CalAmp (CAMP) 10-Q 28 Jun 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 31, 2018	Jun. 22, 2018
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, 2018
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,019
Entity Common Stock, Shares Outstanding		35,281,409

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2018
Current assets:
Cash and cash equivalents	$ 169,509	$ 132,603
Short-term marketable securities	9,261	23,400
Accounts receivable, net	69,814	71,580
Inventories	32,557	36,302
Prepaid expenses and other current assets	13,076	12,000
Total current assets	294,217	275,885
Property and equipment, net	21,087	21,262
Deferred income tax assets	32,200	31,581
Goodwill	73,284	72,980
Other intangible assets, net	49,227	52,456
Other assets	23,407	18,829
Total assets	493,422	472,993
Current liabilities:
Accounts payable	42,939	35,478
Accrued payroll and employee benefits	6,471	10,606
Deferred revenue	20,232	17,757
Other current liabilities	31,541	31,688
Total current liabilities	101,183	95,529
1.625% convertible senior unsecured notes	156,230	154,299
Other non-current liabilities	33,568	24,249
Total liabilities	290,981	274,077
Commitments and contingencies (see Note 16)
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; 35,507 and 35,718 shares issued and outstanding at May 31, 2018 and February 28, 2018, respectively	355	357
Additional paid-in capital	214,811	218,217
Accumulated deficit	(12,109)	(19,459)
Accumulated other comprehensive loss	(616)	(199)
Total stockholders' equity	202,441	198,916
Total Liabilities and Stockholders' Equity	$ 493,422	$ 472,993

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	May 31, 2018	Feb. 28, 2018
Statement Of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000,000	3,000,000
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	80,000,000	80,000,000
Common stock, shares issued	35,507,000	35,718,000
Common stock, shares outstanding	35,507,000	35,718,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Revenues:
Products	$ 76,916	$ 71,120
Application subscriptions and other services	17,972	16,961
Total revenues	94,888	88,081
Cost of revenues:
Products	47,353	42,425
Application subscriptions and other services	9,444	8,213
Total cost of revenues	56,797	50,638
Gross profit	38,091	37,443
Operating expenses:
Research and development	6,601	5,832
Selling and marketing	12,497	12,671
General and administrative	13,436	16,410
Restructuring (see Note 7)	3,383
Intangible asset amortization	2,748	3,858
Total operating expenses	38,665	38,771
Operating loss	(574)	(1,328)
Non-operating income (expense):
Investment income	853	333
Interest expense	(2,665)	(2,518)
Gain on legal settlement (see Note 16)	13,333
Other income (expense)	(226)	116
Total non-operating income (expense)	11,295	(2,069)
Income (loss) before income taxes and equity in net loss of affiliate	10,721	(3,397)
Income tax benefit (provision)	(1,771)	1,080
Income (loss) before equity in net loss of affiliate	8,950	(2,317)
Equity in net loss of affiliate	(439)	(337)
Net income (loss)	$ 8,511	$ (2,654)
Earnings (loss) per share:
Basic	$ 0.24	$ (0.08)
Diluted	$ 0.23	$ (0.08)
Shares used in computing earnings (loss) per share:
Basic	35,458	35,068
Diluted	36,453	35,068
Comprehensive income (loss):
Net income (loss)	$ 8,511	$ (2,654)
Other comprehensive income:
Foreign currency translation adjustments	17	81
Unrealized gain on available-for-sale securities, net of tax		41
Total comprehensive income (loss)	$ 8,528	$ (2,532)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 8,511	$ (2,654)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense	2,043	2,025
Intangible assets amortization expense	2,748	3,858
Stock-based compensation expense	2,467	1,817
Tax benefits on vested and exercised equity awards	220	157
Amortization of convertible debt issue costs and discount	1,931	1,816
Unrealized foreign currency transaction losses	137
Deferred tax assets, net	772	(1,609)
Equity in net loss of affiliate	439	337
Other	(99)	(319)
Changes in operating assets and liabilities:
Accounts receivable	1,621	2,070
Inventories	3,585	(3,348)
Prepaid expenses and other assets	(1,255)	1,069
Accounts payable	7,538	3,262
Accrued liabilities	(1,369)	1,344
Deferred revenue	1,623	1,083
NET CASH PROVIDED BY OPERATING ACTIVITIES	30,912	10,908
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities	23,507	6,722
Purchases of marketable securities	(9,262)	(546)
Capital expenditures	(2,121)	(2,079)
Other	(26)	(69)
NET CASH PROVIDED BY INVESTING ACTIVITIES	12,098	4,028
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchases of common stock	(5,710)
Taxes paid related to net share settlement of vested equity awards	(233)	(156)
Proceeds from exercise of stock options	68	96
NET CASH USED IN FINANCING ACTIVITIES	(5,875)	(60)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(229)	108
Net change in cash and cash equivalents	36,906	14,984
Cash and cash equivalents at beginning of period	132,603	93,706
Cash and cash equivalents at end of period	$ 169,509	$ 108,690

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended May 31, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Balances at Feb. 28, 2018	$ 198,916	$ 357	$ 218,217	$ (19,459)	$ (199)
Balances (in shares) at Feb. 28, 2018		35,718
Net income (loss)	8,511			8,511
Cumulative adjustment upon adoption | ASU 2016-01 [Member]				434	(434)
Cumulative adjustment upon adoption | ASC 606 [Member]	(1,595)			(1,595)
Stock-based compensation expense	2,467		2,467
Shares issued on net share settlement of equity awards	(233)		(233)
Shares issued on net share settlement of equity awards (in shares)		21
Exercise of stock options	$ 68		68
Exercise of stock options (in shares)	38	38
Other comprehensive income, net of tax	$ 17				17
Repurchases of common stock	$ (5,710)	$ (2)	(5,708)
Repurchase of common stock (in shares)	(300)	(270)
Balances at May. 31, 2018	$ 202,441	$ 355	$ 214,811	$ (12,109)	$ (616)
Balances (in shares) at May. 31, 2018		35,507

DESCRIPTION OF BUSINESS AND SUM

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	May 31, 2018
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. (referred to herein as “CalAmp”, “the Company”, “we”, “our”, or “us”) is a telematics pioneer leading transformation in a global connected economy. We help reinvent businesses and improve lives around the globe with technology solutions that streamline complex Internet of Things (“IoT”) deployments through wireless connectivity solutions and derived data intelligence. Our software applications, scalable cloud services, and intelligent devices collect and assess business-critical data anywhere in the world from industrial machines, commercial and passenger vehicles, their passengers and contents. We are a global organization that is headquartered in Irvine, California. We operate under two reportable segments: Telematics Systems and Software & Subscription Services. Certain notes and other information included in the audited financial statements in our Annual Report on Form 10-K for the year ended February 28, 2018 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 our 2018 Annual Report on Form 10-K as filed with the U.S. Securities and Exchange Commission on May 10, 2018. In the opinion of our management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly our financial position at May 31, 2018 and our results of operations for the three months ended May 31, 2018 and 2017. The results of operations for such periods are not necessarily indicative of results to be expected for the full fiscal year. All intercompany transactions and accounts have been eliminated in consolidation. Revenue Recognition In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASC 606”). The new revenue recognition standard provides a five-step analytical framework for 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 or the modified retrospective method. We adopted the new standard effective March 1, 2018 using the modified retrospective method, which we applied to all contracts. We exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer. Products. In accordance with ASC 606, we recognize revenue from product sales when upon transfer of control of promised products to customers in an amount that reflects the transaction price, which is generally the stand-alone selling prices of the promised goods. For product shipments made on the basis of “FOB Destination” terms, revenue is recorded when the shipment reaches the customer. Customers generally do not have a right of return except for defective products returned during the warranty period. We record estimated commitments related to customer incentive programs as reductions of revenues. Professional Services. We also provide various professional services to customers. These include project management, engineering services, installation services and an on-going early warning automated notification service, which are typically distinct from other performance obligations and are recognized as the related services are performed. Software-as-a-Service (“SaaS”) and Platform-as-a-Service (“PaaS”). Our SaaS-based and PaaS-based subscriptions for our fleet management, vehicle finance and certain other verticals provide the customers with the ability to wirelessly communicate with monitoring devices installed in vehicles and other mobile or remote assets via software applications hosted by us. Generally, we defer the recognition of revenue for the products that are sold with application subscriptions. In such circumstances, the associated product costs are recorded as deferred costs in the balance sheet. The upfront fees for the devices are not distinct from the subscription service and are combined into the subscription service performance obligation. The upfront fees may provide a material right to the customer that has influence over the customers’ right to renew. Generally, these service arrangements do not provide the customer with the right to take possession of the software supporting the subscription service at any time. Revenues from subscription services are recognized ratably, on a straight-line basis, over the term of the subscription. Subscription renewal fees are recognized ratably over the term of the renewal. 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 the estimated average in-service lives of these devices, which are three years in the vehicle finance vertical and four years in the fleet management vertical. Our deferred contract revenue under ASC 606 does not include future subscription fees associated with customers’ unexercised contract renewal rights. Contract Balances. Timing of revenue recognition may differ from the timing on invoicing to customers. Contract liabilities are comprised of billings or payments received from our customers in advance of performance under the contract. We refer to these contract liabilities as “Deferred Revenues” in the accompanying condensed consolidated financial statements. During the three months ended May 31, 2018, we recognized $6.5 million in revenue from the beginning deferred revenue balance of $41.7 million. As of May 31, 2018, we have estimated remaining performance obligations for contractually committed revenues of $43.8 million, of which we expect to recognize approximately 46% over the next 12 months and the remainder thereafter. We have utilized the practical expedient to exclude contracts that have original durations of less than one year from the aforementioned remaining performance obligation disclosure. Cash and Cash Equivalents We consider all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of amounts due to us from sales arrangements that are executed in our normal business activities and are recorded at invoiced amounts. We present the aggregate accounts receivable balance net of an allowance for doubtful accounts. We mitigate a portion of our receivables credit risk through credit insurance. Generally, collateral and other security is not obtained for outstanding accounts receivable. Credit losses, if any, are recognized based on management’s evaluation of historical collection experience, customer-specific financial conditions as well as an evaluation of current industry trends and general economic conditions. Past due balances are assessed by management on a monthly basis, and balances are written off when the customer’s financial condition no longer warrants pursuit of collection. Although we expect to collect amounts due, actual collections may differ from estimated amounts. The allowance for doubtful accounts totaled $0.9 million and $1.2 million as of May 31, 2018 and February 28, 2018, respectively. Fair Value Measurements We apply 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. We define 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 arm’s-length transaction between market participants at the measurement date. Fair value is estimated by using the following hierarchy: 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. We have elected the fair value option for our investments 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. Patent Litigation and Other Contingencies We accrue for patent litigation and other contingencies whenever we determine that an unfavorable outcome is probable and a liability is reasonably estimable. The amount of the accrual is estimated based on a review of each claim, including the type and facts of the claim and our assessment of the merits of the claim. These accruals are reviewed at least on a quarterly basis and are adjusted to reflect the impact of recent negotiations, settlements, court rulings, advice from legal counsel and other events pertaining to the case. Such accruals, if any, are recorded as general and administrative expense in our consolidated statements of comprehensive income (loss). Although we take considerable measures to mitigate our exposure in these matters, litigation is inherently unpredictable. Nonetheless, we believe that we have valid defenses with respect to pending legal matters against us as well as adequate provisions for probable and estimable losses. Foreign Currency Translation We translate the assets and liabilities of our non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in accumulated other comprehensive income (loss) during the period. The aggregate foreign currency transaction exchange rate losses included in determining income (loss) before income taxes were immaterial for both of the three months periods ended May 31, 2018 and 2017. Recently Issued Accounting Standards In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2017-09, Compensation – Stock Compensation: Scope of Modification Accounting Compensation – Stock Compensation In January 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers Since the modified retrospective method does not result in recasting of the prior year financial statements, ASC 606 requires us to provide additional disclosures for the amount by which each financial statement line item was affected by adoption of the standard, with an explanation of the reasons for significant changes. The cumulative effect of the changes made to our consolidated balance sheet for the adoption of ASC 606 were as follows (in thousands): Balance at February 28, 2018 Topic ASC 606 Adjustments Balance at March 1, 2018 Assets Prepaid expenses and other current assets $ 12,000 1,891 $ 13,891 Deferred income tax assets 31,581 532 32,113 Other assets 18,829 3,145 21,974 Liabilities and Stockholders' Equity Deferred revenue $ 17,757 2,156 19,913 Other non-current liabilities 24,249 5,007 29,256 Stockholders' equity Accumulated deficit $ (19,459 ) (1,595 ) (21,054 ) In accordance with the requirements of ASC 606, the disclosure of the impact of adoption on our condensed consolidated balance sheet for the first quarter of current fiscal year was as follows: For the first quarter ended May 31, 2018 As reported Topic ASC 606 Adjustments Without ASC 606 Adoption Assets Prepaid expenses and other current assets $ 13,076 (1,766 ) $ 11,310 Deferred income tax assets 32,200 (532 ) 31,668 Other assets 23,407 (3,202 ) 20,205 Liabilities and Stockholders' Equity Deferred revenue $ 20,232 (1,809 ) 18,423 Other non-current liabilities 33,568 (5,212 ) 28,356 Stockholders' equity: Accumulated deficit $ (12,109 ) 1,575 (10,534 ) The impact of adopting ASC 606 on our condensed consolidated financial statements for the first quarter of the current fiscal year was immaterial.

