CalAmp Profit Tops Estimates; Stock Down On Weak Outlook - Update

(RTTNews) - Wireless communications solutions provider CalAmp Corp. (CAMP), Monday reported an almost flat profit for the third quarter, amid revenue growth that was offset by operating expenses and income tax provision. However, adjusted earnings for the quarter topped Wall Street estimates, as did revenue. Looking ahead, the company provided weak outlook for the fourth quarter.

Following the announcement, CalAmp shares dropped 6 percent in after-hours trade on the Nasdaq.

CalAmp's net income for the quarter was $4.2 million, compared with $4.16 million last year. However, on a per share basis, earnings were $0.12, compared with $0.14, due mainly to a higher share count.

Excluding items, adjusted earnings for the quarter were $0.23 per share, compared with $0.17 per share last year.

CalAmp develops solutions that deliver data, voice, and video for critical networked communication and other applications.

The Oxnard, California-based company posted revenue of $63.5 million for the quarter, up 43 percent from $44 million last year. Analysts expected revenue of $61.2 million for the quarter.

Growth was seen at both Wireless DataCom and Satellite segments.

Operating expenses were $15 million, up from $9.7 million in the prior year, due to research and selling costs. Income tax provision was $1.7 million, compared with $19 thousand a year ago.

For the fourth quarter, CalAmp estimates net earnings of $0.08 to $0.11 per share, adjusted earnings of $0.19 to $0.23 per share and revenue of $60 million to $63 million. Analysts expect earnings of $0.24 per share on revenue of $63.09 million.

"Due to normal quarterly fluctuations in demand from our DBS satellite customer, we currently expect Satellite fourth quarter revenues to be substantially lower on a sequential basis, more than offsetting the Wireless Datacom growth," said CEO Michael Burdiek.

Subsequent to the end of the third quarter, the company announced the acquisition of Radio Satellite Integrators Inc., a privately-held provider of fleet management solutions.

CalAmp stock closed Monday at $27.56, down $0.71 or 2.51%, on a volume of 1.7 million shares. In after hours, the stock dropped $1.66 or 6.02% at $25.90.