CalAmp Corp. (CAMP) Earnings Call Transcript: 2015 Q3 Results

Michael Burdiek

Thank you, Rick. Now let’s turn to our outlook, including our financial guidance for the fourth quarter.

Looking at our fiscal 2015 fourth quarter, we expect to achieve consolidated revenue in the range of $66 million to $70 million. We anticipate Wireless DataCom revenue in the fourth quarter will be higher on both a year-over-year and sequential quarter basis while satellite segment revenue is expected to be down modestly on a sequential quarter basis to approximately $8 million.

At the bottom line, we expect fourth quarter GAAP-basis net income in the range of $0.12 to $0.16 per diluted share and non-GAAP net income in the range of $0.26 to $0.30 per diluted share.

We are pleased with our near-term prospects and anticipate the continued execution and investments in key strategic initiatives and geographic expansion will drive profitable growth into fiscal 2016 and beyond.

In closing, I’d like to recap some key points. First, emerging opportunities in the heavy equipment sector, most notably increasing shipments to Caterpillar, are expected to be strong growth catalysts for CalAmp in the coming quarters.

Second, our MRM products business is performing well and I am pleased with the opportunities we are seeing within several of our core applications and the expanding base of key customers around the world. And third, we are encouraged by our growing pipeline of Software-as-a-Service and Platform-as-a-Service opportunities as well as the traction we are experiencing with large enterprise customers.

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 to drive broader adoption of emerging M2M applications. We are working to take CalAmp to new heights by continuing to focus on execution in the near-term, while strategically positioning the company to capitalize on very favorable market growth trends over the longer term.

That concludes our prepared remarks. Thank you for your attention, and at this time, I would like to open up the call to questions. Operator?

QuestionandAnswer Session

Operator

Thank you. (Operator Instructions). Our first question comes from Mike Walkley from Canaccord Genuity.

Mike Walkley,CanaccordGenuity

Hi, great. Thank you. Michael, just on your overall key for guidance, it’s a little bit towards the low end of your previous guidance for the full year for fiscal ’14. It sounds like the Caterpillar and heavy equipment market is going quite well. Are there certain other end markets that were a little lighter than you expected in exiting the year here?