Date of Report (Date of earliest event reported): | December 22, 2011 | |
Exact Name of Registrant as Specified in Its Charter: | CALAMP CORP. |
DELAWARE | 0-12182 | 95-3647070 | ||
State or Other Jurisdiction of | Commission | I.R.S. Employer | ||
Incorporation or Organization | File Number | Identification No. |
Address of Principal Executive
Offices: |
1401 N. Rice Avenue Oxnard, CA 93030 | |
Registrant's Telephone Number, Including Area Code: | (805) 987-9000 | |
Former Name or Former Address, if Changed Since Last Report: | Not applicable |
Item 2.02. Results of Operations and Financial Condition
The information set forth in Exhibit 99.1 of this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information set forth in Exhibit 99.1 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
On December 22, 2011, CalAmp Corp. issued a press release announcing its financial results for the third quarter ended November 30, 2011.
A copy of the press release is attached as Exhibit 99.1.
A conference call with simultaneous webcast to discuss the financial results for the third quarter ended November 30, 2011 will be held today, December 22, 2011 at 4:30 p.m. Eastern Time. After the live webcast of the conference call, an audio replay will remain available until the next quarterly conference call in the Investor Relations section of CalAmp's website at www.calamp.com.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
99.1 | Press release of the Registrant dated December 22, 2011 announcing results of operations for the third quarter ended November 30, 2011. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be filed on its behalf by the undersigned hereunto duly authorized.
CALAMP CORP. | ||||
December 22, 2011 | By: /s/ Richard K. Vitelle | |||
Date | Richard K. Vitelle, | |||
Vice President-Finance | ||||
(Principal Financial Officer) |
Exhibit 99.1
N E W S B U L L E T I
N
FROM:
FOR IMMEDIATE RELEASE
CalAmp Reports Fiscal 2012 Third Quarter Results
OXNARD, Calif., December 22, 2011--CalAmp Corp. (Nasdaq: CAMP), a leading provider of wireless products, services and solutions, today reported results for its fiscal 2012 third quarter ended November 30, 2011. Key elements include:
Michael Burdiek, CalAmps President and Chief Executive Officer, commented, This quarter marks our third consecutive quarter of year-over-year revenue growth, and our fourth consecutive quarter of increasingly profitable operations. The fundamental driver for revenue growth and increasing profitability continues to be our wireless datacom business segment. We experienced continued momentum within the mobile resource management (MRM) group where our products are gaining share in a rapidly growing market. In addition we saw significant contribution from our ongoing Positive Train Control project where we started delivering initial pre-production radios.
Mr. Burdiek continued, In our satellite business, even though we had somewhat lower revenue in the third quarter compared to the second quarter, we did see sequential quarter improvement in satellite gross margins as a result of our recently instituted variable cost operating model. In addition, last week we began shipping a new home video and data networking product to our key satellite customer. We expect this new product as part of an expanded product portfolio will drive improved revenue and profit for the satellite business segment in our fiscal 2012 fourth quarter.
Fiscal 2012 Third Quarter
Results
Total revenue for the fiscal 2012
third quarter was $32.8 million compared with $29.6 million for the third
quarter of fiscal 2011. The year-over-year increase in consolidated revenue was
primarily due to higher sales in the Companys wireless datacom business
segment. Wireless datacom revenue increased 22.3% to $25.9 million from $21.2
million in the same period last year, while satellite revenue declined to $6.8
million from $8.4 million in the same period last year.
Consolidated gross profit for the fiscal 2012 third quarter was $10.2 million or 31.0% of revenue, compared to gross profit of $7.7 million or 26.1% of revenue for the same period last year. The increases in gross profit and gross margin percentage in the latest quarter compared to the fiscal 2011 third quarter were due primarily to the increase in wireless datacom revenue, which has higher margins than the satellite business.
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CalAmp Reports Fiscal 2012 Third
Quarter Results
December 22, 2011
Page 2 of 7
Results of operations for the fiscal 2012 third quarter as determined in accordance with U.S. generally accepted accounting principles ("GAAP") was net income of $1.7 million, or $0.06 per diluted share, compared to a net loss of $0.2 million, or $0.01 loss per diluted share, in the third quarter of last year.
The Adjusted Basis (non-GAAP) net income for the fiscal 2012 third quarter was $2.6 million, or $0.09 per diluted share, compared to Adjusted Basis net income of $0.7 million, or $0.02 per diluted share for the same period last year. The Adjusted Basis net income excludes the impact of amortization of intangible assets and stock-based compensation expense and includes an income tax provision or benefit that reflects income taxes paid/payable (or received/receivable) based on the non-GAAP pretax income (loss) for the period. A reconciliation of the GAAP basis pretax income (loss) to the Adjusted Basis net income (loss) is provided in the table at the end of this press release.
Liquidity
At November 30, 2011, the Company had total cash of $4.4
million and total debt of $6.5 million consisting of $3.5 million drawn under
the bank revolver and $3.0 million outstanding under a bank term loan. Net cash
provided by operating activities in the three- and nine-month periods ended
November 30, 2011 was $2.1 million and $7.5 million, respectively, and the
unused borrowing capacity on the bank revolver at that date was $5.5 million.