CASH, CASH EQUIVALENTS AND INVE

CASH, CASH EQUIVALENTS AND INVESTMENTS	3 Months Ended
	May 31, 2018
Cash And Cash Equivalents [Abstract]
CASH, CASH EQUIVALENTS AND INVESTMENTS	NOTE 2 – CASH, CASH EQUIVALENTS AND INVESTMENTS The following tables summarize our financial instrument assets (in thousands): As of May 31, 2018 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 81,851 $ — $ 81,851 $ 81,851 $ — $ — Level 1: Money market funds 8,405 — 8,405 8,405 — — Mutual funds (1) 5,946 720 6,666 — — 6,666 International equities 309 4 313 — — 313 Level 2: Repurchase agreements 74,500 — 74,500 74,500 — — Corporate bonds 14,016 (2 ) 14,014 4,753 9,261 — Total $ 185,027 $ 722 $ 185,749 $ 169,509 $ 9,261 $ 6,979 As of February 28, 2018 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 51,529 $ — $ 51,529 $ 51,529 $ — $ — Level 1: Money market funds 9,034 — 9,034 9,034 — — Mutual funds (1) 4,920 721 5,641 — — 5,641 International equities 2,175 643 2,818 — 2,509 309 Level 2: Repurchase agreements 57,500 — 57,500 57,500 — — Corporate bonds 35,444 (13 ) 35,431 14,540 20,891 — Total $ 160,602 $ 1,351 $ 161,953 $ 132,603 $ 23,400 $ 5,950 (1) Amounts represent various equities, bond and money market mutual funds that are held in a “Rabbi Trust” and are restricted for payment obligations to non-qualified deferred compensation plan participants.

INVENTORIES

INVENTORIES	3 Months Ended
	May 31, 2018
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 3 - INVENTORIES Inventories consist of the following (in thousands): May 31, February 28, 2018 2018 Raw materials $ 16,974 $ 18,629 Work in process 340 567 Finished goods 15,243 17,106 $ 32,557 $ 36,302

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	May 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS Other intangible assets consist of the following (in thousands): Gross Accumulated Amortization Net Useful Life Feb. 28, 2018 Additions Other (1) May 31, 2018 Feb. 28, 2018 Expense May 31, 2018 May 31, 2018 Feb. 28, 2018 Developed technology 2-7 years $ 22,280 $ — $ — $ 22,280 $ 14,288 $ 990 $ 15,278 $ 7,002 $ 7,992 Tradenames 7-10 years 37,729 6 — 37,735 9,087 888 9,975 27,760 28,642 Customer lists 4-7 years 22,950 — — 22,950 19,623 420 20,043 2,907 3,327 Dealer relationships 7 years 16,850 — (507 ) 16,343 4,714 441 5,155 11,188 12,136 Patents 5 years 483 20 — 503 124 9 133 370 359 $ 100,292 $ 26 $ (507 ) $ 99,811 $ 47,836 $ 2,748 $ 50,584 $ 49,227 $ 52,456 Estimated future amortization expense as of May 31, 2018 is as follows (in thousands): 2019 (remainder) $ 8,727 2020 9,628 2012 7,806 2022 6,172 2023 5,952 Thereafter 10,942 $ 49,227 Changes in goodwill are as follows (in thousands): Three Months Ended May 31, 2018 2017 Balance at beginning of period $ 72,980 $ 72,980 Other (1) 304 — Balance at end of period $ 73,284 $ 72,980 (1) Amounts represent certain adjustments related to the LoJack acquisition.

OTHER ASSETS

OTHER ASSETS	3 Months Ended
	May 31, 2018
Other Assets Noncurrent Disclosure [Abstract]
OTHER ASSETS	NOTE 5 – OTHER ASSETS Other assets consist of the following (in thousands): Other Assets May 31, February 28, 2018 2018 Deferred compensation plan assets $ 6,666 $ 5,641 Investment in international licensees 2,353 2,349 Equity investment in and loan to ThinxNet GmbH 2,674 2,674 Equity investment in and loan to Smart Driver Club 3,342 3,814 Deferred contract cost 7,547 3,523 Other 825 828 $ 23,407 $ 18,829 We have 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 another date specified by them in accordance with the plan. We are funding the plan obligations through cash deposits to a Rabbi Trust that are invested in various equities, bond and money market mutual funds in generally the same proportion as investment elections made by the participants. The deferred compensation plan liability is included in other non-current liabilities in the accompanying consolidated balance sheets. In fiscal 2016, we invested £1,400,000 or approximately $2.2 million for a 49% minority ownership interest in Smart Driver Club Limited (“Smart Driver Club”), a telematics-based insurance startup company located in the United Kingdom. This investment is accounted for under the equity method since we have significant influence over the investee. To date we have made loans aggregating £4,200,000, and £500,000 was made in June 2018. The loans to Smart Driver Club bear interest at an annual interest rate of 8%, with all principal and all unpaid interest due in 2021. The foreign currency translation adjustment for the equity investment and loans amounted to $0.2 million as of May 31, 2018 and is included as a component of accumulated other comprehensive loss in the condensed consolidated balance sheet as of that date. Our equity in the net loss of Smart Driver Club amounted to $0.3 million and $0.3 million in the three months ended May 31, 2018 and 2017, respectively. To date, our equity in the cumulative net losses of Smart Driver Club is $3.9 million. Effective August 24, 2017, we acquired an ownership interest valued at $1.4 million in ThinxNet GmbH, a company headquartered in Munich, Germany (“ThinxNet”). ThinxNet is an early stage company focused on commercializing cloud-based mobile device and applications in the automotive sector throughout Europe. This represents a cost basis investment as we cannot exercise significant influence over the investee. Contemporaneously, we executed an unsecured convertible note receivable for $1.27 million with an interest rate of 6%, which has a fixed term of 12 months, after which the loan can be converted to equity in ThinxNet or a loan payable on demand at our option.

