Cal Amp stock falls after earnings forecast lowered
Shares of Oxnard-based Cal Amp, which makes products for the wireless sector, fell March 22 after the company lowered its earnings forecast for its fiscal year fourth quarter, which ended Feb. 29.
On March 21, Cal Amp lowered its revenue estimates for the quarter from an estimated range of $73 million to $78 million to an estimated $71 million. Cal Amp made the announcement in a business update on March 21.
Cal Amp CEO Michael Burdiek said the decrease in revenue was primarily driven by a slowdown in its supply chain after the Chinese New Year that prevented Cal Amp from fulfilling $3.5 million in orders. Burdiek said the company will fulfill backlogged orders in the first quarter of fiscal year 2017.
Shares closed March 21 at $19.23 per share, but fell about 8 percent to $17.64 on March 22. Shares fell as low as $17.51 in after-hours trading March 21.
On Feb. 1, Cal Amp completed its hostile takeover of Canton, Mass.-based LoJack, which makes theft recovery systems for cars, trucks and construction equipment. CalAmp had discussions with LoJack for 14 months prior to December 2015 and made three cash offers to buy LoJack.
On Dec. 10, CalAmp sent a letter to LoJack’s board of directors, which changed everything. The letter said “to the detriment of LoJack’s shareholders” LoJack had not shown a willingness to negotiate. CalAmp made a $113 million offer in the letter.
• Contact Philip Joens at pjoens@pacbiztimes.com.
