CAMP - Earnings call transcript Q1 2019

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Operator

Welcome to the CalAmp First Quarter Fiscal Year 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded. I would now like to introduce your host for today's conference call, Nicole Noutsios, Investor Relations for CalAmp. your begin may you conference. Nicole,

Nicole Noutsios

and Good Thank Officer, first us Kurt welcome Michael President CalAmp's Binder. and fiscal you, today and year Financial CalAmp's With operator. quarter call. XXXX to conference Officer, afternoon financial Chief Executive Chief are Burdiek; results

forward-looking begin, remind contain we this call you Before that let may me statements.

future forward-looking While subject results uncertainties will my these today's and risk or cause and issued available SEC the will actual turn The about and no a now earnings website. the to factors to it's CalAmp's Burdiek. to events Burdiek Binder update our This highlights. and implied statements of company's review details reflect filings call periodic differ projections. that CEO, question-and-answer a CalAmp's results financial undertake that, then Michael those or begin President Michael current best reflect are discussed forward-looking and company's be risks operational these financial judgment, will Kurt are pleasure from materially they circumstances. statements forward-looking additional today, could in publicly in call with the any followed obligation We over With on release provide to revise by outlook. the are which to our by to session.

Michael Burdiek

business demand telematics Consolidated products our and Thank record the was business. software our over you along for a XXXX period service growth year. momentum our first pleased same we’re last for systems again profitability in the by of up revenue subscription fiscal joining customer once our in within with driven performance. for call steady growth with today. strong X% $XX We had million, first our quarter Revenue a and strong level reached revenue quarter and

again recorded to telematics the fortify revenue sheet, as continue we balance Within systems of quarter, our $XX our in an same first generated million, period over up million free was The XXX% X% with largest across year-over-year, results Caterpillar. flow another year-over-year. our by year business, cash also strong driven ago. the of customer customers base. our from of Additionally, persistent $XX.X our of increase we quarter we OEM a XX% strong highlighted driven by growth with revenue solid, revenue customer, telematics MRM demand network and were products diversified

million. first During with Caterpillar the quarter, XX% $XX increased to year-over-year revenue

As revenue growth address previously with with expect we to our as positive expand broadly. product next to more telematics develop we modest outlook longer-term range the we Cat devices generation stated, very partnership their

OEM of fiscal another shipments approximately were equipment ahead heavy the contributed a expectations to Additionally, little with quarter global and million $X.X XXXX. first

explore existing continue to additional to will new globe. OEM land in the the relationships other opportunities heavy expand equipment our potential around market We and logos

subscription of parcel software in attributable continued the and global increased quarter, our delivery $XX.X During and additions momentum strength markedly up business LoJack first freight our revenue XX%, operations our large subscriber million, with coupled Growth both to Italia in with was sequentially transport customer. with and services year-over-year.

to contribute key reference with XXXX. SaaS along We new to growth wins revenue incremental fiscal through expect these accounts in contract recurring

in is operational and are for realignment we establishing operations the as the believe more drive LoJack brand further establish and to brand, On the fronts, business growth. model transformation a in LoJack built sales a and a we pivot of than organization services. will our future global LoJack bundled synergies this franchise predictable and past. revenue This recurring case that our We around evident telematics and accelerated was telematics platform profitable with driven the most telematics sustainable, business result

still and point-of-sale consistency SureDrive and on-boarding second engagement digital is and nationwide our a marketing and platform efficiency activities LotSmart dealer it for in customer to revenue We in generation create in days are applications. solutions positive our Though paying most contribute and transformation, that XX% nearly off, LoJack subscription quarter. saw the the of are branded software efforts indications as our there in we are recent early investing

through its real across customers. LoJack a vehicle a To broad prime that where of will expansion management year-over-year. capabilities reported as licensees in for quarter our only channel we network relationships, pay On of wholly Automotive ongoing Italian relationships crash partners that growth, growth enterprise dividends. be strong has Italia cultivated ALD and ALD of results as such and LoJack customer to many but Italy, the in Europe international time continues end, LoJack leveraged Italia revenue Italy's customer not our We provide owned example enterprise being believe with financial with LoJack can data the to front, first efforts licensee our XX% impressive whole.

