IRVINE, Calif., Sept. 28, 2017 /PRNewswire/ -- CalAmp (NASDAQ: CAMP), a telematics pioneer leading transformation in a global connected economy, today reported its financial results for the second quarter ended August 31, 2017.

"We experienced accelerating momentum on multiple fronts in the quarter, including strong financial results," said Michael Burdiek, President and Chief Executive Officer. "We continue to be a leader and pioneer in the Connected Vehicle and Industrial Internet of Things ("IoT") marketplace. We announced a number of novel product releases and also expanded on our important partnerships in the quarter, including a contract award from a new blue-chip customer representing the largest SaaS contract in the company's history. We also expanded our relationship with Caterpillar and launched a new program with another global heavy equipment customer. We continue to make progress and achieved a number of important strategic milestones while establishing a solid foundation for long-term growth."

Business and Q2 Financial Highlights

• Telematics Systems and Software & Subscription Services business segments experienced solid growth, which on a combined basis increased $6.0 million or 7.1% year over year.
• GAAP net income was $0.34 per diluted share while non-GAAP net income was $0.27 per diluted share.
• Our MRM Telematics product revenue grew $8.5 million or 29% year over year to a record $38.1 million and was a key growth driver for the Telematics Systems segment.
• Caterpillar revenues grew 7.4% sequentially to more than $10.5 million, a new quarterly record.
• We commenced shipments to a new global heavy equipment OEM, which is expected to contribute revenue of approximately $2 million in the second half of the current fiscal year.
• We announced our V-Series Electronic Logging Device ("ELD") designed to enable the U.S. trucking industry to meet the Federal Motor Carrier Safety Administration ELD mandate.
• We were awarded the largest SaaS contract in the company's history with a global freight transport company to track mobile assets across North America. This program will roll out over the next few quarters and is expected to contribute 10% incremental growth in SaaS recurring revenue.
• We announced the availability of the CalAmp Telematics Suite that enables transportation, construction, government, energy and other companies to view detailed information about vehicles, equipment and packages with a single software platform.
• Car Security, a LoJack licensee in Argentina, adopted CalAmp's comprehensive telematics technology stack, including an extensive device portfolio, and our CrashBoxx™ vehicle risk management services platform to streamline their connected car offerings.
• We received $15 million of net proceeds in June 2017 from a legal settlement with a former LoJack supplier, contributing to strong operating cash flow of $36 million for the first six months of the year. We expect to receive approximately $31 million of additional net proceeds over the next four quarters thereby further contributing to our strong free cash flows.

Third quarter GAAP-basis net income per diluted share above includes $0.28 associated with the estimated gain from the expected receipt of the second installment of the legal settlement with a former LoJack supplier. This expected third quarter gain is excluded from Adjusted basis (Non-GAAP) net income per diluted share above.

Conference Call and WebcastCalAmp is hosting a conference call for analysts and investors to discuss its 2018 second quarter results and outlook for its third quarter at 1:30 p.m. Pacific Time today. Participants can listen in via webcast by visiting the Investor Relations section of CalAmp's website at www.calamp.com. Please go to the website at least 15 minutes early to register, download and install any necessary audio software. A replay of the webcast will be available for 30 days after the call. The conference call can also be accessed by dialing 855-302-8830 (+1-330-871-6073 for international callers) and using the Conference ID# 81907706. Following the call, an audio replay will also be available by calling 855-859-2056 or +1-404-537-3406 and entering the Conference ID# 81907706. The audio replay will be available through October 12, 2017.

About CalAmpCalAmp (NASDAQ: CAMP) is a telematics pioneer leading transformation in a global connected economy. We help reinvent businesses 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 collect and assess business-critical data from mobile assets, cargo, companies, cities and people. We call this The New How, powering autonomous IoT interaction, facilitating efficient decision making, optimizing resource utilization, and improving road safety. CalAmp is headquartered in Irvine, California and has been publicly traded since 1983. LoJack is a wholly owned subsidiary of CalAmp. For more information, visit calamp.com, or LinkedIn, Twitter, YouTube or CalAmp Blog.

