Earnings Review and Free Research Report: CalAmp Outperformed Top- and Bottom-line Expectations

LONDON, UK / ACCESSWIRE / July 10, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on CalAmp Corp. (NASDAQ: CAMP), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CAMP, following the Company’s release of its financial results for the first quarter 2018 on June 27, 2017. The Internet of Things (IoT) enablement solutions provider reported record gross margin in the quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

For three months ending May 31, 2017, CalAmp reported revenue of $88.08 million, a decrease of 3% from $91.15 million in Q1 FY 17. Excluding last year’s revenue from the former satellite business, which ceased operations effective August 31, 2016, the Company’s revenue in the reported quarter grew 6% on a y-o-y basis and surpassed analysts’ expectations of $87.2 million.

For the reported quarter, the Company’s gross profit was $37.44 million, an increase of $2.6 million from $34.83 million in Q1 FY17. Gross margin was 42.5% in Q1 FY18, up from 38.2% in the same quarter last year. The improvements were primarily attributable to the inclusion of the lower-margin satellite business and purchase accounting adjustments of LoJack’s acquisition in Q1 FY17.

During Q1 FY18, CalAmp Corp‘s GAAP net loss was $2.65 million, or $0.08 per share, compared to net loss of $2.66 million, or $0.07 per share, in Q1 FY17. For the reported quarter, the Company’s non-GAAP adjusted net income decreased 6.3% to $10.39 million, or $0.29 per share, from $11.06 million, or $0.30 per share, in Q1 FY17. The Company’s earnings numbers surpassed Wall Street’s expectations of $0.27 per share.

For Q1 FY18, CalAmp’s adjusted EBITDA was $13.18 million and adjusted EBITDA margin was 15.0% compared to adjusted EBITDA of $13.73 million and adjusted EBITDA margin of 15.1% in Q1 FY17.

For the reported quarter, the Company’s GAAP effective tax rate was 31.8% compared to 32.3% in the same quarter last year.

Segment Details

During Q1 FY18, CalAmp’s Telematics Systems revenue was $57.2 million, up 10% on a year-on-year basis. Sales of MRM telematics products accounted for 62% of the segment’s revenue, with LoJack’s stolen vehicle recovery products accounting for the remainder.

In Q1 FY18, the Company’s Software and subscription services segment reported revenue of $16.1 million up 3% on a year-on-year basis. The increase was largely due to the contribution of LoJack Italia, the Company’s wholly-owned Italian licensee.

During Q1 FY18, Network and OEM product segment’s revenue was $14.8 million, including sales to Caterpillar of $9.9 million.

Balance Sheet

As on May 31, 2017, CalAmp’s cash and marketable securities was $109.23 million and total debt outstanding of $148.64 million. In Q1 FY18, net cash provided by operating activities was $10.91 million.

Outlook

For Q2 FY18, CalAmp is forecasting revenue in the range of $86 million-$91 million and GAAP basis net income in the range of $0.32- $0.38 per diluted share. The Company expects adjusted EBITDA in the range of $10.5 million-$13.5 million for the second quarter of fiscal 2018.

For FY18, CalAmp is expecting R&D to be 7% of revenue, sales and marketing to be 14% of revenue, and G&A to be 11% of revenue, excluding the effect of the patent infringement charge recorded in Q1 FY18. The Company also estimates GAAP basis effective tax rate at 28% and non-GAAP tax rate at 3% for FY18.

Stock Performance

At the closing bell, on Friday, July 07, 2017, CalAmp’s stock climbed 1.66%, ending the trading session at $19.62. A total volume of 287.39 thousand shares has exchanged hands. The Company’s stock price skyrocketed 20.22% in the last three months, 27.40% in the past six months, and 43.53% in the previous twelve months. Moreover, the stock soared 35.31% since the start of the year. The stock currently has a market cap of $719.66 million.

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