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS	3 Months Ended
	May 31, 2018
Debt Disclosure [Abstract]
FINANCING ARRANGEMENTS	NOTE 6 – FINANCING ARRANGEMENTS Revolving Credit Facility On March 30, 2018, we entered into a revolving credit facility with J.P. Morgan Chase Bank that provides for borrowings up to $50 million. This revolving credit facility expires on March 30, 2020. Borrowings under this revolving credit facility bear interest at either a Prime or LIBOR-based variable rate plus an applicable margin rate determined based on our senior leverage ratio from time to time. The net proceeds available under the revolving credit facility can be used for working capital and general corporate purposes. There were no borrowings outstanding on this revolving credit facility at May 31, 2018. The revolving credit facility contains certain negative and affirmative covenants including financial covenants that require us to maintain a minimum level of earnings before interest, income taxes, depreciation, amortization and other non-cash charges (Adjusted EBITDA) to interest ratio, a minimum senior indebtedness ratio and a total indebtedness coverage ratio, all measured on a quarterly basis. As of May 31, 2018, we were in compliance with our covenants under the revolving credit facility. 1.625% Convertible Senior Unsecured Notes As of May 31, 2018, we had outstanding $172.5 million aggregate principal amount of convertible senior unsecured notes (“Notes”). The Notes are senior unsecured obligations 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 mature on May 15, 2020 unless earlier converted or repurchased in accordance with their terms. We may not redeem the Notes prior to their stated maturity date and they will be convertible into cash, shares of our common stock or a combination of cash and shares of common stock, at our election, based on an initial conversion rate of 36.2398 shares of common stock per $1,000 principal amount. This ratio 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. Our intent is to settle the principal amount of the Notes in cash upon conversion. If the conversion value exceeds the principal amount, we would deliver shares of common stock in respect to the remainder of the 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 our common stock during each period. As of May 31, 2018, the conditions allowing holders of the Notes to convert have not been met. If we undergo a fundamental change (as defined in the Indenture), holders of the Notes may require us to repurchase their Notes at a repurchase price of 100% of the principal amount, plus accrued and unpaid interest, if any, up to but not including the fundamental change repurchase date. In addition, following certain corporate events that occur prior to maturity, we 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, 2018 2018 Principal $ 172,500 $ 172,500 Less: Unamortized debt discount (14,430 ) (16,143 ) Unamortized debt issuance costs (1,840 ) (2,058 ) Net carrying amount of the Notes $ 156,230 $ 154,299 The Notes are carried at their principal amount less unamortized debt discount and issuance costs, and are not carried at fair value at each period end. The approximate fair value of the Notes as of May 31, 2018 was $178.1 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.

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	3 Months Ended
	May 31, 2018
Restructuring And Related Activities [Abstract]
RESTRUCTURING CHARGES	NOTE 7 – RESTRUCTURING CHARGES In the first quarter of fiscal 2019, we commenced a plan to capture certain synergies and cost savings related to streamlining our global operations and sales organization, as well as rationalize certain leased properties that are not fully occupied. Our plan is aligned with our strategy to integrate the global sales organization and further outsource manufacturing functions in order to drive operational efficiency and reduce operating expenses. Effective May 31, 2018, we recorded approximately $0.9 million in severance and employee related costs, which were substantially all under the Telematics Systems reportable segment, as well as $2.5 million for vacant office and manufacturing facility space under Corporate Expenses. The anticipated rent payments for the vacant portion of leased facilities will be made through December 2025. There is no guarantee that the termination and cease use charges will not exceed the estimates or that the impact of future net costs reduction will be achieved. As of May 31, 2018, we have not made any payments for the restructuring charges.

INCOME TAXES

INCOME TAXES	3 Months Ended
	May 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 8 - INCOME TAXES We use the assets and liabilities method when accounting for income taxes. Under this method, deferred income tax asset and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Tax Cuts and Jobs Act (“The Act”) was enacted on December 22, 2017. At February 28, 2018, we determined a reasonable provisional estimate on our existing deferred tax balances and the one-time transition tax under the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118. At that time, we recognized a charge of $6.6 million as a component of our income tax expense principally related to the impact of remeasuring certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. At May 31, 2018, we had not completed our accounting for the tax effects of enactment of the Act and therefore, we are still analyzing certain aspects of the legislation and refining our calculations such as our current year estimates and filings of certain tax returns, which could affect the measurement of our deferred tax assets and liabilities. We are subject to taxation in the United States and various foreign jurisdictions. The material jurisdictions in which we are subject to potential examination include the United States, Italy and Ireland. Income tax returns for fiscal years 2014 through 2017 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. Most of our foreign subsidiaries’ tax returns for 2013 to present remain open for examination by the tax authorities in the countries in which they are filed. Tax returns filed in Italy from 2012 to present remain open for examination. Our 2010 and subsequent tax years remain open to examination in Ireland.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	May 31, 2018
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 9 - 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. The calculation of the basic and diluted income (loss) per share of common stock is as follows (in thousands, except per share value): Three Months Ended May 31, 2018 2017 Net income (loss) $ 8,511 $ (2,654 ) Basic weighted average number of common shares outstanding 35,458 35,068 Effect of stock options and restricted stock units computed on treasury stock method 995 — Diluted weighted average number of common shares outstanding 36,453 35,068 Earnings (loss) per share: Basic $ 0.24 $ (0.08 ) Diluted $ 0.23 $ (0.08 ) All outstanding options and restricted stock units for the three months ended May 31, 2017 were excluded from the computation of diluted earnings per share because we reported net losses for this quarter and the effect of inclusion would be antidilutive. We have the option to pay cash, issue shares of common stock, or any combination thereof for the aggregate amount due upon conversion of the Notes. Our 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 in excess of the principal amount of the Notes would be included in diluted earnings per share. From the time of the issuance of Notes, the average market price of our common stock has been less than the initial conversion price, 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, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
STOCK-BASED COMPENSATION	NOTE 10 – STOCK-BASED COMPENSATION Stock Repurchase On May 7, 2018, we announced that our Board of Directors authorized a share repurchase program under which we may repurchase up to $30 million of our outstanding common stock over the next 12 months. Under the stock repurchase program, we may repurchase shares in the open market. The extent to which we repurchase our shares and the timing of such repurchases will depend upon a variety of factors including market conditions, regulatory requirements and other corporate considerations. The repurchase program may be suspended or discontinued at any time. We expect to finance the purchase with existing cash balances. During the quarter ended May 31, 2018, we repurchased 0.3 million shares of our common stock at an average share price of $21.15 for a total cost of $5.7 million including commissions. All of the share repurchases were paid for and retired as of May 31, 2018. Equity Awards Stock-based compensation expense is included in the following captions of the condensed consolidated statements of comprehensive income (loss) (in thousands): Three Months Ended May 31, 2018 2017 Cost of revenues $ 177 $ 138 Research and development 365 234 Selling and marketing 571 386 General and administrative 1,354 1,059 $ 2,467 $ 1,817 Changes in our outstanding stock options during the three months ended May 31, 2018 were as follows (options in thousands): Number of Options Weighted Average Exercise Price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding at February 28, 2018 980 $ 11.29 5.9 Granted — — Exercised (38 ) 1.80 Forfeited or expired — — Outstanding at May 31, 2018 942 $ 11.67 5.9 $ 11,056 Exercisable at May 31, 2018 552 $ 7.93 4.1 $ 8,539 Changes in our outstanding restricted stock shares, performance stock units (“PSUs”) and restricted stock units (“RSUs”) during the three months ended May 31, 2018 were as follows (restricted shares, PSUs and RSUs in thousands): Number of Restricted Shares, PSUs and RSUs Weighted Average Grant Date Fair Value Shares Retained to Cover Statutory Minimum Withholding Taxes Outstanding at February 28, 2018 1,434 $ 17.72 Granted 18 22.45 Vested (32 ) 16.91 10 Forfeited (57 ) 17.53 Outstanding at May 31, 2018 1,363 $ 17.80 As of May 31, 2018, there was $18.8 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 2.8 years.

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	May 31, 2018
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
COMPREHENSIVE INCOME (LOSS)	NOTE 11 – COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) consists of two components, net income and Other Comprehensive Income (Loss) (“OCI”). OCI refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Our OCI consists of currency translation adjustments from our foreign subsidiaries that do not use the U.S. dollar as their functional currency and unrealized gains and losses on equity investments and marketable securities classified as available-for-sale. As described in Note 1, upon adoption of ASU 2016-01 on March 1, 2018, we reclassified an unrealized gain on available-for-sale securities from Accumulated Other Comprehensive Income (“AOCI”) to beginning accumulated deficit. The following table shows the changes in AOCI by component for the three months ended May 31, 2018 (in thousands): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Marketable Securities Total Balances at February 28, 2018 $ (628 ) $ 429 $ (199 ) Other comprehensive loss, net of tax 12 (429 ) (417 ) Balances at May 31, 2018 $ (616 ) $ - $ (616 )

CONCENTRATION OF RISK

CONCENTRATION OF RISK	3 Months Ended
	May 31, 2018
Risks And Uncertainties [Abstract]
CONCENTRATION OF RISK	NOTE 12 - CONCENTRATION OF RISK Significant Customers We sell telematics products to large global enterprises in the industrial equipment, telecommunications and automotive market verticals. Some of these customers accounted for more than 10% of our revenue or accounts receivable as follows: Three Months Ended May 31, 2018 2017 Net sales: Customer A 11.6 % 11.3 % May 31, February 28, 2018 2018 Accounts receivable: Customer A 15.4 % 14.9 % Customer B 6.9 % 13.0 % Customer B represents certain of our customers, which are considered affiliates under common control and collectively represent more than 6.9% of our accounts receivable at May 31, 2018. Through our history and presently we have dealt with separate purchasing departments for the individual customers and have at all times sold different products to each of them. Significant Suppliers We purchase a significant amount of our product inventory from certain manufacturers or suppliers including components, assemblies and electronic manufacturing parts. The inventory is purchased under standard supply agreements that outline the terms of the product delivery. The title and risk of loss of the product passes to us upon shipment from the manufacturers’ plant or warehouse. Some of these manufacturers accounted for more than 10% of our purchases and accounts payable as follows: Three Months Ended May 31, 2018 2017 Inventory purchases: Supplier A 28.4 % 45.7 % Supplier B 21.1 % 8.9 % May 31, February 28, 2018 2018 Accounts payable: Supplier A 32.8 % 40.5 % Supplier B 21.5 % 16.2 % We are currently reliant upon these suppliers for products. Although we believe that we can obtain products from other sources, the loss of a significant supplier could have a material impact on our financial condition and results of operations as the products that are being purchased may not be available on the similar terms from another supplier.

