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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 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 third quarter results. I’ll begin with comments on our financial and operational highlights and I’ll 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’ll wrap up with our business outlook and guidance along with our some concluding remarks this will be followed by a question-and-answer session. Looking at our third quarter results, strong growth in our Wireless DataCom business drove CalAmp to achieve a quarterly operating profit on a consolidated basis for the first time in nearly four years. Wireless DataCom segment revenue grew by 17% on a sequential quarter basis and 52% year-over-year while backlog continues to expand. Within the Wireless DataCom segment, we continue to experience strong demand for our mobile resource management or MRM products from a broad base of customers. Demand for our wireless networks products is also growing driven by projects in the public safety, rail transportation and utility sectors that made significant revenue contributions in the third quarter. At the bottom line, the third quarter GAAP basis net loss was $179,000 or $0.01 per diluted share. Excluding the impact of amortization of intangible assets and stock-based compensation expense, our adjusted basis for non-GAAP net income was $365,000 or $0.01 per diluted share. I refer you to our third quarter earnings press release issued today for a detailed reconciliation of the GAAP basis pretax loss to the non-GAAP basis net income.
Looking at our cash flow and balance sheet, during the third quarter of fiscal 2011, cash provided by operating activities was $768,000. Our net debt at the end of the third quarter was $7.4 million, a reduction of $700,000 from the net debt of $8.1 million at the end of the second quarter.Now let’s take a closer look at our satellite business. As we have discussed in previous calls, over the past year we’ve been working closely with our Direct Broadcast Satellite customers to develop several next-generation products that we believe will increase our served market and improve our gross margins. Unfortunately, the introduction of these new products is not occurring as rapidly as we had expected primarily due to evolving customer requirements. In addition, demand for the legacy satellite products that we currently supply has been depressed. As a result, we saw lower third quarter satellite revenues of $8.4 million, down from $11.4 million in the second quarter and $16.8 million in the third quarter of last year. We continue to work with our satellite customers to adapt these new products that are in development to their evolving requirements. Our visibility for the timing of significant revenue from these new products is still limited. That said, we do expect demand for both existing and new satellite products to increase in the first half of fiscal 2012. In the meantime, we are taking actions that we believe will enhance operational flexibility and improve profitability of the satellite business. We have begun transitioning the satellite business to a more variable cost model with more functions to be performed by our manufacturing partners in Asia. This should allow us to better respond to erupt shifts in demand while also reducing our fixed overhead costs and lowering our breakeven point. Read the rest of this transcript for free on seekingalpha.com