-- Consolidated first quarter revenues of $23.0 million, within guidance
and 8% higher than prior quarter.
-- First quarter GAAP net loss of $4.0 million, or $0.16 per diluted
share; adjusted basis (non-GAAP) loss of $2.4 million or $0.10 per diluted
share; both within guidance.
-- First quarter net cash provided by operations of $0.6 million.
-- Bank term loan balance reduced by $1.8 million in first quarter to
$15.8 million; total debt balance reduced by $3.1 million in first quarter
to $18.0 million.
Rick Gold, CalAmp's President and Chief Executive Officer, commented,
"Despite the challenging economic conditions in the first quarter, we
generated positive cash flow from operations while consolidated revenues
increased on a sequential quarter basis. The sequential top line growth
was driven primarily by the continued ramp of unit volumes in our satellite
products business, which showed a 14% increase in revenues over the
preceding quarter. In addition, revenues of our wireless datacom products
increased by 4% sequentially with healthier demand from some of the
vertical markets we serve. Looking ahead in fiscal 2010, I am encouraged
by recently announced new orders and our expanding pipeline of new business
opportunities."
Fiscal 2010 First Quarter Results
Total revenue for the fiscal 2010 first quarter was $23.0 million compared
to $27.9 million for the first quarter of fiscal 2009. The reduction in
revenues was due primarily to lower sales of the Company's wireless datacom
products.
Gross profit for the fiscal 2010 first quarter was $4.7 million or 20.5% of
revenues compared to gross profit of $9.4 million or 33.8% 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 first quarter as determined in
accordance with U.S. Generally Accepted Accounting Principles ("GAAP") was
a net loss of $4.0 million or $0.16 loss per diluted share. This compares
to a net loss of $0.5 million or $0.02 loss per diluted share in the first
quarter of last year.
The Adjusted Basis (non-GAAP) net loss for the fiscal 2010 first quarter
was $2.4 million or $0.10 loss per diluted share compared to Adjusted Basis
net income of $0.3 million or $0.01 income per diluted share for the same
period last year. Adjusted Basis net income (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 income
(loss) to Adjusted Basis net income (loss) is provided in the table at the
end of this press release.
Liquidity
At May 31, 2009, the Company had total cash of $4.4 million, with $15.8
million in total outstanding bank debt and a $2.2 million note payable to a
key Direct Broadcast Satellite ("DBS") customer. Net cash provided by
operating activities was $0.6 million for the three months ended May 31,
2009. During the latest quarter, the principal on the Company's bank term
loan was paid down by $1.8 million and the principal on the note payable to
the DBS customer was paid down by $1.3 million.
The 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 May 31, 2009. The Company
believes that it will be able to refinance the term loan prior to the
maturity date from the proceeds of an asset-based loan, possibly
supplemented by proceeds from another funding source.
Business Outlook
Commenting on the Company's business outlook for the second quarter of
fiscal 2010, Mr. Gold said, "I am pleased that orders in our mobile
resource management business and bid and proposal activity in our wireless
networks business have picked up significantly in recent months. Based on
our current forecast, we believe fiscal 2010 second quarter consolidated
revenues will show a sequential increase and be in the range of $23 to $25
million, with a GAAP basis net loss in the range of $0.06 to $0.10 per
diluted share. The Adjusted Basis (non-GAAP) results of operations for the
second 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 a net loss
of $0.02 to $0.06 per diluted share. There are increasing indications that
our business is in the early stages of a recovery. We now expect that
CalAmp will be profitable on a GAAP basis in the second half of fiscal 2010
with quarterly revenues in the range of $26 to $32 million."
Conference Call and Webcast
A conference call and simultaneous webcast to discuss fiscal 2010 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 Rick Gold and
CFO Rick Vitelle will host the conference call. Participants can dial into
the live conference call by calling 877-941-1465 (480-629-9644 for
international callers). An audio replay will be available through July 16,
2009, by calling 800-406-7325 (303-590-3030 for international callers) and
entering the access code 4110355.