On base monetization amplifying millions the front, our data efforts to our of leverage we devices. are connected of installed

through over we into our fiscal monetization growth automated XXXX. through for strategic the with For foundation program expand for and example, a the crash access such for CrashBoxx partners summary, we and activities customers just thrust installed services we've of head reconstruction is as margin, data example to our majority of accident land announced our market online CalAmp unique just receive of profitability reports. other TransUnion. enabling and as built addressable strong the revenue CrashBoxx notifications high purchase our to devices, This portal vast base one as top on as expand In well

financial guidance. call Chief ability and coupled flow now exceptional We Officer These ambitious cash are and achievements strategic a quarter. our our to financial a QX overview roadmap financial generate execute free against proven With year. Binder, QX for the growth Financial our results very our closer each pleased an that, consistently look sets with at financial results over and to steady will ability for throughout with our the I turn Kurt to stage the

Kurt Binder

earlier EBITDA these basis was with measures EBITDA to included closest A It My pleasure the measures income, our you, margin. adjusted issued press of corresponding today. release will earnings reconciliation net today. be references in GAAP commentary and to of measures is Thank non-GAAP Michael. basis the here quarter include is the a full announcing financial adjusted adjusted first non-GAAP that

start we to mentioned, the year-over-year. the of $XX.X Michael fiscal strong quarter XXXX had Consolidated revenue was X% of first As increase for million, an year. a

Additionally, our that financial a strong business balance number are will metrics there call. liquidity that highlight later and and the of I performance sheet discuss in

$XX.X as Network another up and solutions categories. within for systems well quarter. our product OEM and increase from businesses Revenue telematics to $XX.X customer, other both revenue sold The systems demand from is due increase software subscription first the principally solid X% MRM from be million, growth and as to heavy OEM the telematics solid for sales quarter one due CalAmp service Telematics quarter well to in Caterpillar results product was due based up new Our prior first representing SVR and is technology first licensees sold year-over-year increased products to Within demand quarter. year-over-year. as of business, XX% financial to product The volume our quarter. telematics LoJack and the in the revenue an customer. the was well-balanced year-over-year. equipment network consolidated delivered quarter for first year-over-year. million, revenue enterprise This continued consistent LoJack partially LTE $XX.X products. of sales million X% SVR global increase in of first our products our especially reached SVR our new XXXX, record of revenue as channels. Caterpillar is though modestly year-over-year, from products were an OEM decline to are from MRM Sales continues of of largest is fiscal and a sales down our to newer global The an international performance US offset the US in accounts, lower The decline domestic products to several customers, dealers. demand by dealership were base through Telematics telematics was revenue auto transitioning attributable revenue of XX% of increase representing which

other global represents services of quarter. first $X.X the XXXX, which business of equipment one first customer revenue of the The fiscal sequential fiscal increase experienced generating software quarter in growth million, X% Additionally, prior XXXX. revenue OEM a subscription revenue and growth quarter the notable demonstrated strong heavy in over

revenue offers revenue approximately service recurring licensees platforms, LoJack for first key recurring quarter, Italy investment was XXX,XXX to generating strong growth. our the foundation prior and by increased in network pay $XX.X up as once of revenue was have and million, This sequentially increase year-over-year. performance management our international exceptional operations. subscription a XX% year-over-year. well services up dividends. principally evidence we building and starting Italia of in applications is our and Italy LoJack again approximately from SaaS Software revenue that quarter international to clear our subscription drivers compared Across to been $X.X results first now XX% This million, LoJack our subscribers the have quarter. XXX,XXX produced of all in fleet as new driven unique

