CalAmp (CAMP) 10-Q 27 Jun 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 31, 2017	Jun. 23, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	CalAmp Corp.
Entity Central Index Key	730,255
Entity Filer Category	Accelerated Filer
Trading Symbol	CAMP
Current Fiscal Year End Date	--02-28
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 31, 2017
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		35,396,641

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	May 31, 2017	Feb. 28, 2017
Current assets:
Cash and cash equivalents	$ 108,690	$ 93,706
Short-term marketable securities	546	6,722
Accounts receivable, less allowance for doubtful accounts of $701 and $962 at May 31, 2017 and February 28, 2017, respectively	65,501	67,403
Inventories	32,803	29,279
Prepaid expenses and other current assets	9,391	9,595
Total current assets	216,931	206,705
Property, equipment and improvements, net of accumulated depreciation and amortization	21,198	21,162
Deferred income tax assets	40,637	27,504
Goodwill	72,980	72,980
Other intangible assets, net	63,434	67,223
Other assets	11,954	12,565
Total assets	427,134	408,139
Current liabilities:
Accounts payable	33,586	30,266
Accrued payroll and employee benefits	5,710	7,955
Deferred revenue	15,928	14,662
Other current liabilities	29,537	24,958
Total current liabilities	84,761	77,841
1.625% convertible senior unsecured notes	148,643	146,827
Other non-current liabilities	19,582	20,229
Total liabilities	252,986	244,897
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 3,000 shares authorized; no shares issued or outstanding
Common stock, $.01 par value; 80,000 shares authorized; 35379 and 35,330 shares issued and outstanding at May 31, 2017 and February 28, 2017, respectively	354	353
Additional paid-in capital	212,943	211,187
Accumulated deficit	(38,730)	(47,757)
Accumulated other comprehensive loss	(419)	(541)
Total stockholders' equity	174,148	163,242
Total Liabilities and Stockholders' Equity	$ 427,134	$ 408,139

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	May 31, 2017	Feb. 28, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts (in dollars)	$ 701	$ 962
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000	3,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	80,000	80,000
Common stock, shares issued	35,379	35,330
Common stock, shares outstanding	35,379	35,330

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	May 31, 2017	May 31, 2016
Revenues:
Products	$ 71,120	$ 76,421
Application subscriptions and other services	16,961	14,726
Total revenues	88,081	91,147
Cost of revenues:
Products	42,425	48,889
Application subscriptions and other services	8,213	7,424
Total cost of revenues	50,638	56,313
Gross profit	37,443	34,834
Operating expenses:
Research and development	5,832	6,091
Selling	12,671	11,308
General and administrative	16,410	15,983
Intangible asset amortization	3,858	3,490
Total operating expenses	38,771	36,872
Operating loss	(1,328)	(2,038)
Non-operating income (expense):
Investment income	333	453
Interest expense	(2,518)	(2,424)
Other income (expense)	116	543
Total non-operating income (expense)	(2,069)	(1,428)
Loss before income taxes and equity in net loss of affiliate	(3,397)	(3,466)
Income tax benefit	1,080	1,119
Loss before equity in net loss of affiliate	(2,317)	(2,347)
Equity in net loss of affiliate	(337)	(312)
Net loss	$ (2,654)	$ (2,659)
Loss per share:
Basic	$ (0.08)	$ (0.07)
Diluted	$ (0.08)	$ (0.07)
Shares used in computing loss per share:
Basic	35,068	36,699
Diluted	35,068	36,699
Comprehensive loss:
Net loss	$ (2,654)	$ (2,659)
Other comprehensive income (loss):
Foreign currency translation adjustments	81	(515)
Unrealized gain on equity investment in French licensee, net of tax	41	8
Total comprehensive loss	$ (2,532)	$ (3,166)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	May 31, 2017	May 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,654)	$ (2,659)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation expense	2,025	1,821
Intangible assets amortization expense	3,858	3,490
Stock-based compensation expense	1,817	1,984
Tax benefits on the vesting of restricted stock-based awards and exercise of stock options	157
Amortization of convertible debt issue costs and discount	1,816	1,699
Deferred tax assets, net	(1,609)	(1,494)
Equity in net loss of affiliate	337	312
Impairment of internal use software		1,364
Changes in operating assets and liabilities:
Accounts receivable	2,070	4,779
Inventories	(3,348)	2,442
Prepaid expenses and other assets	1,069	(259)
Accounts payable	3,262	(1,032)
Accrued liabilities	1,344	(10,724)
Deferred revenue	1,083	6,599
Other	(319)
NET CASH PROVIDED BY OPERATING ACTIVITIES	10,908	8,322
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities	6,722	38,578
Purchases of marketable securities	(546)
Capital expenditures	(2,079)	(1,620)
Acquisition of LoJack, net of cash acquired		(116,982)
Equity investment in and advances to affiliate		(737)
Other	(69)	(20)
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES	4,028	(80,781)
CASH FLOWS FROM FINANCING ACTIVITIES:
Taxes paid related to net share settlement of vested equity awards	(156)	(160)
Proceeds from exercise of stock options	96	721
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES	(60)	561
EFFECT OF EXCHANGE RATE CHANGES ON CASH	108
Net change in cash and cash equivalents	14,984	(71,898)
Cash and cash equivalents at beginning of period	93,706	139,388
Cash and cash equivalents at end of period	$ 108,690	$ 67,490

