Calamp Corp. (CAMP) Tops Q2 EPS by 1c, Beats on Revenues; 3Q EPS/Revenues Guidance Mid-Point Above Consensus

Calamp Corp. (NASDAQ: CAMP) reported Q2 EPS of $0.27, $0.01 better than the analyst estimate of $0.26. Revenue for the quarter came in at $89.77 million versus the consensus estimate of $88.72 million.

Fiscal 2018 Third Quarter Business Outlook

(In thousands except per share amounts)

Range

Description

Low

High

GAAP financial information:

Revenues

$ 89,000

$ 94,000

Net income per diluted share

$ 0.28

$ 0.34

Non-GAAP financial information:

Adjusted EBITDA

$ 12,000

$ 14,500

Adjusted basis net income per diluted share

$ 0.27

$ 0.33

Third quarter GAAP-basis net income per diluted share above includes $0.28 associated with the estimated gain from the expected receipt of the second installment of the legal settlement with a former LoJack supplier. This expected third quarter gain is excluded from Adjusted basis (Non-GAAP) net income per diluted share above.

GUIDANCE:

Calamp Corp. sees Q3 2018 EPS of $0.28-$0.34, versus the consensus of $0.30. Calamp Corp. sees Q3 2018 revenue of $89-94 million, versus the consensus of $90.81 million.

Business and Q2 Financial Highlights

• Telematics Systems and Software & Subscription Services business segments experienced solid growth, which on a combined basis increased $6.0 million or 7.1% year over year.
• GAAP net income was $0.34 per diluted share while non-GAAP net income was $0.27 per diluted share.
• Our MRM Telematics product revenue grew $8.5 million or 29% year over year to a record $38.1 million and was a key growth driver for the Telematics Systems segment.
• Caterpillar revenues grew 7.4% sequentially to more than $10.5 million, a new quarterly record.
• We commenced shipments to a new global heavy equipment OEM, which is expected to contribute revenueof approximately $2 million in the second half of the current fiscal year.
• We announced our V-Series Electronic Logging Device (\"ELD\") designed to enable the U.S. trucking industry to meet the Federal Motor Carrier Safety Administration ELD mandate.
• We were awarded the largest SaaS contract in the company\'s history with a global freight transport company to track mobile assets across North America. This program will roll out over the next few quarters and is expected to contribute 10% incremental growth in SaaS recurring revenue.
• We announced the availability of the CalAmp Telematics Suite that enables transportation, construction, government, energy and other companies to view detailed information about vehicles, equipment and packages with a single software platform.
• Car Security, a LoJack licensee in Argentina, adopted CalAmp\'s comprehensive telematics technology stack, including an extensive device portfolio, and our CrashBoxx™ vehicle risk management services platform to streamline their connected car offerings.
• We received $15 million of net proceeds in June 2017 from a legal settlement with a former LoJack supplier, contributing to strong operating cash flow of $36 million for the first six months of the year. We expect to receive approximately $31 million of additional net proceeds over the next four quarters thereby further contributing to our strong free cash flows.

For earnings history and earnings-related data on Calamp Corp. (CAMP) click here.

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