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 any forward-looking statement, 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 President and CEO Michael Burdiek. Please go ahead sir.Michael Burdiek Thank you Joe. Good afternoon and thank you for joining us today to discuss CalAmp’s fiscal 2012 second quarter results. I will begin today’s call with a review of our financial and operational highlights for this past quarter and Rick Vitelle will provide additional details about our financial results. I will then discuss our business outlook and guidance for the next quarter and current fiscal year. We will then open the call to Q&A. Our fiscal second quarter results showed strong and consistent growth in both revenue and net income, as well as solid improvements in our balance sheet. We believe that the positive financial results of the last few quarters represent an inflection point for the company and that we have formed the foundation for CalAmp’s long term profitable growth. Consolidated revenues for our most recent quarter were $33.8 million, up 15% year over year, with wireless datacom revenue increasing by over 40%. GAAP net income of $0.05 and non-GAAP net income of $0.11 were at the high end of our guidance, extending CalAmp’s track record of profitable quarterly results. As I said on our first quarter call, we have focused our resources on products and markets that offer the greatest revenue and profit potential and we are beginning to see the fruits of those efforts. Strong operating cash flow of $3.1 million for the second quarter improved our balance sheet and enabled us to retire our $5 million 12% subordinated notes.
This is expected to result in savings of approximately $500,000 in annual cash interest expense. Our net debt balance at the end of the second quarter was $4 million, and based on our current outlook we expect to be at, or near, a net cash position by the end of the current fiscal year.Our wireless datacom operations had revenue in the second quarter of $25.5 million, representing significant growth year over year. These results include $3 million from the sale of two patents. The wireless datacom revenue breakdown in the latest quarter was approximately 70% for mobile resource management, or MRM, applications, and 30% for wireless networks applications. Without the revenue contribution of the patent sale, the split would have been closer to 65% for MRM and 35% for wireless networks. Our MRM business posted record revenues in the second quarter and we see continued momentum in our pipeline of opportunities. This momentum is the result of consistently strong demand for our MRM products and services, with applications in fleet management, vehicle finance, asset tracking, stole vehicle recovery, and remote car start. In addition, we believe we are competitively positioned for several emerging MRM applications such as pay-as-you-drive insurance. Just this week, we announced the launch of our LMU-3000, a new location monitoring and messaging device designed specifically for commercial and consumer auto insurance applications, a market that represent more than 250 million registered vehicles in the U.S. alone. We are working with several top telematics service providers and Tier 1 cellular carriers in North America and Europe to integrate the LMU-3000 with their individual service offerings and we have several field trials underway with leading insurance companies. In the second quarter the subscriber base of our MRM telemetrics service business, which provides bundled prepaid MRM solutions for collateralized vehicle recovery and remote car start applications, continued to expand, adding subscribers in what has been in the past a seasonably weak quarter. There were approximately 220,000 active subscribers on our system at the end of the second quarter. Read the rest of this transcript for free on seekingalpha.com