Revenue dropped by 3% to $93.24 million due to a decline in Telematics Systems product sales.
Looking ahead into the third quarter, the company expects revenues in the range of $92 million to $98 million and net loss in the range of $0.23 to $0.17 per share. Adjusted earnings are anticipated to be in the range of $0.11 to $0.17 per share. Adjusted EBITDA is projected to be in the range of $9.5 million to $13.5 million for the third quarter.
The company said it is beginning to see the benefits from the 3G to LTE transitions by its Telematics Systems customers, which helped contribute to solid bookings in the second quarter. CalAmp’s recent purchases performed well, generating both increased revenue opportunities as well as newly identified cost synergies.
For the second quarter, Telematics Systems revenue fell by 20% year-over-year principally due to a decline in Network & OEM products and MRM Telematics device revenues. However, Software and Subscriptions Services revenue jumped by 65% on recent acquisitions coupled with LoJack subscription services.
Worldwide subscribers increased to 1.3 million with the recent acquisitions of Tracker (UK), Car Track (LoJack Mexico) and Synovia Solutions, further accelerating the transition to a global software and solutions provider.
CalAmp stock has fallen over 47% in the past year and over 10% in the year so far. In contrast, the shares have risen over 15% in the past three months. The stock was facing weakness due to mounting concerns that a fall in legacy hardware will outrun the company’s transition to a software and subscription model.