Forward-Looking StatementsThis announcement contains forward-looking statements (including within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended) concerning CalAmp. These statements include, but are not limited to, statements that address our expected future business and financial performance and statements about (i) CalAmp's plans, objectives and intentions with respect to future operations and products, (ii) CalAmp's competitive position and opportunities, and (iii) other statements identified by words such as such as "may", "will", "expect", "intend", "plan", "potential", "believe", "seek", "could", "estimate", "judgment", "targeting", "should", "anticipate", predict" "project", "aim", "goal", and similar words, phrases or expressions. These forward-looking statements are based on management's current expectations and beliefs, as well as assumptions made by, and information currently available to, management, current market trends and market conditions, and involve risks and uncertainties, many of which are outside CalAmp's control, and which may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, you should not place undue reliance on such statements. Particular uncertainties that could materially affect future results include any risks associated with global economic conditions and concerns; competitive pressures; pricing declines; rates of growth in our target markets; prolonged disruptions of our or our contract manufacturers' manufacturing facilities or other significant operations; our dependence on outsourced service providers for certain key business services and their ability to execute to our requirements; our ability to maintain or improve gross margin; our ability to maintain tax concessions in certain jurisdictions; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; any expenses or reputational damage associated with resolving customer product and warranty and indemnification claims; our ability to sell to new types of customers and to keep pace with technological advances; market acceptance of the end products into which our products are designed; and other events and trends on a national, regional and global scale, including those of a political, economic, business, competitive, and regulatory nature. CalAmp's filings with the U.S. Securities and Exchange Commission ("SEC"), which you may obtain for free at the SEC's website at http://www.sec.gov, discuss some of the important risk factors that may affect CalAmp's business, results of operations, and financial condition. CalAmp undertakes no intent or obligation to publicly update or revise any these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measures"GAAP" refers to financial information presented in accordance with U.S. Generally Accepted Accounting Principles. This announcement includes non-GAAP financial measures, as defined in Regulation G promulgated by the SEC. CalAmp believes that its presentation of non-GAAP financial measures provides useful supplementary information to investors. These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

In this announcement, CalAmp reports the non-GAAP financial measures of Adjusted Basis net income, Adjusted Basis net income per diluted share, Adjusted EBITDA (Earnings Before Investment Income, Interest Expense, Taxes, Depreciation, Amortization, stock-based compensation, acquisition and integration expenses, non-cash costs and expenses arising from purchase accounting adjustments, litigation provisions, gain from legal settlement and certain other adjustments as detailed in the accompanying non-GAAP reconciliation), and Adjusted EBITDA margin. Adjusted Basis net income excludes the impact of intangible assets amortization expense, stock-based compensation, non-cash interest from amortization of debt discount, acquisition and integration expenses, non-cash costs and expenses arising from purchase accounting adjustments, litigation provisions, gain on legal settlement and certain other adjustments as shown in the non-GAAP reconciliation provided in the table at the end of this press release. CalAmp uses these non-GAAP financial measures to enhance the investor's overall understanding of the financial performance and future prospects of CalAmp's core business activities. Management does not believe that these items are reflective of CalAmp's underlying performance. However, internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of CalAmp, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to CalAmp's operations, and benchmarking performance externally against CalAmp's competitors. CalAmp believes this non-GAAP financial information provides additional insight into its ongoing performance and has therefore chosen to provide this information to investors for a more consistent basis of comparison and to help them evaluate the results of CalAmp's ongoing operations and enable more meaningful period-to-period comparisons. The presentation of these and other similar items in CalAmp's non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual.

CALAMP CORP.RECONCILIATION OF NON-GAAP MEASURES TO GAAP(Unaudited)

GAAP refers to financial information presented in accordance with U.S. Generally Accepted Accounting Principles. This press release includes historical non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission. CalAmp believes that its presentation of historical non-GAAP financial measures provides useful supplementary information to investors. The presentation of historical non-GAAP financial measures is not meant to be considered in isolation from or as a substitute for results prepared in accordance with GAAP.

In this press release, CalAmp reports the non-GAAP financial measures of Adjusted basis net income, Adjusted basis net income per diluted share, Adjusted EBITDA (Earnings Before Investment Income, Interest Expense, Taxes, Depreciation, Amortization and Stock-Based Compensation, gain on legal settlement and other adjustments as identified below), and Adjusted EBITDA margin. CalAmp uses these non-GAAP financial measures to enhance the investor's overall understanding of the financial performance and future prospects of CalAmp's core business activities. Specifically, CalAmp believes that the use of these non-GAAP measures facilitates the comparison of results of core business operations between its current and past periods.

The reconciliation of GAAP basis net income (loss) to Adjusted basis (non-GAAP) net income is as follows (in thousands except per share amounts):

The reconciliation of GAAP basis net income (loss) to Adjusted EBITDA and the calculation of Adjusted EBITDA margin are as follows (dollars in thousands):

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