Post Earnings Coverage as CalAmp Revenue Improved 12 Percent
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LONDON, UK / ACCESSWIRE / December 30, 2016 / Active Wall St. announces its post-earnings coverage on CalAmp Corp. (NASDAQ: CAMP). The Company released its third quarter fiscal 2017 financial results on December 21, 2016. The machine-to-machine communications specialist earnings and revenue numbers fell below market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of CalAmp's competitors within the Wireless Communication space, T-Mobile US, Inc. (NASDAQ: TMUS), is estimated to report earnings on February 15, 2017. AWS will be initiating a research report on T-Mobile US in the coming days.
Today, AWS is promoting its earnings coverage on CAMP; touching on TMUS. Get our free coverage by signing up to:
For the three months ended on November 30, 2016, CalAmp's revenue was $83.4 million, an increase of 12% from Q3 FY16. The Irvine, California-based Company’s revenue numbers narrowly missed analysts' projections of $83.5 million.
CalAmp's gross profit for Q3 FY 17 was $35.1 million, an increase of $8.5 million over the same quarter last year. GAAP basis consolidated gross margin was 42.1% in the reported quarter compared to 35.6% in Q3 FY16. Gross margin numbers was a new record for the Company.
CalAmp's GAAP-basis net loss in Q3 FY17 was ($1.5) million, or ($0.04) per diluted share, compared to net income of $3.9 million, or $0.11 per diluted share, in Q3 FY16. The reported quarter earnings were impacted by higher legal expense of approximately $1.6 million over the comparable period last year and foreign currency exchange rate losses of $0.6 million. On an adjusted basis, the Company reported net income of $7.6 million, or $0.21 per diluted share, for Q3 FY17 compared to adjusted net income of $11.4 million, or $0.31 per diluted share, in Q3 FY16. The company's earnings results fell short of Wall Street's expectations of $0.26 per share.
Segment Results
CalAmp's latest quarter included revenue of $29.9 million from LoJack products and services while revenue in Q3 FY16 included $11.8 million from the Company's satellite business which was shut down at the end of Q2 FY17.
The Company's Telematics systems segment revenue was $55.3 million in Q3 FY17. CalAmp's Software and subscription services revenue was approximately $15.9 million in Q3 FY17, up 51% y-o-y as a result of LoJack's contribution, along with revenue improvement in both fleet and auto aftermarket applications. Across all of the Company's SaaS and recurring service platforms, CalAmp had approximately 621,000 unique subscribers at the end of Q3 FY17 compared to approximately 605,000 subscribers at the end of the immediately preceding quarter.
CalAmp' Network and OEM product revenue was $12.2 million in the latest quarter. Sales to Caterpillar in Q3 FY17 were $6.2 million, up approximately $300,000 sequentially.
Balance Sheet Review
As on November 30, 2016, CalAmp had total cash and marketable securities of $101 million and total debt outstanding of $145 million, which is the carrying amount of the Company's 1.625% convertible notes in the face amount of $172.5 million. Net cash provided by operating activities was $0.5 million during Q3 FY17.
For Q3 FY17, CalAmp purchased and retired approximately 975,000 shares of its common stock at an aggregate cost of $13.5 million pursuant to a stock repurchase plan adopted in June 2016. As of November 30, 2016, the remaining authorization for additional share purchases under this plan is $3.1 million.
CFO Change
On the same day of earnings release, in a separate press release, CalAmp announced that the Executive Vice President, Chief Financial Officer, and Corporate Secretary, Rick Vitelle, plans to retire from the Company after sixteen years of service. Mr. Vitelle will remain as CFO until his successor is found to ensure an orderly and seamless transition. The Company has initiated a comprehensive search to identify Mr. Vitelle's successor, and once a CFO is on board, Mr. Vitelle will remain with the Company during a transition period. Mr. Vitelle's career has spanned 40 years, and he has served as the CFO of CalAmp since 2001.
Outlook
For Q4 FY17, CalAmp is expecting consolidated revenue in the range of $84 million to $89 million. The Company is forecasting GAAP basis net income in the band of $0.05 to $0.09 per diluted share and non-GAAP net income in the range of $0.25 to $0.31 per diluted share. Adjusted EBITDA is predicted to in the range of $11 million to $15 million.
Stock Performance
At the close of trading session on December 29, 2016, CalAmp's stock price rose slightly by 0.55% to end the day at $14.72. A total volume of 372.01 thousand shares were exchanged during the session. The stock currently has a market cap of $533.31 million.
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