DESCRIPTION OF BUSINESS AND SUM

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	May 31, 2017
Accounting Policies [Abstract]
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business CalAmp Corp. (“CalAmp” or the “Company”) is a leading provider Internet of Things (“IoT”) enablement solutions for a broad array of mobile and fixed applications serving multiple vertical markets worldwide. In March 2016, the Company acquired LoJack Corporation (“LoJack”), which brought the Company a vast U.S. auto dealer channel as well as an established international licensee network. Certain notes and other information included in the audited financial statements in the Company's Annual Report on Form 10-K for the year ended February 28, 2017 are condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the Company’s 2017 Annual Report on Form 10-K as filed with the Securities and Exchange Commission on May 15, 2017. In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly the Company’s financial position at May 31, 2017 and its results of operations for the three months ended May 31, 2017 and 2016. The results of operations for such periods are not necessarily indicative of results to be expected for the full fiscal year. All significant intercompany transactions and accounts have been eliminated in consolidation. Revenue Recognition The Company recognizes revenue from product sales when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection of the sales price is reasonably assured. For product sales that are not bundled with an application service, these criteria are generally met at the time product is shipped, except for shipments made on the basis of “FOB Destination” terms, in which case title transfers to the customer and the revenue is recorded by the Company when the shipment reaches the customer. Customers generally do not have a right of return except for defective products returned during the warranty period. The Company records estimated commitments related to customer incentive programs as reductions of revenues. In addition to product sales, the Company provides Software as a Service (“SaaS”) and Platform-as-a-Service (“PaaS”) subscriptions for its fleet management, vehicle finance and certain other applications through which customers are provided with the ability to wirelessly communicate with monitoring devices installed in vehicles and other mobile or remote assets via software applications hosted by the Company. Generally, the Company defers the recognition of revenue for the products that are sold with application subscriptions because the products are not functional without the application services. In such circumstances, the associated product costs are recorded as deferred costs in the balance sheet. The deferred product revenue and deferred product cost amounts are amortized to application subscriptions revenue and cost of revenue, respectively, on a straight-line basis over minimum contractual subscription periods of one to five years. Revenues from renewals of data communication services after the initial contract term are recognized as application subscriptions revenue over the period the services are provided. When customers prepay application subscription renewals, such amounts are recorded as deferred revenues and are recognized ratably over the renewal term. In the United States, the Company generally recognizes revenue on LoJack product sales that have no associated continuing service obligations on the part of the Company upon installation of the products. Revenue relating to sales made to the Company’s third party installation partners, who purchase the Company’s products and perform installations themselves, is recognized upon shipment, which is prior to the installation of the related products in the end user’s vehicle. Revenue from the sales of products to international licensees is recognized when shipment of the products to the licensee has occurred and collection is reasonably assured. In the United States, sales of a combined LoJack Stolen Vehicle Recovery (“LoJack SVR”) unit and Early Warning unit constitute a multiple element arrangement under ASC 605 Subtopic 25. The combined LoJack SVR and Early Warning product includes LoJack SVR hardware, Early Warning hardware, installation service, and an Early Warning ongoing automated notification service, which is provided over the period of vehicle ownership. The delivered elements of a multiple element arrangement (LoJack SVR hardware and Early Warning hardware and installation service) must meet certain criteria to qualify each component of the combined LoJack SVR and Early Warning product for separate accounting. The Company performed an analysis and determined that each of the delivered elements in the arrangement qualify for separate accounting based on the applicable guidance. The LoJack SVR and Early Warning hardware and installation service components of each sale are considered to have met delivery requirements for revenue recognition upon installation of the LoJack SVR and Early Warning product; however, revenue from the ongoing notification service, as well as the tracking and recovery service in Canada, are deferred and recognized over an estimated life of new vehicle ownership. In Italy, the purchase of an initial vehicle monitoring service contract is a requirement at the time the consumer purchases a LoJack SVR product. Revenue for these contracts is recognized over the life of the contract. These contracts, which are sold separately from the LoJack SVR hardware, are offered for terms ranging from 8 to 96 months and are generally payable in full upon activation of the related unit or renewal of a previous contract. Customers are also offered a month-to-month option for service contracts. The Company offers several types of extended warranty contracts in the United States related to its LoJack products. For those contracts for which an independent third party insurer, and not the Company, is the primary obligor, the Company recognizes revenue at the time of the sale of the extended warranty. For those warranty contracts for which the Company is the primary obligor, revenue is deferred and is recognized over five years, which is the estimated life of new vehicle ownership. For the majority of extended warranty contracts originated after 2011, the Company sells the contract to an independent third party insurer and accordingly recognizes revenue at the time of sale. For those warranties for which an independent third party insurer, and not the Company, is the primary obligor, the Company records revenue on a gross basis, with related costs being included in cost of goods sold. The Company considered the factors associated with gross revenue as compared to net revenue recording and determined that despite not being the primary obligor for these arrangements, gross revenue reporting was deemed appropriate based on the relevant accounting guidance. Specifically, the Company has latitude in establishing price; it can change the product offering; it has discretion in supplier selection; it is involved in the determination of product or service specifications; it bears the credit risk; and the amount that it earns on each contract is not fixed. Cash and Cash Equivalents The Company considers all highly liquid investments with remaining maturities at date of purchase of three months or less to be cash equivalents. Fair Value Measurements The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly manner in an arms-length transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has elected the fair value option for its investment in marketable securities on a contract-by-contract basis at the time each contract is initially recognized in the financial statements or upon an event that gives rise to a new basis of accounting for the items. Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). This update was intended to simplify the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted this standard during the quarter ended May 31, 2017. Accordingly, effective March 1, 2017, the Company recorded a cumulative adjustment benefit of $11.7 million for the excess tax benefit from the exercise of stock options and vesting of restricted stock awards and restricted stock units that occurred in prior fiscal years as an increase in deferred income tax assets and a reduction of the accumulated deficit. The excess tax benefits recognized on stock-based compensation expense are classified as an operating activity in the Company's consolidated statements of cash flows. Finally, the Company elected to account for forfeitures as they occur, rather than estimating expected forfeitures over the course of a vesting period. Recently Issued Accounting Standards In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation – Stock Compensation: Scope of Modification Accounting (“ASU 2017-09”). The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The adoption of ASU 2017-09, which will become effective for annual periods beginning after December 15, 2017, is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The new guidance eliminates Step 2 from the goodwill impairment test and instead requires that an entity measure the impairment of goodwill assigned to a reporting unit if the carrying value of assets and liabilities assigned to the reporting unit, including goodwill, exceed the reporting unit's fair value. The new guidance must be adopted for annual and interim goodwill tests in fiscal years beginning after December 15, 2019. After the adoption of this standard, which will be applied prospectively, the Company will follow a one-step model for goodwill impairment. The Company does not anticipate a significant impact on its consolidated financial statements upon adoption. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses. This update amends the FASB’s guidance on the impairment of financial instruments. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. This update is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. The Company does not anticipate a significant impact on its consolidated financial statements upon adoption. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with the classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements at the time of adoption, with certain practical expedients available. Early adoption is permitted. The Company has not completed the assessment of the impact on its consolidated financial statements, but expects to record a ROU asset and lease liability. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This standard revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for a new practicality exception. ASU 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The two permitted transition methods under the new standard are the full retrospective method, in which the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which the cumulative effect of applying the standard would be recognized at the date of initial application. In August 2015, the FASB approved the deferral of the new standard's effective date by one year. The new standard is effective for annual reporting periods beginning after December 15, 2017, and accordingly the Company is required to adopt this standard effective March 1, 2018, the beginning of its fiscal 2019. In addition, the FASB issued ASU 2016-08, ASU 2016-10 and ASU 2016-12 in March 2016, April 2016 and May 2016, respectively, to provide interpretive clarifications on the new revenue recognition accounting standard. The Company is currently developing an implementation roadmap and action plan for the adoption of this standard. 8

CASH, CASH EQUIVALENTS AND INVE

CASH, CASH EQUIVALENTS AND INVESTMENTS	3 Months Ended
	May 31, 2017
Cash and Cash Equivalents [Abstract]
CASH, CASH EQUIVALENTS AND INVESTMENTS	NOTE 2 – CASH, CASH EQUIVALENTS AND INVESTMENTS The following tables summarize the Company’s financial instrument assets as of May 31, 2017 and February 28, 2017 using the hierarchy described in Note 1 under the heading “Fair Value Measurements” (in thousands): As of May 31, 2017 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 41,914 $ - $ 41,914 $ 41,914 $ - $ - Level 1: Money market funds 266 - 266 266 - - Mutual funds (1) 4,689 413 5,102 - - 5,102 Equity investment in French licensee (2) 296 15 311 - - 311 Level 2: Repurchase agreements 43,500 - 43,500 43,500 - - Corporate bonds 23,559 (3 ) 23,556 23,010 546 - Total $ 114,224 $ 425 $ 114,649 $ 108,690 $ 546 $ 5,413 As of February 28, 2017 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 39,322 $ - $ 39,322 $ 39,322 $ - $ - Level 1: Money market funds 3,406 - 3,406 3,406 - - Mutual funds (1) 5,429 372 5,801 - - 5,801 Equity investment in French licensee (2) 296 (54 ) 242 - - 242 Level 2: Repurchase agreements 24,000 - 24,000 24,000 - - Corporate bonds 33,708 (8 ) 33,700 26,978 6,722 - Total $ 106,161 $ 310 $ 106,471 $ 93,706 $ 6,722 $ 6,043 (1) The Company has a non-qualified deferred compensation plan in which certain members of management and all non-employee directors are eligible to participate. The Company informally funds its obligations under the deferred compensation plan by purchasing shares in various equity, bond and money market mutual funds that are held in a “Rabbi Trust” and are restricted for payment of obligations to plan participants. The deferred compensation plan liability is included in Other Non-current Liabilities in the accompanying consolidated balance sheets. (2) The equity investment in a French licensee, in the form of publicly-traded common stock, is accounted for as an available-for-sale security and is valued at the quoted closing price on its market exchange. The related unrealized gains or losses are included in Accumulated Other Comprehensive Loss in the Stockholders’ Equity section of the consolidated balance sheets.

INVENTORIES

INVENTORIES	3 Months Ended
	May 31, 2017
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 3 – INVENTORIES Inventories consist of the following (in thousands): May 31, February 28, 2017 2017 Raw materials $ 17,566 $ 15,822 Work in process 567 294 Finished goods 14,670 13,163 $ 32,803 $ 29,279

OTHER INTANGIBLE ASSETS

OTHER INTANGIBLE ASSETS	3 Months Ended
	May 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
OTHER INTANGIBLE ASSETS	NOTE 4 – OTHER INTANGIBLE ASSETS Other intangible assets are comprised as follows (in thousands): Gross Accumulated Amortization Net Amort- ization Feb. 28, Addi- May 31, Feb. 28, May 31, May 31, Feb. 28, Period 2017 tions 2017 2017 Expense 2017 2017 2017 Supply contract 5 years $ 2,220 $ - $ 2,220 $ 2,112 $ 108 $ 2,220 $ - $ 108 Developed technology 2-7 years 22,280 - 22,280 10,323 990 11,313 10,967 11,957 Tradenames 7-10 years 37,643 27 37,670 5,226 963 6,189 31,481 32,417 Customer lists 4-7 years 22,950 - 22,950 15,018 1,176 16,194 6,756 7,932 Dealer relationships 7 years 16,850 - 16,850 2,308 603 2,911 13,939 14,542 Covenants not to compete 5 years 170 - 170 162 8 170 - 8 Patents 5 years 347 42 389 88 10 98 291 259 $ 102,460 $ 69 $ 102,529 $ 35,237 $ 3,858 $ 39,095 $ 63,434 $ 67,223 Estimated future amortization expense for the fiscal years ending February 28 is as follows (in thousands): Fiscal Year 2018 (remainder) $ 11,153 2019 11,676 2020 9,669 2021 7,846 2022 6,209 Thereafter 16,881 $ 63,434

