-- Revenue of $26.3 million, up 15% from prior year and within guidance.
-- Consolidated gross margin percentage of 23.2%, up from 20.5% in prior
year.
-- GAAP net loss of $2.5 million, or $0.09 per diluted share; Adjusted
Basis (non-GAAP) net loss of $1.1 million, or $0.04 loss per diluted
share; both within guidance.
Rick Gold, CalAmp's Chief Executive Officer, commented, "First quarter
operating results were in line with expectations. Revenues increased 15%
on a year-over-year basis and were driven by improving fundamentals in both
our wireless datacom and satellite businesses. During the quarter, demand
for our mobile resource management (MRM) products was particularly strong
as new location tracking products launched earlier this year are resonating
in the marketplace. Also contributing to wireless datacom revenues were
two smart grid projects, as well as initial deployment activities on a
Canadian public safety communications project and a rail transportation
communications project that were announced earlier this year. As
anticipated, first quarter revenues of our satellite business declined
compared to the fourth quarter of fiscal 2010 but were up on a
year-over-year basis. We expect next-generation satellite products that
are currently in the customer qualification process, along with normal
seasonal demand patterns in this market, will help drive growth and improve
profitability during the remainder of fiscal 2011."
Fiscal 2011 First Quarter Results
Total revenue for the fiscal 2011 first quarter was $26.3 million compared
to $23.0 million for the first quarter of fiscal 2010. The year-over-year
increase in revenues was due to higher sales in both the Company's
satellite and wireless datacom business segments. Satellite revenue of
$10.5 million increased 13.8% from $9.2 million in the prior year, while
wireless datacom revenue of $15.8 million increased 15.0% from $13.8
million in the prior year.
Consolidated gross profit for the fiscal 2011 first quarter was $6.1
million or 23.2% of revenue compared to gross profit of $4.7 million or
20.5% of revenue for the same period last year. The increase in gross
profit and gross margin percentage in the latest quarter was due primarily
to higher wireless datacom revenues.
Results of operations for the fiscal 2011 first quarter as determined in
accordance with U.S. generally accepted accounting principles ("GAAP") was
a net loss of $2.5 million or $0.09 per diluted share, compared to a net
loss of $4.0 million or $0.16 per diluted share in the first quarter of
last year.
The Adjusted Basis (non-GAAP) net loss for the fiscal 2011 first quarter
was $1.1 million, or $0.04 loss per diluted share, compared to an Adjusted
Basis net loss of $2.3 million or $0.09 loss per diluted share for the same
period last year. The Adjusted Basis net loss excludes the impact of
amortization of intangible assets and stock-based compensation expense, and
includes an income tax benefit computed without giving effect to increases
or decreases in the deferred income tax valuation allowance that are
recognized for GAAP basis financial reporting. A reconciliation of the
GAAP Basis pretax loss to the Adjusted Basis net loss is provided in the
table at the end of this press release.
Liquidity
At May 31, 2010, the Company had total cash of $4.0 million and $12.1
million in total debt. Total debt at that date consists of $7.9 million
drawn under the Company's revolving bank credit facility and subordinated
debt of $4.2 million. The unused borrowing capacity on the bank revolver
was $1.8 million at May 31, 2010. Net cash used in operating activities
was $0.5 million during the first quarter of fiscal 2011.
Business Outlook
Commenting on the Company's business outlook, Mr. Gold said, "Based on
current projections, we expect fiscal 2011 second quarter consolidated
revenues will increase on a sequential quarter basis and be in the range of
$27 to $30 million, with growth anticipated in both our satellite and
wireless datacom businesses. The second quarter gross margin percentage is
anticipated to improve slightly over the first quarter. As a result, we
expect a GAAP Basis net loss in the range of $0.04 to $0.08 per diluted
share. The Adjusted Basis net loss for the second quarter, which excludes
intangibles amortization expense and stock-based compensation expense, is
expected to be in the range of $0.01 to $0.04 per diluted share."
"In addition, based on our backlog of orders and pipeline of new
opportunities, we are reaffirming our guidance that full-year fiscal 2011
revenues will increase 10% to 20% over fiscal 2010 and be in the range of
$123 to $135 million, with growth in both our satellite and wireless
datacom businesses. We continue to expect the consolidated gross margin for
fiscal 2011 will be in the range of 23% to 27% of revenue, and that fiscal
2011 total operating expenses will be essentially flat compared to fiscal
2010."
Conference Call and Webcast
A conference call and simultaneous webcast to discuss fiscal 2011 first
quarter financial results and business outlook will be held today at 4:30
p.m. Eastern / 1:30 p.m. Pacific. CalAmp's CEO Rick Gold and CFO Rick
Vitelle will host the conference call. Participants can dial into the live
conference call by calling 877-941-2333 (480-629-9723 for international
callers). An audio replay will be available through July 15, 2010, by
calling 800-406-7325 (303-590-3030 for international callers) and entering
the access code 4323973.
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
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 utility, governmental and enterprise 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 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, and other risks or
uncertainties that are described in the Company's Report on Form 10-K for
fiscal 2010 as filed on May 6, 2010 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.
