CalAmp (NASDAQ:CAMP) fell 18% on Friday despite reporting beat on both top and bottom lines in its second quarter earnings.
The California-based connected device vendor and mobile service provider CalAmp reported 7.9% decline in Q2 revenue to $72.8M (-7.9% Y/Y), still above the estimates by $3.53M.
By segment: Software and Subscription services revenue, $44.5M (+7.43% Y/Y); Telematics product revenue, $28.2M (-24.6% Y/Y).
Gross margin rose to 39.8% from 39.6% in prior quarter.
Adjusted EBITDA was $4.8M.
Total S&SS subscribers were 1.3 million at quarter end, a 9% sequential increase and a 32% increase year-over-year.
GAAP EPS of -$0.21 beats by $0.01.
The company ended the quarter with cash and cash equivalents of $47.7M.
"The revenue growth in both Software and Subscription Services and Telematics Products was attributable to improvements in the supply chain which enabled us to accelerate customer conversions to recurring subscription contracts and fulfill more orders for our customers," commented CalAmp’s president and CEO Jeff Gardner.