PRODUCT WARRANTIES

PRODUCT WARRANTIES	3 Months Ended
	May 31, 2018
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTIES	NOTE 13 - PRODUCT WARRANTIES All products have a one- or two-year limited warranty against manufacturing defects and workmanship. We estimate the future costs relating to product returns subject to our warranty and record a reserve upon shipment for our products. We periodically adjust our estimate for actual warranty claims and historical claims experience as well as the impact of known product operational issues. The warranty reserve is included in Other Current Liabilities in the consolidated balance sheets. Activity in the accrued warranty costs liability is as follows (in thousands): Three Months Ended May 31, 2018 2017 Balance at beginning of period $ 5,734 $ 6,518 Charged to costs and expenses 34 378 Deductions (328 ) (502 ) Balance at end of period $ 5,440 $ 6,394

OTHER FINANCIAL INFORMATION

OTHER FINANCIAL INFORMATION	3 Months Ended
	May 31, 2018
Other Financial Information [Abstract]
OTHER FINANCIAL INFORMATION	NOTE 14 – OTHER FINANCIAL INFORMATION Supplemental Balance Sheet Information Other current liabilities consist of the following (in thousands): May 31, February 28, 2018 2018 Warranty reserves $ 5,440 $ 5,734 Litigation reserve 17,987 17,559 Restructuring 861 - Other 7,253 8,395 $ 31,541 $ 31,688 Other non-current liabilities consist of the following (in thousands): May 31, February 28, 2018 2018 Deferred revenue $ 23,533 $ 16,763 Deferred compensation plan liability 6,668 5,642 Accrued restructuring costs 1,641 - Other 1,726 1,844 $ 33,568 $ 24,249 Supplemental Statement of Comprehensive Income (Loss) Information Interest expense consists of the following (in thousands): Three Months Ended May 31, 2018 2017 Interest expense on convertible senior unsecured notes: Stated interest at 1.625% per annum $ 701 $ 701 Amortization of note discount 1,713 1,610 Amortization of debt issue costs 218 206 2,632 2,517 Other interest expense 33 1 Total interest expense $ 2,665 $ 2,518 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, 2018 2017 Interest expense paid $ 1,402 $ 1,440 Income tax paid $ 47 $ 41

SEGMENT INFORMATION AND GEOGRAP

SEGMENT INFORMATION AND GEOGRAPHIC DATA	3 Months Ended
	May 31, 2018
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE 15 - SEGMENT INFORMATION AND GEOGRAPHIC DATA Our business activities is organized into two reportable segments –Telematics Systems and Software & Subscription Services. Our organizational structure is based on a number of factors that our CEO, the Chief Operating Decision Maker (“CODM”), uses to evaluate and operate the business, which include, but are not limited to, customer base, homogeneity of products and technology. The Telematics Systems segment offers a portfolio of wireless data communications products that includes asset tracking units, mobile telematics devices, fixed and mobile wireless gateways, and routers. These wireless networking devices underpin a wide range of our own and third party software and service solutions worldwide and are critical for applications demanding secure, reliable and business-critical communications. The Software & Subscription Services segment offers cloud-based, application enablement and telematics service platforms that facilitate integration of our own applications, as well as those of third parties, through open Applications Programing Interfaces (“APIs”) to deliver full-featured IoT solutions to a wide range of customers and markets. Our scalable proprietary SaaS offerings enable rapid and cost-effective deployment of high-value solutions for customers all around the globe. Segment information for the three months ended May 31, 2018 and 2017 is as follows (in thousands): Three Months Ended May 31, 2018 Three Months Ended May 31, 2017 Operating Segments Operating Segments Telematics Systems Software & Subscription Services Corporate Expenses Total Telematics Systems Software & Subscription Services Corporate Expenses Total Revenues $ 76,352 $ 18,536 $ — $ 94,888 $ 71,996 $ 16,085 $ — $ 88,081 Adjusted EBITDA $ 10,814 $ 2,922 $ (1,559 ) $ 12,177 $ 12,820 $ 1,221 $ (860 ) $ 13,181 The amount shown for each period in the “Corporate Expenses” column above consists of expenses that are not allocated to the business segments. These non-allocated corporate expenses include salaries and benefits of certain corporate staff and expenses such as audit fees, investor relations, stock listing fees, director and officer liability insurance, and director fees and expenses. Our CODM evaluates each segment based on earnings before interest, taxes, depreciation, amortization and certain other charges (“Adjusted EBITDA”) and we therefore consider Adjusted EBITDA to be a primary measure of operating performance of our operating segments. The adjustments to our net income (losses) prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) to calculate Adjusted EBITDA are itemized below (in thousands): Three Months Ended May 31, 2018 2017 Net income (loss) $ 8,511 $ (2,654 ) Investment income (853 ) (333 ) Interest expense 2,665 2,518 Income tax provision (benefits) 1,771 (1,080 ) Depreciation 2,043 2,025 Amortization of intangible assets 2,748 3,858 Stock-based compensation 2,467 1,817 Equity in net loss of affiliate 439 337 Restructuring charges 3,383 — Legal expenses for LoJack battery performance issue 1,686 497 Litigation provision 428 6,075 Gain on LoJack battery performance legal Settlement (13,333 ) — Other 222 121 Adjusted EBITDA $ 12,177 $ 13,181 It is not practicable for us to report identifiable assets by segment because these business units share resources, functions and facilities. We do not have significant long-lived assets outside the United States. Revenues by geographic area are as follows (in thousands): Three Months Ended May 31, 2018 2017 United States $ 70,417 $ 63,865 Europe, Middle East and Africa 13,344 11,162 South America 4,167 3,792 Canada 1,364 3,359 Asia and Pacific Rim 3,759 2,800 All other 1,837 3,103 $ 94,888 $ 88,081 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 us. No single non-U.S. country accounted for more than 10% of our revenue in the three months ended May 31, 2018 and 2017.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	3 Months Ended
	May 31, 2018
Commitments And Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	NOTE 16 – LEGAL PROCEEDINGS EVE battery claim On October 27, 2014, LoJack and LoJack Equipment Ireland DAC (“LJEI”), a wholly-owned subsidiary of LoJack, commenced arbitration proceedings against EVE Energy Co., Ltd. (“EVE”) by filing a notice of arbitration with a tribunal (the “Tribunal”) before the Hong Kong International Arbitration Centre (the “HKIAC”). LoJack and LJEI alleged that EVE breached representations and warranties made in supply agreements relating to the quality and performance of battery packs supplied by EVE. On June 2, 2017, we were notified that the Tribunal rendered a decision and awarded damages to us (the “Damage Award”) for EVE’s breach of contract. On June 9, 2017, we 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 us in the aggregate amount of approximately $46 million, which amount is net of attorneys’ fees and insurance subrogation payment (the “Settlement”). As of May 31, 2018, we had received approximately $41.3 million of the expected $46 million net amount, of which approximately $15 million was received in June 2017, $13 million was received in November 2017 and $13 million was received in April 2018. The Settlement amounts are reported as other non-operating income in our consolidated statement of comprehensive income for the fiscal year ended February 28, 2018 and the fiscal quarter ended May 31, 2018. Pursuant to the Settlement, we are due to receive an additional installment payment of approximately $5 million net of fees in the next few months. Other legal matters As previously disclosed on Form 10-K for the year ended February 28, 2018 that was filed with the U.S. Securities and Exchange Commission on May 10, 2018, the following are other outstanding legal matters: We filed motions with the court seeking judgment as a matter of law and for a new trial in response to the patent infringement lawsuit that Omega Patents, LLC, (“Omega”) filed against us. The court denied these motions and we then filed an appeal at the Court of Appeals for the Federal Circuit. We continue to believe that our products do not infringe any 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 our cash flows or results of operations. 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. The filing alleges breaches of the parties' license agreement, misrepresentations, and other violations. Tracker seeks monetary damages and recovery of attorneys' fees. On March 3, 2017, LoJack's Irish subsidiary filed its response to the notice, and counterclaims against Tracker for material breaches of the parties' license agreement and bad faith conduct. The arbitral tribunal was selected, the arbitration was conducted in March 2018, and the closing arguments were heard on June 25, 2018. We expect the arbitral panel will render its decision on or before October 31, 2018. While it is not feasible to predict with certainty the outcome of this litigation, the ultimate resolution could be material to our cash flows and results of operations. 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 us. In particular, in the ordinary course of business, we may receive claims concerning contract performance, or claims that our 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 our consolidated results of operations, financial condition and cash flows.

