OXNARD, CA, Oct 08, 2009 (MARKETWIRE via COMTEX) -- CalAmp Corp. (NASDAQ: CAMP), a leading provider of wireless
products, services and solutions, today reported results for its
fiscal 2010 second quarter ended August 31, 2009. Key elements
include:
-- Consolidated second quarter revenues of $23.9 million, within guidance
and 4% higher than prior quarter.
-- Second quarter GAAP net loss of $4.2 million, or $0.17 per diluted
share; Adjusted basis (non-GAAP) loss of $2.3 million or $0.09 per diluted
share. Included in the GAAP and adjusted basis loss is a $1 million pre-tax
charge (or $0.04 per diluted share on a GAAP basis and $0.02 per diluted
share on an adjusted basis) related to a loss on the sale of preferred
stock in a privately held company.
-- Second quarter net cash provided by operations of $2.9 million.
-- Total debt balance reduced by $3.6 million in second quarter to $14.4
million.
Rick Gold, CalAmp's President and Chief Executive Officer,
commented, "I am pleased by our ability to continue growing revenue
and generating operating cash flow in this challenging economic
environment. Our second sequential quarter of top line growth was
driven by the continued ramp of unit volumes in our satellite
products business, which showed an 8% increase in revenues over the
previous quarter, and a 2% sequential revenue growth in our wireless
datacom business. Looking ahead, I am encouraged by the strong demand
we are seeing for our satellite products in the second half of FY10,
and the expanding pipeline of new business opportunities in our
wireless datacom business."
Mr. Gold continued, "In addition, we remain committed to improving
our balance sheet and enhancing our financial flexibility. During the
second quarter, our focus on working capital management helped
generate $2.9 million in cash flow from operations, and we reduced
total debt by $3.6 million to a balance of $14.4 million."
Fiscal 2010 Second Quarter Results
Total revenue for the fiscal 2010 second quarter was $23.9 million
compared to $23.3 million for the second quarter of fiscal 2009. The
year-over-year increase in revenues was due primarily to higher sales
of the Company's satellite products, partially offset by lower sales
of its wireless datacom products.
Gross profit for the fiscal 2010 second quarter was $4.8 million or
20.1% of revenues compared to gross profit of $7.5 million or 32.0% of
revenue for the same period last year. The reduction in gross profit
and gross margin percentage in the latest quarter was due primarily
to lower wireless datacom revenues.
Results of operations for the fiscal 2010 second quarter as
determined in accordance with U.S. Generally Accepted Accounting
Principles ("GAAP") was a net loss of $4.2 million or $0.17 loss per
diluted share. This compares to a net loss of $1.5 million or $0.06
loss per diluted share in the second quarter of last year.
The Adjusted Basis (non-GAAP) net loss for the fiscal 2010 second
quarter was $2.3 million or $0.09 loss per diluted share compared to
Adjusted Basis net loss of $0.6 million or $0.02 loss per diluted
share for the same period last year. The Adjusted Basis net loss
excludes the impact of changes in the deferred income tax asset
valuation allowance, amortization of intangible assets and
stock-based compensation expense, each net of tax to the extent
applicable. A reconciliation of the GAAP basis net loss to Adjusted
Basis net loss is provided in the table at the end of this press
release.
Included in the second quarter GAAP and Adjusted Basis net loss is a
pre-tax loss of approximately $1 million related to the sale of
preferred stock in a privately-held company. Net of tax, this amounted
to $0.04 per diluted share on a GAAP basis and $0.02 per diluted
share on an Adjusted Basis Pursuant to CalAmp's bank credit
agreement, $1 million, representing substantially all of the net
proceeds of this asset sale, was applied to the outstanding balance
of CalAmp's bank term loan.
Liquidity
At August 31, 2009, the Company had total cash of $4.4 million, with
$14.0 million in total outstanding bank debt and a $0.4 million note
payable to a key Direct Broadcast Satellite ("DBS") customer. Net
cash provided by operating activities was $2.9 million for the three
months ended August 31, 2009. During the latest quarter, the
principal on the Company's bank loan was paid down by $1.8 million
and the principal on the note payable to the DBS customer was also
paid down by $1.8 million.
The Company's bank term loan has a maturity date of December 31,
2009, and consequently the entire term loan balance is classified as
a current liability in the Consolidated Balance Sheet at August 31,
2009. The Company is currently in active discussions with several
banks, and expects to refinance the term loan prior to the end of
calendar 2009 from the proceeds of an asset-based loan, possibly
supplemented by proceeds from other funding sources. The Company also
expects to retire the note payable to a key DBS customer during the
fiscal third quarter.
