CalAmp Corporation (CAMP) swung to a net loss for the quarter ended Nov. 30, 2016. The company has made a net loss of $1.53 million, or $ 0.04 a share in the quarter, against a net profit of $3.88 million, or $0.11 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $7.56 million, or $0.21 a share compared with $11.38 million or $0.31 a share, a year ago.
Revenue during the quarter grew 11.62 percent to $83.35 million from $74.68 million in the previous year period. Gross margin for the quarter expanded 655 basis points over the previous year period to 42.13 percent. Total expenses were 97.85 percent of quarterly revenues, up from 88.47 percent for the same period last year. That has resulted in a contraction of 938 basis points in operating margin to 2.15 percent.
Operating income for the quarter was $1.79 million, compared with $8.61 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.96 million compared with $12.82 million in the prior year period. At the same time, adjusted EBITDA margin contracted 522 basis points in the quarter to 11.94 percent from 17.16 percent in the last year period.
Michael Burdiek, CalAmp's president and chief executive officer, said, "In the latest quarter Mobile Resource Management (MRM) telematics product sales reached the highest level of the last four quarters. We are optimistic about our near-term growth as visibility has improved markedly from earlier in the year when macro factors negatively impacted demand for fleet telematics products in the U.S. As we look ahead, we see a number of catalysts on the horizon to drive near and long-term growth for our novel portfolio of connected vehicle telematics solutions."
For the fourth-quarter 2017, CalAmp Corporation expects revenue to be in the range of $84 million to $89 million. The company projects diluted earnings per share to be in the range of $0.05 to $0.09. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.25 to $0.31.
Operating cash flow drops significantly
CalAmp Corporation has generated cash of $19.80 million from operating activities during the nine month period, down 47.73 percent or $18.08 million, when compared with the last year period.
The company has spent $61.21 million cash to meet investing activities during the nine month period as against cash outgo of $113.62 million in the last year period.
The company has spent $22.70 million cash to carry out financing activities during the nine month period as against cash inflow of $148.24 million in the last year period.
Cash and cash equivalents stood at $75.15 million as on Nov. 30, 2016, down 29.56 percent or $31.53 million from $106.68 million on Nov. 30, 2015.
Working capital drops significantly
CalAmp Corporation has witnessed a decline in the working capital over the last year. It stood at $133.13 million as at Nov. 30, 2016, down 45.80 percent or $112.48 million from $245.61 million on Nov. 30, 2015. Current ratio was at 2.80 as on Nov. 30, 2016, down from 6.51 on Nov. 30, 2015.
Cash conversion cycle (CCC) has decreased to 28 days for the quarter from 39 days for the last year period. Days sales outstanding went up to 62 days for the quarter compared with 55 days for the same period last year.
Days inventory outstanding has decreased to 30 days for the quarter compared with 38 days for the previous year period. At the same time, days payable outstanding went up to 63 days for the quarter from 55 for the same period last year.
Debt moves up
CalAmp Corporation has witnessed an increase in total debt over the last one year. It stood at $145.02 million as on Nov. 30, 2016, up 5.01 percent or $6.92 million from $138.10 million on Nov. 30, 2015. CalAmp Corporation has witnessed an increase in long-term debt over the last one year. It stood at $145.02 million as on Nov. 30, 2016, up 5.01 percent or $6.92 million from $138.10 million on Nov. 30, 2015. Total debt was 36.01 percent of total assets as on Nov. 30, 2016, compared with 37.29 percent on Nov. 30, 2015. Debt to equity ratio was at 0.86 as on Nov. 30, 2016, up from 0.76 as on Nov. 30, 2015. Interest coverage ratio deteriorated to 0.72 for the quarter from 3.82 for the same period last year.
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