OTHER ASSETS

OTHER ASSETS	3 Months Ended
	May 31, 2017
Other Assets, Noncurrent Disclosure [Abstract]
OTHER ASSETS	NOTE 5 – OTHER ASSETS Other assets consist of the following (in thousands): May 31, February 28, 2017 2017 Deferred compensation plan assets $ 5,102 $ 5,801 Investment in international licensees 2,351 2,282 Equity investment in and loans to UK affiliate 2,201 2,402 Other 2,300 2,080 $ 11,954 $ 12,565 The Company has a non-qualified deferred compensation plan in which certain members of management and all non-employee directors are eligible to participate. Participants may defer a portion of their compensation until retirement or a date specified by the participant in accordance with the plan. The Company informally funds the deferred compensation plan obligations by making cash deposits to a Rabbi Trust that are invested in various equity, bond and money market mutual funds in generally the same proportion as investment elections made by the participants for their compensation deferrals. The deferred compensation plan liability is included in Other Non-current Liabilities in the accompanying consolidated balance sheets. The investment in international licensees of $2,351,000 as of May 31, 2017 consists of a 12.5% equity interest in LoJack’s Mexican licensee of $1,700,000, a 17.5% equity interest in LoJack’s Benelux licensee of $340,000, and a 5.5% interest in LoJack’s French licensee of $311,000. The investments in the Mexican and Benelux licensees, over which the Company does not exercise significant influence, are accounted for using the cost method of accounting and are carried at cost, which represents their fair value as measured on the date of the Company’s acquisition of LoJack. The investment in LoJack’s French licensee, in the form of a marketable equity security, is accounted for as an available-for-sale security and is valued at the quoted closing price on its market exchange as of the reporting date. In September 2015, the Company invested £1,400,000 or approximately $2,156,000 for a 49% minority ownership interest in Smart Driver Club Limited (“Smart Driver Club”), a technology and insurance startup company located in the United Kingdom. This investment is accounted for under the equity method since the Company has significant influence over the investee. The Company’s equity in the net loss of Smart Driver Club amounted to $337,000 and $312,000 in the three months ended May 31, 2017 and 2016, respectively. The Company made loans aggregating $2,636,000 denominated in British pounds to Smart Driver Club bearing interest at an annual interest rate of 8%, with all principal of £2,000,000 and all unpaid interest due in 2020. The foreign currency translation adjustment for this equity investment amounted to $220,000 as of May 31, 2017 and is included as a component of Accumulated Other Comprehensive Loss in the consolidated balance sheet as of that date.

CONVERTIBLE SENIOR UNSECURED NO

CONVERTIBLE SENIOR UNSECURED NOTES	3 Months Ended
	May 31, 2017
Debt Disclosure [Abstract]
CONVERTIBLE SENIOR UNSECURED NOTES	NOTE 6 – CONVERTIBLE SENIOR UNSECURED NOTES As of May 31, 2017, the Company had $172.5 million aggregate principal amount of convertible senior unsecured notes (the “Notes”) outstanding. The Notes are senior unsecured obligations of the Company and bear interest at a rate of 1.625% per year payable in cash on May 15 and November 15 of each year. The Notes will mature on May 15, 2020 unless earlier converted or repurchased in accordance with their terms. The Company may not redeem the Notes prior to their stated maturity date. The Notes will be convertible into cash, shares of the Company’s common stock or a combination of cash and shares of common stock, at the Company’s election, based on an initial conversion rate of 36.2398 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of $27.594 per share of common stock, subject to customary adjustments. Holders may convert their Notes at their option at any time prior to November 15, 2019 upon the occurrence of certain events in the future, as defined in the indenture agreement dated May 6, 2015 (the “Indenture”). During the period from November 15, 2019 to May 13, 2020, holders may convert all or any portion of their Notes regardless of the foregoing conditions. The Company’s intent is to settle the principal amount of the Notes in cash upon conversion. If the conversion value exceeds the Note principal amount, the Company would deliver shares of its common stock in respect to the remainder of its conversion obligation in excess of the aggregate principal amount (the “conversion spread”). The shares associated with the conversion spread, if any, would be included in the denominator for the computation of diluted earnings per share, with such shares calculated using the average closing price of the Company’s common stock during each period. As of May 31, 2017, none of the conditions allowing holders of the Notes to convert have been met. If the Company undergoes a fundamental change (as defined in the Indenture), holders of the Notes may require the Company to repurchase their Notes at a repurchase price of 100% of the principal amount of the Notes, plus any accrued and unpaid interest, if any, to but not including the fundamental change repurchase date. In addition, following certain corporate events that occur prior to maturity, the Company will increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event in certain circumstances. In such event, an aggregate of up to 2.5 million additional shares of common stock could be issued upon conversions in connection with such corporate events, subject to adjustment in the same manner as the conversion rate. Balances attributable to the Notes consist of the following (in thousands): May 31, February 28, 2017 2017 Principal $ 172,500 $ 172,500 Less: Unamortized debt discount (21,160 ) (22,770 ) Unamortized debt issuance costs (2,697 ) (2,903 ) Net carrying amount of the Notes $ 148,643 $ 146,827 The Notes are carried at their principal amount, net of unamortized debt discount and issuance costs, and are not adjusted to fair value each period. The issuance date fair value of the liability component of the Notes in the amount of $138.9 million was determined using a discounted cash flow analysis, in which the projected interest and principal payments were discounted back to the issuance date of the Notes at a market interest rate for nonconvertible debt of 6.2%, which represents a Level 3 fair value measurement. The debt discount of $33.6 million is being amortized to interest expense using the effective interest method with an effective interest rate of 6.2% over the period from the issuance date through the contractual maturity date of the Notes of May 15, 2020. The approximate fair value of the Notes as of May 31, 2017 was $172.8 million, which was estimated on the basis of inputs that are observable in the market and which is considered a Level 2 measurement method in the fair value hierarchy.

INCOME TAXES

INCOME TAXES	3 Months Ended
	May 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7 – INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and for income tax purposes. The Company evaluates the realizability of its deferred income tax assets and a valuation allowance is provided, as necessary. In assessing this valuation allowance, the Company reviews historical and future expected operating results and other factors, including its recent cumulative earnings experience, expectations of future taxable income by taxing jurisdiction and the carryforward periods available for tax reporting purposes, to determine whether it is more likely than not that deferred tax assets are realizable. The Company files income tax returns in the U.S. federal jurisdiction, various U.S. states and Puerto Rico, Canada, Ireland, Italy, the United Kingdom, the Netherlands, Brazil and New Zealand. Certain income tax returns for fiscal years 2013 through 2016 remain open to examination by U.S. federal and state tax authorities. LoJack’s U.S. income tax returns for 2012 through 2015 remain open to examination by U.S. federal and state tax authorities. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods in which net operating losses or tax credits were generated and carried forward, and to make adjustments up to the net operating loss or tax credit carryforward amount. CalAmp’s Canadian subsidiaries’ income tax returns for fiscal years 2013 through 2016 remain open to examination by tax authorities in Canada. Most of the Company’s foreign subsidiaries’ tax returns for 2012 to present remain open for examination by the tax authorities in the countries in which they are filed, except in Italy and the Netherlands where the tax returns filed from 2011 to present remain open for examination.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	May 31, 2017
Loss per share:
EARNINGS PER SHARE	NOTE 8 – EARNINGS PER SHARE Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method. All outstanding options and restricted stock units at May 31, 2017 and 2016 were excluded from the computation of diluted earnings per share because the Company reported a net loss for all periods presented and the effect of inclusion would be antidilutive. As described in Note 6, the Company has the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the Notes. The Company’s intent is to settle the principal amount of the Notes in cash upon conversion. As a result, only the shares issuable for the conversion value, if any, in excess of the principal amounts of the Notes would be included in diluted earnings per share. From the time of the issuance of Notes, the average market price of the Company’s common stock has been less than the $27.594 initial conversion price of the Notes, and consequently no shares have been included in diluted earnings per share for the conversion value of the Notes.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	May 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	NOTE 9 – STOCK-BASED COMPENSATION Stock-based compensation expense is included in the following captions of the unaudited consolidated statements of comprehensive loss (in thousands): Three Months Ended May 31, 2017 2016 Cost of revenues $ 138 $ 64 Research and development 234 181 Selling 386 295 General and administrative 1,059 1,444 $ 1,817 $ 1,984 Changes in the Company’s outstanding stock options during the three months ended May 31, 2017 were as follows (options in thousands): Weighted Number of Average Options Exercise Outstanding at February 28, 2017 955 $ 8.60 Granted - - Exercised (30 ) 3.21 Forfeited or expired - - Outstanding at May 31, 2017 925 $ 8.78 Exercisable at May 31, 2017 594 $ 5.12 Changes in the Company’s outstanding restricted stock shares, performance stock units (“PSUs”) and restricted stock units (“RSUs”) during the three months ended May 31, 2017 were as follows (restricted shares, PSUs and RSUs in thousands): Number of Restricted Weighted Shares, Average PSUs and Grant Date RSUs Fair Value Outstanding at February 28, 2017 1,239 $ 15.94 Granted 31 17.94 Vested (29 ) 16.34 Forfeited (43 ) 15.65 Outstanding at May 31, 2017 1,198 $ 16.00 During the three months ended May 31, 2017, the Company retained 9,602 shares of the vested RSUs to satisfy the minimum required statutory amount of employee withholding taxes. As of May 31, 2017, there was $15.0 million of total unrecognized stock-based compensation cost related to outstanding nonvested equity awards that is expected to be recognized as expense over a weighted-average remaining vesting period of 2.7 years.

