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Although the Company believes the expectations reflected in such forward-looking statements are based on 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.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 second quarter results. I will begin with comments on our financial and operational highlights and I will then provide an update on our Satellite products business. Michael Burdiek will follow with an update on our Wireless DataCom business and Rick Vitelle will discuss additional details about our financial results, balance sheet, working capital management, and cash flow. 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. Looking at our results, we made significant progress in the second quarter with consolidated revenue increasing by 23% year-over-year 12% on a sequential quarter basis. We are continuing to experience strong growth in Wireless DataCom with mobile resource management, or MRM, product revenues at record levels in the quarter. In addition, recent new orders have pushed out wireless networks backlog to an all-time high at the end of the quarter. Our Satellite products business also posted improvements in the second quarter in revenue and operating profitability on both a sequential and a year-over-year basis. At the bottom line for the second quarter the GAAP basis net loss was $0.9 million, or $0.03 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 $153,000, or $0.01 per diluted share. I refer you to our second 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.
Looking at our cash flow and balance sheet, during the second quarter of fiscal 2011, cash provided by operating activities was $0.4 million and our net debt position was $8.1 million, unchanged from the first quarter.Moving on to our Satellite business, revenues of $11.4 million were up 15% compared to the same period last year, and up 8% compared to the first quarter. The gross margin percentage for Satellite products improved to 10% in the second quarter, but remained below longer term historical levels, due in large part to the lower revenue run rate resulting in lower absorption of manufacturing overhead costs. As we’ve discussed in previous calls, over the past year we worked closely with our Direct Broadcast Satellite, or DBS, customers to develop several next generation products. These next generation products are important for our Satellite business because we believe they will increase our addressable portion of the market and also improve our gross margins. During this past quarter, we made progress in the ongoing qualification process for these products and have begun low volume manufacturing of one product. However, the introduction of these new products is not happening as rapidly as we had expected with delays partly due to technical issues, but primarily due to changes in the timing of our customers’ plans. As a result, we do not expect our Satellite segment revenue to show the level of growth we had previously expected in the third and fourth quarters. We are continuing to work closely with our customers and to support them as they launch these new products. Read the rest of this transcript for free on seekingalpha.com