CalAmp Corp. (NASDAQ: CAMP) lowered its forecast for the third quarter and reported a $20-million buyback plan.
The Irvine, Calif.-based CalAmp said that during the third quarter, it experienced various supply disruptions related to this transition, as well as extended lead times driven by component shortages.
This resulted in inbound product supply delays at quarter end and impacted the Company's ability to ship certain products to meet customer demand. Management is taking steps to address these operational challenges.
These supply chain challenges, coupled with macroeconomic factors, have heightened near term uncertainty and highlight the importance of efforts to increase software-as-a-solution (SaaS) revenue.
Said CEO Michael Burdiek, "Overall, the Company's long-term growth drivers and market opportunities, especially those related to CalAmp's transformation to a SaaS solutions provider, remain intact. CalAmp's Software and Subscription business continues to perform well, and we are keenly focused on driving recurring revenue growth and increasing long-term visibility."
CAMP’s third-quarter business outlook includes revenue projections between $88 and $89 million, while a net loss is foreseen between one and three cents. Adjusted EBITDA is forecast for between $10.5 million and $11.5 million.
CalAmp is a technology solutions pioneer leading transformation in a global connected economy. We help reinvent business and improve lives around the globe with technology solutions that streamline complex IoT deployments and bring intelligence to the edge.
"Our software applications, scalable cloud services, and intelligent devices," says the company’s website, "collect and assess business-critical data from mobile assets, cargo, companies, cities and people."
CAMP shares plummeted $1.92, or 11.7%, to $15.07 Tuesday morning.