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
May 31,
------------------
2009 2008
-------- --------
Revenues $ 23,000 $ 27,901
Cost of revenues 18,293 18,472
-------- --------
Gross profit 4,707 9,429
-------- --------
Operating expenses:
Research and development 2,898 3,200
Selling 2,201 2,272
General and administrative 2,757 3,096
Intangible asset amortization 341 1,332
-------- --------
8,197 9,900
-------- --------
Operating loss (3,490) (471)
Non-operating expense, net (467) (416)
-------- --------
Loss before income taxes (3,957) (887)
Income tax benefit - 390
-------- --------
Net loss $ (3,957) $ (497)
======== ========
Basic and diluted loss per share $ (0.16) $ (0.02)
======== ========
Shares used in basic and diluted per share calculations 24,860 24,703
BUSINESS SEGMENT INFORMATION
(Unaudited, in thousands)
Three Months Ended
May 31,
------------------
2009 2008
-------- --------
Revenue
Satellite $ 9,249 $ 7,641
Wireless DataCom 13,751 20,260
-------- --------
Total revenue $ 23,000 $ 27,901
======== ========
Gross profit
Satellite $ 427 $ 733
Wireless DataCom 4,280 8,696
-------- --------
Total gross profit $ 4,707 $ 9,429
======== ========
Operating income (loss)
Satellite $ (617) $ (332)
Wireless DataCom (1,644) 1,057
Corporate expenses (1,229) (1,196)
-------- --------
Total operating loss $ (3,490) $ (471)
======== ========
CAL AMP CORP.
CONSOLIDATED BALANCE SHEETS
(Unaudited - In thousands)
May 31, February 28,
2009 2009
---------- ----------
Assets
Current assets:
Cash and cash equivalents $ 4,382 $ 6,913
Accounts receivable, net 13,921 13,682
Inventories 14,161 15,139
Deferred income tax assets 3,301 3,479
Prepaid expenses and other current assets 4,711 4,962
---------- ----------
Total current assets 40,476 44,175
Equipment and improvements, net 2,131 2,139
Deferred income tax assets, less current portion 13,272 13,111
Other intangible assets, net 6,165 6,473
Other assets 3,717 3,749
---------- ----------
$ 65,761 $ 69,647
========== ==========
Liabilities and Stockholders' Equity
Current liabilities:
Bank loan payable $ 15,735 $ 17,550
Subordinated note payable 2,218 3,528
Accounts payable 8,780 5,422
Accrued payroll and employee benefits 3,105 3,380
Accrued warranty costs 3,006 3,286
Other accrued liabilities 7,956 8,683
Deferred revenue 3,909 3,609
---------- ----------
Total current liabilities 44,709 45,458
---------- ----------
Non-current liabilities 1,156 990
Stockholders' equity:
Common stock 252 252
Additional paid-in capital 145,275 144,881
Accumulated deficit (124,771) (120,814)
Accumulated other comprehensive loss (860) (1,120)
---------- ----------
Total stockholders' equity 19,896 23,199
---------- ----------
$ 65,761 $ 69,647
========== ==========
CAL AMP CORP.
CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited - In thousands)
Three Months Ended
May 31,
-----------------------
2009 2008
---------- ----------
Cash flows from operating activities:
Net loss $ (3,957) $ (497)
Depreciation and amortization 629 1,972
Stock-based compensation expense 412 9
Deferred tax assets, net - (390)
Changes in operating working capital 3,477 721
Other 9 -
---------- ----------
Net cash provided by operating activities 570 1,815
---------- ----------
Cash flows from investing activities:
Capital expenditures (273) (216)
Earnout payments on TechnoCom acquisition - (575)
Collections on note receivable 75 140
Other (33) -
---------- ----------
Net cash used in investing activities (231) (651)
---------- ----------
Cash flows from financing activities:
Debt repayments (3,125) (470)
---------- ----------
Net cash used in financing activities (3,125) (470)
---------- ----------
Effect of exchange rate changes on cash 255 (70)
---------- ----------
Net change in cash and cash equivalents (2,531) 624
Cash and cash equivalents at beginning of period 6,913 6,588
---------- ----------
Cash and cash equivalents at end of period $ 4,382 $ 7,212
========== ==========
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 Income (Loss) and Adjusted Basis Net Income (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 Income (Loss) and Adjusted
Basis Net Income (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 Income (Loss) is as follows:
Three Months Ended
May 31,
------------------
2009 2008
-------- --------
GAAP Basis Net Loss $ (3,957) $ (497)
Adjustments to reconcile to Adjusted Basis
Net Income (Loss):
Increase in valuation allowance for U.S. deferred
tax assets 1,124 -
Amortization of intangible assets, net of tax (1) 202 774
Stock-based compensation expense, net of tax (1) 244 5
-------- --------
Adjusted Basis Net Income (Loss) $ (2,387) $ 282
======== ========
Adjusted Basis Net Income (Loss)
Per Diluted Share $ (0.10) $ 0.01
Weighted average common shares outstanding
on diluted basis 24,860 24,703
(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
three months ended May 31, 2009 and 2008, respectively.
Contact Information: AT THE COMPANY: Rick Vitelle Chief Financial Officer (805) 987-9000 AT FINANCIAL RELATIONS BOARD: Lasse Glassen General Information (213) 486-6546