CalAmp Reports Fiscal 2008 First Quarter Results.OXNARD, Calif. -- CalAmp Corp. (Nasdaq:CAMP), a leading provider of wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. products, today reported results for its fiscal 2008 first quarter ended May 31, 2007. Key elements include: * First quarter revenues of $47.4 million, GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss of $0.48 per diluted share and Adjusted Basis (non-GAAP) net loss of $0.41 per diluted share. Included in the GAAP and Adjusted Basis net loss is a recently reported $16 million charge, or $0.41 per diluted share net of tax, related to additional expenses resulting from a previously announced Direct Broadcast Satellite (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. ) product performance issue. * Realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of the former Products Division into two separate reporting segments--the Satellite Division and Wireless DataCom Division--to enhance focus and visibility. "Our first quarter results benefited from solid performance by our Wireless DataCom Division, which generated nearly 50% of this quarter's consolidated revenues," commented Fred Sturm, CalAmp's President and Chief Executive Officer. "On a sequential quarter basis, Wireless DataCom Division revenues of $23.4 million increased 27% and were driven by significant growth in our radio frequency (RF) module business for land mobile radios used in homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States and public safety applications. Our recent acquisitions of SmartLink Radio Networks and AirIQ's Vehicle Tracking business also contributed to higher sequential Wireless DataCom Division revenues in the quarter. These acquisitions, for which the integration activities are proceeding as planned, expand our addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be markets and provide core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
Mr. Sturm continued, "As expected, this quarter's Satellite Division revenues of $23 million were impacted by the previously reported product performance issue with a key DBS customer. While all orders from this customer are currently on hold pending a corrective action A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are instigated in response to a customer complaint, abnormal levels if internal nonconformity, nonconformities identified during an internal audit or plan that will include requalifying all products we manufacture for this customer, we have made progress in recent weeks in developing a plan that meets our customer's requirements. We anticipate that our customer will soon requalify the latest generation product that supports expanded HDTV (High Definition TV) A set of digital television (DTV) standards that offer the highest resolution and sharpest picture. Although some HDTV sets are available in standard (rather square) screen sizes, the overwhelming majority of sets are wide screen, which eliminates content delivery. As previously reported, based on a recent meeting with this customer, we now expect to incur significant additional expenses related to the corrective action plan estimated at $16 million, which has been recorded in our first quarter results. Resolution of this issue and requalification of our products remains our highest priority and we will work vigorously to regain our market share with this important DBS customer." As previously reported CalAmp filed suit against the supplier of the PCB PCB: see polychlorinated biphenyl. PCB in full polychlorinated biphenyl Any of a class of highly stable organic compounds prepared by the reaction of chlorine with biphenyl, a two-ring compound. laminate laminate, n a thin slice of porcelain or plastic fabricated in a dental lab, which is cemented to the front of the teeth to cover gaps, whiten stained teeth, or reshape chipped or broken teeth. material that CalAmp believes resulted in the field performance issue and related first quarter charges. CalAmp expects to vigorously pursue all legal options to recover its damages from that supplier. Fiscal 2008 First Quarter Results Total revenue for the fiscal 2008 first quarter was $47.4 million compared to $46.3 million for the first quarter of fiscal 2007. Growth in the Company's Wireless DataCom Division, driven by recent acquisitions and organic growth, more than offset lower revenue from the Satellite Division and Solutions Division in the latest quarter. The net loss for the fiscal 2008 first quarter was $11.4 million or $0.48 per diluted share compared to a net loss of $34.1 million or $1.47 per diluted share for the first quarter of last year. As noted above, during the fiscal 2008 first quarter, in connection with a product performance issue with a key DBS customer, the Company recorded a $16 million charge to cover anticipated expenses related to a corrective action plan, which includes warranty-related expenses and reserves for unusable materials. The Adjusted Basis (non-GAAP) net loss for the fiscal 2008 first quarter was $9.7 million or $0.41 per diluted share compared to Adjusted Basis net income of $3.1 million or $0.13 per diluted share for the same period last year. Adjusted Basis net income (loss) excludes the impact of 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. , stock-based compensation expense, write-off of acquired in-process research and development costs and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. losses, each net of tax where applicable. A reconciliation of the GAAP basis net loss to Adjusted Basis net income (loss) is provided in the table at the end of this press release. Excluding the effect of the $16 million charge, both GAAP-basis EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. and Adjusted Basis (non-GAAP) EPS for the fiscal 2008 first quarter would have been within previously announced guidance. As a result of the aforementioned charge, the Company had negative gross profit of $4.7 million in the fiscal 2008 first quarter, compared to gross profit of $10.9 million or 23.6% of revenues for the same period last year. The reduction in gross profit from this charge was partially offset by growth in the Company's higher-margin Wireless DataCom Division, which had a gross margin of 37% during the first quarter of fiscal 2008. Liquidity At May 31, 2007, the Company had total cash of $11.1 million, with $33.5 million in total outstanding debt. As previously disclosed, the first quarter loss has caused the Company to become noncompliant with the financial covenants under the Company's bank credit agreement that will preclude additional borrowing under the revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility thereunder until the Company is able to obtain a waiver from its lenders and/or an amendment of the credit agreement. The Company has notified its lenders and is in discussions with them to resolve the issue. In the near term the Company believes that it has sufficient liquidity such that the restriction on borrowing under the revolving credit facility will not materially affect its operations. However, if the lenders are unwilling to agree to a waiver or an amendment or exercise their rights to accelerate borrowings outstanding under the credit agreement, the inability to borrow under the revolving credit facility and/or the acceleration of such indebtedness could materially adversely affect the Company's financial position and operations, including its ability to fund its currently anticipated working capital and capital expenditure needs. Because the lenders will have the right to call the loan until such time as a waiver is obtained, $30 million of debt previously classified as a long-term liability has been reclassified to current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. in the May 31, 2007 balance sheet. Net cash provided by operating activities was $317,000 in the fiscal 2008 first quarter. Inventory was $28.3 million at the end of the first 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 approximately 5 times. 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 first quarter represents a 51 day average collection period. Business Outlook Commenting on the Company's business outlook, Mr. Sturm said, "Based on our current expectations, we anticipate fiscal 2008 second quarter consolidated revenues will be in the range of $32 to $35 million, with a net loss in the range of $0.11 to $0.15 per diluted share. The Adjusted Basis (non-GAAP) net loss for the first quarter, which excludes amortization of intangible assets, stock-based compensation expense and write-off of acquired research and development costs--each net of tax--is expected to be $0.05 to $0.09 per diluted share. During the second quarter, we expect revenue contributions from our Wireless Datacom Division in the range of $22 million to $24 million." Conference Call, Webcast and 10-Q Filing A conference call and simultaneous webcast to discuss fiscal 2008 first 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 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 communications products 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 a supplier of Direct Broadcast Satellite (DBS) outdoor customer premise equipment to the U.S. satellite television market. The Company also provides wireless data communication 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", "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 general and industry economic conditions, product demand, increased competition, competitive pricing and continued pricing declines in the DBS market, 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, the Company's ability to obtain a waiver from the lenders under its bank credit agreement of the event of default under the credit agreement, the Company's ability to successfully requalify with respect to the sale of newer generation products to one of its key DBS customers, the risk that the ultimate cost of resolving a product performance issue with that DBS customer may exceed the amount of reserves established for that purpose, and other risks or uncertainties that are described in the Company's fiscal 2007 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. on May 17, 2007 today 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] [TABLE OMITTED] |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion