CalAmp Corp. (NASDAQ: CAMP) reported stronger-than-expected results for its second quarter.
The company, based in Irvine, Calif., reported Thursday, consolidated revenue reached a new quarterly record of $96 million, up 7% year-over-year. Gross margin was 41.5%, up from 40.1% in the prior quarter.
GAAP net loss of $0.9 million or a loss of $0.02 per diluted share due to a $2.0 million charge for the early retirement of debt. Adjusted basis net income of $11.0 million or $0.31 per diluted share.
According to CEO Michael Burdiek, "We experienced accelerating growth in our Software & Subscription Services (SaaS) business, while delivering record consolidated revenue, gross margin expansion and earnings at the upper end of our guidance range. We had stronger than expected growth in Network and OEM products revenue, driven by solid demand from our heavy equipment OEM customers.
"Our pipeline for SaaS solutions is robust and we are energized by the range of strategic opportunities to expand SaaS offerings to existing customers as well as to deliver newer over the top services to our telematics device installed base."
Moreover, the company executed arrangements with large U.S. dealership groups including Salinas Valley Ford to leverage the LoJack brand and deliver telematics technology solutions to empower dealerships in delivering advanced connected car services and driver safety features to customers.
Also, CAMP completed a $230-million convertible debt issuance with a portion of the proceeds or approximately $54 million used to repurchase outstanding convertible notes due in May 2020 and another $15 million used to repurchase outstanding common stock.
Shares hiked $1.39, or 6.2%, to $23.67
