CalAmp Reports Fiscal 2007 Second Quarter Results.OXNARD, Calif. -- CalAmp Corp. (Nasdaq:CAMP), a leading provider of wireless products and engineering services, today reported results for its fiscal 2007 second quarter ended August 31, 2006. Key highlights include: * Revenues of $57.9 million and earnings of $0.05 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share * Consolidated gross margin increase to 24.2%, from 23.3% in the same period last year "Our business performed as expected during the second quarter, with operating results in-line with our prior guidance," commented Fred Sturm, CalAmp's President and Chief Executive Officer. "CalAmp's revenues and gross margin were enhanced by our wireless connectivity business, which includes contributions from our existing Machine-to-Machine (M2M M2M Machine-to-Machine (communication, mainly mobile) M2M Minutes to Midnight (Linkin Park album) M2M Mobile to Mobile (cellular phone) M2M Member-to-Member M2M Month to Month ) and public safety products along with the recent acquisitions of Dataradio Inc. and the Mobile Resource Management (MRM MRM Marketing Resource Management MRM Mobile Resource Management MRM Metabolic Response Modifiers MRM Multiple Reaction Monitoring (mass spectrometry) MRM Mormonism Research Ministry MRM Mechanically Recovered Meat ) product line. During the quarter, we began the progress of integrating these acquisitions into our wireless connectivity businesses. We believe these acquisitions have significant long-term revenue growth opportunities, will improve our overall margins and increase our customer diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. . Also, as previously announced, Dataradio recently won a $3.8 million contract to provide a mobile data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. system for the police, fire and EMS personnel of Onondaga County, New York Onondaga County is a county located in the U.S. state of New York. As of the 2000 census, the population was 458,336. The estimated population for 2004 is 459,805, an increase of 0.3%. The county seat is Syracuse. . Last month we began initial delivery of the system and we expect deliveries to continue through fiscal 2007 and concluding in fiscal 2008." Mr. Sturm continued, "Consistent with our objective of maintaining CalAmp's leadership position in the outdoor DBS (Direct Broadcast Satellite) A one-way TV broadcast service from a communications satellite to a small round or oval dish antenna no larger than 20" in diameter. equipment marketplace, we also made further progress on product development initiatives for our next generation equipment. We anticipate receiving product approval from our key customers in the near future with initial shipments beginning in the latter part of our fiscal third quarter. We anticipate revenue from these new products to reach meaningful levels during our fourth quarter which is normally a seasonally lower period of demand for our DBS products." Fiscal 2007 Second Quarter Results Revenue for the fiscal 2007 second quarter was $57.9 million, essentially flat with the $57.7 million for the second quarter of fiscal 2006. Growth in the Company's wireless data connectivity business, due primarily to the May 2006 acquisitions of Dataradio and the MRM product line, more than offset lower DBS product sales and Solutions Division revenue in the quarter. Net income for the fiscal 2007 second quarter was $1.2 million or $0.05 per diluted share compared to net income of $3.7 million or $0.16 per diluted share for the second quarter of last year. Included in the fiscal 2007 second quarter net income is additional expense of $1,001,000 for amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. related to the recent acquisitions of Dataradio and the MRM product line, $653,000 for stock option expense related to the current year adoption of FAS 123R, and an increase in net interest expense of $382,000, all amounts prior to income tax effects. Gross profit for the second quarter of fiscal 2007 was $14.0 million, or 24.2% of revenues compared to $13.4 million or 23.3% of revenues for the same period last year. The increases in gross profit and gross margin were primarily the result of increased sales of higher-margin products of the Products Division, including growth of the Company's higher-margin wireless connectivity business, and ongoing actions taken to improve the financial performance of the Solutions Division. Liquidity At August 31, 2006, the Company had total cash of $25.5 million, with $38.0 million in total outstanding debt. Net cash provided by operating activities during the first six months of fiscal 2007 was $5.4 million after excluding a payment of cash bonuses totaling $5.4 million made to employees of Dataradio during the second quarter for incentives that were accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. as expenses in Dataradio's pre-acquisition income statement,. These bonuses were paid from cash that was on Dataradio's balance sheet at the time of acquisition by CalAmp. Inventories were $21.9 million at the end of the second quarter, representing annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. turns of 8 times based on cost of sales in the latest quarter. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying outstanding at the end of the second quarter represents a 52 day average collection period. Business Outlook Commenting on the Company's fiscal 2007 third quarter outlook, Mr. Sturm said, "Based on our current forecasts, we estimate that fiscal 2007 third quarter revenues will be in the range of $59 to $65 million, with earnings in the range of $0.04 to $0.08 per diluted share. We expect that our consolidated gross margin for the third quarter will be impacted by heavier than normal costs for air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f shipments of incoming materials and lower margins on final shipments of end-of-life DBS products. In addition, our earnings forecast also includes amortization of intangible assets related to the recent acquisitions of Dataradio and the MRM product line of approximately $928,000, FAS 123R stock option expense of $725,000, and net interest expense of $345,000, all prior to income tax effects." Conference Call, Webcast and 10-Q filing A conference call and simultaneous webcast to discuss fiscal 2007 second quarter financial results and business outlook will be held today at 4:30 p.m. Eastern / 1:30 p.m. Pacific. The live webcast of the call is 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 To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. CalAmp's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Fred Sturm and CFO See Chief Financial Officer. Rick Vitelle will host the conference call. After the live webcast, a replay will remain available until the next quarterly conference call in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of CalAmp's web site. The reader is also referred to the Company's quarterly report on Form 10-Q Form 10-Q See 10-Q. , filed today with the Securities and Exchange Commission. About CalAmp Corp. CalAmp is a leading provider of wireless equipment, engineering services and software 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 the leading supplier of Direct Broadcast Satellite (DBS) outdoor customer premise equipment to the U.S. satellite television market. The Company also provides wireless connectivity solutions for the telemetry telemetry Highly automated communications process by which data are collected from instruments located at remote or inaccessible points and transmitted to receiving equipment for measurement, monitoring, display, and recording. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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", 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, competition, the timing of customer approvals of new product designs, operating costs operating costs npl → gastos mpl operacionales , the Company's ability to efficiently and cost-effectively integrate its acquired businesses, and other risks and uncertainties that are detailed from time to time in the Company's filings 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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