Business Outlook
Commenting on the Company's business outlook, Mr. Gold said, "We are
experiencing a sharp increase in demand for our satellite products in
the second half of fiscal 2010. We expect to see fiscal third quarter
consolidated revenues increase significantly on a sequential quarter
basis and be in the range of $29 to $32 million, with a GAAP basis net
loss in the range of $0.03 to $0.07 per diluted share. The Adjusted
Basis (non-GAAP) results of operations for the third quarter, which
exclude changes in the valuation allowance for U.S. deferred tax
assets, intangibles amortization expense net of tax and stock-based
compensation expense net of tax, are expected to be in the range of
$0.04 net loss to breakeven. With the increased demand and strong
operating momentum we expect further growth in the fiscal 2010 fourth
quarter with consolidated revenues in the $34 to $38 million range
and GAAP-basis profitability."
Conference Call and Webcast
A conference call and simultaneous webcast to discuss fiscal 2010
second quarter financial results and business outlook will be held
today at 4:30 p.m. Eastern / 1:30 p.m. Pacific. CalAmp's President
and CEO Rick Gold and CFO Rick Vitelle will host the conference call.
Participants can dial into the live conference call by calling
877-941-6009 (480-629-9771 for international callers). An audio
replay will be available through October 15, 2009, by calling
800-406-7325 (303-590-3030 for international callers) and entering
the access code 4168016.
Additionally, a 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 and install any necessary audio software. After the live
webcast, a replay will remain available until the next quarterly
conference call in the Investor Relations section of CalAmp's web
site.
About CalAmp Corp.
CalAmp provides wireless communications 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
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 product demand, competitive pressures
and pricing declines in the Company's satellite and wireless markets,
the timing of customer approvals of new product designs, the length
and extent of the global economic downturn that has and may continue
to adversely affect the Company's business, the Company's ability to
refinance or extend its bank term loan prior to the December 31, 2009
maturity date, and other risks or uncertainties that are described in
the Company's Annual Report on Form 10-K for fiscal 2009 as filed on
May 12, 2009 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.
-Financial Tables to Follow-
CAL AMP CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share amounts)
Three Months Ended Six Months Ended
August 31, August 31,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenues $ 23,940 $ 23,308 $ 46,940 $ 51,209
Cost of revenues 19,136 15,840 37,429 34,312
-------- -------- -------- --------
Gross profit 4,804 7,468 9,511 16,897
-------- -------- -------- --------
Operating expenses:
Research and development 2,633 3,131 5,531 6,331
Selling 2,402 1,647 4,603 3,919
General and administrative 2,501 3,266 5,258 6,362
Intangible asset amortization 342 1,240 683 2,572
-------- -------- -------- --------
7,878 9,284 16,075 19,184
-------- -------- -------- --------
Operating loss (3,074) (1,816) (6,564) (2,287)
Non-operating expense, net (1,169) (334) (1,636) (750)
-------- -------- -------- --------
Loss before income taxes (4,243) (2,150) (8,200) (3,037)
Income tax benefit - 652 - 1,042
-------- -------- -------- --------
Net loss $ (4,243) $ (1,498) $ (8,200) $ (1,995)
======== ======== ======== ========
Basic and diluted loss per share $ (0.17) $ (0.06) $ (0.33) $ (0.08)
======== ======== ======== ========
Shares used in basic and diluted
per share calculations 24,918 24,737 24,889 24,720
BUSINESS SEGMENT INFORMATION
(Unaudited, in thousands)
Three Months Ended Six Months Ended
August 31, August 31,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenue
Satellite $ 9,964 $ 3,176 $ 19,213 $ 10,817
Wireless DataCom 13,976 20,132 27,727 40,392
-------- -------- -------- --------
Total revenue $ 23,940 $ 23,308 $ 46,940 $ 51,209
======== ======== ======== ========
Gross profit
Satellite $ 331 $ (81) $ 758 $ 652
Wireless DataCom 4,473 7,549 8,753 16,245
-------- -------- -------- --------
Total gross profit $ 4,804 $ 7,468 $ 9,511 $ 16,897
======== ======== ======== ========
Operating income (loss)
Satellite $ (728) $ (1,324) $ (1,345) $ (1,656)
Wireless DataCom (1,299) 916 (2,943) 1,973
Corporate expenses (1,047) (1,408) (2,276) (2,604)
-------- -------- -------- --------
Total operating loss $ (3,074) $ (1,816) $ (6,564) $ (2,287)
======== ======== ======== ========
CAL AMP CORP.
