Though CalAmp (CAMP) beat FQ1 estimates, it's guiding for FQ2 revenue of $57M-$61M and EPS of $0.17-$0.21, below a consensus of $62.5M and $0.22.
The company expects "a sharp decline" in positive train control radio products, and only a "modest contribution" from Latin American MRM (mobile asset monitoring/control) product sales. Also, satellite revenue is expected to be down Q/Q "to the lower end of its normal quarterly operating range."
On the other hand, wireless datacom revenue is forecast to be up Q/Q and Y/Y thanks to the resumption of shipments to a key solar OEM client (previous) and healthy demand in most core verticals.
Fiscal 2H is expected to be "significantly stronger" than 1H, aided by wireless datacom strength in the auto insurance telematics and heavy equipment markets. But full-year satellite performance is now expected to be "below earlier expectations."
FQ1 gross margin was 34.3% vs. 34.4% in FQ4 and a year ago. Opex rose fractionally Y/Y to $15.62M.
Strong MRM sales fueled a 17% Y/Y increase in wireless datacom revenue to $47.8M. Satellite revenue fell 14% to $11.1M.
FQ1 results, PR