EXHIBIT 99.1
NEWS BULLETIN
FROM:
CalAmp logo
FOR IMMEDIATE RELEASE
CalAmp Reports Fiscal 2009 First Quarter Results
OXNARD, Calif., July 10, 2008--CalAmp Corp. (Nasdaq: CAMP), a leading
provider of wireless products, services and solutions, today reported results
for its fiscal 2009 first quarter ended May 31, 2008. Key elements include:
Consolidated first quarter revenues of $27.9 million; wireless
datacom revenues of $20.3 million.
GAAP loss from continuing operations of $0.5 million, or $0.02 loss
per basic and diluted share; Adjusted basis (non-GAAP) income from
continuing operations of $0.3 million or $0.01 income per basic and
diluted share.
Consolidated gross margin percentage of 33.8%; wireless datacom gross
margin of 42.9%.
Net cash provided by operations of $1.8 million.
Resumed DBS product shipments to historically largest customer.
Rick Gold, CalAmp's President and Chief Executive Officer, commented,
"Overall, the Company's first quarter operating performance was solid. Top-
line results were impacted by lower than expected sales of our satellite
products. However, I am very pleased with the contributions from our
wireless datacom business that helped push the Company's overall gross margin
percentage to 33.8%, representing CalAmp's highest quarterly gross margin
result in recent memory."
Mr. Gold added, "I am encouraged with the progress we made during this latest
quarter towards our goal of returning CalAmp to profitability. Although
revenue came in just under our guidance range for the quarter, both the GAAP
and non-GAAP income/loss per share amounts were better than the respective
guidance ranges. Furthermore, recent actions to combine our former Satellite
and Wireless DataCom Divisions into one streamlined operating unit are
expected to leverage CalAmp's full range of engineering and operational
resources while improving operating efficiencies in fiscal 2009 and beyond."
Mr. Gold continued, "As previously announced, we resumed shipments of latest
generation Direct Broadcast Satellite (DBS) products to our historically
largest customer during the first quarter. To date, initial product
shipments have been modest, however, we expect that unit volume with this
customer will ramp higher over the next several quarters. Resolving this
issue has been a top priority and with this initial milestone behind us, we
will work to rebuild our competitive position in the DBS market."
Fiscal 2009 First Quarter Results
Total revenue for the fiscal 2009 first quarter was $27.9 million compared to
$46.4 million for the first quarter of fiscal 2008. The reduction in
revenues was due primarily to significantly lower sales of the Company's
satellite products.
Gross profit for the fiscal 2009 first quarter was $9.4 million, or 33.8% of
revenues compared to gross loss of $5.4 million for the same period last
year. The improvement in gross profit and gross margin percentage in the
latest quarter was due primarily to a $16 million charge recorded in the same
period last year for estimated product warranty and related costs associated
with the Company's satellite products.
Results of operations for the fiscal 2009 first quarter as determined in
accordance with U.S. Generally Accepted Accounting Principles ("GAAP") was a
loss from continuing operations of $0.5 million, or $0.02 loss per basic and
diluted share. This compares to a loss from continuing operations of $10.9
million, or $0.46 loss per basic and diluted share, in the first quarter of
last year.
The Adjusted Basis (non-GAAP) income from continuing operations for the
fiscal 2009 first quarter was $0.3 million, or $0.01 income per basic and
diluted share compared to Adjusted Basis loss from continuing operations of
$9.4 million or $0.40 loss per basic and diluted share for the same period
last year. Adjusted Basis income (loss) from continuing operations excludes
the impact of amortization of intangible assets, stock-based compensation
expense and in-process research and development, each net of tax. A
reconciliation of the GAAP basis income (loss) from continuing operations to
Adjusted Basis income (loss) from continuing operations is provided in the
table at the end of this press release.
Liquidity
At May 31, 2008, the Company had total cash of $7.2 million, with $27.1
million in total outstanding bank debt and a $5 million note payable to a key
DBS customer. Net cash provided by operating activities was $1.8 million for
the three months ended May 31, 2008.
Business Outlook
Commenting on the Company's business outlook, Mr. Gold said, "While I am
pleased with our recent progress, our second quarter outlook remains cautious
due in part to ongoing uncertainty surrounding the U.S. economy, which will
likely continue to impact purchase decisions by key customers. We also
expect our satellite revenues to be lower this quarter reflecting a decline
in sales of certain lower-margin products as we focus on ramping our volume
of the recently requalified products. Based on our current forecast, we
believe fiscal 2009 second quarter consolidated revenues will be in the range
of $24 to $28 million, with a GAAP basis net loss in the range of $0.04 to
$0.08 per diluted share. The Adjusted Basis (non-GAAP) results of operations
for the second quarter, which exclude amortization of intangible assets and
stock-based compensation expense net of tax, are expected to be in the range
of breakeven to a $0.04 loss per diluted share."
