CalAmp Corp. (NASDAQ: CAMP) got pasted on early Friday markets, on reporting upbeat earnings for its third quarter, but issued weak fourth-quarter guidance.
On Thursday, the Irvine, Calif.-based company reported consolidated revenue of $88.5 million, down 6% year-over-year, due to supply chain execution challenges. Gross margin was 41.1%, up from 40.8% in the prior year.
GAAP net loss was $0.5 million or a loss of $0.02 per share due to a $1.2-million restructuring charge for vacant offices, severance and employee related costs. Adjusted basis net income of $8.9 million or $0.25 per diluted share.
CalAmp entered into a multi-million dollar SaaS contract with a public cloud service provider for a high value asset tracking solution.
It also entered into a global supply agreement with Telefónica, to provide intelligent telematics devices for fleet and asset management applications in Mexico with anticipated expansion across other Latin American and European markets.
CalAmp announced a partnership with Overhaul Group, Inc., a supply chain integrity solutions company, to enable global transportation service providers with actionable intelligence and predictive analytics to improve supply chain efficiency.
What’s more, its Board of Directors authorized a new one year share repurchase program under which it may repurchase up to $20 million of outstanding common stock.
CalAmp is a technology solutions pioneer transforming the global connected economy.
According to the company website, "We help reinvent businesses and improve lives around the globe with technology solutions that streamline complex IoT deployments and bring intelligence to the edge."
Shares, however, took a pounding, losing $1.03, or 8.1%, to $11.66.