DESCRIPTION OF BUSINESS AND S23

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	May 31, 2018
Accounting Policies [Abstract]
Description of Business	Description of Business CalAmp Corp. (referred to herein as “CalAmp”, “the Company”, “we”, “our”, or “us”) is a telematics pioneer leading transformation in a global connected economy. We help reinvent businesses and improve lives around the globe with technology solutions that streamline complex Internet of Things (“IoT”) deployments through wireless connectivity solutions and derived data intelligence. Our software applications, scalable cloud services, and intelligent devices collect and assess business-critical data anywhere in the world from industrial machines, commercial and passenger vehicles, their passengers and contents. We are a global organization that is headquartered in Irvine, California. We operate under two reportable segments: Telematics Systems and Software & Subscription Services. Certain notes and other information included in the audited financial statements in our Annual Report on Form 10-K for the year ended February 28, 2018 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 our 2018 Annual Report on Form 10-K as filed with the U.S. Securities and Exchange Commission on May 10, 2018. In the opinion of our management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly our financial position at May 31, 2018 and our results of operations for the three months ended May 31, 2018 and 2017. The results of operations for such periods are not necessarily indicative of results to be expected for the full fiscal year. All intercompany transactions and accounts have been eliminated in consolidation.
Revenue Recognition	Revenue Recognition In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASC 606”). The new revenue recognition standard provides a five-step analytical framework for 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 or the modified retrospective method. We adopted the new standard effective March 1, 2018 using the modified retrospective method, which we applied to all contracts. We exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer. Products. In accordance with ASC 606, we recognize revenue from product sales when upon transfer of control of promised products to customers in an amount that reflects the transaction price, which is generally the stand-alone selling prices of the promised goods. For product shipments made on the basis of “FOB Destination” terms, revenue is recorded when the shipment reaches the customer. Customers generally do not have a right of return except for defective products returned during the warranty period. We record estimated commitments related to customer incentive programs as reductions of revenues. Professional Services. We also provide various professional services to customers. These include project management, engineering services, installation services and an on-going early warning automated notification service, which are typically distinct from other performance obligations and are recognized as the related services are performed. Software-as-a-Service (“SaaS”) and Platform-as-a-Service (“PaaS”). Our SaaS-based and PaaS-based subscriptions for our fleet management, vehicle finance and certain other verticals provide the customers with the ability to wirelessly communicate with monitoring devices installed in vehicles and other mobile or remote assets via software applications hosted by us. Generally, we defer the recognition of revenue for the products that are sold with application subscriptions. In such circumstances, the associated product costs are recorded as deferred costs in the balance sheet. The upfront fees for the devices are not distinct from the subscription service and are combined into the subscription service performance obligation. The upfront fees may provide a material right to the customer that has influence over the customers’ right to renew. Generally, these service arrangements do not provide the customer with the right to take possession of the software supporting the subscription service at any time. Revenues from subscription services are recognized ratably, on a straight-line basis, over the term of the subscription. Subscription renewal fees are recognized ratably over the term of the renewal. 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 the estimated average in-service lives of these devices, which are three years in the vehicle finance vertical and four years in the fleet management vertical. Our deferred contract revenue under ASC 606 does not include future subscription fees associated with customers’ unexercised contract renewal rights. Contract Balances. Timing of revenue recognition may differ from the timing on invoicing to customers. Contract liabilities are comprised of billings or payments received from our customers in advance of performance under the contract. We refer to these contract liabilities as “Deferred Revenues” in the accompanying condensed consolidated financial statements. During the three months ended May 31, 2018, we recognized $6.5 million in revenue from the beginning deferred revenue balance of $41.7 million. As of May 31, 2018, we have estimated remaining performance obligations for contractually committed revenues of $43.8 million, of which we expect to recognize approximately 46% over the next 12 months and the remainder thereafter. We have utilized the practical expedient to exclude contracts that have original durations of less than one year from the aforementioned remaining performance obligation disclosure.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of amounts due to us from sales arrangements that are executed in our normal business activities and are recorded at invoiced amounts. We present the aggregate accounts receivable balance net of an allowance for doubtful accounts. We mitigate a portion of our receivables credit risk through credit insurance. Generally, collateral and other security is not obtained for outstanding accounts receivable. Credit losses, if any, are recognized based on management’s evaluation of historical collection experience, customer-specific financial conditions as well as an evaluation of current industry trends and general economic conditions. Past due balances are assessed by management on a monthly basis, and balances are written off when the customer’s financial condition no longer warrants pursuit of collection. Although we expect to collect amounts due, actual collections may differ from estimated amounts. The allowance for doubtful accounts totaled $0.9 million and $1.2 million as of May 31, 2018 and February 28, 2018, respectively.
Fair Value Measurements	Fair Value Measurements We apply 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. We define 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 arm’s-length transaction between market participants at the measurement date. Fair value is estimated by using the following hierarchy: 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. We have elected the fair value option for our investments 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.
Patent Litigation and Other Contingencies	Patent Litigation and Other Contingencies We accrue for patent litigation and other contingencies whenever we determine that an unfavorable outcome is probable and a liability is reasonably estimable. The amount of the accrual is estimated based on a review of each claim, including the type and facts of the claim and our assessment of the merits of the claim. These accruals are reviewed at least on a quarterly basis and are adjusted to reflect the impact of recent negotiations, settlements, court rulings, advice from legal counsel and other events pertaining to the case. Such accruals, if any, are recorded as general and administrative expense in our consolidated statements of comprehensive income (loss). Although we take considerable measures to mitigate our exposure in these matters, litigation is inherently unpredictable. Nonetheless, we believe that we have valid defenses with respect to pending legal matters against us as well as adequate provisions for probable and estimable losses.
Foreign Currency Translation	Foreign Currency Translation We translate the assets and liabilities of our non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in accumulated other comprehensive income (loss) during the period. The aggregate foreign currency transaction exchange rate losses included in determining income (loss) before income taxes were immaterial for both of the three months periods ended May 31, 2018 and 2017.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2017-09, Compensation – Stock Compensation: Scope of Modification Accounting Compensation – Stock Compensation In January 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers Since the modified retrospective method does not result in recasting of the prior year financial statements, ASC 606 requires us to provide additional disclosures for the amount by which each financial statement line item was affected by adoption of the standard, with an explanation of the reasons for significant changes. The cumulative effect of the changes made to our consolidated balance sheet for the adoption of ASC 606 were as follows (in thousands): Balance at February 28, 2018 Topic ASC 606 Adjustments Balance at March 1, 2018 Assets Prepaid expenses and other current assets $ 12,000 1,891 $ 13,891 Deferred income tax assets 31,581 532 32,113 Other assets 18,829 3,145 21,974 Liabilities and Stockholders' Equity Deferred revenue $ 17,757 2,156 19,913 Other non-current liabilities 24,249 5,007 29,256 Stockholders' equity Accumulated deficit $ (19,459 ) (1,595 ) (21,054 ) In accordance with the requirements of ASC 606, the disclosure of the impact of adoption on our condensed consolidated balance sheet for the first quarter of current fiscal year was as follows: For the first quarter ended May 31, 2018 As reported Topic ASC 606 Adjustments Without ASC 606 Adoption Assets Prepaid expenses and other current assets $ 13,076 (1,766 ) $ 11,310 Deferred income tax assets 32,200 (532 ) 31,668 Other assets 23,407 (3,202 ) 20,205 Liabilities and Stockholders' Equity Deferred revenue $ 20,232 (1,809 ) 18,423 Other non-current liabilities 33,568 (5,212 ) 28,356 Stockholders' equity: Accumulated deficit $ (12,109 ) 1,575 (10,534 ) The impact of adopting ASC 606 on our condensed consolidated financial statements for the first quarter of the current fiscal year was immaterial.

DESCRIPTION OF BUSINESS AND S24

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	May 31, 2018
ASU 2014-09 [Member]
Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption	The cumulative effect of the changes made to our consolidated balance sheet for the adoption of ASC 606 were as follows (in thousands): Balance at February 28, 2018 Topic ASC 606 Adjustments Balance at March 1, 2018 Assets Prepaid expenses and other current assets $ 12,000 1,891 $ 13,891 Deferred income tax assets 31,581 532 32,113 Other assets 18,829 3,145 21,974 Liabilities and Stockholders' Equity Deferred revenue $ 17,757 2,156 19,913 Other non-current liabilities 24,249 5,007 29,256 Stockholders' equity Accumulated deficit $ (19,459 ) (1,595 ) (21,054 ) In accordance with the requirements of ASC 606, the disclosure of the impact of adoption on our condensed consolidated balance sheet for the first quarter of current fiscal year was as follows: For the first quarter ended May 31, 2018 As reported Topic ASC 606 Adjustments Without ASC 606 Adoption Assets Prepaid expenses and other current assets $ 13,076 (1,766 ) $ 11,310 Deferred income tax assets 32,200 (532 ) 31,668 Other assets 23,407 (3,202 ) 20,205 Liabilities and Stockholders' Equity Deferred revenue $ 20,232 (1,809 ) 18,423 Other non-current liabilities 33,568 (5,212 ) 28,356 Stockholders' equity: Accumulated deficit $ (12,109 ) 1,575 (10,534 )

CASH, CASH EQUIVALENTS AND IN25

CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables)	3 Months Ended
	May 31, 2018
Cash And Cash Equivalents [Abstract]
Schedule of Cash and Marketable Securities	The following tables summarize our financial instrument assets (in thousands): As of May 31, 2018 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 81,851 $ — $ 81,851 $ 81,851 $ — $ — Level 1: Money market funds 8,405 — 8,405 8,405 — — Mutual funds (1) 5,946 720 6,666 — — 6,666 International equities 309 4 313 — — 313 Level 2: Repurchase agreements 74,500 — 74,500 74,500 — — Corporate bonds 14,016 (2 ) 14,014 4,753 9,261 — Total $ 185,027 $ 722 $ 185,749 $ 169,509 $ 9,261 $ 6,979 As of February 28, 2018 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 51,529 $ — $ 51,529 $ 51,529 $ — $ — Level 1: Money market funds 9,034 — 9,034 9,034 — — Mutual funds (1) 4,920 721 5,641 — — 5,641 International equities 2,175 643 2,818 — 2,509 309 Level 2: Repurchase agreements 57,500 — 57,500 57,500 — — Corporate bonds 35,444 (13 ) 35,431 14,540 20,891 — Total $ 160,602 $ 1,351 $ 161,953 $ 132,603 $ 23,400 $ 5,950 (1) Amounts represent various equities, bond and money market mutual funds that are held in a “Rabbi Trust” and are restricted for payment obligations to non-qualified deferred compensation plan participants.

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	May 31, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following (in thousands): May 31, February 28, 2018 2018 Raw materials $ 16,974 $ 18,629 Work in process 340 567 Finished goods 15,243 17,106 $ 32,557 $ 36,302

GOODWILL AND OTHER INTANGIBLE27

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	May 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Other Intangible Assets	Other intangible assets consist of the following (in thousands): Gross Accumulated Amortization Net Useful Life Feb. 28, 2018 Additions Other (1) May 31, 2018 Feb. 28, 2018 Expense May 31, 2018 May 31, 2018 Feb. 28, 2018 Developed technology 2-7 years $ 22,280 $ — $ — $ 22,280 $ 14,288 $ 990 $ 15,278 $ 7,002 $ 7,992 Tradenames 7-10 years 37,729 6 — 37,735 9,087 888 9,975 27,760 28,642 Customer lists 4-7 years 22,950 — — 22,950 19,623 420 20,043 2,907 3,327 Dealer relationships 7 years 16,850 — (507 ) 16,343 4,714 441 5,155 11,188 12,136 Patents 5 years 483 20 — 503 124 9 133 370 359 $ 100,292 $ 26 $ (507 ) $ 99,811 $ 47,836 $ 2,748 $ 50,584 $ 49,227 $ 52,456
Schedule of Future Amortization Expense	Estimated future amortization expense as of May 31, 2018 is as follows (in thousands): 2019 (remainder) $ 8,727 2020 9,628 2012 7,806 2022 6,172 2023 5,952 Thereafter 10,942 $ 49,227
Schedule of Goodwill	Changes in goodwill are as follows (in thousands): Three Months Ended May 31, 2018 2017 Balance at beginning of period $ 72,980 $ 72,980 Other (1) 304 — Balance at end of period $ 73,284 $ 72,980 (1) Amounts represent certain adjustments related to the LoJack acquisition.