Conference Call and Webcast
A conference call and simultaneous webcast to discuss fiscal 2009 first
quarter financial results and business outlook will be held today at 4:30
p.m. Eastern / 1:30 p.m. Pacific. The live webcast of the call is available
on CalAmp's web site at www.calamp.com. Participants are encouraged to visit
the web site at least 15 minutes prior to the start of the call to register,
download and install any necessary audio software.
CalAmp's President and CEO Rick Gold and CFO Rick Vitelle will host the
conference call. After the live webcast, a replay will remain available until
the next quarterly conference call in the Investor Relations section of
CalAmp's web site.
About CalAmp Corp.
CalAmp provides wireless communications solutions that enable
anytime/anywhere access to critical data and content. The Company serves
customers in the public safety, industrial monitoring and controls, mobile
resource management, and direct broadcast satellite markets. The Company's
products are marketed under the CalAmp, Dataradio, Smartlink, Aercept,
LandCell and Omega trade names. For more information, please visit
www.calamp.com.
Forward-Looking Statements
Statements in this press release that are not historical in nature are
forward-looking statements, that involve known and unknown risks and
uncertainties. Words such as "may", "will", "expect", "intend", "plan",
"believe", "seek", "could", "estimate", "judgment", "targeting", "should",
"anticipate", "goal" 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,
product demand, increased competition, competitive pricing and continued
pricing declines in the DBS market, the timing of customer approvals of new
product designs, operating costs, the Company's ability to efficiently and
cost-effectively integrate its acquired businesses, the risk that the
ultimate cost of resolving a product performance issue with one of the
Company's key DBS customers may exceed the amount of reserves established for
that purpose, and other risks or uncertainties that are described in the
Company's fiscal 2008 Annual Report on Form 10-K as filed with the Securities
and Exchange Commission on May 15, 2008. 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.
AT THE COMPANY: AT FINANCIAL RELATIONS BOARD:
Rick Vitelle Lasse Glassen
Chief Financial Officer General Information
(805) 987-9000 (213) 486-6546
lglassen@frbir.com
-Financial Tables to Follow-
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CAL AMP CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share amounts)
Three Months Ended
May 31,
--------------------
2008 2007
------ ------
Revenues $ 27,901 $ 46,393
Cost of revenues 18,472 51,779
------- -------
Gross profit (loss) 9,429 (5,386)
Operating expenses:
Research and development 3,200 4,319
Selling 2,272 2,269
General and administrative 3,096 3,202
Intangible asset amortization 1,332 1,744
In-process research and development - 310
------- -------
9,900 11,844
------- -------
Operating loss (471) (17,230)
Non-operating expense, net (416) (583)
------- -------
Loss from continuing operations
before income taxes (887) (17,813)
Income tax benefit 390 6,868
------- -------
Loss from continuing operations (497) (10,945)
Loss from discontinued operations,
net of tax - (417)
------- -------
Net loss $ (497) $(11,362)
======= =======
Basic and diluted loss per share:
Loss from continuing operations $(0.02) $(0.46)
Loss from discontinued operations - $(0.02)
------- -------
Total basic and diluted
loss per share $(0.02) $(0.48)
======= =======
Shares used in per share calculations:
Basic 24,703 23,600
Diluted 24,703 23,600
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CAL AMP CORP.
BUSINESS SEGMENT INFORMATION
(Unaudited, in thousands)
Three Months Ended
May 31,
--------------------
2008 2007
------ ------
Revenue
Satellite $ 7,641 $ 23,031
Wireless DataCom 20,260 23,362
------- -------
Total revenue $ 27,901 $ 46,393
======= =======
Gross profit (loss)
Satellite $ 733 $(13,916)
Wireless DataCom 8,696 8,530
------- -------
Total gross profit (loss) $ 9,429 $ (5,386)
======= =======
Operating income (loss)
Satellite $ (332) $(15,231)(a)
Wireless DataCom 1,057(b) (646)(c)
Corporate expenses (1,196) (1,353)
------- -------
Total operating loss $ (471) $(17,230)
======= =======
(a) Includes charges for estimated product warranty and related
costs of $16 million.
(b) Includes intangible asset amortization expense of $1,332K.
(c) Includes intangible asset amortization expense of $1,744K
and the write-off of in-process research and development
costs of $310K associated with the acquisition of SmartLink.
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CAL AMP CORP.
