Seeking Alpha

CalAmp -14.6% AH due to light FQ2 guidance, FY15 satellite weakness

  • 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
Comments (2)
  • dou89
    , contributor
    Comments (68) | Send Message
     
    Future is bright for camp
    1 Jul, 05:20 PM Reply Like
  • hksche2000
    , contributor
    Comments (788) | Send Message
     
    Buy the dip, if it's 10% or more.
    1 Jul, 07:55 PM Reply Like
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