CalAmp Reports Fiscal 2009 First Quarter Results.OXNARD Oxnard (ŏk`snärd), city (1990 pop. 142,216), Ventura co., S Calif., on the Pacific coast; inc. 1903. Its economy, formerly based on agriculture, mining, and nearby military bases, has expanded as the city has grown. , Calif. -- CalAmp Corp. (Nasdaq:CAMP), a leading provider of wireless products, services and solutions, today reported results for its fiscal 2009 first quarter ended May 31, 2008. Key elements include: * Consolidated first quarter revenues of $27.9 million; wireless datacom revenues of $20.3 million. * GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $0.5 million, or $0.02 loss per basic and 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; Adjusted basis (non-GAAP) income from continuing operations of $0.3 million or $0.01 income per basic and diluted share. * Consolidated gross margin percentage of 33.8%; wireless datacom gross margin of 42.9%. * Net cash provided by operations of $1.8 million. * Resumed 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 shipments to historically largest customer. Rick Gold, CalAmp's President and Chief Executive Officer, commented, "Overall, the Company's first quarter operating performance was solid. Top-line results were impacted by lower than expected sales of our satellite products. However, I am very pleased with the contributions from our wireless datacom business that helped push the Company's overall gross margin percentage to 33.8%, representing CalAmp's highest quarterly gross margin result in recent memory." Mr. Gold added, "I am encouraged with the progress we made during this latest quarter towards our goal of returning CalAmp to profitability. Although revenue came in just under our guidance range for the quarter, both the GAAP and non-GAAP income/loss per share amounts were better than the respective guidance ranges. Furthermore, recent actions to combine our former Satellite and Wireless DataCom Divisions into one streamlined operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon are expected to leverage CalAmp's full range of engineering and operational resources while improving operating efficiencies in fiscal 2009 and beyond." Mr. Gold continued, "As previously announced, we resumed shipments of latest generation Direct Broadcast Satellite (DBS) products to our historically largest customer during the first quarter. To date, initial product shipments have been modest, however, we expect that unit volume with this customer will ramp higher over the next several quarters. Resolving this issue has been a top priority and with this initial milestone behind us, we will work to rebuild our competitive position in the DBS market." Fiscal 2009 First Quarter Results Total revenue for the fiscal 2009 first quarter was $27.9 million compared to $46.4 million for the first quarter of fiscal 2008. The reduction in revenues was due primarily to significantly lower sales of the Company's satellite products. Gross profit for the fiscal 2009 first quarter was $9.4 million, or 33.8% of revenues compared to gross loss of $5.4 million for the same period last year. The improvement in gross profit and gross margin percentage in the latest quarter was due primarily to a $16 million charge recorded in the same period last year for estimated product warranty and related costs associated with the Company's satellite products. Results of operations for the fiscal 2009 first quarter as determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP") was a loss from continuing operations of $0.5 million, or $0.02 loss per basic and diluted share. This compares to a loss from continuing operations of $10.9 million, or $0.46 loss per basic and diluted share, in the first quarter of last year. The Adjusted Basis (non-GAAP) income from continuing operations for the fiscal 2009 first quarter was $0.3 million, or $0.01 income per basic and diluted share compared to Adjusted Basis loss from continuing operations of $9.4 million or $0.40 loss per basic and diluted share for the same period last year. Adjusted Basis income (loss) from continuing operations 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 and in-process research and development, each net of tax. A reconciliation of the GAAP basis income (loss) from continuing operations to Adjusted Basis income (loss) from continuing operations is provided in the table at the end of this press release. Liquidity At May 31, 2008, the Company had total cash of $7.2 million, with $27.1 million in total outstanding bank debt and a $5 million note payable to a key DBS customer. Net cash provided by operating activities was $1.8 million for the three months ended May 31, 2008. Business Outlook Commenting on the Company's business outlook, Mr. Gold said, "While I am pleased with our recent progress, our second quarter outlook remains cautious due in part to ongoing uncertainty surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the U.S. economy, which will likely continue to impact purchase decisions by key customers. We also expect our satellite revenues to be lower this quarter reflecting a decline in sales of certain lower-margin products as we focus on ramping our volume of the recently requalified products. Based on our current forecast, we believe fiscal 2009 second quarter consolidated revenues will be in the range of $24 to $28 million, with a GAAP basis net loss in the range of $0.04 to $0.08 per diluted share. The Adjusted Basis (non-GAAP) results of operations for the second quarter, which exclude amortization of intangible assets and stock-based compensation expense net of tax, are expected to be in the range of breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations to a $0.04 loss per diluted share." Conference Call and Webcast A conference call and simultaneous webcast to discuss fiscal 2009 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 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. Rick Gold 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. About CalAmp Corp. CalAmp provides 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. solutions that enable anytime/anywhere access to critical data and content. The Company serves customers in the public safety, industrial monitoring and controls, mobile resource management, and direct broadcast satellite markets. The Company's products are marketed under the CalAmp, Dataradio, SmartLink, Aercept, LandCell and Omega trade names. For more information, please visit www.calamp.com. Forward-Looking Statements 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, 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 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 risk that the ultimate cost of resolving a product performance issue with one of the Company's key DBS customers may exceed the amount of reserves established for that purpose, and other risks or uncertainties that are described in the Company's fiscal 2008 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. as filed with the Securities and Exchange Commission on May 15, 2008. 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 at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. . 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] |
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