OXNARD, Calif.--(BUSINESS WIRE)--Jan. 11, 2005--CalAmp Corp.
(NASDAQ:CAMP) today reported results for its third quarter ended
November 30, 2004.
Revenue for the third quarter of fiscal 2005 was $57.1 million,
compared to $44.2 million for the third quarter of last year. Net
income for the fiscal 2005 third quarter was $1,787,000 or $0.08 per
diluted share, compared to net income of $3,452,000 or $0.22 per
diluted share for the third quarter of last year. The revenue increase
in the latest quarter compared to the third quarter of last year is
attributable to the April 2004 acquisition of Vytek Corporation, which
now operates as the Company's Solutions Division, and to higher sales
of Direct Broadcast Satellite television reception products. The lower
earnings per share was attributable primarily to the higher effective
income tax rate (37.8% in the latest quarter compared to 9.9% in the
third quarter of last year), and to an operating loss in the Solutions
Division.
For the nine months ended November 30, 2004 revenue was $152.9
million, compared to $87.0 million in the prior year. Net income
during the nine months ended November 30, 2004 was $4.8 million, or
$0.22 per diluted share, versus net income of $2.7 million, or $0.18
per diluted share, in the comparable period of last year. Net cash
provided by operating activities during the first nine months of
fiscal 2005 was $8.1 million, compared to $6.7 million in the first
nine months of fiscal 2004. The sales increase in the year-to-date
period is due primarily to the growth in sales of Direct Broadcast
Satellite television reception products.
Fred Sturm, President and Chief Executive Officer, commented, "We
continue to be pleased with the performance of our Products Division,
which generated over $50 million in revenue in the latest quarter.
Demand for Satellite products improved during the quarter as we began
volume shipments of two new products in support of our customers'
multi-satellite and digital video recorder service offerings. We are a
leading supplier to the U.S. Direct Broadcast Satellite television
market which continues to gain market share from cable television
operators. Although the aggressive price competition in this market is
persistent, our organization has risen to the challenge by responding
with innovative, cost effective and high quality products which
differentiate us as a market leader."
Mr. Sturm added, "Revenue from the Solutions Division in the
latest quarter was $6.6 million. We continue to take steps to bring
this division to profitability as quickly as possible, including
strengthening and refocusing the sales organization and making
appropriate cost reductions. As previously announced, last month we
appointed Steve L'Heureux as the new President of the Solutions
Division. We expect that under his leadership we will be successful in
expanding our revenue base and bringing this division to
profitability."
Mr. Sturm concluded, "Based on our current visibility, we estimate
fiscal 2005 fourth quarter revenues in the range of $62 to $68 million
and earnings in the range of $0.11 to $0.15 per diluted share."
About CalAmp Corp.
CalAmp is a leading provider of breakthrough wireless and content
delivery solutions, services and products. With comprehensive
capabilities ranging from product inception through production, CalAmp
is a trusted partner delivering cost-effective high quality solutions
to a broad array of customers and markets. CalAmp is one of the
largest suppliers of Direct Broadcast Satellite (DBS) outdoor customer
premise equipment to the U.S. satellite television market and offers
solutions for digital multimedia delivery, residential broadband data
delivery, healthcare, retailing applications, public safety markets
and wireless enterprise connectivity. The Company is headquartered in
Oxnard, California, and has approximately 650 employees. Founded in
1981, CalAmp has been publicly traded since 1983 as NASDAQ:CAMP.
Forward-Looking Statement
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," "expects," "intends,"
"plans," "believes," "seeks," "could," "estimate" 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, development factors, operating costs, the Company's
ability to integrate the Vytek acquisition successfully 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.