CONCENTRATION OF RISK

CONCENTRATION OF RISK	3 Months Ended
	May 31, 2017
Risks and Uncertainties [Abstract]
CONCENTRATION OF RISK	NOTE 10 – CONCENTRATION OF RISK One customer in the heavy equipment industry accounted for 11% of consolidated revenue for the three months ended May 31, 2017, and 13% and 12% of consolidated accounts receivable at May 31, 2017 and February 28, 2017, respectively. The Company has contract manufacturing arrangements with electronic manufacturing service providers for Mobile Resource Management (“MRM”), network and LoJack SVR products, transmission towers, and certain components and subassemblies. One supplier accounted for 28% and 47% of the Company’s total inventory purchases in the three months ended May 31, 2017 and 2016, respectively. As of May 31, 2017, this supplier accounted for 36% of the Company’s total accounts payable. Another supplier accounted for 16% and 9% of the Company’s total inventory purchases in the three months ended May 31 2017 and 2016, respectively, and 19% of the Company’s total accounts payable as of May 31, 2017. Some of the Company’s products and subassemblies are purchased from sole source suppliers.

PRODUCT WARRANTIES

PRODUCT WARRANTIES	3 Months Ended
	May 31, 2017
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTIES	NOTE 11 – PRODUCT WARRANTIES The Company generally warrants its products against defects over periods ranging from 12 to 24 months, depending upon the product. An accrual for estimated future costs relating to products returned under warranty is recorded as an expense when products are shipped. At the end of each fiscal quarter, the Company adjusts its liability for warranty claims based on its actual warranty claims experience as a percentage of revenues for the preceding one to two years and also considers the impact of the known operational issues that may have a greater impact than historical trends. The warranty reserve is included in Other Current Liabilities in the unaudited consolidated balance sheets. Activity in the accrued warranty costs liability for the three months ended May 31, 2017 and 2016 is as follows (in thousands): Three Months Ended May 31, 2017 2016 Balance at beginning of period $ 6,518 $ 1,892 Amount assumed in acquisition of LoJack - 1,883 Charged to costs and expenses 378 317 Deductions (502 ) (577 ) Balance at end of period $ 6,394 $ 3,515

OTHER FINANCIAL INFORMATION

OTHER FINANCIAL INFORMATION	3 Months Ended
	May 31, 2017
OTHER FINANCIAL INFORMATION [Abstract]
OTHER FINANCIAL INFORMATION	NOTE 12 – OTHER FINANCIAL INFORMATION Supplemental Balance Sheet Information Other current liabilities consist of the following (in thousands): May 31, February 28, 2017 2017 Warranty reserves $ 6,394 $ 6,518 Litigation reserve 16,219 10,144 Other 6,924 8,296 $ 29,537 $ 24,958 Other non-current liabilities consist of the following (in thousands): May 31, February 28, 2017 2017 Deferred compensation plan liability $ 5,130 $ 5,825 Deferred revenue 12,250 12,257 Deferred rent 319 378 Acquisition-related contingent consideration 665 636 Other 1,218 1,133 $ 19,582 $ 20,229 The acquisition-related contingent consideration is comprised of the estimated earn-out payable to the sellers of Crashboxx, which the Company acquired in 2015. Supplemental Statement of Operations Information Investment income consists of the following (in thousands): Three Months Ended May 31, 2017 2016 Investment income on cash equivalents and marketable securities $ 160 $ 176 Investment income on deferred compensation plan Rabbi Trust assets 122 277 Other investment income 51 - Total investment income $ 333 $ 453 Interest expense consists of the following (in thousands): Three Months Ended May 31, 2017 2016 Interest expense on convertible senior unsecured notes: Stated interest at 1.625% per annum $ 701 $ 701 Amortization of note discount 1,610 1,507 Amortization of debt issue costs 206 192 2,517 2,400 Other interest expense 1 24 Total interest expense $ 2,518 $ 2,424 Supplemental Cash Flow Information “Net cash provided by operating activities” includes cash payments for interest expense and income taxes as follows (in thousands): Three Months Ended May 31, 2017 2016 Interest expense paid $ 1,440 $ 1,449 Income taxes paid $ 41 $ 67

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	May 31, 2017
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE 13 – SEGMENT INFORMATION The Company manages and operates its business through one operating segment. Revenues by geographic area are as follows: Three Months Ended May 31, 2017 2016 United States $ 63,865 $ 69,697 Europe, Middle East and Africa 11,162 11,943 South America 3,792 2,094 Canada 3,359 1,898 Asia and Pacific Rim 2,800 1,719 All other 3,103 3,796 $ 88,081 $ 91,147 Revenues by geographic area are based upon the country of billing. The geographic location of distributors and OEM customers may be different from the geographic location of the ultimate end users of the products and services provided by the Company. No single foreign country accounted for more than 10% of the Company’s revenue in the three months ended May 31, 2017 and 2016.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	3 Months Ended
	May 31, 2017
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	NOTE 14 – LEGAL PROCEEDINGS Omega patent infringement claim In December 2013, a patent infringement lawsuit was filed against the Company by Omega Patents, LLC (“Omega”), a non-practicing entity. Omega alleged that certain of the Company’s vehicle tracking products infringed on certain patents owned by Omega. On February 24, 2016, a jury in the U.S. District Court for the Middle District of Florida awarded Omega damages of $2.975 million, for which CalAmp recorded a reserve of $2.9 million in the fiscal 2016 fourth quarter. Following trial, Omega brought a motion seeking an injunction and requesting the court to exercise its discretion to treble damages and assess attorneys’ fees. On April 5, 2017, the court denied the request for an injunction, but granted the request for treble damages. In addition, on April 24, 2017 the court awarded attorneys’ fees, costs, and prejudgment interest in the aggregate amount of $1.2 million, and directed the payment of royalties by CalAmp to Omega for any infringing sales after February 24, 2016 at a royalty rate to be determined. As a result of these April 2017 court rulings, the Company increased its reserve by $7.2 million in the fourth quarter of fiscal 2017. On May 23, 2017, the Company and Omega stipulated, subject to the agreement of the court, to supplemental damages for sales of products found to infringe Omega’s patents from February 25, 2016 through April 5, 2017, plus an ongoing royalty for sales of the products deemed to infringe after April 5, 2017. The Company is discontinuing the products that would be subject to this royalty and therefore does not believe that any future royalty amounts will be material. In the stipulation, the Company preserved its rights to assert all of its challenges that have been or will be made by the Company to the jury verdict and the court’s April 2017 rulings. As a result of the stipulation, the Company recorded an additional reserve of $6.1 million in the quarter ended May 31, 2017. The Company has filed a motion with the court seeking judgment as a matter of law in its favor and, alternatively, a new trial. The Company also filed a motion to vacate the judgment and dismiss the case for lack of venue, or in the alternative, to vacate the judgment and transfer the case to the Central District of California for a new trial. If, following resolution of these motions, the judgment against the Company remains wholly or substantially intact, then the Company intends to pursue an appeal at the Court of Appeals for the Federal Circuit. The Company is also seeking to invalidate a number of Omega’s patents in proceedings filed with the U.S. Patent and Trademark Office. Notwithstanding the adverse jury verdict, the April 2017 court rulings and the May 23, 2017 stipulation, the Company continues to believe that its products do not infringe any valid claims of Omega’s patents. While it is not feasible to predict with certainty the outcome of this litigation, its ultimate resolution could be material to the Company’s cash flows or results of operations. EVE battery claim On October 27, 2014, LoJack commenced arbitration proceedings against EVE Energy Co., Ltd. (“EVE”) by filing a notice of arbitration with a tribunal before the Hong Kong International Arbitration Centre (the “Tribunal”). The filing alleged that EVE breached representations and warranties made in supply agreements with LoJack relating to the quality and performance of battery packs supplied by EVE. On June 2, 2017, the Company was notified that the Tribunal awarded damages to LoJack (the “Damage Award”) for EVE’s breach of contract. On June 9, 2017, LoJack entered into a settlement agreement with EVE and its controlling shareholder EVE Holdings Limited to resolve the Damage Award by having EVE Holdings Limited make payments to LoJack in the aggregate amount of approximately $46 million, which amount is net of LoJack’s attorneys’ fees and insurance subrogation payment (the “Settlement”). LoJack received approximately $12 million as of June 27, 2017 and another $3 million is scheduled to be received by June 30, 2017, which amounts are net of LoJack’s attorneys’ fees and the insurance subrogation payment. These amounts are expected to be reported as other non-operating income in the Company's consolidated statement of income for the quarter ending August 31, 2017. There are three remaining settlement installments due to be received by LoJack on October 31, 2017, February 28, 2018 and June 7, 2018 of approximately $13 million, $13 million and $5 million, respectively, all such amounts net of attorneys' fees. The Company has not yet determined the income tax effects of the Settlement, as it will depend in part on how the award is ultimately apportioned between LoJack’s domestic and international operations. The amounts to be realized by the Company pursuant to the Settlement are expected to be material to the Company's consolidated financial position and results of operations in the periods in which the Settlement installments are received and recorded. Tracker South Africa claim On December 9, 2016, Tracker Connect (Pty) LTD (“Tracker”), LoJack’s international licensee in South Africa, commenced arbitration proceedings against LoJack’s Irish subsidiary by filing a notice of arbitration with the International Centre for Dispute Resolution. The filing alleges breaches of the parties’ license agreement, misrepresentations, and violation of Massachusetts General Laws chapter 93A. Tracker seeks monetary damages and recovery of attorneys’ fees. On March 3, 2017, LoJack’s Irish subsidiary filed its response to Tracker’s notice, denying Tracker’s allegations against LoJack, and filing counterclaims against Tracker for Tracker’s material breaches of the parties’ license agreement and bad faith conduct. The arbitral tribunal has been selected and the hearing is scheduled for March 2018. The Company has estimated the potential losses from this arbitration proceeding and accrued a reserve in that amount during fiscal 2017. In addition to the foregoing matters, from time to time as a normal consequence of doing business, various claims and litigation may be asserted or commenced against the Company. In particular, the Company in the ordinary course of business may receive claims concerning contract performance, or claims that its products or services infringe the intellectual property of third parties. While the outcome of any such claims or litigation cannot be predicted with certainty, management does not believe that the outcome of any of such matters existing at the present time would have a material adverse effect on the Company’s consolidated results of operations, financial condition and cash flows.

