CalAmp reports revenue decline but net income up
Information technology company CalAmp reported on Sept. 28 a slight drop in revenue for its second quarter but a dramatic increase in net income, bringing in $12.2 million, or 34 cents per share.
The company, which has operations in Oxnard, brought in $89.8 million during the quarter, down slightly from $90.5 million in the second quarter of 2016. Operating expenses remained flat to the previous second quarter at $33.7 million, and the net income figure came primarily from a legal settlement with a former supplier for LoJack, which the company purchased last year.
CalAmp said it expects to receive an additional $31 million from the settlement, giving it strong free cash flows over the next four quarters.
“We announced a number of novel product releases and also expanded on our important partnerships in the quarter, including a contract award from a new blue-chip customer representing the largest SaaS contract in the company’s history,” President and CEO Michael Burdiek said in a news release. “We also expanded our relationship with Caterpillar and launched a new program with another global heavy equipment customer.”
The company had $126.6 million in cash and cash equivalents, with $87.5 million in current liabilities. Shares ended the day up more than 2 percent at $21.12.
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