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8-K - CURRENT REPORT - CalAmp Corp. | calamp_8k.htm |
N E W S B U L L E T I N
FROM: |
FOR IMMEDIATE RELEASE
CalAmp Reports Fiscal 2013 First Quarter Results
OXNARD, CA, June 28, 2012 -- CalAmp Corp. (NASDAQ: CAMP), a leading provider of wireless products, services and solutions, today reported results for its first quarter ended May 31, 2012. Highlights for the quarter include:
- Consolidated first quarter revenue of $43.9 million, up 27% compared to the first quarter last year; with Wireless Datacom revenue up 44% to $31.7 million.
- First quarter GAAP net income of $4.2 million or $0.14 per diluted share, compared to $0.5 million or $0.02 per diluted share last year.
- Adjusted Basis (non-GAAP) net income of $5.3 million or $0.18 per diluted share, compared to $1.4 million or $0.05 per diluted share last year.
- Net cash provided by operations for the first quarter of $3.2 million, and total cash balance at May 31, 2012 of $7.3 million.
Commenting on the first quarter results, Michael Burdiek, CalAmp's President and Chief Executive Officer said, "We began fiscal 2013 with an outstanding first quarter where the earnings power of our business strategy was clearly evident. The Wireless Datacom segment posted impressive revenue growth of 44%, driven by strength across core verticals with continued momentum in Mobile Resource Management (MRM) and significant contribution from our Rail initiative. In the Satellite business segment, we were particularly pleased with the gross margin improvement to 15.8% and with its solid contribution to the bottom line.
Mr. Burdiek continued, The maturing global machine-to-machine (M2M) ecosystem is opening up new opportunities to grow our business and engage with large enterprise customers. Our vertically focused M2M hardware and software platform strategy, as well as our strengthening wireless carrier alliances, are providing us with enhanced visibility into larger deals.
Fiscal 2013 First
Quarter Results
Total revenue
for the fiscal 2013 first quarter was $43.9 million compared to $34.6 million
for the first quarter of fiscal 2012, an increase of 27%. Wireless Datacom
revenue increased 44% to $31.7 million from $22.0 million in the same period
last year, and Satellite revenue was $12.2 million compared to $12.5 million in
the first quarter last year.
Consolidated gross profit for the fiscal 2013 first quarter was $13.7 million, an increase of $4.2 million over the same quarter last year primarily as a result of the higher revenue. The gross margin percentage increased to 31.2% in the fiscal 2013 first quarter from 27.3% in the first quarter last year primarily as a result of the significant gross margin improvement in the Satellite segment.
CalAmp Reports Fiscal
2013 First Quarter Results
June 28, 2012
Page 2 of 7
GAAP net income for the fiscal 2013 first quarter was $4.2 million, or $0.14 per diluted share, compared to net income of $0.5 million or $0.02 per diluted share in the first quarter of last year.
Non-GAAP net income for the fiscal 2013 first quarter was $5.3 million, or $0.18 per diluted share, compared to non-GAAP net income of $1.4 million or $0.05 per diluted share for the same quarter last year. A reconciliation of the GAAP basis pretax income to the non-GAAP net income is provided in the table at the end of this press release.
Liquidity
As of May 31,
2012, the Company had total cash of $7.3 million and an outstanding bank term
loan of $2.8 million. Total debt outstanding at the end of the first quarter
includes the $3.1 million carrying amount of a note payable issued in May 2012
in connection with the previously announced Navman Wireless asset purchase and
supply agreement. Net cash provided by operating activities during the first
quarter was $3.2 million, and the unused borrowing capacity on the bank revolver
at that date was $9.2 million.
Business
Outlook
Commenting on the
Company's business outlook, Mr. Burdiek said, "Based on our latest projections,
we expect fiscal 2013 second quarter consolidated revenues in the range of $41
to $45 million. We anticipate that Wireless Datacom second quarter revenues will
be up moderately on a sequential basis and up significantly year over year, and
we expect Satellite second quarter revenues will be up year over year but down
somewhat on a sequential basis. At the bottom line, we expect second quarter
GAAP basis net income in the range of a $0.09 to $0.13 per diluted share, and
non-GAAP net income in the range of $0.13 to $0.17 per diluted
share."
Mr. Burdiek continued, CalAmp is now benefiting from its strategic focus on key market verticals that offer attractive long term growth prospects. Our competitive position in these verticals is strengthening as we broaden our product portfolio, exploit opportunities for integrated hardware and software solutions, and extend our market reach. The opening of our design center in New Zealand last month, as well as incremental investment in software resources, should give us increased capacity to bring innovative products to market and fuel the growth of our Wireless Datacom segment.