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	3 Months Ended
	May 31, 2018
Other Assets Noncurrent Disclosure [Abstract]
Schedule of Other Assets	Other assets consist of the following (in thousands): Other Assets May 31, February 28, 2018 2018 Deferred compensation plan assets $ 6,666 $ 5,641 Investment in international licensees 2,353 2,349 Equity investment in and loan to ThinxNet GmbH 2,674 2,674 Equity investment in and loan to Smart Driver Club 3,342 3,814 Deferred contract cost 7,547 3,523 Other 825 828 $ 23,407 $ 18,829

FINANCING ARRANGEMENTS (Tables)

FINANCING ARRANGEMENTS (Tables)	3 Months Ended
	May 31, 2018
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, 2018 2018 Principal $ 172,500 $ 172,500 Less: Unamortized debt discount (14,430 ) (16,143 ) Unamortized debt issuance costs (1,840 ) (2,058 ) Net carrying amount of the Notes $ 156,230 $ 154,299

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	May 31, 2018
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares	The calculation of the basic and diluted income (loss) per share of common stock is as follows (in thousands, except per share value): Three Months Ended May 31, 2018 2017 Net income (loss) $ 8,511 $ (2,654 ) Basic weighted average number of common shares outstanding 35,458 35,068 Effect of stock options and restricted stock units computed on treasury stock method 995 — Diluted weighted average number of common shares outstanding 36,453 35,068 Earnings (loss) per share: Basic $ 0.24 $ (0.08 ) Diluted $ 0.23 $ (0.08 )

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	May 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Stock-based Compensation Expense	Stock-based compensation expense is included in the following captions of the condensed consolidated statements of comprehensive income (loss) (in thousands): Three Months Ended May 31, 2018 2017 Cost of revenues $ 177 $ 138 Research and development 365 234 Selling and marketing 571 386 General and administrative 1,354 1,059 $ 2,467 $ 1,817
Summary of Stock Option Activity	Changes in our outstanding stock options during the three months ended May 31, 2018 were as follows (options in thousands): Number of Options Weighted Average Exercise Price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding at February 28, 2018 980 $ 11.29 5.9 Granted — — Exercised (38 ) 1.80 Forfeited or expired — — Outstanding at May 31, 2018 942 $ 11.67 5.9 $ 11,056 Exercisable at May 31, 2018 552 $ 7.93 4.1 $ 8,539
Summary of Restricted Stock Shares (RSU's), and Performance Stock Units (PSU's) Activity	Changes in our outstanding restricted stock shares, performance stock units (“PSUs”) and restricted stock units (“RSUs”) during the three months ended May 31, 2018 were as follows (restricted shares, PSUs and RSUs in thousands): Number of Restricted Shares, PSUs and RSUs Weighted Average Grant Date Fair Value Shares Retained to Cover Statutory Minimum Withholding Taxes Outstanding at February 28, 2018 1,434 $ 17.72 Granted 18 22.45 Vested (32 ) 16.91 10 Forfeited (57 ) 17.53 Outstanding at May 31, 2018 1,363 $ 17.80

COMPREHENSIVE INCOME (LOSS) (Ta

COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	May 31, 2018
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Income	The following table shows the changes in AOCI by component for the three months ended May 31, 2018 (in thousands): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Marketable Securities Total Balances at February 28, 2018 $ (628 ) $ 429 $ (199 ) Other comprehensive loss, net of tax 12 (429 ) (417 ) Balances at May 31, 2018 $ (616 ) $ - $ (616 )

CONCENTRATION OF RISK (Tables)

CONCENTRATION OF RISK (Tables)	3 Months Ended
	May 31, 2018
Risks And Uncertainties [Abstract]
Schedule of Significant Customers and Significant Suppliers Concentration Risk Percentage	Some of these customers accounted for more than 10% of our revenue or accounts receivable as follows: Three Months Ended May 31, 2018 2017 Net sales: Customer A 11.6 % 11.3 % May 31, February 28, 2018 2018 Accounts receivable: Customer A 15.4 % 14.9 % Customer B 6.9 % 13.0 % Some of these manufacturers accounted for more than 10% of our purchases and accounts payable as follows: Three Months Ended May 31, 2018 2017 Inventory purchases: Supplier A 28.4 % 45.7 % Supplier B 21.1 % 8.9 % May 31, February 28, 2018 2018 Accounts payable: Supplier A 32.8 % 40.5 % Supplier B 21.5 % 16.2 %

PRODUCT WARRANTIES (Tables)

PRODUCT WARRANTIES (Tables)	3 Months Ended
	May 31, 2018
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Liability	The warranty reserve is included in Other Current Liabilities in the consolidated balance sheets. Activity in the accrued warranty costs liability is as follows (in thousands): Three Months Ended May 31, 2018 2017 Balance at beginning of period $ 5,734 $ 6,518 Charged to costs and expenses 34 378 Deductions (328 ) (502 ) Balance at end of period $ 5,440 $ 6,394

OTHER FINANCIAL INFORMATION (Ta

OTHER FINANCIAL INFORMATION (Tables)	3 Months Ended
	May 31, 2018
Other Financial Information [Abstract]
Schedule of Supplemental Balance Sheet Information	Supplemental Balance Sheet Information Other current liabilities consist of the following (in thousands): May 31, February 28, 2018 2018 Warranty reserves $ 5,440 $ 5,734 Litigation reserve 17,987 17,559 Restructuring 861 - Other 7,253 8,395 $ 31,541 $ 31,688 Other non-current liabilities consist of the following (in thousands): May 31, February 28, 2018 2018 Deferred revenue $ 23,533 $ 16,763 Deferred compensation plan liability 6,668 5,642 Accrued restructuring costs 1,641 - Other 1,726 1,844 $ 33,568 $ 24,249
Schedule of Interest Expense	Supplemental Statement of Comprehensive Income (Loss) Information Interest expense consists of the following (in thousands): Three Months Ended May 31, 2018 2017 Interest expense on convertible senior unsecured notes: Stated interest at 1.625% per annum $ 701 $ 701 Amortization of note discount 1,713 1,610 Amortization of debt issue costs 218 206 2,632 2,517 Other interest expense 33 1 Total interest expense $ 2,665 $ 2,518
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, 2018 2017 Interest expense paid $ 1,402 $ 1,440 Income tax paid $ 47 $ 41

SEGMENT INFORMATION AND GEOGR36

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)	3 Months Ended
	May 31, 2018
Segment Reporting [Abstract]
Summary of Segment Information	Segment information for the three months ended May 31, 2018 and 2017 is as follows (in thousands): Three Months Ended May 31, 2018 Three Months Ended May 31, 2017 Operating Segments Operating Segments Telematics Systems Software & Subscription Services Corporate Expenses Total Telematics Systems Software & Subscription Services Corporate Expenses Total Revenues $ 76,352 $ 18,536 $ — $ 94,888 $ 71,996 $ 16,085 $ — $ 88,081 Adjusted EBITDA $ 10,814 $ 2,922 $ (1,559 ) $ 12,177 $ 12,820 $ 1,221 $ (860 ) $ 13,181
Summary of Adjusted EBITDA	The adjustments to our net income (losses) prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) to calculate Adjusted EBITDA are itemized below (in thousands): Three Months Ended May 31, 2018 2017 Net income (loss) $ 8,511 $ (2,654 ) Investment income (853 ) (333 ) Interest expense 2,665 2,518 Income tax provision (benefits) 1,771 (1,080 ) Depreciation 2,043 2,025 Amortization of intangible assets 2,748 3,858 Stock-based compensation 2,467 1,817 Equity in net loss of affiliate 439 337 Restructuring charges 3,383 — Legal expenses for LoJack battery performance issue 1,686 497 Litigation provision 428 6,075 Gain on LoJack battery performance legal Settlement (13,333 ) — Other 222 121 Adjusted EBITDA $ 12,177 $ 13,181
Summary of Revenues by Geographic Area	Revenues by geographic area are as follows (in thousands): Three Months Ended May 31, 2018 2017 United States $ 70,417 $ 63,865 Europe, Middle East and Africa 13,344 11,162 South America 4,167 3,792 Canada 1,364 3,359 Asia and Pacific Rim 3,759 2,800 All other 1,837 3,103 $ 94,888 $ 88,081

DESCRIPTION OF BUSINESS AND S37

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Millions	3 Months Ended
	May 31, 2018USD ($)Segment	Feb. 28, 2018USD ($)
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Number of reportable segments | Segment	2
Revenue recognized	$ 6.5
Unearned revenue		$ 41.7
Contracted not recognized revenue	43.8
Allowance for doubtful accounts	0.9	$ 1.2
ASU 2016-01 [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Reclassificiation of unrealized gain for available sale equity securities to accumulated deficit	$ 0.4
Vehicle Finance Vertical [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Deferred revenue contract in-service life	3 years
Fleet Management Vertical [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Deferred revenue contract in-service life	4 years

DESCRIPTION OF BUSINESS AND S38

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative 1) (Details) $ in Millions	3 Months Ended
	May 31, 2018USD ($)
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Contracted not recognized revenue	$ 43.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-06-01
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Revenue, remaining performance obligation expect to recognize in percentage	46.00%
Revenue, remaining Performance obligation, expected timing of satisfaction, period	12 months