CONSOLIDATED BALANCE SHEETS
(Unaudited - In thousands)
August 31, February 28,
2009 2009
----------- ------------
Assets
Current assets:
Cash and cash equivalents $ 4,401 $ 6,913
Accounts receivable, net 12,178 13,682
Inventories 11,671 15,139
Deferred income tax assets 3,274 3,479
Prepaid expenses and other current assets 4,253 4,962
----------- ------------
Total current assets 35,777 44,175
Equipment and improvements, net 2,085 2,139
Deferred income tax assets, less current portion 13,252 13,111
Other intangible assets, net 5,828 6,473
Other assets 1,783 3,749
----------- ------------
$ 58,725 $ 69,647
=========== ============
Liabilities and Stockholders' Equity
Current liabilities:
Bank loan payable $ 13,985 $ 17,550
Subordinated note payable 410 3,528
Accounts payable 10,746 5,422
Accrued payroll and employee benefits 2,630 3,380
Accrued warranty costs 2,657 3,286
Other accrued liabilities 7,553 8,683
Deferred revenue 3,853 3,609
----------- ------------
Total current liabilities 41,834 45,458
----------- ------------
Non-current liabilities 975 990
Stockholders' equity:
Common stock 257 252
Additional paid-in capital 145,537 144,881
Accumulated deficit (129,014) (120,814)
Accumulated other comprehensive loss (864) (1,120)
----------- ------------
Total stockholders' equity 15,916 23,199
----------- ------------
$ 58,725 $ 69,647
=========== ============
CAL AMP CORP.
CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited - In thousands)
Six Months Ended
August 31,
----------------------
2009 2008
---------- ----------
Cash flows from operating activities:
Net loss $ (8,200) $ (1,995)
Depreciation and amortization 1,283 3,770
Stock-based compensation expense 858 361
Loss on sale of investment 1,008 -
Deferred tax assets, net - (1,046)
Changes in operating working capital 8,462 (376)
Other 23 -
---------- ----------
Net cash provided by operating activities 3,434 714
---------- ----------
Cash flows from investing activities:
Capital expenditures (544) (561)
Proceeds from sale of investment 992 -
Collections on note receivable 150 420
Earnout payments on TechnoCom acquisition - (872)
Other (36) 296
---------- ----------
Net cash provided (used) by investing
activities 562 (717)
---------- ----------
Cash flows from financing activities:
Proceeds from line of credit borrowing 1,000 -
Debt repayments (7,683) (1,500)
---------- ----------
Net cash used in financing activities (6,683) (1,500)
---------- ----------
Effect of exchange rate changes on cash 175 (388)
---------- ----------
Net change in cash and cash equivalents (2,512) (1,891)
Cash and cash equivalents at beginning of period 6,913 6,588
---------- ----------
Cash and cash equivalents at end of period $ 4,401 $ 4,697
========== ==========
CAL AMP CORP.
NON-GAAP EARNINGS RECONCILIATION
(Unaudited, in thousands except per share amounts)
Non-GAAP Earnings Reconciliation
"GAAP" refers to financial information presented in accordance with
Generally Accepted Accounting Principles in the United States. This
press release includes historical non-GAAP financial measures, as
defined in Regulation G promulgated by the Securities and Exchange
Commission. CalAmp believes that its presentation of historical
non-GAAP financial measures provides useful supplementary information
to investors. The presentation of historical non-GAAP financial
measures is not meant to be considered in isolation from or as a
substitute for results prepared in accordance with GAAP.
In this press release, CalAmp reports the non-GAAP financial measures
of Adjusted Basis Net Loss and Adjusted Basis Net Loss Per Diluted
Share. CalAmp uses these non-GAAP financial measures to enhance the
investor's overall understanding of the financial performance and
future prospects of CalAmp's core business activities. Specifically,
CalAmp believes that a report of Adjusted Basis Net Loss and Adjusted
Basis Net Loss Per Diluted Share provides consistency in its
financial reporting and facilitates the comparison of results of core
business operations between its current and past periods.
The reconciliation of the GAAP Basis Net Loss to Adjusted Basis
(non-GAAP) Net Loss is as follows:
Three Months Ended Six Months Ended
August 31, August 31,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
GAAP Basis Net Loss $ (4,243) $ (1,498) $ (8,200) $ (1,995)
Adjustments to reconcile to
Adjusted Basis Net Loss:
Increase in valuation allowance
for U.S. deferred tax assets 1,473 - 2,597 -
Amortization of intangible
assets, net of tax (1) 203 720 405 1,494
Stock-based compensation
expense, net of tax (1) 264 205 509 210
-------- -------- -------- --------
Adjusted Basis Net Loss $ (2,303) $ (573) $ (4,689) $ (291)
======== ======== ======== ========
Adjusted Basis Net Loss Per Diluted
Share $ (0.09) $ (0.02) $ (0.19) $ (0.01)
Weighted average common shares
Outstanding on diluted basis 24,918 24,737 24,889 24,720
(1) These reconciling items are tax effected using the Company's combined
U.S. federal and state statutory tax rate of 40.7% and 41.9% for the
six months ended August 31, 2009 and 2008, respectively.
AT THE COMPANY:
Rick Vitelle
Chief Financial Officer
(805) 987-9000
AT FINANCIAL RELATIONS BOARD:
Lasse Glassen
General Information
(213) 486-6546
Email Contact
SOURCE: CalAmp Corp.
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