CALAMP GETS DEEPER DISH PROFITS Q2 REVENUES UP 100%.Byline: Evan Pondel Staff Writer OXNARD - Shares of satellite-receiver manufacturer CalAmp Inc. rose nearly 10 percent Friday, a day after the company reported that second-quarter earnings more than doubled. As sales of DirecTV and other satellite-entertainment devices increase, so do profits for Oxnard-based CalAmp, formerly California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Amplifier. Net income for the fiscal 2006 second quarter was $3.7 million, or 16 cents a share, compared with $1.7 million, or 8 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , in the like period a year ago. At the same time, second-quarter revenue increased 13.4 percent to $50.8 million when compared with the year-ago period. ``The company has made a concerted effort in recent years to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. its customer base,'' said Lasse a. & adv. 1. Less. Glassen, spokesman for CalAmp. A more diverse customer base has also fostered greater sophistication so·phis·ti·cate v. so·phis·ti·cat·ed, so·phis·ti·cat·ing, so·phis·ti·cates v.tr. 1. To cause to become less natural, especially to make less naive and more worldly. 2. among the company's product lines. The result: higher-margin products. That could prove powerful for CalAmp's bottom line amid expectations that margins should increase with the unveiling of high-definition satellite TV. ``Their margins are at their highest levels, and they can still go higher,'' said Matthew Robison, senior vice president at Farris, Baker Watts Watts, residential section of south central Los Angeles. Named after C. H. Watts, a Pasadena realtor, the section became part of Los Angeles in 1926. Artist Simon Rodia's celebrated Watts Towers are there. Inc. in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . ``Even as they raise prices, customers are sticking with them.'' Robison also has a ``buy'' rating on the stock, noting its ``great value.'' Shares of CalAmp added 62 cents, or 7.6 percent, to close at $8.76 Friday on the Nasdaq market. About 75 percent of the company's revenue comes from satellite receiver products, also known as direct broadcast satellite. High-definition satellite receivers are nearly double the size of dishes traditionally parked on homes and apartment buildings. The bigger size bodes well for CalAmp because that means they'll have to fill the HD dishes with more sophisticated electronics. Robison said the average dish may cost $40 on wholesale basis, while HD dishes are nearly double. ``But we might not see this included in CalAmp's revenue until May. And May is a seasonally weak period, so the real growth surge could come after that.'' Evan Pondel, (818) 713-3662 evan.pondel(at)dailynews.com |
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