CalAmp (CAMP) Up on Higher Second Quarter Earnings

Shares of Oxnard, California, based CalAmp Corp. (CAMP) rose on Tuesday, defying the sharp sell-off in stocks overall. CalAmp's stock was up $3.47 per share, or 21.03%, to close at $19.97. The price surge came on volume of 7,722,118 shares, which is about ten times its average daily trading volume. The company reported that second quarter earnings that came in above analysts expectations.

Founded in 1981, CalAmp develops and markets wireless communications solutions to deliver data, voice and video for critical networked communications and other applications.
The company's Wireless DataCom segment provides solutions for machine-to machine (M2M) communications, mobile resource management applications and other emerging applications that require anytime and everywhere connectivity. It's Satellite segment develops, manufactures and sells direct-broadcast satellite outdoor equipment and whole home video networking devices for digital and high definition satellite television services.

For the fiscal year ended February 28, 2014, the company had net earnings of $11.8 million on revenues of $235.9 million. CalAmp has more than doubled revenues sice 2010. The company has 490 employees, its fiscal year ends on February 28th, and its stock trades on the NASDAQ exchange.

The company reported that net income for the second quarter ended August 31, 2015 was $7.5 million or $0.21 per share. Investors cheered this news, since analysts had expected the company to report earnings per share of $0.19 per share. This compares to net income of $6.8 million, or $0.19 per share for the second quarter of last year.

Total revenues were reported at $59.2 million for the second quarter of 2015, compared to $58.8 million a year earlier. While Wireless Datacom revenues increased to $50.2 million from $47.2 million a year earlier, revenues for the Satellite segment decreased to $9.0 million from $11.6 million.

"Our solid performance in the second quarter was driven by ongoing strength in the Wireless Datacom segment, which generated record revenues of $50.2 million and led to an 11% year-over-year growth in non-GAAP earnings," said Michael Burdiek, CalAmp's President and Chief Executive Officer. "During the quarter we experienced strong growth in energy revenues with renewed shipments to our solar power customer, coupled with robust demand for our Mobile Resource Management (MRM) products from fleet management and asset tracking customers...In our Satellite segment, we saw an expected decline in revenues to $9 million, though a favorable product mix drove higher gross margins and meaningful contribution to our overall operating cash flow and profitability."

The company also reported that as of August 31, it had total cash and marketable securities of $36.8 million and no outstanding bank debt. Net cash provided by operating activities during the second quarter was $8.5 million, and the unused borrowing capacity on the bank revolver as of the end of the second quarter was $15 million.

In related news, analysts at Macquarie upgraded CalAmp from "neutral" to "outperform", while maintaining its $23 price target on the company's stock.

Other News About CalAmp Corp.
CalAmp announces an extensive cloud-based service platform.
CalAmp Joins Verizon Partner Program
CalAmp has further expanded their relationship with Verizon.

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Published on Oct 8, 2014
By Kevin Mercadante

Copyrighted 2020. Content published with author's permission.

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