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

Michael Burdiek

Well, as it relates to insurance, I think that’s the key point that we made in the remarks, that that’s really the main delta to our previous guidance. Now, we saw moderate improvement in business activity in Q3 versus Q2. But we don’t think we are going to get to that 2 times year-over-year growth rate that we earlier expected. It’s probably something in the neighborhood of 50% year-over-year which is still pretty healthy but given the state of the existing insurance programs that we are shipping products into, we just don’t think we are going to be able to get up to that sort of previous $15 million run rate for this fiscal year. So that really accounts for the bulk of the change from our previous guidance.

Mike Walkley,CanaccordGenuity

Okay, great, that’s helpful. And then on the caterpillar, it sounds like things are going really well there, even maybe ahead of expectations. Is it too early to get a feel for it, maybe an annual opportunity could be with them?

Michael Burdiek

Well, we talked earlier in the year about Q4 potentially being indicative of the quarterly run rate going into next fiscal year. I think we still feel pretty much the same. We do expect some solid growth with Caterpillar going into Q4; certainly expect more than we saw in Q3. And as it relates to the run rates for next fiscal year, there is still some upside potential depending on the demand on the retrofit side of the program. But as it relates to the run rates for the factory install program, I think Q4 will be the key indicator.

Mike Walkley,CanaccordGenuity

Okay. And then just on the housekeeping or just a mix within Wireless DataCom?

Michael Burdiek

It was approximately 55% MRM products and 45% wireless networks products and services.

Mike Walkley,CanaccordGenuity

Great. One more for me and I will pass it on. Last time, you talked a little bit about growing pipeline geography and overall, the FirstNet responder infrastructure side is — that’s still an area that could come back to growth next year?

Michael Burdiek

Come back alive, perhaps, in a way. There are some interesting opportunities in our pipeline as it relates to public safety product demand driven by FirstNetinfrastructure rollouts. This year has obviously been a very dormant year in that regard. But I think we are increasingly optimistic that FirstNet will actually be a demand driver for high-end mobile router products and potentially some services as we enter the new fiscal year.

Mike Walkley,CanaccordGenuity

Okay, great.Happy holidays and look forward to seeing you at your Analyst Day in January.

Michael Burdiek

Thank you so much.

Operator

Thank you. Our next question comes from Mike Crawford from B. Riley & Company.