Business Outlook
Commenting on the Company's business outlook, Mr. Burdiek
said, Based on our most recent projections, we expect fiscal 2012 fourth
quarter consolidated revenues in the range of $34 to $38 million. We expect
satellite revenues to more than double on a year-over-year basis and wireless
datacom revenues to be marginally lower from the third quarter but up year over year. We anticipate fourth quarter GAAP Basis net income per share in the range
of $0.03 to $0.07 per diluted share. The Adjusted Basis (non-GAAP) net income
for the fiscal 2012 fourth quarter is expected to be in the range of $0.06 to
$0.10 per diluted share.
Mr. Burdiek concluded, We are quite pleased with our third quarter results. We believe our business model positions us for continued revenue growth with improving profitability going into next fiscal year. We have completed the process of streamlining the cost structure of our satellite business segment to generate free cash flow, and our wireless datacom business is well positioned in growing markets with products and technologies we believe can drive sustained long term growth in the markets we serve.
Conference Call and Webcast
A conference call and simultaneous
webcast to discuss fiscal 2012 third 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 # 34442006. An audio replay will be available through December 29, 2011,
855-859-2056 and entering the Conference ID # 34442006.
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. 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.
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CalAmp Reports Fiscal 2012 Third
Quarter Results
December 22, 2011
Page 3 of 7
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 Companys wireless and satellite 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 2011 as filed on April 28, 2011
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
(805)
419-8239
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CalAmp Reports Fiscal 2012 Third
Quarter Results
December 22, 2011
Page 4 of 7
CAL AMP CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in
thousands except per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||||||
November 30, | November 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues | $ | 32,752 | $ | 29,553 | $ | 101,107 | $ | 85,389 | ||||||||
Cost of revenues | 22,583 | 21,854 | 69,681 | 64,199 | ||||||||||||
Gross profit | 10,169 | 7,699 | 31,426 | 21,190 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 2,622 | 2,733 | 8,405 | 8,275 | ||||||||||||
Selling | 2,731 | 2,573 | 8,175 | 7,870 | ||||||||||||
General and administrative | 2,606 | 1,981 | 8,135 | 6,690 | ||||||||||||
Intangible asset amortization | 310 | 275 | 972 | 857 | ||||||||||||
8,269 | 7,562 | 25,687 | 23,692 | |||||||||||||
Operating income (loss) | 1,900 | 137 | 5,739 | (2,502 | ) | |||||||||||
Non-operating expense, net | (172 | ) | (316 | ) | (2,120 | ) | (1,084 | ) | ||||||||
Income (loss) before income taxes | 1,728 | (179 | ) | 3,619 | (3,586 | ) | ||||||||||
Income tax provision | (28 | ) | - | (43 | ) | - | ||||||||||
Net income (loss) | $ | 1,700 | $ | (179 | ) | $ | 3,576 | $ | (3,586 | ) | ||||||
Earnings (loss) per share - basic and diluted | $ | 0.06 | $ | (0.01 | ) | $ | 0.13 | $ | (0.13 | ) | ||||||
Shares used in computing earnings (loss) per share: | ||||||||||||||||
Basic | 27,869 | 27,321 | 27,583 | 27,133 | ||||||||||||
Diluted | 28,800 | 27,321 | 28,445 | 27,133 |
BUSINESS SEGMENT
INFORMATION
(Unaudited, in thousands)
Three Months Ended | Nine Months Ended | |||||||||||||||
November 30, | November 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues | ||||||||||||||||
Wireless DataCom | $ | 25,905 | $ | 21,180 | $ | 73,465 | $ | 55,073 | ||||||||
Satellite | 6,847 | 8,373 | 27,642 | 30,316 | ||||||||||||
Total revenues | $ | 32,752 | $ | 29,553 | $ | 101,107 | $ | 85,389 | ||||||||
Gross profit | ||||||||||||||||
Wireless DataCom | $ | 9,503 | $ | 7,508 | $ | 29,487 | $ | 19,061 | ||||||||
Satellite | 666 | 191 | 1,939 | 2,129 | ||||||||||||
Total gross profit | $ | 10,169 | $ | 7,699 | $ | 31,426 | $ | 21,190 | ||||||||
Operating income (loss) | ||||||||||||||||
Wireless DataCom | $ | 2,999 | $ | 1,700 | $ | 9,528 | $ | 1,564 | ||||||||
Satellite | (156 | ) | (821 | ) | (891 | ) | (1,388 | ) | ||||||||
Corporate expenses | (943 | ) | (742 | ) | (2,898 | ) | (2,678 | ) | ||||||||
Total operating income (loss) | $ | 1,900 | $ | 137 | $ | 5,739 | $ | (2,502 | ) |
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CalAmp Reports Fiscal 2012 Third
Quarter Results
December 22, 2011
Page 5 of 7
CAL AMP CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands)
November 30, | February 28, | |||||||
2011 | 2011 | |||||||