DESCRIPTION OF BUSINESS AND S39

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption) (Details) - USD ($) $ in Thousands	May 31, 2018	Mar. 01, 2018	Feb. 28, 2018
Assets
Prepaid expenses and other current assets	$ 13,076		$ 12,000
Deferred income tax assets	32,200		31,581
Other assets	23,407		18,829
Liabilities and Stockholders' Equity
Deferred revenue	20,232		17,757
Other non-current liabilities	33,568		24,249
Stockholders' equity:
Accumulated deficit	(12,109)		$ (19,459)
ASU 2014-09 [Member]
Assets
Prepaid expenses and other current assets	11,310	$ 13,891
Deferred income tax assets	31,668	32,113
Other assets	20,205	21,974
Liabilities and Stockholders' Equity
Deferred revenue	18,423	19,913
Other non-current liabilities	28,356	29,256
Stockholders' equity:
Accumulated deficit	(10,534)	(21,054)
ASU 2014-09 [Member] | Topic ASC 606 Adjustments [Member]
Assets
Prepaid expenses and other current assets	(1,766)	1,891
Deferred income tax assets	(532)	532
Other assets	(3,202)	3,145
Liabilities and Stockholders' Equity
Deferred revenue	(1,809)	2,156
Other non-current liabilities	(5,212)	5,007
Stockholders' equity:
Accumulated deficit	$ 1,575	$ (1,595)

DESCRIPTION OF BUSINESS AND S40

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Impact of Adoption on Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands	May 31, 2018	Mar. 01, 2018	Feb. 28, 2018
Assets
Prepaid expenses and other current assets	$ 13,076		$ 12,000
Deferred income tax assets	32,200		31,581
Other assets	23,407		18,829
Liabilities and Stockholders' Equity
Deferred revenue	20,232		17,757
Other non-current liabilities	33,568		24,249
Stockholders' equity:
Accumulated deficit	(12,109)		$ (19,459)
ASU 2014-09 [Member]
Assets
Prepaid expenses and other current assets	11,310	$ 13,891
Deferred income tax assets	31,668	32,113
Other assets	20,205	21,974
Liabilities and Stockholders' Equity
Deferred revenue	18,423	19,913
Other non-current liabilities	28,356	29,256
Stockholders' equity:
Accumulated deficit	(10,534)	(21,054)
Topic ASC 606 Adjustments [Member] | ASU 2014-09 [Member]
Assets
Prepaid expenses and other current assets	(1,766)	1,891
Deferred income tax assets	(532)	532
Other assets	(3,202)	3,145
Liabilities and Stockholders' Equity
Deferred revenue	(1,809)	2,156
Other non-current liabilities	(5,212)	5,007
Stockholders' equity:
Accumulated deficit	$ 1,575	$ (1,595)

CASH, CASH EQUIVALENTS AND IN41

CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) $ in Thousands		May 31, 2018	Feb. 28, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		$ 185,027	$ 160,602
Unrealized Gains (Losses)		722	1,351
Fair Value		185,749	161,953
Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		169,509	132,603
Short Term Marketable Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		9,261	23,400
Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		6,979	5,950
Cash [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		81,851	51,529
Unrealized Gains (Losses)
Fair Value		81,851	51,529
Cash [Member] | Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		81,851	51,529
Cash [Member] | Short Term Marketable Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Cash [Member] | Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		8,405	9,034
Unrealized Gains (Losses)
Fair Value		8,405	9,034
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		8,405	9,034
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Short Term Marketable Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost	[1]	5,946	4,920
Unrealized Gains (Losses)	[1]	720	721
Fair Value	[1]	6,666	5,641
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[1]
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | Short Term Marketable Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[1]
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[1]	6,666	5,641
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		309	2,175
Unrealized Gains (Losses)		4	643
Fair Value		313	2,818
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Short Term Marketable Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value			2,509
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		313	309
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		74,500	57,500
Unrealized Gains (Losses)
Fair Value		74,500	57,500
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		74,500	57,500
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | Short Term Marketable Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Cost		14,016	35,444
Unrealized Gains (Losses)		(2)	(13)
Fair Value		14,014	35,431
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		4,753	14,540
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Short Term Marketable Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		9,261	20,891
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
[1]	Amounts represent various equities, bond and money market mutual funds that are held in a “Rabbi Trust” and are restricted for payment obligations to non-qualified deferred compensation plan participants.

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 16,974	$ 18,629
Work in process	340	567
Finished goods	15,243	17,106
Inventories	$ 32,557	$ 36,302

GOODWILL AND OTHER INTANGIBLE43

GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross, Beginning balance	$ 100,292
Additions	26
Other	(507)
Gross, Ending balance	99,811
Accumulated Amortization, Beginning balance	47,836
Expense	2,748	$ 3,858
Accumulated Amortization, Ending balance	50,584
Net ending	49,227
Net beginning	52,456
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Gross, Beginning balance	22,280
Additions
Other
Gross, Ending balance	22,280
Accumulated Amortization, Beginning balance	14,288
Expense	990
Accumulated Amortization, Ending balance	15,278
Net ending	7,002
Net beginning	$ 7,992
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]
Gross, Beginning balance	$ 37,729
Additions	6
Other
Gross, Ending balance	37,735
Accumulated Amortization, Beginning balance	9,087
Expense	888
Accumulated Amortization, Ending balance	9,975
Net ending	27,760
Net beginning	$ 28,642
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]
Gross, Beginning balance	$ 22,950
Additions
Other
Gross, Ending balance	22,950
Accumulated Amortization, Beginning balance	19,623
Expense	420
Accumulated Amortization, Ending balance	20,043
Net ending	2,907
Net beginning	$ 3,327
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
Gross, Beginning balance	$ 16,850
Additions
Other	(507)
Gross, Ending balance	16,343
Accumulated Amortization, Beginning balance	4,714
Expense	441
Accumulated Amortization, Ending balance	5,155
Net ending	11,188
Net beginning	$ 12,136
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period	5 years
Gross, Beginning balance	$ 483
Additions	20
Other
Gross, Ending balance	503
Accumulated Amortization, Beginning balance	124
Expense	9
Accumulated Amortization, Ending balance	133
Net ending	370
Net beginning	$ 359

GOODWILL AND OTHER INTANGIBLE44

GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2018
Fiscal Year
2019 (remainder)	$ 8,727
2,020	9,628
2,012	7,806
2,022	6,172
2,023	5,952
Thereafter	10,942
Net	$ 49,227	$ 52,456

GOODWILL AND OTHER INTANGIBLE45

GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Goodwill) (Details) - USD ($) $ in Thousands		3 Months Ended
		May 31, 2018	May 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Balance at beginning of period		$ 72,980	$ 72,980
Other	[1]	304
Balance at end of period		$ 73,284	$ 72,980
[1]	Amounts represent certain adjustments related to the LoJack acquisition.

OTHER ASSETS (Schedule of Other

OTHER ASSETS (Schedule of Other Assets) (Details) - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2018
Other Assets Non Current [Line Items]
Deferred compensation plan assets	$ 6,666	$ 5,641
Investment in international licensees	2,353	2,349
Deferred contract cost	7,547	3,523
Other	825	828
Total	23,407	18,829
ThinxNet GmbH [Member]
Other Assets Non Current [Line Items]
Equity investment in and loan to equity investee	2,674	2,674
Smart Driver Club Limited [Member]
Other Assets Non Current [Line Items]
Equity investment in and loan to equity investee	$ 3,342	$ 3,814

OTHER ASSETS (Details)

OTHER ASSETS (Details) $ in Thousands	1 Months Ended		3 Months Ended		12 Months Ended		29 Months Ended
	Jun. 30, 2018GBP (£)	Aug. 24, 2017USD ($)	May 31, 2018USD ($)	May 31, 2017USD ($)	Feb. 29, 2016USD ($)	Feb. 29, 2016GBP (£)	May 31, 2018USD ($)	May 31, 2018GBP (£)	Feb. 28, 2018USD ($)
Schedule of Equity Method Investments [Line Items]
Foreign currency cumulative translation adjustment			$ 17	$ 81
Equity in net loss of affiliate			439	337
Ownership in cost method investments			$ 2,353				$ 2,353		$ 2,349
ThinxNet [Member]
Schedule of Equity Method Investments [Line Items]
Ownership in cost method investments		$ 1,400
Unsecured convertible note receivable		$ 1,270
Interest rate on notes receivable		6.00%
Notes receivables term		12 months
Smart Driver Club Limited [Member]
Schedule of Equity Method Investments [Line Items]
Investment in equity method investment					$ 2,200	£ 1,400,000
Ownership percentage of equity-method investments			49.00%				49.00%	49.00%
Loan made to date | £								£ 4,200,000
Loan made to during the current period | £	£ 500,000
Interest rate on advance			8.00%
Foreign currency cumulative translation adjustment			$ 200
Equity in net loss of affiliate			$ 300	$ 300			$ 3,900

FINANCING ARRANGEMENTS (Details

FINANCING ARRANGEMENTS (Details) $ / shares in Units, shares in Millions	Mar. 30, 2018USD ($)	May 31, 2018USD ($)$ / sharesshares	May 31, 2017
Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount		$ 172,500,000
Interest rate (as a percent)		1.625%	1.625%
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
Fair value of the Notes		$ 178,100,000
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 50,000,000
Maturity date	Mar. 30, 2020
Borrowings outstanding		$ 0

FINANCING ARRANGEMENTS (Schedul

FINANCING ARRANGEMENTS (Schedule of Balances Attributable to Notes) (Details) - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2018
Debt Instrument [Line Items]
Net carrying amount of the Notes	$ 156,230	$ 154,299
Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Principal	172,500	172,500
Less: Unamortized debt discount	(14,430)	(16,143)
Unamortized debt issuance costs	(1,840)	(2,058)
Net carrying amount of the Notes	$ 156,230	$ 154,299

RESTRUCTURING CHARGES (Narrativ

RESTRUCTURING CHARGES (Narrative) (Details) $ in Millions	1 Months Ended
	May 31, 2018USD ($)
Corporate Expenses [Member]
Restructuring Cost And Reserve [Line Items]
Severance and employee related costs	$ 2.5
Telematics Systems [Member]
Restructuring Cost And Reserve [Line Items]
Severance and employee related costs	$ 0.9

INCOME TAXES (Details)

INCOME TAXES (Details) $ in Millions	3 Months Ended
	May 31, 2018USD ($)
Income Tax Disclosure [Abstract]
Tax Cuts and Jobs Act, Income tax expense	$ 6.6

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Earnings Per Share [Abstract]
Net income (loss)	$ 8,511	$ (2,654)
Basic weighted average number of common shares outstanding	35,458	35,068
Effect of stock options and restricted stock units computed on treasury stock method	995
Diluted weighted average number of common shares outstanding	36,453	35,068
Earnings (loss) per share:
Basic	$ 0.24	$ (0.08)
Diluted	$ 0.23	$ (0.08)