CONSOLIDATED BALANCE SHEETS
(Unaudited - In thousands)
May 31, February 28,
2008 2008
-------- --------
Assets
Current assets:
Cash and cash equivalents $ 7,212 $ 6,588
Accounts receivable, net 16,000 20,043
Inventories 25,348 25,097
Deferred income tax assets 5,179 5,306
Prepaid expenses and other current assets 10,167 9,733
-------- --------
Total current assets 63,906 66,767
Equipment and improvements, net 4,638 5,070
Deferred income tax assets, less current portion 15,319 14,802
Goodwill 28,520 28,520
Other intangible assets, net 23,092 24,424
Other assets 3,752 3,458
-------- --------
$139,227 $143,041
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 5,800 $ 5,343
Accounts payable 10,127 10,875
Accrued payroll and employee benefits 3,662 4,218
Accrued warranty costs 4,035 3,818
Other accrued liabilities 11,211 11,800
Deferred revenue 3,212 4,005
-------- --------
Total current liabilities 38,047 40,059
-------- --------
Long-term debt, less current portion 26,260 27,187
Other non-current liabilities 2,140 2,375
Stockholders' equity:
Common stock 250 250
Additional paid-in capital 144,253 144,318
Accumulated deficit (71,646) (71,149)
Accumulated other comprehensive income (loss) (77) 1
-------- --------
Total stockholders' equity 72,780 73,420
-------- --------
$139,227 $143,041
======== ========
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CAL AMP CORP.
CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited - In thousands)
Three Months Ended
May 31,
--------------------
2008 2007
------ ------
Cash flows from operating activities:
Net loss $ (497) $(11,362)
Depreciation and amortization 1,972 2,659
Stock-based compensation expense 9 486
Write-off of in-process research and
and development costs - 310
Excess tax benefit from stock-based compensation - (49)
Deferred tax assets, net (390) (12,147)
Gain on sale of investment - (331)
Changes in operating working capital 721 20,753
Other - (2)
-------- --------
Net cash provided by operating activities 1,815 317
-------- --------
Cash flows from investing activities:
Capital expenditures (216) (516)
Earnout payments on TechnoCom acquisition (575) -
Collections on note receivable from sale
of discontinued operations 140 -
Proceeds from sale of property and equipment - 4
Proceeds from sale of investment - 1,045
Acquisition of Aercept - (19,367)
Acquistion of SmartLink - (7,944)
-------- --------
Net cash used in investing activities (651) (26,778)
-------- --------
Cash flows from financing activities:
Debt repayments (470) (739)
Proceeds from stock option exercises - 141
Excess tax benefit from stock-based compensation - 49
-------- --------
Net cash used in financing activities (470) (549)
-------- --------
Effect of exchange rate changes on cash (70) 611
-------- --------
Net change in cash and cash equivalents 624 (26,399)
Cash and cash equivalents at beginning of period 6,588 37,537
-------- --------
Cash and cash equivalents at end of period $ 7,212 $ 11,138
======== ========
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CAL AMP CORP.
NON-GAAP EARNINGS RECONCILIATION
(Unaudited, in thousands except per share amounts)
Non-GAAP Earnings Reconciliation
- --------------------------------
"GAAP" refers to financial information presented in accordance with Generally
Accepted Accounting Principles in the United States. This press release
Includes historical non-GAAP financial measures, as defined in Regulation G
promulgated by the Securities and Exchange Commission. CalAmp believes that
its presentation of historical non-GAAP financial measures provides useful
supplementary information to investors. The presentation of historical non-
GAAP financial measures is not meant to be considered in isolation from or as a
substitute for results prepared in accordance with accounting principles
generally accepted in the United States.
In this press release, CalAmp reports the non-GAAP financial measures of
Adjusted Basis Income (Loss) from Continuing Operations and Diluted Income
(Loss) from Continuing Operations Per Share. CalAmp uses these non-GAAP
financial measures to enhance the investor's overall understanding of the
financial performance and future prospects of CalAmp's core business
activities. Specifically, CalAmp believes that a report of Adjusted Basis
(non-GAAP) Income (Loss) from Continuing Operations and Diluted Income (Loss)
from Continuing Operations Per Share provides consistency in its financial
reporting and facilitates the comparison of results of core business operations
between its current and past periods.
The reconciliation of the GAAP Basis Loss from Continuing Operations to
Adjusted Basis (non-GAAP) Income (Loss) from Continuing Operations is as
follows:
Three Months
Ended
May 31,
---------------
2008 2007
----- -----
GAAP Basis Loss from
Continuing Operations $ (497) $(10,945)
Adjustments to reconcile to
Adjusted Basis Income (Loss)
from Continuing Operations:
Amortization of intangible assets,
net of tax 746 1,072
Stock-based compensation expense,
net of tax 5 283
In-process R&D, net of tax
in fiscal 2008 - 190
------- -------
Adjusted Basis Income (Loss)
from Continuing Operations $ 254 $ (9,400)
======= =======
Adjusted Basis Income (Loss)
from Continuing Operations
per diluted share $ 0.01 $ (0.40)
Weighted average common shares
outstanding on diluted basis 24,703 23,600
The reconciling items above are tax effected using the year-to-date effective
tax rate. The computation of the year-to-date effective income tax rate is as
follows:
Three Months Ended
May 31,
---------------------
2008 2007
---- ----
Pretax loss from continuing operations as reported $ (887) $(17,813)
Income tax benefit, as reported 390 6,868
------- -------
Year-to-date effective income tax rate as adjusted 44.0% 38.6%
======= =======