FY 2008 Third Quarter Adjusted Basis Income Expected to Beat Prior Guidance; Revenues Within Prior Guidance
OXNARD, Calif., Jan 10, 2008 (BUSINESS WIRE) -- CalAmp Corp. (NASDAQ: CAMP), a leading provider of wireless
products, services and solutions, today filed with the U.S. Securities
and Exchange Commission for a five day extension to file its Form 10-Q
for its fiscal 2008 third quarter ended December 1, 2007. In today's
filing the Company reported that as a result of a significant decrease
in recent business with a key Direct Broadcast Satellite (DBS)
customer due to a product performance issue as previously disclosed,
coupled with the recent substantial decline in the Company's market
capitalization, the Company engaged an independent valuation
specialist to conduct an interim goodwill impairment analysis as of
December 1, 2007, the end of its fiscal third quarter, in accordance
with the applicable accounting rules. This analysis indicated that the
Company's goodwill has been impaired, notwithstanding the fact that
the Company entered into a settlement agreement with this key DBS
customer on December 14, 2007. Based on this analysis, the Company
expects to record a non-cash impairment charge in the range of $64
million to $68 million for the quarter ended December 1, 2007, which
net of tax represents a charge in the range of $2.38 to $2.48 per
diluted share.
The Company also expects to report fiscal 2008 third quarter
revenues of $32.1 million, which is within its previously reported
guidance range. In addition, fiscal 2008 third quarter Adjusted Basis
income (loss) from continuing operations is expected to be
approximately breakeven, compared to the previously reported guidance
range of $(0.01) to $(0.05) loss per diluted share. Adjusted Basis
income (loss) from continuing operations excludes the impact of
amortization of intangible assets, stock-based compensation expense
and the aforementioned impairment charge, each net of tax where
applicable.
CalAmp will release final results for the Company's fiscal 2008
third quarter after close of market on January 15, 2008, as previously
announced. The Company will discuss its third quarter financial
results and current business status during its quarterly conference
call to be held on January 15, 2008, at 1:30 p.m. Pacific Time. A live
audio webcast of the quarterly conference call can be accessed on the
Company's web site, www.calamp.com. This link requires listeners to
install either RealPlayer or Windows Media Player to access the event.
An online replay of the audio broadcast will be available on the
Company's web site after the completion of the live call.
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 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
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, 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 in the event of default under the
credit agreement, the Company's ability to successfully requalify with
respect to the sale of 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 on May 17,
2007 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.
SOURCE: CalAmp Corp.
At CalAmp Corp.:
Rick Vitelle, Chief Financial Officer
(805) 987-9000
or
At Financial Relations Board:
Lasse Glassen, General Information
(213) 486-6546
lglassen@frbir.com