Previous Statements by CAMP
» CalAmp Corp. F4Q10 (Qtr End 05/31/10) Earnings Call Transcript
» CalAmp Corp. F3Q10 (Qtr End 11/30/09) Earnings Call Transcript
» CalAmp Corp. F2Q10 (Qtr End 08/31/09) Earnings Call Transcript
With that it’s now my pleasure to turn the call over to CalAmp’s Chief Executive Officer Rick Gold. Rick?Rick Gold Thank you, Lasse. Good afternoon and thank you for joining us today to discuss CalAmp’s fiscal 2011 first quarter results. I will begin with comments on our financial and operational highlights and I will then provide an update on several of our key business activities. Rick Vitelle will then discuss additional details about our financial results, balance sheet, working capital management, and cash flow. And I will wrap up with our business outlook and guidance along with some concluding remarks. This will be followed by a question-and-answer session. First quarter operating results were in line with expectations. Revenues of $26.3 million increased 15% on a year-over-year basis and were driven by improving fundamentals in both our satellite and wireless datacom businesses. During the quarter, we experienced continued strong demand for our mobile resource management, or MRM, products as well as contribution from key wireless network projects introduced earlier this year – or announced earlier this year. In our satellite business, as anticipated, first quarter revenues 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 markets will help drive growth and improve profitability during the remainder of fiscal 2011. At the bottom line, results of operations included a GAAP basis net loss of $2.5 million, or $0.09 per diluted share. Excluding the impact of amortization of intangible assets and stock-based compensation expense, our adjusted basis or non-GAAP net loss was $1.1 million, or $0.04 per diluted share. I refer you to our first quarter earnings press release issued earlier today for a detailed reconciliation of the GAAP basis pre-tax loss to the adjusted basis, or non-GAAP net loss.
Moving on to our cash flow and balance sheet, during the first quarter of fiscal 2011, cash used by operating activities was $0.5 million and our net debt position stood at $8.1 million.I will next provide updates for our satellite and wireless datacom businesses. Looking at our satellite business, revenues of $10.5 million were up 14% compared to the same period last year. The gross margin percentage for satellite products remained below historical levels due in large part to the lower revenue run rate resulting in lower absorption of manufacturing overhead cost. We are continuing to work closely with our Direct Broadcast Satellite, or DBS, customers to develop next generation products that we expect will increase our addressable portion of the market and improve gross margins over the remainder of fiscal 2011. We are currently developing four next generation satellite products, two for each of our DBS customers. We are well into the production qualification process for the first of these products with revenue shipments expected to begin late in the second fiscal quarter or early in the third fiscal quarter of this year. We expect two other products to enter the customer qualification process this quarter with one more in Q3. Now, let’s move on to an update of our wireless datacom business, which provides communication systems, products, and services for applications in the utility, public safety, industrial, and mobile resource management markets. During the first quarter, the wireless datacom business generated revenues of $15.8 million, which was up slightly on a sequential quarter basis, and up 15% year-over-year. The year-over-year improvement was driven by our MRM business. Read the rest of this transcript for free on seekingalpha.com