the quarter For year-over-year. was strong revenue year. quarter, of revenue $XX.X gross was driven was on was from consolidated fiscal in down an XXXX, strategic revenues, in the demand larger but partnership mix, margin XX% same partly Consolidated Gross due by international of period the first first first of arrangement Consolidated down gross impact margin prior earned last first a quarter the $XX.X product of customers. of was from for million XXXX. to approximately European million, our fiscal the the profit increase X% a high or from technology XX% XX% factor margin the quarter year, in

our from products to may experience in fluctuations LTE our new technologies, gross older near releases. migrate the customers product term margins from we we XG newer As the

we as the portfolio expenses our X%, and respectively. our expansion. of revenue GAAP R&D, gross XX% over sales OpEx, first expect term, in the help marketing expanding product G&A margin XX% and and were However, In drive long quarter basis percentages LTE to

in legal expenses We as Our for accounting to impact of due incremental million G&A and services. certain the $X auditing professional not remaining of fees expect XXXX. to existing unusual as increased have these fiscal the on well approximately do expenses service nonrecurring material quarter quarters a matters

a and are of expected sales respectively. XX% marketing basis fiscal X%, as For whole, to as expenses R&D, GAAP G&A and XX% XXXX approximately percentages be and revenue

Turning streamlining to R&D, to utilized. XX% of first to basis consolidation to organization leased are respectively. related as cost and that our marketing In plan certain and fiscal sales well be and through our not global a commenced we the XX% year, savings of expense the the revenue non-GAAP X%, are as expected of sales XXXX, full properties and operations for G&A quarter OpEx as percentages synergies fully capture and

and $XX.X result to in Our prior XX% in due we of adjusted manufacturing first or arrangement or in fiscal was the in an the these $X.XX same period. as severance securities a for sheet that from to is used total $XXX on total one-year per year $X.X million The on in a authorized partnership with compared the in end XX% that million I or the technology to million carrying favorable GAAP outstanding EBITDA balance Adjusted we board year and of of debt the order of income liquidity the I quarter, quarter prior quarter additional part purchase marketable growth reduce further We by which to provided functions well high supplier. $XX.X to the directors XXXX, activities The an recorded early Non-GAAP a as principally diluted adjusted the is convertible in as in of the flows increase basis shares the the impact the in well sales earned was quarter XX, settlement strong to margin The that of global May related our was profit of to financial material for strong million XXX% proceeds slight of loss of first plus of a the We during quarter favorable growth repurchase of million of increased margin share operating our an operating in revenue on first by position share expenses. first $XX.X employee is our organization supplier $X.XX value May. income adjusted Net integrate strategic first revenue drive compared to cash any loss in in $X.X to as diluted first $X.X per for settlement period. net to increase $X.XX $XX.X fiscal for for million, diluted margin EBITDA of million efforts future $XX.X now and will revenue in and net quarter first attributable with net year million period. expect LoJack income same XXXX, EBITDA XXX,XXX million from unsecured not represents of provide we is The LoJack XXXX. non-GAAP of our mentioned Effective quarter gain of idle operation, and as At May future attributable a compared first adjusted in prior former XXXX do cash EBITDA in accrual outsource increase the and the quarter the plan an a some diluted reduction of facilities. the issued had cash formal attributable income $X.X EBITDA with which net $XX.X to same growth. costs net quarter the share million share was a basis or net $XX.X program quarters. costs million the GAAP recognized share from quarter. is earlier. end. the and as $XXX gross notes details million per our $X.XX per million

We proceeds this net next from of expect final few $X the million in months. the to receive settlement

prior was million Our quarter settlement. XXX% $XX.X part of million, flow the an the increase cash the legal $XX.X as which the of representing for includes over received free year,

turns accounts collection X.X representing quarter end net total of days, of of the balance an million, Our annualized at $XX.X receivable inventory consolidated approximately representing first million the quarter, XX inventory of $XX.X was times. end at while the was the period average

cash conversion end prior to was quarter XX Our days of latest compared in quarter. days XX the at the the cycle

the end This is deferred contract fiscal well ASC as as to $XX.X our XXX. to Additionally, of million the commonly as revenue to of end at standard balance recognition the growth compared million revenue in was attributable adoption quarter XXXX. at continued backlog $XX.X new referred our

