CalAmp Corp. Conference Call Highlights

CalAmp Corp. CAMP reported Q2 earnings on Tuesday. Shares of the company were up 21 percent.

Below are some key highlights and takeaways from the company's conference call.

Growth and Operations:

• Our solid performance in the second quarter was driven by ongoing strength in our Wireless Datacom segment.
• Which generated record revenues and led to an 11% year-over-year growth in non-GAAP earnings.
• During the quarter, we experienced strong growth in energy revenues with renewed shipments to our solar power customer.

Financials:

• Looking at our second quarter results in more detail, consolidated revenue was $59.2 million, up slightly year-over-year.
• Wireless Datacom revenue up 6% to $50.2 million, an all-time record for a single quarter.
• Satellite revenue in the quarter was $9 million, down 22% year-over-year.
• At the bottom line, we achieved GAAP basis earnings of $0.09 per diluted share in the second quarter with non-GAAP earnings of $0.21 per diluted share.
• Strong cash flow from operating activities of $8.5 million helped to push our cash, cash equivalents, and marketable securities balance to $36.8 million with zero bank debt.
• In our Wireless Networks business, energy revenues rebounded sharply in the second quarter, primarily due to our solar power OEM customer.
• Based on commitments received from Caterpillar, we now expect revenue from this customer during the second half of our current fiscal year will exceed $10 million.
• On the international front, we saw a steady revenue growth in Latin America and South Africa during the second quarter.
• At the end of the latest quarter, we had approximately 485,000 unique software application subscribers, up from approximately 475,000 subscribers.
• Moving on to our Satellite segment, revenue in the second quarter was $9 million, which was within our expected range
• Consolidated gross profit for the fiscal 2015 second quarter was $20.5 million.
• Looking more closely at gross profit performance by reporting segment, Wireless Datacom gross profit was $18.0 million in the second quarter.
• The company had total cash, cash equivalents, and marketable securities of $36.8 million with no bank debt outstanding.
• Our total inventory at the end of the second quarter was $20.2 million.

Guidance:

• In the fiscal 2015 third quarter, we expect consolidated revenue in the range of $61 million to $65 million.
• We anticipate Wireless Datacom revenue in the third quarter will be materially higher on a sequential quarter basis.
• Satellite revenue in the third quarter is expected to be down slightly.
• At the bottom line, we expect third quarter GAAP basis net income in the range of $0.08 to $0.12 per diluted share
• Non-GAAP net income in the range of $0.21 to $0.25 per diluted share.
• For fiscal 2015 as a whole, we expect consolidated revenues to gain momentum as the year progresses.
• We anticipate full year revenues in the range of $250 million to $255 million and non-GAAP net income in the range of $0.88 to $0.94 per diluted share.
• We are pleased with our near-term growth prospects and anticipate that continued execution and investments in key strategic initiatives and geographic expansion will drive growth into fiscal 2016.
• We are encouraged by our growing pipeline of Software-as-a-Service and Platform-as-a-Service opportunities
• In closing, we firmly believe our unique hardware, software and service solutions, supported by established channel partnerships with global reach, give us the leverage to win a disproportionate share of opportunities and drive broader adoption of emerging M2M applications.