CAL AMP CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share amounts)
Three Months Ended
May 31,
------------------------
2010 2009
----------- -----------
Revenues $ 26,346 $ 23,000
Cost of revenues 20,223 18,293
----------- -----------
Gross profit 6,123 4,707
----------- -----------
Operating expenses:
Research and development 2,763 2,898
Selling 2,622 2,201
General and administrative 2,509 2,757
Intangible asset amortization 306 341
----------- -----------
8,200 8,197
----------- -----------
Operating loss (2,077) (3,490)
Non-operating expense, net (400) (467)
----------- -----------
Loss before income taxes (2,477) (3,957)
Income tax provision - -
----------- -----------
Net loss $ (2,477) $ (3,957)
=========== ===========
Basic and diluted loss per share $ (0.09) $ (0.16)
=========== ===========
Shares used in basic and diluted per share
calculations 26,982 24,860
BUSINESS SEGMENT INFORMATION
(Unaudited, in thousands)
Three Months Ended
May 31,
------------------------
2010 2009
----------- -----------
Revenue
Satellite $ 10,527 $ 9,249
Wireless DataCom 15,819 13,751
----------- -----------
Total revenue $ 26,346 $ 23,000
=========== ===========
Gross profit
Satellite $ 793 $ 427
Wireless DataCom 5,330 4,280
----------- -----------
Total gross profit $ 6,123 $ 4,707
=========== ===========
Operating loss
Satellite $ (270) $ (617)
Wireless DataCom (507) (1,644)
Corporate expenses (1,300) (1,229)
----------- -----------
Total operating loss $ (2,077) $ (3,490)
=========== ===========
CAL AMP CORP.
CONSOLIDATED BALANCE SHEETS
(Unaudited - In thousands)
May 31, February 28,
2010 2010
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 4,026 $ 2,986
Accounts receivable, net 13,423 16,520
Inventories 11,079 10,608
Deferred income tax assets 2,263 2,656
Prepaid expenses and other current assets 4,728 4,720
----------- -----------
Total current assets 35,519 37,490
Equipment and improvements, net 2,283 2,055
Deferred income tax assets, less current portion 10,410 10,017
Intangible assets, net 4,838 5,144
Other assets 2,264 2,247
----------- -----------
$ 55,314 $ 56,953
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Bank working capital line of credit $ 7,856 $ 5,901
Accounts payable 14,455 16,186
Accrued payroll and employee benefits 2,484 2,742
Deferred revenue 5,274 4,740
Other current liabilities 3,553 3,526
----------- -----------
Total current liabilities 33,622 33,095
----------- -----------
Long-term debt 4,243 4,170
Other non-current liabilities 262 489
Stockholders' equity:
Common stock 277 277
Additional paid-in capital 151,918 151,453
Accumulated deficit (134,142) (131,665)
Accumulated other comprehensive loss (866) (866)
----------- -----------
Total stockholders' equity 17,187 19,199
----------- -----------
$ 55,314 $ 56,953
=========== ===========
CAL AMP CORP.
CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited - In thousands)
Three Months Ended
May 31,
------------------------
2010 2009
----------- -----------
Cash flows from operating activities:
Net loss $ (2,477) $ (3,957)
Depreciation and amortization 636 629
Stock-based compensation expense 523 412
Non-cash interest expense 134 -
Changes in operating working capital 717 3,477
Other 11 9
----------- -----------
Net cash (used) provided by operating
activities (456) 570
----------- -----------
Cash flows from investing activities:
Capital expenditures (569) (273)
Collections on note receivable 110 75
Other - (33)
----------- -----------
Net cash used in investing activities (459) (231)
----------- -----------
Cash flows from financing activities:
Proceeds from bank line of credit borrowings 1,955 -
Debt repayments - (3,125)
----------- -----------
Net cash provided (used) by financing
activities 1,955 (3,125)
----------- -----------
Effect of exchange rate changes on cash - 255
----------- -----------
Net change in cash and cash equivalents 1,040 (2,531)
Cash and cash equivalents at beginning of period 2,986 6,913
----------- -----------
Cash and cash equivalents at end of period $ 4,026 $ 4,382
=========== ===========
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 Pretax Loss to Adjusted Basis
(non-GAAP) Net Loss is as follows:
Three Months Ended
May 31,
------------------------
2010 2009
----------- -----------
GAAP basis pretax loss $ (2,477) $ (3,957)
Amortization of intangible assets 306 341
Stock-based compensation expense 523 412
----------- -----------
Pretax income (loss) (non-GAAP basis) (1,648) (3,204)
Income tax benefit (non-GAAP basis) (a) 584 855
----------- -----------
Adjusted basis (non-GAAP) net loss $ (1,064) $ (2,349)
=========== ===========
Adjusted basis net loss per diluted share $ (0.04) $ (0.09)
Weighted average common shares outstanding
on diluted basis 26,982 24,860
(a) The non-GAAP income tax benefit is computed using the Company's
combined U.S. federal and state statutory tax rate of 40.0% and 40.7%
in fiscal 2011 and 2010, respectively, excluding the pretax losses of
foreign operations for which no income tax benefit is recognized and
excluding the effects of increases and decreases in the deferred
income tax valuation allowance.
Contact Information: AT THE COMPANY: Rick Vitelle Chief Financial Officer (805) 987-9000 AT FINANCIAL RELATIONS BOARD: Lasse Glassen General Information (213) 486-6546 lglassen@mww.com