Press Release Details

View all Press Releases

CalAmp Acquires Product Line from TechnoCom Corporation; Acquisition Expands CalAmp's Machine-to-Machine Business with Automatic Vehicle Location and Fleet Management Solutions

05/26/06

OXNARD, Calif.--(BUSINESS WIRE)--May 26, 2006--CalAmp Corp. (Nasdaq:CAMP), a leading provider of wireless communication solutions, announced today that it has acquired certain operating assets of the Mobile Resource Management product line from TechnoCom Corporation, a privately-held company. This acquisition further strengthens CalAmp's position in Machine-to-Machine (M2M) communications products for enterprise asset tracking and fleet management applications. The transaction is expected to be immediately accretive to CalAmp's earnings per share.

"The acquisition of TechnoCom's Mobile Resource Management product line extends CalAmp's market presence for M2M applications in asset tracking and fleet management. With increasing focus by businesses on productivity and security, we believe our solutions will be met with growing demand as enterprise customers look to more efficiently manage their workforce and more effectively track their key assets," said Fred Sturm, President and Chief Executive Officer of CalAmp. "TechnoCom is highly regarded in the marketplace for its technological leadership, and the reliability and flexibility of their solutions. As part of CalAmp, we will look to leverage our strong operations and manufacturing capabilities with TechnoCom's excellent customer relationships and complementary products and services to drive growth in our M2M business."

The Mobile Resource Management product line acquired by CalAmp generated revenues of approximately $4 million during the unaudited 12 month period ended April 30, 2006. Under terms of the agreement, CalAmp purchased certain Mobile Resource Management assets from TechnoCom for a cash payment of approximately $2.4 million, and a future earn-out payment estimated to be approximately $2 million depending on the achievement of specified financial targets during the 12-month period following the acquisition. In addition, CalAmp agreed to license certain software from TechnoCom with a first year cost of approximately $200,000. CalAmp will operate this business from its M2M facility in Carlsbad, California, and expects four TechnoCom employees to join its staff in connection with the acquisition.

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 and asset tracking markets, public safety communications, the healthcare industry and digital multimedia delivery applications. For additional information, please visit the Company's website at www.calamp.com.

About TechnoCom Corporation

Founded in 1995, TechnoCom is a leading provider of solutions to enable wireless and location based services and assure their ongoing performance. TechnoCom offers a portfolio of wireless infrastructure solutions and emerging wireless technologies to network operators, service providers, system integrators and government agencies. These solutions enable customers to manage their wireless and location infrastructures and services, reduce operating and capital costs, and rapidly deploy new revenue-generating services. For more information, please visit TechnoCom's website at www.technocom-wireless.com.

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," "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, development factors, operating costs, the Company's ability to eliminate operating losses in its Solutions Division and make this business segment profitable, 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.

CONTACT: CalAmp Corp.
Rick Vitelle, 805-987-9000
or
Financial Relations Board
Lasse Glassen, 310-854-8313 (General Information)
lglassen@financialrelationsboard.com

SOURCE: CalAmp Corp.

Categories: Press Releases
View all Press Releases