DESCRIPTION OF BUSINESS AND S20

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	May 31, 2017
Accounting Policies [Abstract]
Description of Business	Description of Business CalAmp Corp. (“CalAmp” or the “Company”) is a leading provider Internet of Things (“IoT”) enablement solutions for a broad array of mobile and fixed applications serving multiple vertical markets worldwide. In March 2016, the Company acquired LoJack Corporation (“LoJack”), which brought the Company a vast U.S. auto dealer channel as well as an established international licensee network. Certain notes and other information included in the audited financial statements in the Company's Annual Report on Form 10-K for the year ended February 28, 2017 are condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the Company’s 2017 Annual Report on Form 10-K as filed with the Securities and Exchange Commission on May 15, 2017. In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly the Company’s financial position at May 31, 2017 and its results of operations for the three months ended May 31, 2017 and 2016. The results of operations for such periods are not necessarily indicative of results to be expected for the full fiscal year. All significant intercompany transactions and accounts have been eliminated in consolidation.
Revenue Recognition	Revenue Recognition The Company recognizes revenue from product sales when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection of the sales price is reasonably assured. For product sales that are not bundled with an application service, these criteria are generally met at the time product is shipped, except for shipments made on the basis of “FOB Destination” terms, in which case title transfers to the customer and the revenue is recorded by the Company when the shipment reaches the customer. Customers generally do not have a right of return except for defective products returned during the warranty period. The Company records estimated commitments related to customer incentive programs as reductions of revenues. In addition to product sales, the Company provides Software as a Service (“SaaS”) and Platform-as-a-Service (“PaaS”) subscriptions for its fleet management, vehicle finance and certain other applications through which customers are provided with the ability to wirelessly communicate with monitoring devices installed in vehicles and other mobile or remote assets via software applications hosted by the Company. Generally, the Company defers the recognition of revenue for the products that are sold with application subscriptions because the products are not functional without the application services. In such circumstances, the associated product costs are recorded as deferred costs in the balance sheet. The deferred product revenue and deferred product cost amounts are amortized to application subscriptions revenue and cost of revenue, respectively, on a straight-line basis over minimum contractual subscription periods of one to five years. Revenues from renewals of data communication services after the initial contract term are recognized as application subscriptions revenue over the period the services are provided. When customers prepay application subscription renewals, such amounts are recorded as deferred revenues and are recognized ratably over the renewal term. In the United States, the Company generally recognizes revenue on LoJack product sales that have no associated continuing service obligations on the part of the Company upon installation of the products. Revenue relating to sales made to the Company’s third party installation partners, who purchase the Company’s products and perform installations themselves, is recognized upon shipment, which is prior to the installation of the related products in the end user’s vehicle. Revenue from the sales of products to international licensees is recognized when shipment of the products to the licensee has occurred and collection is reasonably assured. In the United States, sales of a combined LoJack Stolen Vehicle Recovery (“LoJack SVR”) unit and Early Warning unit constitute a multiple element arrangement under ASC 605 Subtopic 25. The combined LoJack SVR and Early Warning product includes LoJack SVR hardware, Early Warning hardware, installation service, and an Early Warning ongoing automated notification service, which is provided over the period of vehicle ownership. The delivered elements of a multiple element arrangement (LoJack SVR hardware and Early Warning hardware and installation service) must meet certain criteria to qualify each component of the combined LoJack SVR and Early Warning product for separate accounting. The Company performed an analysis and determined that each of the delivered elements in the arrangement qualify for separate accounting based on the applicable guidance. The LoJack SVR and Early Warning hardware and installation service components of each sale are considered to have met delivery requirements for revenue recognition upon installation of the LoJack SVR and Early Warning product; however, revenue from the ongoing notification service, as well as the tracking and recovery service in Canada, are deferred and recognized over an estimated life of new vehicle ownership. In Italy, the purchase of an initial vehicle monitoring service contract is a requirement at the time the consumer purchases a LoJack SVR product. Revenue for these contracts is recognized over the life of the contract. These contracts, which are sold separately from the LoJack SVR hardware, are offered for terms ranging from 8 to 96 months and are generally payable in full upon activation of the related unit or renewal of a previous contract. Customers are also offered a month-to-month option for service contracts. The Company offers several types of extended warranty contracts in the United States related to its LoJack products. For those contracts for which an independent third party insurer, and not the Company, is the primary obligor, the Company recognizes revenue at the time of the sale of the extended warranty. For those warranty contracts for which the Company is the primary obligor, revenue is deferred and is recognized over five years, which is the estimated life of new vehicle ownership. For the majority of extended warranty contracts originated after 2011, the Company sells the contract to an independent third party insurer and accordingly recognizes revenue at the time of sale. For those warranties for which an independent third party insurer, and not the Company, is the primary obligor, the Company records revenue on a gross basis, with related costs being included in cost of goods sold. The Company considered the factors associated with gross revenue as compared to net revenue recording and determined that despite not being the primary obligor for these arrangements, gross revenue reporting was deemed appropriate based on the relevant accounting guidance. Specifically, the Company has latitude in establishing price; it can change the product offering; it has discretion in supplier selection; it is involved in the determination of product or service specifications; it bears the credit risk; and the amount that it earns on each contract is not fixed.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with remaining maturities at date of purchase of three months or less to be cash equivalents.
Fair Value Measurements	Fair Value Measurements The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly manner in an arms-length transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has elected the fair value option for its investment in marketable securities on a contract-by-contract basis at the time each contract is initially recognized in the financial statements or upon an event that gives rise to a new basis of accounting for the items.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). This update was intended to simplify the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted this standard during the quarter ended May 31, 2017. Accordingly, effective March 1, 2017, the Company recorded a cumulative adjustment benefit of $11.7 million for the excess tax benefit from the exercise of stock options and vesting of restricted stock awards and restricted stock units that occurred in prior fiscal years as an increase in deferred income tax assets and a reduction of the accumulated deficit. The excess tax benefits recognized on stock-based compensation expense are classified as an operating activity in the Company's consolidated statements of cash flows. Finally, the Company elected to account for forfeitures as they occur, rather than estimating expected forfeitures over the course of a vesting period.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation – Stock Compensation: Scope of Modification Accounting (“ASU 2017-09”). The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The adoption of ASU 2017-09, which will become effective for annual periods beginning after December 15, 2017, is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The new guidance eliminates Step 2 from the goodwill impairment test and instead requires that an entity measure the impairment of goodwill assigned to a reporting unit if the carrying value of assets and liabilities assigned to the reporting unit, including goodwill, exceed the reporting unit's fair value. The new guidance must be adopted for annual and interim goodwill tests in fiscal years beginning after December 15, 2019. After the adoption of this standard, which will be applied prospectively, the Company will follow a one-step model for goodwill impairment. The Company does not anticipate a significant impact on its consolidated financial statements upon adoption. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses. This update amends the FASB’s guidance on the impairment of financial instruments. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. This update is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. The Company does not anticipate a significant impact on its consolidated financial statements upon adoption. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with the classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements at the time of adoption, with certain practical expedients available. Early adoption is permitted. The Company has not completed the assessment of the impact on its consolidated financial statements, but expects to record a ROU asset and lease liability. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This standard revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for a new practicality exception. ASU 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The two permitted transition methods under the new standard are the full retrospective method, in which the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which the cumulative effect of applying the standard would be recognized at the date of initial application. In August 2015, the FASB approved the deferral of the new standard's effective date by one year. The new standard is effective for annual reporting periods beginning after December 15, 2017, and accordingly the Company is required to adopt this standard effective March 1, 2018, the beginning of its fiscal 2019. In addition, the FASB issued ASU 2016-08, ASU 2016-10 and ASU 2016-12 in March 2016, April 2016 and May 2016, respectively, to provide interpretive clarifications on the new revenue recognition accounting standard. The Company is currently developing an implementation roadmap and action plan for the adoption of this standard.

