Exhibit 99.1
NEWS BULLETIN
FROM:
Financial Relations Board RE: CalAmp Corp.
1401 N. Rice Avenue
Oxnard, CA 93030
Nasdaq: CAMP
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For Further Information:
AT THE COMPANY: AT FINANCIAL RELATIONS BOARD:
Rick Vitelle Lasse Glassen
Chief Financial Officer General Information
(805)987-9000 (310)854-8313
lglassen@financialrelationsboard.com
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FOR IMMEDIATE RELEASE
May 9, 2006
CalAmp to Acquire Dataradio, Inc.
* Expands CalAmp's presence in public safety and
Machine-to-Machine(M2M) markets
* Significantly diversifies CalAmp customer base
* Expected to be accretive in near term
OXNARD, CA, May 9, 2006 CalAmp Corp. (Nasdaq: CAMP), a leading provider of
wireless solutions, announced today that it has signed a definitive agreement
to acquire Dataradio, Inc., a privately held Canadian company. This
acquisition provides CalAmp with the opportunity to expand its wireless data
communications business for public safety and M2M applications. It also
furthers CalAmp's strategic goals of diversifying its customer base and
expanding its product offerings into higher-margin growth markets. Excluding
one-time non-cash charges for the write-off of in-process R&D, the
transaction is expected to be immediately accretive to CalAmp's earnings per
share.
Dataradio was founded in 1981 and is a leading supplier of proprietary
advanced wireless data systems, products, and solutions for public safety,
critical infrastructure and industrial control applications. Dataradio has a
diversified customer base with no single customer accounting for more than 4%
of total revenue. Dataradio has approximately 175 employees in facilities
located in Montreal, Minnesota and Georgia. For the unaudited 12 month
period ended April 30, 2006, Dataradio had revenues of approximately U.S. $32
million. During this same period, Dataradio generated gross margins in
excess of 50%.
Commenting on the pending acquisition of Dataradio, Fred Sturm, President and
Chief Executive Officer of CalAmp, said, "Dataradio brings us a critical mass
of core competencies and market presence around which we can further develop
and grow our wireless data communications business. Dataradio's systems
design and integration expertise, combined with a broad base of industrial
and municipal customers, greatly enhances CalAmp's competitive position and
long-term growth potential. Once combined with CalAmp's existing businesses
that provide wireless products and solutions for M2M and public safety
applications, we expect our data communications business will have an annual
revenue run rate in excess of $60 million. The Dataradio acquisition is a
key step in achieving our strategic goals of reducing CalAmp's current
customer and market segment concentration, improving margins and increasing
our long-term growth potential while maintaining solid operating cash flow
generation. We are excited about the opportunity to combine the strengths of
our two companies in addressing the needs of the growing M2M and public
safety marketplaces."
Commenting on the acquisition, Robert Rouleau, Chief Executive Officer of
Dataradio, said, "We are very pleased to be joining forces with CalAmp, a
company with a long, successful history of delivering cost-effective high
quality solutions to its wireless customers. With our combined resources, we
are well positioned for continued innovation and growth. We look forward to
delivering even greater value to our customers in the future as we create a
new standard for mission-critical wireless data solutions."
The terms of the definitive agreement provide that CalAmp will acquire
Dataradio for a cash payment of Canadian $60.1 million (approximately U.S.
$54.6 million at the current Canadian Dollar to U.S. Dollar exchange rate of
1.10). CalAmp plans to finance the transaction using a combination of cash
on hand and bank debt. The transaction is subject to customary closing
conditions and is expected to be completed in the next several weeks.
About Dataradio
For 25 years, Dataradio has been a recognized and innovative supplier of
advanced wireless data products and systems for mission-critical
applications. Public safety organizations, utilities, local government, water
management, and other critical infrastructure operations depend on Dataradio
to ensure that vital wireless data reaches the people who need it, when they
need it most. From mobile data systems and radio modems, to analog radios and
telemetry devices, Dataradio products are found at the heart of private
wireless networks around the world. For additional information, please visit
the Dataradio's website at www.dataradio.com.
About CalAmp Corp.
CalAmp is a leading provider of wireless equipment, engineering services and
software that enable anytime/anywhere access to critical information, data
and entertainment content. With comprehensive capabilities ranging from
product design and development through volume production, CalAmp delivers
cost-effective high quality solutions to a broad array of customers and end
markets. CalAmp is the leading supplier of Direct Broadcast Satellite (DBS)
outdoor customer premise equipment to the U.S. satellite television market.
The Company also provides wireless connectivity solutions for the telemetry
and asset tracking markets, public safety communications, the healthcare
industry and digital multimedia delivery applications. For additional
information, please visit the Company's website at www.calamp.com.
Forward-Looking Statement
Statements in this press release that are not historical in nature are
forward-looking statements, which involve known and unknown risks and
uncertainties. Words such as "may", "will", "expect", "intend", "plan",
"believe", "seek", "could", "estimate", "judgment", "targeting", "should",
and variations of these words and similar expressions, are intended to
identify forward-looking statements. Actual results could differ materially
from those implied by such forward-looking statements due to a variety of
factors, including general and industry economic conditions, competition,
development factors, operating costs, the Company's ability to eliminate
operating losses in its Solutions Division and make this business segment
profitable, the Company's ability to efficiently and cost-effectively
integrate its acquired businesses, and other risks and uncertainties that are
detailed from time to time in the Company's filings with the Securities and
Exchange Commission. Although the Company believes the expectations reflected
in such forward-looking statements are based upon reasonable assumptions, it
can give no assurance that its expectations will be attained. The Company
undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
*****
Financial Relations Board serves as financial relations counsel to this
company, is acting on the company's behalf in issuing this bulletin and
receiving compensation therefor. The information contained herein is
furnished for information purposes only and is not to be construed as an
offer to buy or sell securities.