CalAmp Q1 Conference Call Highlights

CalAmp CAMP reported its first quarter 2015 earnings on Wednesday.

Shares of the company are down nearly 12 percent following the company issuing a disappointing outlook.

Below are some key takeaways from its conference call.

First quarter results:

Overall pleased with the solid first quarter performance across our enterprise.

Demand for our Mobile Resource Management or MRM products drove a 17% year-over-year increase in Wireless Datacom segment first quarter revenues, which in turn contributed to growth in non-GAAP earnings of 23%.

Consolidated revenue was $59 million, up 10% year-over-year with Wireless Datacom revenue up 17% to $47.8 million.

Satellite revenue in the quarter was $11.1 million, down 14% year-over-year.

Consolidated gross profit for the fiscal 2015 first quarter was $20.2 million, an increase of $1.7 million over the same quarter last year

Consolidated gross margin was essentially unchanged at 34.3% in the latest quarter, compared to 34.4% in the first quarter last year.

Wireless Datacom gross profit was $17.3 million in the first quarter, with a gross margin of 36.2%.

Growth:

I'm particularly encouraged by continued growth in the first quarter from auto insurance telematics revenue and return to growth in fleet management.

Our Wireless Datacom segment posted another strong quarter as we continue to experience healthy demand

In the emerging auto insurance telematics market, our first quarter revenue climbed to above $4 million.

At the end of our first quarter, we had over 475,000 unique software application subscribers, up from 460,000

In the fiscal 2015 second quarter, we expect consolidated revenue in the range of $57 million to $61 million.

We anticipate Wireless Datacom revenue in the second quarter will be higher on both the sequential quarter and year-over-year basis.

Satellite revenue in the second quarter is expected to be down.

At the bottom line, we expect second quarter GAAP basis net income in the range of $0.05 to $0.09 per diluted share.

Non-GAAP net income in the range of $0.17 to $0.21 per diluted share.

For the full year in fiscal 2015, we expect consolidated revenues to gain momentum as the year progresses.

We anticipate that the second half of fiscal 2015 will be significantly stronger than the first half of the year.