CASH, CASH EQUIVALENTS AND IN21

CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables)	3 Months Ended
	May 31, 2017
Cash and Cash Equivalents [Abstract]
Schedule of Cash and Marketable Securities	The following tables summarize the Company’s financial instrument assets as of May 31, 2017 and February 28, 2017 using the hierarchy described in Note 1 under the heading “Fair Value Measurements” (in thousands): As of May 31, 2017 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 41,914 $ - $ 41,914 $ 41,914 $ - $ - Level 1: Money market funds 266 - 266 266 - - Mutual funds (1) 4,689 413 5,102 - - 5,102 Equity investment in French licensee (2) 296 15 311 - - 311 Level 2: Repurchase agreements 43,500 - 43,500 43,500 - - Corporate bonds 23,559 (3 ) 23,556 23,010 546 - Total $ 114,224 $ 425 $ 114,649 $ 108,690 $ 546 $ 5,413 As of February 28, 2017 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 39,322 $ - $ 39,322 $ 39,322 $ - $ - Level 1: Money market funds 3,406 - 3,406 3,406 - - Mutual funds (1) 5,429 372 5,801 - - 5,801 Equity investment in French licensee (2) 296 (54 ) 242 - - 242 Level 2: Repurchase agreements 24,000 - 24,000 24,000 - - Corporate bonds 33,708 (8 ) 33,700 26,978 6,722 - Total $ 106,161 $ 310 $ 106,471 $ 93,706 $ 6,722 $ 6,043 (1) The Company has a non-qualified deferred compensation plan in which certain members of management and all non-employee directors are eligible to participate. The Company informally funds its obligations under the deferred compensation plan by purchasing shares in various equity, bond and money market mutual funds that are held in a “Rabbi Trust” and are restricted for payment of obligations to plan participants. The deferred compensation plan liability is included in Other Non-current Liabilities in the accompanying consolidated balance sheets. (2) The equity investment in a French licensee, in the form of publicly-traded common stock, is accounted for as an available-for-sale security and is valued at the quoted closing price on its market exchange. The related unrealized gains or losses are included in Accumulated Other Comprehensive Loss in the Stockholders’ Equity section of the consolidated balance sheets.

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	May 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following (in thousands): May 31, February 28, 2017 2017 Raw materials $ 17,566 $ 15,822 Work in process 567 294 Finished goods 14,670 13,163 $ 32,803 $ 29,279

OTHER INTANGIBLE ASSETS (Tables

OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	May 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Other Intangible Assets	Other intangible assets are comprised as follows (in thousands): Gross Accumulated Amortization Net Amort- ization Feb. 28, Addi- May 31, Feb. 28, May 31, May 31, Feb. 28, Period 2017 tions 2017 2017 Expense 2017 2017 2017 Supply contract 5 years $ 2,220 $ - $ 2,220 $ 2,112 $ 108 $ 2,220 $ - $ 108 Developed technology 2-7 years 22,280 - 22,280 10,323 990 11,313 10,967 11,957 Tradenames 7-10 years 37,643 27 37,670 5,226 963 6,189 31,481 32,417 Customer lists 4-7 years 22,950 - 22,950 15,018 1,176 16,194 6,756 7,932 Dealer relationships 7 years 16,850 - 16,850 2,308 603 2,911 13,939 14,542 Covenants not to compete 5 years 170 - 170 162 8 170 - 8 Patents 5 years 347 42 389 88 10 98 291 259 $ 102,460 $ 69 $ 102,529 $ 35,237 $ 3,858 $ 39,095 $ 63,434 $ 67,223
Schedule of Estimated Future Amortization Expense	Estimated future amortization expense for the fiscal years ending February 28 is as follows (in thousands): Fiscal Year 2018 (remainder) $ 11,153 2019 11,676 2020 9,669 2021 7,846 2022 6,209 Thereafter 16,881 $ 63,434

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	3 Months Ended
	May 31, 2017
Other Assets, Noncurrent Disclosure [Abstract]
Schedule of Other Assets	Other assets consist of the following (in thousands): May 31, February 28, 2017 2017 Deferred compensation plan assets $ 5,102 $ 5,801 Investment in international licensees 2,351 2,282 Equity investment in and loans to UK affiliate 2,201 2,402 Other 2,300 2,080 $ 11,954 $ 12,565

CONVERTIBLE SENIOR UNSECURED 25

CONVERTIBLE SENIOR UNSECURED NOTES (Tables)	3 Months Ended
	May 31, 2017
Debt Disclosure [Abstract]
Schedule of Balances Attributable to the Notes	Balances attributable to the Notes consist of the following (in thousands): May 31, February 28, 2017 2017 Principal $ 172,500 $ 172,500 Less: Unamortized debt discount (21,160 ) (22,770 ) Unamortized debt issuance costs (2,697 ) (2,903 ) Net carrying amount of the Notes $ 148,643 $ 146,827

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	May 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock-based Compensation Expense	Stock-based compensation expense is included in the following captions of the unaudited consolidated statements of comprehensive loss (in thousands): Three Months Ended May 31, 2017 2016 Cost of revenues $ 138 $ 64 Research and development 234 181 Selling 386 295 General and administrative 1,059 1,444 $ 1,817 $ 1,984
Summary of Stock Option Activity	Changes in the Company’s outstanding stock options during the three months ended May 31, 2017 were as follows (options in thousands): Weighted Number of Average Options Exercise Outstanding at February 28, 2017 955 $ 8.60 Granted - - Exercised (30 ) 3.21 Forfeited or expired - - Outstanding at May 31, 2017 925 $ 8.78 Exercisable at May 31, 2017 594 $ 5.12
Summary of Restricted Stock Shares (RSU's), and Performance Stock Units (PSU's) Activity	Changes in the Company’s outstanding restricted stock shares, performance stock units (“PSUs”) and restricted stock units (“RSUs”) during the three months ended May 31, 2017 were as follows (restricted shares, PSUs and RSUs in thousands): Number of Restricted Weighted Shares, Average PSUs and Grant Date RSUs Fair Value Outstanding at February 28, 2017 1,239 $ 15.94 Granted 31 17.94 Vested (29 ) 16.34 Forfeited (43 ) 15.65 Outstanding at May 31, 2017 1,198 $ 16.00

PRODUCT WARRANTIES (Tables)

PRODUCT WARRANTIES (Tables)	3 Months Ended
	May 31, 2017
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Liability	Activity in the accrued warranty costs liability for the three months ended May 31, 2017 and 2016 is as follows (in thousands): Three Months Ended May 31, 2017 2016 Balance at beginning of period $ 6,518 $ 1,892 Amount assumed in acquisition of LoJack - 1,883 Charged to costs and expenses 378 317 Deductions (502 ) (577 ) Balance at end of period $ 6,394 $ 3,515

