joanne Keates Director of Corporate
Communications (805) 419-8239
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