CalAmp Reports First Fiscal Quarter Financial Results
Wednesday, June 28, 2017 | Comments

CalAmp reported results for its first quarter of fiscal 2018 ended May 31. Revenue for the fiscal 2018 first quarter was $88.1 million, a decrease of 3 percent from the first quarter of fiscal 2017.

Excluding last year's revenue from the former satellite business, which ceased operations effective Aug. 31, 2016, revenue in the latest quarter was up 6 percent from $82.7 million in the first quarter of fiscal 2017.

"We are pleased with our first-quarter performance as we report a strong start to the fiscal year,” said Michael Burdiek, CalAmp's president and CEO. “We built on the momentum from last quarter and grew our core telematics and subscription revenues as we continued to expand our technology leadership. We see additional opportunities from large customers as we invest in our core technologies and expand our strategic partnerships with IoT industry leaders."

Gross profit for the first quarter of fiscal 2018 was $37.4 million, an increase of $2.6 million over the same quarter last year. Gross margin was 42.5 percent in the first quarter of fiscal 2018, up from 38.2 percent in the first quarter of fiscal 2017.

Our GAAP-basis net loss in the first quarter of fiscal 2018 was $2.7 million compared to net loss of $2.7 million in the fiscal 2017 first quarter. The GAAP-basis results of operations in the fiscal 2018 first quarter were adversely affected by a charge of $6.1 million per diluted share net of tax, for additional damages associated with the Omega patent infringement judgment. Notwithstanding the reserve recorded in the first quarter, the company is continuing to pursue all legal remedies in this patent infringement matter, and management believes that CalAmp will ultimately prevail.

The outlook for the fiscal 2018 second quarter ending Aug. 31 is consolidated revenue in the range of $86 million to $91 million and GAAP basis net income in the range of 32 to 38 cents per diluted share.

The second quarter earnings outlook also contemplates a roughly 10 percent sequential quarter increase in research and development (R&D) expense to support strategic program rollouts with key customers that are expected to contribute to revenue in the coming quarters.

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