OTHER FINANCIAL INFORMATION (Ta

OTHER FINANCIAL INFORMATION (Tables)	3 Months Ended
	May 31, 2017
OTHER FINANCIAL INFORMATION [Abstract]
Schedule of Supplemental Balance Sheet Information	Other current liabilities consist of the following (in thousands): May 31, February 28, 2017 2017 Warranty reserves $ 6,394 $ 6,518 Litigation reserve 16,219 10,144 Other 6,924 8,296 $ 29,537 $ 24,958 Other non-current liabilities consist of the following (in thousands): May 31, February 28, 2017 2017 Deferred compensation plan liability $ 5,130 $ 5,825 Deferred revenue 12,250 12,257 Deferred rent 319 378 Acquisition-related contingent consideration 665 636 Other 1,218 1,133 $ 19,582 $ 20,229
Schedule of Investment income (loss)	Investment income consists of the following (in thousands): Three Months Ended May 31, 2017 2016 Investment income on cash equivalents and marketable securities $ 160 $ 176 Investment income on deferred compensation plan Rabbi Trust assets 122 277 Other investment income 51 - Total investment income $ 333 $ 453
Schedule of Interest expense	Interest expense consists of the following (in thousands): Three Months Ended May 31, 2017 2016 Interest expense on convertible senior unsecured notes: Stated interest at 1.625% per annum $ 701 $ 701 Amortization of note discount 1,610 1,507 Amortization of debt issue costs 206 192 2,517 2,400 Other interest expense 1 24 Total interest expense $ 2,518 $ 2,424
Schedule of Supplemental Cash Flow Information	“Net cash provided by operating activities” includes cash payments for interest expense and income taxes as follows (in thousands): Three Months Ended May 31, 2017 2016 Interest expense paid $ 1,440 $ 1,449 Income taxes paid $ 41 $ 67

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	May 31, 2017
Segment Reporting [Abstract]
Summary of Segment Information	The Company manages and operates its business through one operating segment. Revenues by geographic area are as follows: Three Months Ended May 31, 2017 2016 United States $ 63,865 $ 69,697 Europe, Middle East and Africa 11,162 11,943 South America 3,792 2,094 Canada 3,359 1,898 Asia and Pacific Rim 2,800 1,719 All other 3,103 3,796 $ 88,081 $ 91,147

DESCRIPTION OF BUSINESS AND S30

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions	3 Months Ended
	May 31, 2017USD ($)
Accounting Policies [Abstract]
Cumulative adjustment benefit from adoption of ASU 2016-09	$ 11.7

CASH, CASH EQUIVALENTS AND IN31

CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) $ in Thousands		May 31, 2017	Feb. 28, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		$ 114,224	$ 106,161
Unrealized Gains (Losses)		425	310
Fair Value		114,649	106,471
Cash [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		41,914	39,322
Unrealized Gains (Losses)
Fair Value		41,914	39,322
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		266	3,406
Unrealized Gains (Losses)
Fair Value		266	3,406
Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		4,689	5,429	[1]
Unrealized Gains (Losses)		413	372	[1]
Fair Value		5,102	5,801	[1]
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		296	296	[2]
Unrealized Gains (Losses)		15	(54)	[2]
Fair Value		311	242	[2]
Fair Value, Inputs, Level 2 [Member] | Repurchase Agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		43,500	24,000
Unrealized Gains (Losses)
Fair Value		43,500	24,000
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		23,559	33,708
Unrealized Gains (Losses)		(3)	(8)
Fair Value		23,556	33,700
Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		5,413	6,043
Other Assets [Member] | Cash [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Other Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Other Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[1]	5,102	5,801
Other Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[2]	311	242
Other Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Repurchase Agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Other Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		108,690	93,706
Cash and Cash Equivalents [Member] | Cash [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		41,914	39,322
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		266	3,406
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[1]
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[2]
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Repurchase Agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		43,500	24,000
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		23,010	26,978
Short Term Marketable Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		546	6,722
Short Term Marketable Securities [Member] | Cash [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Short Term Marketable Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Short Term Marketable Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[1]
Short Term Marketable Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[2]
Short Term Marketable Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Repurchase Agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Short Term Marketable Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		$ 546	$ 6,722
[1]	The Company has a non-qualified deferred compensation plan in which certain members of management and all non-employee directors are eligible to participate. The Company informally funds its obligations under the deferred compensation plan by purchasing shares in various equity, bond and money market mutual funds that are held in a "Rabbi Trust" and are restricted for payment of obligations to plan participants. The deferred compensation plan liability is included in Other Non-current Liabilities in the accompanying consolidated balance sheets.
[2]	The equity investment in a French licensee, in the form of publicly-traded common stock, is accounted for as an available-for-sale security and is valued at the quoted closing price on its market exchange. The related unrealized gains or losses are included in Accumulated Other Comprehensive Loss in the Stockholders' Equity section of the consolidated balance sheets.

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	May 31, 2017	Feb. 28, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 17,566	$ 15,822
Work in process	567	294
Finished goods	14,670	13,163
Inventories	$ 32,803	$ 29,279

OTHER INTANGIBLE ASSETS (Schedu

OTHER INTANGIBLE ASSETS (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2017	May 31, 2016
Finite-Lived Intangible Assets [Line Items]
Beginning balance	$ 102,460
Additions	69
Ending balance	102,529
Beginning balance	35,237
Expense	3,858	$ 3,490
Ending balance	39,095
Net ending	63,434
Net beginning	$ 67,223
Supply Contract [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period	5 years
Beginning balance	$ 2,220
Additions
Ending balance	2,220
Beginning balance	2,112
Expense	108
Ending balance	2,220
Net ending
Net beginning	108
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Beginning balance	22,280
Additions
Ending balance	22,280
Beginning balance	10,323
Expense	990
Ending balance	11,313
Net ending	10,967
Net beginning	$ 11,957
Developed Technology Rights [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period	2 years
Developed Technology Rights [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period	7 years
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Beginning balance	$ 37,643
Additions	27
Ending balance	37,670
Beginning balance	5,226
Expense	963
Ending balance	6,189
Net ending	31,481
Net beginning	$ 32,417
Trade Names [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period	7 years
Trade Names [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period	10 years
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Beginning balance	$ 22,950
Additions
Ending balance	22,950
Beginning balance	15,018
Expense	1,176
Ending balance	16,194
Net ending	6,756
Net beginning	$ 7,932
Customer Lists [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period	4 years
Customer Lists [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period	7 years
Dealer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period	7 years
Beginning balance	$ 16,850
Additions
Ending balance	16,850
Beginning balance	2,308
Expense	603
Ending balance	2,911
Net ending	13,939
Net beginning	$ 14,542
Covenants not to compete [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period	5 years
Beginning balance	$ 170
Additions
Ending balance	170
Beginning balance	162
Expense	8
Ending balance	170
Net ending
Net beginning	$ 8
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period	5 years
Beginning balance	$ 347
Additions	42
Ending balance	389
Beginning balance	88
Expense	10
Ending balance	98
Net ending	291
Net beginning	$ 259

OTHER INTANGIBLE ASSETS (Sche34

OTHER INTANGIBLE ASSETS (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands	May 31, 2017	Feb. 28, 2017
Fiscal Year
2018 (remainder)	$ 11,153
2,019	11,676
2,020	9,669
2,021	7,846
2,022	6,209
Thereafter	16,881
Net	$ 63,434	$ 67,223

OTHER ASSETS (Details)

OTHER ASSETS (Details) £ in Thousands, $ in Thousands	3 Months Ended
	May 31, 2017USD ($)	May 31, 2017GBP (£)	May 31, 2016USD ($)	May 31, 2017GBP (£)	Feb. 28, 2017USD ($)
Schedule of Equity Method Investments [Line Items]
Deferred compensation plan assets	$ 5,102				$ 5,801
Investment in international licensees	2,351				2,282
Equity investment in and loans to UK affiliate	2,201				2,402
Other	2,300				2,080
Total	11,954				$ 12,565
Equity in net loss of affiliate	337		$ 312
Investment in equity method investment			737
Foreign currency cumulative translation adjustment	$ 81		$ (515)
Smart Driver Club Limited [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage of equity-method investments	49.00%			49.00%
Interest rate on advance	8.00%	8.00%
Debt instrument, face amount	$ 2,636
Investment in equity method investment	2,156
Foreign currency cumulative translation adjustment	220
Smart Driver Club Limited [Member] | GBP [Member]
Schedule of Equity Method Investments [Line Items]
Debt instrument, face amount | £				£ 2,000
Investment in equity method investment | £		£ 1,400
LoJack Mexican Licensee [Member]
Schedule of Equity Method Investments [Line Items]
Investment in international licensees	$ 1,700
Ownership percentage of cost-method investments	12.50%			12.50%
LoJack Benelux Licensee [Member]
Schedule of Equity Method Investments [Line Items]
Investment in international licensees	$ 340
Ownership percentage of cost-method investments	17.50%			17.50%
LoJack French Licensee [Member]
Schedule of Equity Method Investments [Line Items]
Investment in international licensees	$ 311
Ownership percentage of cost-method investments	5.50%			5.50%