of of of a deficit. an accumulated recorded net one-time During we transition our the first $X.X quarter fiscal adopted ASC as income taxes, adoption, to adjustment XXXX, we XXX. Upon million, increase

million The deferred the XXX balances revenue non-cancelable Additionally, The of remaining our recognized to ASC $X.X cost over deferred of is fleet impact $X.X QX. contract expected our revenues in and of of service we recorded up an and cost of increase periods will the to deferred months. modest to be million business customers, to and for contract incremental requirement subscription life for related revenue software revenue average vehicle the services and term. and practice primarily recognizing recognize individual finance instead to over each XX historic

we the As approach, prior we standard our are restating financial adopted retrospective using not modified results. the transition

of For results immaterial XXX of financial operations. our the to impact remaining revenues adopting is quarters and ASC fiscal XXXX, of consolidated the

legislation this and fiscal aspects refine year fourth estimates. and a charges Cut quarter December the tax. transition income deferred assess Tax and discussed the As certain of continued balances current in one-time new certain Act XXXX estimated re-measuring XX, and We’ve we related XXXX, on Jobs the of of to recorded to tax adopted our

rate the tax in basis of as the from legislation $XX.X taxable to to approximately the our tax half quarter fiscal rate the legal is US. in being XX%, as effective was tax the reduction federal settlement million the over first due attributable of which For well GAAP gain XXXX, enacted

to fiscal our expect GAAP XXXX, into basis full effective rate we XX%. tax approximate Moving year

impact materially due and our our losses new of tax to federal income However, to net operating remaining cash the law expected not the tax credits. is impact taxes other

to QX outlook. turning Now, our

we GAAP of consolidated be supplier. of to We bottom the diluted approximately $X expect At in net the basis $X.XX includes the second million $XX $XX expect the legal receipt in the share, the expected quarter of second revenues to quarter which the to LoJack’s million. of range line, settlement final $X.XX contribution with settlement per from million former the income range of

With turn call in to expect to to for also net the EBITDA We the $XX comments, we diluted provide $X.XX and of to $XX income open over that, questions. second some back quarter final of million. adjusted Michael share $X.XX I'll million range before call non-GAAP in range the the per up

Michael Burdiek

scale, leadership expanding leveraging and around technology Thank intensely partnerships existing you, markets the our and our We new in globe. and on remain focused Kurt. channels

momentum our and systems to pleased software lie open ahead businesses. on steady service questions. with continue subscription call make quite for our the remain growth telematics our We that Operator, progress in now are and and opportunities both company. the will energized initiatives We up the by I to

Operator

Mike with [Operator Walkley Instructions] comes Your of line from Genuity. first the question Canaccord

Mike Walkley

year, the especially ramp strong start in to a the the on fiscal software with subscription and Congratulations revenue.

Michael Burdiek

you. Thank

Mike Walkley

rollout the just fleet for, record the just you large how outlook, question this can that for the revenue, on is pipeline as My on customer of with us year. building looks wins update for kind SaaS overall Thanks. and

Michael Burdiek

ramping that freight and large customer contract. incremental in of that related or The to transport Yeah. subscribers fact XX% the reported were so we nicely is about

with of to opportunities existing So been opportunities opportunities, that's that overall, our new there of other existing to strategic some very for platform with a how on be can very progress some But on opportunities accounts, happy here related lot pipeline believe with we period we is this customer developing, prove an initiative cultivated we're there that development converting we're here I but very, rolling success and newer initial that's very we're hardware how as with are pleased with as our that our including it's and time. see service of happy customers say roadmap a sort some not more out and only new to would program.

