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Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we 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 fourth quarter and full year 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 some concluding remarks. This will be followed by a question-and-answer session. Looking at CalAmp’s operational highlights, we returned to profitability on a GAAP basis in the fourth quarter for the first time in four years. Our Wireless DataCom business continued its strong momentum with quarterly revenue increasing 48% year-over-year. This growth was driven by both our Mobile Resource Management and Wireless Networks products. As Michael will discuss in more detail in a few minutes, we’re seeing strong demand for our Mobile Resource Management or MRM products from local fleet management, vehicle finance, asset tracking, and stolen vehicle recovery vertical. Our Wireless Networks products also showed strong growth with contributions from projects in the public safety, railroad, and energy sectors. We’re making significant investments in R&D to expand and strengthen our footprint in Wireless Data and were encouraged by the traction over new products are getting in the market.
At the bottom line, we generated steady improvement over the course of fiscal 2011 and returned CalAmp to profitability. GAAP basis net income in the fourth quarter was $303,000 or $0.01 per diluted share. Excluding the impact of amortization of intangible assets and stock-based compensation expense, our adjusted basis or non-GAAP net income was $668,000 or $0.02 per diluted share. I refer you to our fourth quarter earnings press release issued today for a detailed reconciliation of the GAAP and non-GAAP basis financial results.Looking at our cash flow and balance sheet, net cash provided by operating activities during the three and 12 month periods ended February 28th 2011was $51,000 and $857,000 respectively. Our net debt at the end of the fourth quarter was $7.7 million, up slightly compared to the net debt of $7.4 million at the end of the third quarter. Now let’s take a closer look at the Satellite business. Fourth quarter revenue was softer than expected. During the quarter, we began the initial production ramp of a new product as well as a production ramp of one older product that is experiencing renewed demand. However, these ramps do not begin until late in the quarter. Consequently, we’ve recorded fourth quarter Satellite revenue of only $5.6 million, which was sequentially lower by $2.8 million and was down substantially from $18.7 million in the fourth quarter of fiscal 2010. We expect that volume shipments of these two products should drive significantly higher Satellite revenue during our fiscal 2012 first quarter. In addition, we’re on track with the plans we discussed last quarter to enhance the operational flexibility and cost structure of our Satellite business. We’re transitioning the Satellite business to a more variable cost model with more functions performed by our manufacturing partners in Asia. This will allow us to reduce our fixed overhead costs and lower our breakeven point while also improving our ability to respond to rapid shifts in demand. We expect to complete this transition during the second quarter of fiscal 2012. Read the rest of this transcript for free on seekingalpha.com