Conference Call and
Webcast
A conference call and
simultaneous webcast to discuss first 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 Michael Burdiek and CFO Rick Vitelle will host the conference
call. Participants can dial into the live conference call by calling
877-218-7286 (615-800-6912 for international callers) and using the Conference
ID # 89852304. An audio replay will be available through July 7, 2012 by calling
855-859-2056 and entering the Conference ID # 89852304.
Additionally, a live webcast of the call will be 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.
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CalAmp Reports Fiscal
2013 First Quarter Results
June 28, 2012
Page 3 of 7
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
CalAmp develops and
markets wireless communications solutions that deliver data, voice and video for
critical networked communications and other applications. The Company's two
business segments are Wireless DataCom, which serves enterprise, utility and
government customers, and Satellite, which focuses on the North American Direct
Broadcast Satellite market. 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 Companys wireless and
satellite markets, the timing of customer approvals of new product designs,
intellectual property infringement claims, interruption or failure of our
Internet-based systems used to wirelessly configure and communicate with the
tracking and monitoring devices that we sell, and other risks or uncertainties
that are described in the Company's Report on Form 10-K for fiscal 2012 as filed
on April 26, 2012 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.
COMPANY
CONTACT
Joanne
Keates
Director of Corporate
Communications
jkeates@calamp.com
(805) 419-8239
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CalAmp Reports Fiscal
2013 First Quarter Results
June 28, 2012
Page 4 of 7
CAL AMP
CORP.
CONSOLIDATED INCOME
STATEMENTS
(Unaudited, in thousands except per share amounts)
Three Months Ended | ||||||||
May 31, | ||||||||
2012 | 2011 | |||||||
Revenues | $ | 43,861 | $ | 34,554 | ||||
Cost of revenues | 30,185 | 25,122 | ||||||
Gross profit | 13,676 | 9,432 | ||||||
Operating expenses: | ||||||||
Research and development | 3,172 | 3,104 | ||||||
Selling | 2,808 | 2,592 | ||||||
General and administrative | 3,098 | 2,499 | ||||||
Intangible asset amortization | 317 | 352 | ||||||
9,395 | 8,547 | |||||||
Operating income | 4,281 | 885 | ||||||
Non-operating expense, net | (90 | ) | (356 | ) | ||||
Income before income taxes | 4,191 | 529 | ||||||
Income tax provision | (9 | ) | (9 | ) | ||||
Net income | $ | 4,182 | $ | 520 | ||||
Earnings per share: | ||||||||
Basic | $ | 0.15 | $ | 0.02 | ||||
Diluted | $ | 0.14 | $ | 0.02 | ||||
Shares used in computing earnings per share: | ||||||||
Basic | 27,925 | 27,357 | ||||||
Diluted | 29,263 | 28,226 |
BUSINESS SEGMENT
INFORMATION
(Unaudited, in thousands)
Three Months Ended | ||||||||
May 31, | ||||||||
2012 | 2011 | |||||||
Revenues | ||||||||
Wireless DataCom | $ | 31,671 | $ | 22,037 | ||||
Satellite | 12,190 | 12,517 | ||||||
Total revenues | $ | 43,861 | $ | 34,554 | ||||
Gross profit | ||||||||
Wireless DataCom | $ | 11,745 | $ | 8,604 | ||||
Satellite | 1,931 | 828 | ||||||
Total gross profit | $ | 13,676 | $ | 9,432 | ||||
Operating income (loss) | ||||||||
Wireless DataCom | $ | 4,391 | $ | 2,130 | ||||
Satellite | 1,080 | (288 | ) | |||||
Corporate expenses | (1,190 | ) | (957 | ) | ||||
Total operating income | $ | 4,281 | $ | 885 |
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CalAmp Reports Fiscal
2013 First Quarter Results
June 28, 2012
Page 5 of 7
CAL AMP
CORP.
