OXNARD, Calif.--(BUSINESS WIRE)--Jan. 9, 2009--CalAmp Corp. (NASDAQ:CAMP), a leading provider of wireless
products, services and solutions, announced today it has reached an
out-of-court settlement of litigation with Rogers Corporation. The
litigation related to product performance issues involving laminate
supplied by Rogers that was included in certain products manufactured by
CalAmp and sold to a Direct Broadcast Satellite customer.
Pursuant to the settlement announced today, Rogers agreed to make a cash
payment to CalAmp of $9 million. As part of the settlement agreement the
parties acknowledged that Rogers admitted no wrongdoing or liability for
any claim, and that Rogers agreed to settle this litigation to avoid the
time, expense and inconvenience of continued litigation.
Under the terms of CalAmp's bank credit agreement, CalAmp is required to
use approximately $4 million of the settlement proceeds to pay down its
bank term loan. CalAmp is currently in discussions with the banks on the
possibility of making an additional term loan reduction above and beyond
this amount.
Commenting on the announcement, Rick Gold, CalAmp's President and Chief
Executive Officer said, "I am pleased that we have reached a
satisfactory resolution of this matter. This settlement significantly
improves CalAmp's financial strength and we believe is the best outcome
for our shareholders."
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 Statement
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. These
forward-looking statements reflect the Company's current views with
respect to future events and financial performance and are subject to
certain risks and uncertainties. Actual results could differ materially
from those implied by such forward-looking statements. Although CalAmp
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. CalAmp 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, Chief Financial Officer, 805-987-9000
or
Financial Relations Board:
Lasse Glassen, General Information, 213-486-6546
lglassen@frbir.com
Source: CalAmp Corp.