Assets | (Unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 4,393 | $ | 4,241 | ||||
Accounts receivable, net | 15,755 | 16,814 | ||||||
Inventories | 12,409 | 9,890 | ||||||
Deferred income tax assets | 2,098 | 1,961 | ||||||
Prepaid expenses and other current assets | 3,881 | 5,197 | ||||||
Total current assets | 38,536 | 38,103 | ||||||
Property, equipment and improvements, net | 1,630 | 1,877 | ||||||
Deferred income tax assets, less current portion | 9,733 | 9,887 | ||||||
Intangible assets, net | 3,041 | 4,012 | ||||||
Other assets | 865 | 1,606 | ||||||
$ | 53,805 | $ | 55,485 | |||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Bank working capital line of credit | $ | 3,476 | $ | 7,489 | ||||
Current portion of long-term debt | 800 | - | ||||||
Accounts payable | 12,081 | 14,103 | ||||||
Accrued payroll and employee benefits | 3,569 | 3,341 | ||||||
Deferred revenue | 5,512 | 5,796 | ||||||
Other current liabilities | 2,575 | 2,140 | ||||||
Total current liabilities | 28,013 | 32,869 | ||||||
Long-term debt | 2,200 | 4,460 | ||||||
Other non-current liabilities | 911 | 554 | ||||||
Stockholders' equity: | ||||||||
Common stock | 287 | 281 | ||||||
Additional paid-in capital | 153,831 | 153,135 | ||||||
Accumulated deficit | (131,372 | ) | (134,948 | ) | ||||
Accumulated other comprehensive loss | (65 | ) | (866 | ) | ||||
Total stockholders' equity | 22,681 | 17,602 | ||||||
$ | 53,805 | $ | 55,485 |
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CalAmp Reports Fiscal 2012 Third
Quarter Results
December 22, 2011
Page 6 of 7
CAL AMP CORP.
CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited - In thousands)
Nine Months Ended | ||||||||
November 30, | ||||||||
2011 | 2010 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 3,576 | $ | (3,586 | ) | |||
Depreciation and amortization | 1,899 | 1,860 | ||||||
Stock-based compensation expense | 1,737 | 1,559 | ||||||
Non-cash interest expense | 733 | 402 | ||||||
Write-off of cumulative foreign currency translation account | 801 | - | ||||||
Deferred tax assets, net | - | 807 | ||||||
Changes in operating working capital | (1,248 | ) | (245 | ) | ||||
Other | 1 | 9 | ||||||
Net cash provided by operating activities | 7,499 | 806 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (682 | ) | (884 | ) | ||||
Collections on note receivable | 431 | 348 | ||||||
Net cash used in investing activities | (251 | ) | (536 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds (repayments) of bank line of credit | (4,013 | ) | 1,398 | |||||
Proceeds from bank term loan | 3,000 | - | ||||||
Repayment of subordinated notes payable | (5,000 | ) | - | |||||
Payment of debt issue costs | (65 | ) | - | |||||
Taxes paid related to net share settlement of vested equity awards | (1,032 | ) | (403 | ) | ||||
Proceeds from exercise of stock options | 14 | - | ||||||
Net cash provided by (used in) financing activities | (7,096 | ) | 995 | |||||
Net change in cash and cash equivalents | 152 | 1,265 | ||||||
Cash and cash equivalents at beginning of period | 4,241 | 2,986 | ||||||
Cash and cash equivalents at end of period | $ | 4,393 | $ | 4,251 |
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CalAmp Reports Fiscal 2012 Third
Quarter Results
December 22, 2011
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 (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 Pretax Income (Loss) to Adjusted Basis (non-GAAP) Net Income (Loss) is as follows (in thousands except per share amounts):
Three Months Ended | Nine Months Ended | |||||||||||||||
November 30, | November 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP basis pretax income (loss) | $ | 1,728 | $ | (179 | ) | $ | 3,619 | $ | (3,586 | ) | ||||||
Amortization of intangible assets | 310 | 275 | 972 | 857 | ||||||||||||
Stock-based compensation expense | 638 | 555 | 1,737 | 1,559 | ||||||||||||
Write-off of cumulative foreign currency translation account | - | - | 801 | - | ||||||||||||
Pretax income (loss) (non-GAAP basis) | 2,676 | 651 | 7,129 | (1,170 | ) | |||||||||||
Income tax provision (non-GAAP basis) (a) | (28 | ) | - | (43 | ) | - | ||||||||||
Adjusted Basis net income (loss) | $ | 2,648 | $ | 651 | $ | 7,086 | $ | (1,170 | ) | |||||||
Adjusted Basis net income (loss) per diluted share | $ | 0.09 | $ | 0.02 | $ | 0.25 | $ | (0.04 | ) | |||||||
Weighted average common shares outstanding | ||||||||||||||||
on diluted basis | 28,800 | 27,321 | 28,445 | 27,133 |
(a) | The non-GAAP income tax provision reflects the income taxes paid/payable (or received/receivable) based on the non-GAAP pretax income (loss) for the period. The Company has net operating loss carryforwards to offset the pre-tax book income for the three- and nine-month periods ended November 30, 2011. |
# # #
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