EARNINGS PER SHARE (Narrative)

EARNINGS PER SHARE (Narrative) (Details) - shares	3 Months Ended
	May 31, 2018	May 31, 2017
Earnings Per Share [Abstract]
Diluted earnings per share for the conversion value of the notes	0	0

STOCK-BASED COMPENSATION (Narra

STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions	May 07, 2018	May 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock repurchase program, authorized amount	$ 30,000,000
Share repurchase program period	12 months
Number of shares repurchased		0.3
Average cost per share		$ 21.15
Stock repurchased cost including commissions		$ 5,710,000
Unrecognized share-based compensation cost		$ 18,800,000
Unrecognized compensation cost, recognition period		2 years 9 months 18 days

STOCK-BASED COMPENSATION (Sched

STOCK-BASED COMPENSATION (Schedule of Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 2,467	$ 1,817
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	177	138
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	365	234
Selling and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	571	386
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 1,354	$ 1,059

STOCK-BASED COMPENSATION (Summa

STOCK-BASED COMPENSATION (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	May 31, 2018	Feb. 28, 2018
Number of Options
Outstanding, beginning balance	980
Granted
Exercised	(38)
Forfeited or expired
Outstanding, ending balance	942	980
Exercisable	552
Weighted Average Exercise Price
Outstanding, beginning balance	$ 11.29
Granted
Exercised	1.80
Forfeited or expired
Outstanding, ending balance	11.67	$ 11.29
Exercisable	$ 7.93
Weighted average remaining contractual life, Outstanding	5 years 10 months 24 days	5 years 10 months 24 days
Weighted average remaining contractual life, Exercisable	4 years 1 month 6 days
Aggregate intrinsic value, Outstanding	$ 11,056
Aggregate intrinsic value, Exercisable	$ 8,539

STOCK-BASED COMPENSATION (Sum57

STOCK-BASED COMPENSATION (Summary of Restricted Stock Shares and RSUs Activity) (Details) shares in Thousands	3 Months Ended
	May 31, 2018$ / sharesshares
Number of Restricted Shares, PSUs and RSUs
Outstanding, beginning balance	1,434
Granted	18
Vested	(32)
Forfeited	(57)
Outstanding, ending balance	1,363
Weighted Average Grant Date Fair Value
Outstanding, beginning balance | $ / shares	$ 17.72
Granted | $ / shares	22.45
Vested | $ / shares	16.91
Forfeited | $ / shares	17.53
Outstanding, ending balance | $ / shares	$ 17.80
Vested, Shares Retained to Cover Statutory Minimum Withholding Taxes	10

COMPREHENSIVE INCOME (LOSS) (Sc

COMPREHENSIVE INCOME (LOSS) (Schedule of Accumulated Other Comprehensive Income) (Details) $ in Thousands	3 Months Ended
	May 31, 2018USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances at February 28, 2018	$ (199)
Other comprehensive loss, net of tax	(417)
Balances at May 31, 2018	(616)
Cumulative Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances at February 28, 2018	(628)
Other comprehensive loss, net of tax	12
Balances at May 31, 2018	(616)
Unrealized Gains/Losses on Marketable Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances at February 28, 2018	429
Other comprehensive loss, net of tax	(429)
Balances at May 31, 2018	$ 0

CONCENTRATION OF RISK - Schedul

CONCENTRATION OF RISK - Schedule of Significant Customers and Significant Suppliers Concentration Risk Percentage (Details)	3 Months Ended		12 Months Ended
	May 31, 2018	May 31, 2017	Feb. 28, 2018
Net Sales [Member] | Customer Concentration Risk | Customer A [Member]
Concentration Risk [Line Items]
Concentration percentage	11.60%	11.30%
Accounts Receivable [Member] | Customer Concentration Risk | Customer A [Member]
Concentration Risk [Line Items]
Concentration percentage	15.40%		14.90%
Accounts Receivable [Member] | Customer Concentration Risk | Customer B
Concentration Risk [Line Items]
Concentration percentage	6.90%		13.00%
Inventory Purchases [Member] | Supplier Concentration Risk [Member] | Supplier A [Member]
Concentration Risk [Line Items]
Concentration percentage	28.40%	45.70%
Inventory Purchases [Member] | Supplier Concentration Risk [Member] | Supplier B [Member]
Concentration Risk [Line Items]
Concentration percentage	21.10%	8.90%
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier A [Member]
Concentration Risk [Line Items]
Concentration percentage	32.80%		40.50%
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier B [Member]
Concentration Risk [Line Items]
Concentration percentage	21.50%		16.20%

CONCENTRATION OF RISK (Details)

CONCENTRATION OF RISK (Details)	3 Months Ended	12 Months Ended
	May 31, 2018	Feb. 28, 2018
Accounts Receivable [Member] | Customer Concentration Risk | Customer B
Concentration Risk [Line Items]
Concentration percentage	6.90%	13.00%

PRODUCT WARRANTIES (Details)

PRODUCT WARRANTIES (Details)	3 Months Ended
	May 31, 2018
Minimum [Member]
Valuation And Qualifying Accounts Disclosure [Line Items]
Warranty Term	1 year
Maximum [Member]
Valuation And Qualifying Accounts Disclosure [Line Items]
Warranty Term	2 years

Product Warranties - Activity i

Product Warranties - Activity in Accrued Warranty Costs Liability (Details) - Warranty Reserves [Member] - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 5,734	$ 6,518
Charged to costs and expenses	34	378
Deductions	(328)	(502)
Balance at end of period	$ 5,440	$ 6,394

OTHER FINANCIAL INFORMATION (Sc

OTHER FINANCIAL INFORMATION (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2018
Other Financial Information Schedule Of Other Current Liabilities Details [Abstract]
Warranty reserves	$ 5,440	$ 5,734
Litigation reserve	17,987	17,559
Restructuring	861
Other	7,253	8,395
Total other current liabilities	$ 31,541	$ 31,688

OTHER FINANCIAL INFORMATION (64

OTHER FINANCIAL INFORMATION (Schedule of Other Non-Current Liabilities) (Details) - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2018
Other Financial Information [Abstract]
Deferred revenue	$ 23,533	$ 16,763
Deferred compensation plan liability	6,668	5,642
Accrued restructuring costs	1,641
Other	1,726	1,844
Total other non-current liabilities	$ 33,568	$ 24,249

OTHER FINANCIAL INFORMATION (65

OTHER FINANCIAL INFORMATION (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Interest expense on convertible senior unsecured notes:
Stated interest at 1.625% per annum	$ 701	$ 701
Amortization of note discount	1,713	1,610
Amortization of debt issue costs	218	206
Interest expense on convertible notes	2,632	2,517
Other interest expense	33	1
Total interest expense	$ 2,665	$ 2,518
Convertible Senior Notes [Member]
Condensed Income Statements, Captions [Line Items]
Interest rate (as a percent)	1.625%	1.625%

OTHER FINANCIAL INFORMATION (66

OTHER FINANCIAL INFORMATION (Schedule of Cash Payments for Interest and Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Other Financial Information [Abstract]
Interest expense paid	$ 1,402	$ 1,440
Income tax paid	$ 47	$ 41

SEGMENT INFORMATION AND GEOGR67

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Details)	3 Months Ended
	May 31, 2018Segment
Segment Reporting [Abstract]
Number of reportable segments	2

SEGMENT INFORMATION AND GEOGR68

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Schedule of Segment Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Segment Reporting Information [Line Items]
Revenues	$ 94,888	$ 88,081
Adjusted EBITDA	12,177	13,181
Operating Segments [Member] | Telematics Systems [Member]
Segment Reporting Information [Line Items]
Revenues	76,352	71,996
Adjusted EBITDA	10,814	12,820
Operating Segments [Member] | Software & Subscription Services [Member]
Segment Reporting Information [Line Items]
Revenues	18,536	16,085
Adjusted EBITDA	2,922	1,221
Corporate Expenses [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	$ (1,559)	$ (860)

SEGMENT INFORMATION AND GEOGR69

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Summary of Adjusted EBITDA) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Segment Information Summary Of Adjustments Results Of Ebitda Details [Abstract]
Net income (loss)	$ 8,511	$ (2,654)
Investment income	(853)	(333)
Interest expense	2,665	2,518
Income tax provision (benefits)	1,771	(1,080)
Depreciation	2,043	2,025
Intangible asset amortization	2,748	3,858
Stock-based compensation	2,467	1,817
Equity in net loss of affiliate	439	337
Restructuring charges	3,383
Legal expenses for LoJack battery performance issue	1,686	497
Litigation provision	428	6,075
Gain on LoJack battery performance legal Settlement	(13,333)
Other	222	121
Adjusted EBITDA	$ 12,177	$ 13,181

SEGMENT INFORMATION AND GEOGR70

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Summary of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Segment Reporting Information [Line Items]
Revenues	$ 94,888	$ 88,081
United States [Member]
Segment Reporting Information [Line Items]
Revenues	70,417	63,865
Europe, Middle East and Africa [Member]
Segment Reporting Information [Line Items]
Revenues	13,344	11,162
South America [Member]
Segment Reporting Information [Line Items]
Revenues	4,167	3,792
Canada [Member]
Segment Reporting Information [Line Items]
Revenues	1,364	3,359
Asia and Pacific Rim [Member]
Segment Reporting Information [Line Items]
Revenues	3,759	2,800
All other [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1,837	$ 3,103

LEGAL PROCEEDINGS (Legal Procee

LEGAL PROCEEDINGS (Legal Proceedings) (Details) - USD ($) $ in Millions	Jun. 09, 2017	Jul. 31, 2018	Apr. 30, 2018	Nov. 30, 2017	Jun. 30, 2017	May 31, 2018
EVE Holdings Limited [Member]
Gain Contingencies [Line Items]
Amount of damages sought by company in litigation matter	$ 46
Proceeds from litigation settlement			$ 13	$ 13	$ 15	$ 41.3
LoJack [Member] | Scenario, Forecast [Member]
Gain Contingencies [Line Items]
Proceeds from litigation settlement		$ 5