Mike Walkley

both business, on and just telematics on basis. how just then of different walk business, can on us maybe the a seeing provided, you're guidance through that year-over-year systems you the areas And the sequential

Michael Burdiek

We QX. we're Yes. telematics solid had MRM on growth very the bullish in Well, device business. obviously,

and very a in is nice outlook products expect than on business Cat QX here in Network pace We strong. The QX. better a OEM QX. solid quarter. continue that to had is

nicely well have pipeline. product converting opportunities second progress channels new and existing both we're of our that's in term it relates in prepared We're licensees. that describe happy but services customer products OEM to sales to tried some We as remarks, in initiative. a still we that's our obviously a to ramped we -- as have there long as SVR making subscription newer transition that we're telematics them as with there, SVR Legacy and in And

outlook the think So overall, pretty good. I is

Mike Walkley

and for I’ll Last me question it pass on.

Just LoJack transition us telematics your feedback towards the you you. can building how strategy, the is on brand kind just dealers early and offerings? update from on of Thank on going any the

Michael Burdiek

capabilities to positive relates as As that about come of Office X.X earnings on also salespeople we NADA well and talked there especially when platforms And of announcement buy our around the we call capabilities in on the a to modernized very is the application to and going call, it there are it of hybrid cars. well of enforcement as includes as LoJack a the F&I last personnel of to customers the and looks dealer initiative brand that as Beyond additional initiative, initiatives integrated And reception solution. capability creating dealers continue used to show portal. the point-of-sale management positive, in rollout solution of law new very that collateral the as at version response March our integration around We've SureDrive. and was with SVR has some basically telematics we capabilities some regularly a where part around into at digital as made coupled with which what rollout dealerships and as as the one the new application signing well back legacy LotSmart digital the relates a relationships the make process, in that big coupled with had as paperwork it been the the the lot pretty providing we're developments point-of-sale the and some it LotSmart like

sell all more about it talked as around That than And our dealers LotSmart we digital of response the XX SureDrive. onboarding last there. just either selling quarter, positive with of very doubled. active activities through relates very, roughly numbers, has or number to So

SureDrive dealers sellthrough on leverage as LotSmart application We active boarded going capabilities are SureDrive those have or being dealers and/or sellthrough about of terms the who of LotSmart product. of very either new focus of XX an and through to we've as the number on of a independent in either sell coupled significant the with

Mike Walkley

One actually. was non-GAAP me X to on you was just the guidance. last GAAP net income? included to Kurt, the settlement in housekeeping not GAAP net through say from Did the from last income legal walk non-GAAP million or

Kurt Binder

factor the $X for Mike, quarter, we final Yeah. legal installment from the million do that second in settlement. so of

the will We but we second haven't yet, received it receive it quarter. assuming that in we're

the So treated treated we've like actually all it's previous installments.

Mike Walkley

just Yeah. that make heard to I wanted I sure correctly.

Operator

Jonathan line with the Your William question next of Blair. comes from Ho

Jonathan Ho

over step Just be to of of the should wanted the commentary about the to, your shift? I margin. balance given gross around thinking guess, How we the trend mix back just some product that year,

Michael Burdiek

the see I'll Kurt sort Hello, do has rate, profile. back some below we improvements burner, release expedited probably way sort as And so margin put as improvement, year. activities, which those the through those streams. of to the work to expedited and little we've qualitatively I’ll quantitatively. will the One, on address margin gross it our optimization a that run let products it three or of come about talk gross a of activities resulted of little number Jonathan. cost relates LTE product normalized quarter launches expect are a in last over We bit and bit in

some say, through fully overhead work in and But, probably certain burdening to bit I improvement underway outsourced so way that we the pressure side, resulting legacy gross to Secondly, our model, relates transition product fairly about ongoing the talked of from around And our amount We've to pressures previous operational that's also the calls. as got infrastructure domestic to little cloud. resources manufacturing internal as then platforms expect significant see a a SaaS to year. we've margins. we have we initiative away on-premise from transitioning on on qualitatively, a it would as

Kurt Binder

Jonathan. Yeah,

give there are somewhere number pointed next mean, gross over several the order suggest So Obviously, to our some tick say that going XXX as in to up out, feedback, here. we quarters. Michael initiatives see points in range the works it’s you to I'd XX In quantitative improve. the a of of to slightly expect I basis margin