CAL AMP CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share amounts)
Three Months Ended Nine Months Ended
November 30, November 30,
----------------- ------------------
2004 2003 2004 2003
-------- -------- --------- --------
Revenues $57,066 $44,248 $152,890 $87,011
Cost of revenues 46,767 37,514 123,966 75,771
-------- -------- --------- --------
Gross profit 10,299 6,734 28,924 11,240
Operating expenses:
Research and development 2,315 1,338 6,190 3,936
Selling 1,847 627 4,651 1,670
General and administrative 2,786 899 8,410 2,560
Intangible asset amortization 486 26 1,207 78
In-process research and
development - - 471 -
-------- -------- --------- --------
7,434 2,890 20,929 8,244
-------- -------- --------- --------
Operating income 2,865 3,844 7,995 2,996
Non-operating income (expense),
net 8 (12) (131) (194)
-------- -------- --------- --------
Income before income taxes 2,873 3,832 7,864 2,802
Income tax provision (1,086) (380) (3,022) (62)
-------- -------- --------- --------
Net income $ 1,787 $ 3,452 $ 4,842 $ 2,740
======== ======== ========= ========
Net income per share:
Basic $ 0.08 $ 0.23 $ 0.23 $ 0.19
Diluted $ 0.08 $ 0.22 $ 0.22 $ 0.18
Shares used in per share
calculations:
Basic 22,356 14,788 21,135 14,760
Diluted 23,113 15,555 21,891 15,128
Business Segment Information (1)
Three Months Ended Nine Months Ended
November 30, November 30,
----------------- ------------------
2004 2003 2004 2003
-------- -------- --------- --------
Revenue:
Products Division $50,425 $44,248 $133,980 $87,011
Solutions Division 6,641 - 18,910 -
-------- -------- --------- --------
Total revenue $57,066 $44,248 $152,890 $87,011
======== ======== ========= ========
Gross profit
Products Division $ 8,737 $ 6,734 $ 24,506 $11,240
Solutions Division 1,562 - 4,418 -
-------- -------- --------- --------
Total gross profit $10,299 $ 6,734 $ 28,924 $11,240
======== ======== ========= ========
Operating income (loss)
Products Division $ 6,191 $ 4,447 $ 16,861 $ 4,521
Solutions Division (2,379) - (5,971) -
Corporate expenses (947) (603) (2,895) (1,525)
-------- -------- --------- --------
Total operating income $ 2,865 $ 3,844 $ 7,995 $ 2,996
======== ======== ========= ========
(1) Effective with the acquisition of Vytek Corporation on April 12,
2004, CalAmp realigned its operations into a divisional structure
in which CalAmp's existing Satellite and Wireless Access
businesses were combined, together with Vytek's products
manufacturing business, into a new Products Division. Vytek's
principal operations, consisting of revenues generated by
professional engineering services and the development of software
applications, comprise the new Solutions Division.
CAL AMP CORP.
CONSOLIDATED BALANCE SHEETS
(Unaudited - In thousands)
November 30, February 28,
2004 2004
-------------- -------------
Current assets:
Cash and cash equivalents $ 26,528 $ 22,885
Accounts receivable, net 28,565 18,579
Inventories 24,364 20,253
Deferred income tax assets 885 2,404
Prepaid expenses and other current
assets 4,692 3,244
-------------- -------------
Total current assets 85,034 67,365
Equipment and improvements, net 4,943 4,381
Deferred income tax assets, less current
portion 3,269 4,359
Goodwill 100,885 20,938
Other intangible assets, net 4,514 200
Other assets 425 399
-------------- -------------
$ 199,070 $ 97,642
============== =============
Current liabilities:
Current portion of long-term debt $ 2,924 $ 3,603
Accounts payable 23,829 17,395
Accrued payroll and employee benefits 3,391 1,513
Other current liabilities 4,133 2,078
Deferred revenue 1,862 -
-------------- -------------
Total current liabilities 36,139 24,589
-------------- -------------
Long-term debt, less current portion 8,395 7,690
-------------- -------------
Stockholders' equity:
Common stock 232 149
Additional paid-in capital 131,261 44,486
Common stock held in escrow (2,548) -
Retained earnings 26,392 21,550
Accumulated other comprehensive loss (801) (822)
-------------- -------------
Total stockholders' equity 154,536 65,363
-------------- -------------
$ 199,070 $ 97,642
============== =============
CAL AMP CORP.
CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited - In thousands)
Nine Months Ended
November 30,
-----------------
2004 2003
-------- --------
Cash flows from operating activities:
Net income $ 4,842 $ 2,740
Depreciation and amortization 3,218 2,381
Write-off of in-process R&D 471 -
Equipment impairment writedowns 241 575
Deferred tax assets, net 2,609 (144)
Changes in operating working capital (3,375) 1,248
Other 96 (61)
-------- --------
Net cash provided by operating activities 8,102 6,739
-------- --------
Cash flows from investing activities:
Capital expenditures (1,970) (2,026)
Proceeds from sale of property and equipment 835 579
Acquisition of Vytek, net of cash acquired (1,727)
-------- --------
Net cash used in investing activities (2,862) (1,447)
-------- --------
Cash flows from financing activities:
Debt repayments, net of borrowings (2,300) (2,325)
Proceeds from stock option exercises 703 372
-------- --------
Net cash used in financing activities (1,597) (1,953)
-------- --------
Net change in cash 3,643 3,339
Cash at beginning of period 22,885 21,947
-------- --------
Cash at end of period $26,528 $25,286
======== ========
CONTACT: CalAmp Corp.
Rick Vitelle, 805-987-9000
or
CCG Investor Relations
Crocker Coulson, 818-789-0100
crocker.coulson@ccgir.com
SOURCE: CalAmp Corp.