CONSOLIDATED BALANCE
SHEETS
(In
thousands)
May 31, | February 28, | |||||||
2012 | 2012 | |||||||
Assets | (Unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 7,315 | $ | 5,601 | ||||
Accounts receivable, net | 19,157 | 14,383 | ||||||
Inventories | 14,635 | 10,057 | ||||||
Deferred income tax assets | 5,206 | 5,425 | ||||||
Prepaid expenses and other current assets | 4,311 | 4,323 | ||||||
Total current assets | 50,624 | 39,789 | ||||||
Property, equipment and improvements, net | 2,177 | 1,761 | ||||||
Deferred income tax assets, less current portion | 6,681 | 6,412 | ||||||
Goodwill and other intangible assets, net | 7,132 | 2,738 | ||||||
Other assets | 750 | 781 | ||||||
$ | 67,364 | $ | 51,481 | |||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 2,206 | $ | 1,100 | ||||
Accounts payable | 17,616 | 9,523 | ||||||
Accrued payroll and employee benefits | 2,772 | 4,405 | ||||||
Deferred revenue | 6,436 | 6,305 | ||||||
Other current liabilities | 3,012 | 2,268 | ||||||
Total current liabilities | 32,042 | 23,601 | ||||||
Long-term debt | 3,704 | 1,900 | ||||||
Other non-current liabilities | 1,587 | 1,003 | ||||||
Stockholders' equity: | ||||||||
Common stock | 287 | 287 | ||||||
Additional paid-in capital | 155,357 | 154,485 | ||||||
Accumulated deficit | (125,548 | ) | (129,730 | ) | ||||
Accumulated other comprehensive loss | (65 | ) | (65 | ) | ||||
Total stockholders' equity | 30,031 | 24,977 | ||||||
$ | 67,364 | $ | 51,481 |
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CalAmp Reports Fiscal 2013
First Quarter Results
June 28, 2012
Page 6 of 7
CAL AMP
CORP.
CONSOLIDATED CASH
FLOW STATEMENTS
(Unaudited - In thousands)
Three Months Ended | ||||||||
May 31, | ||||||||
2012 | 2011 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 4,182 | $ | 520 | ||||
Depreciation and amortization | 537 | 700 | ||||||
Stock-based compensation expense | 858 | 532 | ||||||
Non-cash interest expense | 41 | 134 | ||||||
Changes in operating working capital | (2,423 | ) | 414 | |||||
Net cash provided by operating activities | 3,195 | 2,300 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (435 | ) | (216 | ) | ||||
Navman Wireless asset purchase agreement | (1,000 | ) | - | |||||
Collections on note receivable | 140 | 168 | ||||||
Net cash used in investing activities | (1,295 | ) | (48 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayments of bank line of credit | - | (2,097 | ) | |||||
Repayments of bank term loan | (200 | ) | - | |||||
Taxes paid related to net share settlement of vested equity awards | (92 | ) | (65 | ) | ||||
Proceeds from exercise of stock options and warrants | 106 | 5 | ||||||
Net cash used in financing activities | (186 | ) | (2,157 | ) | ||||
Net change in cash and cash equivalents | 1,714 | 95 | ||||||
Cash and cash equivalents at beginning of period | 5,601 | 4,241 | ||||||
Cash and cash equivalents at end of period | $ | 7,315 | $ | 4,336 |
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CalAmp Reports Fiscal 2013
First Quarter Results
June 28, 2012
Page 7 of 7
CAL AMP
CORP.
NON-GAAP EARNINGS
RECONCILIATION
(Unaudited)
"GAAP" refers to financial information presented in accordance with U.S. Generally Accepted Accounting Principles. 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 Income and Adjusted Basis Net Income 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 Income and Adjusted Basis Net Income 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 Pretax Income to Adjusted Basis (non-GAAP) Net Income is as follows (in thousands except per share amounts):
Three Months Ended | |||||||
May 31, | |||||||
2012 | 2011 | ||||||
GAAP basis pretax income | $ | 4,191 | $ | 529 | |||
Amortization of intangible assets | 317 | 352 | |||||
Stock-based compensation expense | 858 | 532 | |||||
Pretax income (non-GAAP basis) | 5,366 | 1,413 | |||||
Income tax provision (non-GAAP basis) (a) | (59 | ) | (9 | ) | |||
Adjusted Basis net income | $ | 5,307 | $ | 1,404 | |||
Adjusted Basis net income per diluted share | $ | 0.18 | $ | 0.05 | |||
Weighted average common shares outstanding | |||||||
on diluted basis | 29,263 | 28,226 |
(a) | The non-GAAP income tax provision reflects the income taxes paid/payable (or received/receivable) based on on the non-GAAP pretax income for the period. The Company had net operating loss carryforwards to offset the pre-tax book income for the three-month periods ended May 31, 2012 and 2011. |
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