CalAmp Corp. (NASDAQ:CAMP), a leading provider of wireless products, services and solutions, today reported results for its fourth quarter and full year ended February 28, 2015. Highlights include:
- Consolidated fourth quarter revenue up 16% year-over-year to $69.2 million
- Wireless Datacom fourth quarter revenue up 23% year-over-year to $60.5 million
- Fourth quarter GAAP net income per diluted share up 125% year-over-year to $0.18
- Fourth quarter Adjusted Basis (non-GAAP) net income per diluted share up 60% to $0.32
- Fourth quarter Adjusted EBITDA margin of 18%
- Net cash provided by operations for fiscal 2015 of $28.6 million, and total cash and marketable securities balance at February 28, 2015 of $44.4 million
Commenting on fourth quarter fiscal 2015 results, Michael Burdiek, CalAmp’s President and Chief Executive Officer, said, “We had an outstanding finish to the year with record revenues, strong earnings growth and robust bookings in the last quarter, all driven by the strength of our Wireless Datacom segment. Continued improvements in our gross margins, coupled with in line operating expenses, propelled our fourth quarter Adjusted EBITDA margin to 18% and our operating cash flow to $7.7 million. Significant contributors to our strong fourth quarter were the record quarterly revenues posted by our MRM products business as well as increased shipments of telematics devices to our key OEM customer in the heavy equipment industry. In addition, recent wins for fleet management SaaS solutions drove a sequential quarter increase of over 10% in higher margin enterprise fleet subscribers. We also saw strong growth in international sales during the quarter across many of our core verticals. For our Satellite segment, revenues were in line with expectations with continued contribution to our operating cash flow and overall profitability. Finally, subsequent to the end of the fourth quarter, we completed the acquisition of Crashboxx, an early stage technology company with unique intellectual property focused on insurance telematics applications across the entire Auto Insurancelifecycle, from driver risk assessment through claims processing automation.”
Commenting on the fiscal 2015 full year results, Mr. Burdiek continued, “Focused execution coupled with healthy growth in our core markets and traction from some of our newer initiatives produced record-setting financial results for CalAmp in fiscal 2015. Despite the slow start to the year, we posted record revenues of$250.6 million, driven by 14% year-over-year growth in our Wireless Datacom segment. Demand for our products and solutions for fleet management applications as well as volume shipments to a key OEM customer in the heavy equipment industry were key contributors to our success in fiscal 2015. International revenues continued to expand, representing 21% of consolidated revenue for the year. In addition, improving consolidated gross margins resulted in Adjusted EBITDA margins of 15.3% in fiscal 2015, up from 12.4% in the prior year. At the bottom line, full year non-GAAP net income per share expanded by 25% compared to last year, reaching $0.96. Overall, the fundamentals of our business continue to improve as evidenced by our recent results. I am quite pleased with the execution of our team and anticipate that continued momentum within our core markets, ongoing geographic expansion and investments in strategic initiatives will drive profitable growth in fiscal 2016 and beyond.”
Fiscal 2015 Fourth Quarter Results
Total revenue for the fiscal 2015 fourth quarter was $69.2 million compared to $59.8 million for the fourth quarter of fiscal 2014. Wireless Datacom revenue increased to $60.5 million from $49.2 million in the same period last year, while Satellite revenue was $8.7 million in the latest quarter compared to $10.6 million in the fourth quarter last year.
Consolidated gross profit for the fiscal 2015 fourth quarter was $24.6 million, an increase of approximately$4.0 million over the same quarter last year, primarily attributable to higher Wireless Datacom revenue. Consolidated gross margin was 35.5% in the fiscal 2015 fourth quarter, compared to 34.4% in the fourth quarter last year.
GAAP net income for the fiscal 2015 fourth quarter was $6.5 million, or $0.18 per diluted share, compared to net income of $3.1 million, or $0.08 per diluted share, in the fourth quarter of last year. Although the Company’s GAAP-basis effective tax rate approximates the combined US federal and state statutory tax rate, the Company’s pretax income is still largely sheltered from taxation by net operating loss and research and development tax credit carryforwards, and is expected to remain so for the next several years.
Non-GAAP net income for the fiscal 2015 fourth quarter was $11.6 million, or $0.32 per diluted share, compared to non-GAAP earnings of $7.1 million, or $0.20 per diluted share, for the fourth quarter last year. Non-GAAP net income excludes the impact of intangibles amortization expense, stock-based compensation expense and acquisition-related expenses, and includes an income tax provision for cash taxes paid or payable for the period. A reconciliation of the GAAP-basis pretax income to the non-GAAP net income and earnings per diluted share is provided in the table at the end of this press release.
As of February 28, 2015, the Company had total cash and marketable securities of $44.4 million and no bank debt outstanding. Net cash provided by operating activities was $7.7 million during the fourth quarter and$28.6 million for the full year in fiscal 2015. The unused borrowing capacity on the bank revolver at year-end was $15 million.
Commenting on the Company’s business outlook, Mr. Burdiek said, “Looking at our fiscal 2016 first quarter, we expect to achieve consolidated revenue in the range of $63 to $67 million. We anticipate Wireless Datacom revenue in the first quarter will be up significantly over the prior year but down modestly on a sequential quarter basis, due primarily to the timing of shipments to our key OEM customer in the heavy equipment industry. Shipments to this customer are expected to pick up in the ensuing quarters and are expected to represent significant year-over-year revenue growth. In addition, first quarter Satellite segment revenue is expected to be down on a sequential quarter basis. At the bottom line, we expect first quarter GAAP-basis net income in the range of $0.10 to $0.14 per diluted share and non-GAAP net income in the range of $0.24 to $0.28 per diluted share. For the full year in fiscal 2016, we expect our Wireless Datacom segment revenue growth will be at or above the estimated mid-teens market growth rate, with continued margin expansion. For our Satellite segment, we expect revenue to be somewhat weaker in the first half of the year and then picking up in the second half as our key customer in this segment transitions to next generation products. Overall, we expect both revenue and earnings to gain momentum as fiscal 2016 progresses, exceeding the impressive milestones established in this past fiscal year.” (Original Source)
Shares of Calamp closed today at $18.49, up $2.3 or 14.21%. CAMP has a 1-year high of $26.04 and a 1-year low of $14.74. The stock’s 50-day moving average is $17.41 and its 200-day moving average is $18.13.
On the ratings front, Calamp has been the subject of a number of recent research reports. In a report issued on March 17, Aegis Capital Corp. analyst Michael Rindos initiated coverage with a Buy rating on CAMP and a price target of $25, which represents a potential upside of 54.3% from where the stock is currently trading. Separately, on March 9, Canaccord Genuity’s Michael Walkley maintained a Buy rating on the stock and has a price target of $26.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Michael Rindos and Michael Walkley have a total average return of 3.6% and 23.9% respectively. Rindos has a success rate of 50.0% and is ranked #2380 out of 3575 analysts, while Walkley has a success rate of 69.3% and is ranked #8.
In total, 6 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $16.2 which is 57.4% above where the stock opened today.
CalAmp Corp provides wireless communications solutions applications to customers. Its business activities are organized into its Wireless DataCom and Satellite business segments.