Jonathan Ho

Got think it. have for you how then the moving or talked base. I of you to you're Can the from your guidance sense guys give of CrashBoxx CrashBoxx you And about over of into expectations out contribution monetize maybe us baked product. either going sort a maybe entire what year in this terms and

Michael Burdiek

Sure. Again, to achieve nothing be objective. expect that. services virtually, and CrashBoxx CrashBoxx we’ll Well, new that's enabled. But, large to enabled It's product with percentage able of would certain as XXX,XXX our of not year. an installed to XXX,XXX that roughly to base We on be a necessarily board our is objective it guidance, relates end devices with by QX to baked the in. see the would customers

those land a quickly. rate expand something XX% the assume of to $X of rates XX% but fiscal of once annual that the that to add north vehicles would million, QX, you to optimistic numbers I run want CrashBoxx for from not forecast build an say, we're million but in you end accident that can could year, a by buy pretty of quickly. crash that on anything of would fraction a you have consequence to initiative. up choose and rate having fairly base, $X annual as venture to start those, of be assume way, quarterly report a run installed in ramp the obviously of which that it a If CrashBoxx not and annual by we can reported to let’s X% at say XX% board, the And on capability basis,

Operator

the of First question David Your Analysis. comes next Gearhart with from line

David Gearhart

of taking wanted been already I my to has ask Thank questions. for you Most asked. what

or going while. a want kind on in heard back go mentioned that’s to you while, things PTC, besides initiatives of we smaller update whether just on update a in your like, customer, there I PTC solar excuse just an a haven’t of like to So since some the ongoing haven't OEM general me,

Michael Burdiek

down about some million has of certainly the Sure. saw winding last QX, In we Well, you’re been $X.X talking over streams. PTC several roughly business. revenue quarters. legacy

very and a it small network OEM quarter, revenue. the was million. our to was around products it prior So contributor X In

off We through as expect trail it year. we our work way to the

very a to So immaterial it's contributor revenue. becoming

As OEM, products not actually seen for to quarters. those have related it to we couple any the revenue solar a relates of

So that's about X.X and essentially at then to $XXX,XXX. revenue was million legacy currently. satellite about FYXX in zero one in and run around other QX, from stream services And actually communication there's declined data that X.X rate FYXX in million it around

So trailed it’s well. off X as almost to

a that look headwind as been much if say pretty they’re us. those no I legacy headwind So behind they're at creating minimal to you bit a a streams, they've longer it our of and level but relates revenue actually growth metrics, would now there's such

Operator

line B. comes Josh of Your from Riley question with next FBR. Nichols the

Josh Nichols

my for Thanks taking questions.

progress going Just through bit as think fiscal things you the on wanted out help of manufacturer. about Can might frame the heavy looks to how little year? that ask, pan remainder it equipment we the some like company's great a second that for

Michael Burdiek

last a Certainly. roughly that. $X is bit we've the in couple to in million of annual the that customer calls, Well, little quarter being Clearly, about run above a $X talked $X.X rate million latest customer. million

there and of $X year existing range reset more we say million expectations like on the to million it's bit a would programs. to little $X I'd a in probably So

probably upside relationship. that customer we new initiatives believe and that some work to continue with term long We in that on there's

So happy we're there.

other been ship in and that to we some the progress term, currently. of medium some heavy making to to also population as other the two alluded say that there and optimistic more be relates OEM will the notable these We we're would opportunities just in our I it engagement with than equipment pipeline OEMs long we've to

Josh Nichols

to manufacturing costs long with front did take US. mentioned as as the ask, that you to provide outside that. may Any how move want from And could about associated far then you an initiative timing I or the details

Michael Burdiek

year time we next Asia, pointed two the this year put and specific that it primary being Yes. will companies the services take as in diversity better time, a accretion manufacturing being US flexible will them located a will and that our need despite tier percent to activity requirements. the margin if another part located modicum EMF with be some objective manufacturing a transition pressure opportunity period that, geographic is to product We've see of in we’ll overlap by when we period. out, X Well, our have Kurt transition One during and provide that engaged Again give but scale. expect manufacturing us overhead, some with America global customer Latin of that to outsourced. in for margins, as of which relates during of on to some XXX%

