CalAmp Beats Q2 Views, Shares Surge

Shares of

surged more than 6 percent in after-hours trading after the company reported upbeat results for its fiscal second quarter. The Oxnard, California-based company posted quarterly net income of $3.5 million, or $0.10 per share, up from $3.3 million, or $0.09 per share, in the year-earlier quarter. Excluding items, adjusted earnings rose to $0.27 per share from $0.21 per share. Its revenue climbed 18 percent year-over-year to $69.8 million. However, analysts were estimating a profit of $0.26 per share on revenue of $67.96 million. The average estimate among 15 Estimize users was for earnings of $0.25 per share and revenue of $67.73 million. Wireless Datacom revenue surged 23 percent year-over-year to $61.8 million from $50.2 million, while Satellite revenue slipped to $8.0 million from $9.0 million. Adjusted EBITDA margin expanded to 16.9 percent from 14.1 percent. Operating cash flow increased to $12.4 million in the latest quarter, versus $8.7 million in the year-ago quarter. At August 31, 2015, the company had total cash and marketable securities of $217.7 million. Michael Burdiek, CalAmp's President and Chief Executive Officer, said, "During the quarter we experienced robust demand for our Mobile Resource Management (MRM) products from fleet management and asset tracking customers, along with solid growth in our Wireless Networks business. Our Satellite segment revenues were in-line with expectations while a favorable product mix drove higher gross margins and strong profitability. Our momentum exiting the quarter, coupled with an expanding pipeline of opportunities, is providing CalAmp with a strong tailwind heading into the second half of fiscal 2016." For the third quarter, the company expects adjusted earnings of $0.26 to $0.30 per share, on revenue of $71 million to $76 million. Analysts projected earnings of $0.28 per share on revenue of $73.07 million. CalAmp projects full-year revenue of $281 million to $289 million, versus analysts' estimates of $283.40 million. CalAmp shares climbed 6.39 percent to $16.65 in the after-hours trading session.