CalAmp misses on revenue but hits earnings per share estimates
CalAmp, an Oxnard-based company that makes products for the wireless sector, barely missed revenue estimates but hit earnings per share estimates when it reported fourth quarter 2016 and fiscal year-end earnings April 19.
Fourth quarter revenues of $70.8 million barely missed analyst estimates of $71.05 million, according to Yahoo Finance, but that increased from $69.2 million during the fourth quarter of 2015. Earnings per share of 32 cents hit analyst estimates though, according to Zacks Investment Research.
Net income of $5.5 million was down from $6.5 million in 2015 during the quarter.
Annual revenues of $280.7 million also just missed analyst estimates of $281 million, up from $250.6 million in 2015. Net income of $16.9 million was up from $16.5 million in 2015.
On March 22, CalAmp lowered its quarterly revenue forecast from an estimated range of $73 to $78 million to $71 million.
Cal Amp CEO Michael Burdiek said in a news release at the time 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 would fulfill backlogged orders in the first quarter of fiscal year 2017.
On Feb. 1, CalAmp 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 that 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.
The company incurred a $2 million charge for the LoJack acquisition during the fourth quarter, which drove income down slightly.
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