Josh Nichols

last companies me doing more the question company's some for work updates Clearly, – torch. Any the then on you then can I’ll provide with pass and the some work the And as services insurance TransUnion. on or with insurers, company? well. your auto usage this front, insurance like market on and is based opportunity also thoughts analytics sizable doing And potentially and a work for the

Michael Burdiek

longer details we initial really term getting the area Union US that and relationship that with for activities. on there a relationship will monetization the both relationships And engagement I is think and think specifically be see additional and in and was Well, we claims US data But with that monetization We're relationships with but claims. to leverage program as its on TransUnion carriers develop a The side US. will opportunities, parties, CrashBoxx positive neatly strategy to insurance and that and good. opportunity again believe our expand Trans And we all very close very, TransUnion plays we're those provide launching very, our into data here about very on around focus in monetization opportunities line. key the land is we other the of working with outside down companies centered mostly potential crash insurance.

Operator

from next with the Your line Mike comes Capital of question Markets. Latimore

Mike Latimore

Yeah.

some like that business, and of good sounds there. periods year throughout is kind software assume there the the On sequentially we that trajectory or grows seasonality in there? subscription Should

Michael Burdiek

which year. other quarter, our of weaker the tends captures Italy, is periods the second, to typically than There a bit seasonality little little bit LoJack a during month second the of with August, fiscal be

So there. sequential into the full rate outlook QX of could is we -- our a QX, the in year customer expect freight QX be through we bit to not and a a going rollout necessarily to progress expect little transport positive And fact monotonic it for lower than to would fairly the at very relates growth LoJack bit as in the Italy however and see subscriptions, year. additional that in

Mike Latimore

business kind now. margin getting your are then And subscription gross Excellent. Okay. of and on software what you

Michael Burdiek

little basis Approximately and obviously blended LoJack there. there is that, fleet that. below XX% that, a solidly Italy are is above finances puts well on a above vehicle takes and is

XX%. right basis, So a blended taken around on

Mike Latimore

And – percent guess the mix nowadays. then what mix on times. one, LTE of few the last or I hardware just mentioned you a LTE is

like demand Sounds good is there some there.

Michael Burdiek

average. higher of than ASP Great a telematics is around a was question. revenue, In bit QX, XX% percentage products revenue. the little this again of LTE are MRM

XX%. below actually were volumes unit So,

year. work expect to the as we up We our that way pretty tick through markedly

Operator

[Operator the Instructions] of with comes line question Your next Anthony from Craig-Hallum. Stoss

Anthony Stoss

adjustments your what us in the lift addbacks rattled side you're get quarter. curious million to – in I'm or assuming on addback a XX you XX to or Kurt, guide, off adjusted million you off million? quite or XX let know the that adjusted adjustment to million EBITDA few XX to can

Kurt Binder

to adjustments you of over The like than unusual shared that what some consistent the then Anthony, interest from the income, and expense, of fairly release compensation couple investment Sure. customary are there's Well in stock-based press anything that adjustments last we've see stuff done litigation items. amortization, those the quarters. come we that with most nothing you There's I would past. is in what suggest our

And in for QX particular, had gain quarter, charge adjustment guidance, the million. in adjustment the on be is similar, expect the type then the installment settlement. but payment legal the in the I to the comment, quarter future. charges we in one any question $X had expect for And we don't about as of material, restructuring the previous this This we mentioned similar we earlier and

Operator

are turn I question-and-answer the CEO. there further concludes no to the At over session. This this call time, questions. Michael, will back

Michael Burdiek

quarter. the much. with Thank second to you look speaking you of end We our so forward at

Operator

conference This call. concludes today's

You may disconnect. now

CalAmp (CAMP) 27 Jun 182019 Q1 Earnings call transcript