CONVERTIBLE SENIOR UNSECURED 36

CONVERTIBLE SENIOR UNSECURED NOTES (Long-term Debt) (Details) - Convertible Senior Notes [Member] $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended
	May 31, 2017USD ($)$ / sharesshares	Feb. 28, 2017USD ($)	May 31, 2016	May 31, 2015USD ($)
Debt Instrument [Line Items]
Debt instrument, face amount	$ 172,500	$ 172,500
Interest rate (as a percent)	1.65%		1.65%
Maturity date	May 15, 2020
Conversion rate of shares of common stock	36.2398
Conversion price (in dollars per share) | $ / shares	$ 27.594
Percentage of repurchase price of the principal amount	100.00%
Maximum number of shares of common stock that could be issued, following certain corporate events that occur prior to maturity | shares	2.5
Debt discount to be amortized	$ 21,160	$ 22,770		$ 33,600
Effective interest rate	6.20%
Equity component of issuance costs	$ 1
Fair value of the Notes	$ 172,800			$ 138,900

CONVERTIBLE SENIOR UNSECURED 37

CONVERTIBLE SENIOR UNSECURED NOTES (Schedule of Balances Attributable to Notes) (Details) - USD ($) $ in Thousands	May 31, 2017	Feb. 28, 2017	May 31, 2015
Liability component:
1.625% convertible senior unsecured notes	$ 148,643	$ 146,827
Convertible Senior Notes [Member]
Liability component:
Term loan amount	172,500	172,500
Less: Unamortized debt discount	(21,160)	(22,770)	$ (33,600)
Unamortized debt issuance costs	(2,697)	(2,903)
1.625% convertible senior unsecured notes	$ 148,643	$ 146,827

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details)	May 31, 2017$ / shares
Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Conversion price (in dollars per share)	$ 27.594

STOCK-BASED COMPENSATION (Narra

STOCK-BASED COMPENSATION (Narrative) (Details) $ in Millions	3 Months Ended
	May 31, 2017USD ($)shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Vested restricted stock and RSUs retained to cover the the minimum required statutory amount of withholding taxes (Shares) | shares	9,602
Unrecognized share-based compensation cost | $	$ 15
Unrecognized compensation cost, recognition period	2 years 8 months 12 days

STOCK-BASED COMPENSATION (Sched

STOCK-BASED COMPENSATION (Schedule of Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2017	May 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 1,817	$ 1,984
Cost of revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	138	64
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	234	181
Selling [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	386	295
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 1,059	$ 1,444

STOCK-BASED COMPENSATION (Summa

STOCK-BASED COMPENSATION (Summary of Stock Option Activity) (Details) shares in Thousands	3 Months Ended
	May 31, 2017$ / sharesshares
Number of Options
Outstanding, beginning balance | shares	955
Granted | shares
Exercised | shares	(30)
Forfeited or expired | shares
Outstanding, ending balance | shares	925
Exercisable | shares	594
Weighted Average Exercise Price
Outstanding, beginning balance | $ / shares	$ 8.60
Granted | $ / shares
Exercised | $ / shares	3.21
Forfeited or expired | $ / shares
Outstanding, ending balance | $ / shares	8.78
Exercisable | $ / shares	$ 5.12

STOCK-BASED COMPENSATION (Sum42

STOCK-BASED COMPENSATION (Summary of Restricted Stock Shares and RSUs Activity) (Details) shares in Thousands	3 Months Ended
	May 31, 2017$ / sharesshares
Number of Restricted Shares, PSUs and RSUs
Outstanding, beginning balance | shares	1,239
Granted | shares	31
Vested | shares	(29)
Forfeited | shares	(43)
Outstanding, ending balance | shares	1,198
Weighted Average Grant Date Fair Value
Outstanding, beginning balance | $ / shares	$ 15.94
Granted | $ / shares	17.94
Vested | $ / shares	16.34
Forfeited | $ / shares	15.65
Outstanding, ending balance | $ / shares	$ 16

CONCENTRATION OF RISK (Details)

CONCENTRATION OF RISK (Details)	3 Months Ended		12 Months Ended
	May 31, 2017	May 31, 2016	Feb. 28, 2017
Revenue [Member] | Supplier Concentration Risk [Member] | Major Customer One [Member]
Concentration Risk [Line Items]
Concentration percentage	11.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Major Customer One [Member]
Concentration Risk [Line Items]
Concentration percentage	13.00%		12.00%
Inventories [Member] | Supplier Concentration Risk [Member] | Supplier One [Member]
Concentration Risk [Line Items]
Concentration percentage	28.00%	47.00%
Inventories [Member] | Supplier Concentration Risk [Member] | Supplier Two [Member]
Concentration Risk [Line Items]
Concentration percentage	16.00%	9.00%
Accounts Payable [Member] | Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration percentage	19.00%
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier One [Member]
Concentration Risk [Line Items]
Concentration percentage	36.00%

PRODUCT WARRANTIES (Details)

PRODUCT WARRANTIES (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2017	May 31, 2016
Warranty Reserves [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 6,518	$ 1,892
Assumed from acquisition of LoJack		1,883
Charged to costs and expenses	378	317
Deductions	(502)	(577)
Balance at end of period	$ 6,394	$ 3,515
Minimum [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Warranty Term	12 months	12 months
Maximum [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Warranty Term	24 months	24 months

OTHER FINANCIAL INFORMATION (Sc

OTHER FINANCIAL INFORMATION (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands	May 31, 2017	Feb. 28, 2017
Other Financial Information Schedule Of Other Current Liabilities Details
Warranty reserves	$ 6,394	$ 6,518
Litigation reserve	16,219	10,144
Other	6,924	8,296
Total other current liabilities	$ 29,537	$ 24,958

OTHER FINANCIAL INFORMATION (46

OTHER FINANCIAL INFORMATION (Schedule of Other Non-Current Liabilities) (Details) - USD ($) $ in Thousands	May 31, 2017	Feb. 28, 2017
OTHER FINANCIAL INFORMATION [Abstract]
Deferred compensation plan liability	$ 5,130	$ 5,825
Deferred revenue	12,250	12,257
Deferred rent	319	378
Acquisition-related contingent consideration	665	636
Other	1,218	1,133
Total other non-current liabilities	$ 19,582	$ 20,229

OTHER FINANCIAL INFORMATION (47

OTHER FINANCIAL INFORMATION (Schedule of Investment Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2017	May 31, 2016
OTHER FINANCIAL INFORMATION [Abstract]
Investment income on cash equivalents and marketable securities	$ 160	$ 176
Investment income on deferred compensation plan Rabbi Trust assets	122	277
Other investment income	51
Total investment income	$ 333	$ 453

OTHER FINANCIAL INFORMATION (48

OTHER FINANCIAL INFORMATION (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2017	May 31, 2016
Interest expense on convertible senior unsecured notes:
Stated interest at 1.625% per annum	$ 701	$ 701
Amortization of note discount	1,610	1,507
Amortization of debt issue costs	206	192
Interest expense on convertible notes	2,517	2,400
Other interest expense	1	24
Total interest expense	$ 2,518	$ 2,424
Convertible Senior Notes [Member]
Condensed Income Statements, Captions [Line Items]
Interest rate (as a percent)	1.65%	1.65%

OTHER FINANCIAL INFORMATION (49

OTHER FINANCIAL INFORMATION (Schedule of Cash Payments for Interest and Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2017	May 31, 2016
OTHER FINANCIAL INFORMATION [Abstract]
Interest expense paid	$ 1,440	$ 1,449
Income tax paid	$ 41	$ 67

SEGMENT INFORMATION (Schedule o

SEGMENT INFORMATION (Schedule of Segment Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2017	May 31, 2016
Segment Reporting Information [Line Items]
Revenues	$ 88,081	$ 91,147
United States [Member]
Segment Reporting Information [Line Items]
Revenues	63,865	69,697
Europe, Middle East and Africa [Member]
Segment Reporting Information [Line Items]
Revenues	11,162	11,943
South America [Member]
Segment Reporting Information [Line Items]
Revenues	3,792	2,094
Canada [Member]
Segment Reporting Information [Line Items]
Revenues	3,359	1,898
Asia and Pacific Rim [Member]
Segment Reporting Information [Line Items]
Revenues	2,800	1,719
All other [Member]
Segment Reporting Information [Line Items]
Revenues	$ 3,103	$ 3,796

LEGAL PROCEEDINGS (Legal Procee

LEGAL PROCEEDINGS (Legal Proceedings) (Details) - USD ($) $ in Thousands	1 Months Ended				3 Months Ended
	Jun. 30, 2018	Feb. 28, 2018	Oct. 31, 2017	Jun. 30, 2017	May 31, 2017	Feb. 29, 2016
Gain Contingencies [Line Items]
Amount of payment					$ 1,200
Damages awarded						$ 2,975
Damages reserve						2,900
Accrual for litigation					$ 6,100	$ 7,200
LoJack [Member] | Scenario, Forecast [Member]
Gain Contingencies [Line Items]
Litigation settlement awarded	$ 5,000	$ 13,000	$ 13,000	$ 3,000
Subsequent Event [Member] | LoJack [Member]
Gain Contingencies [Line Items]
Litigation settlement awarded				$ 12,000