Calamp Corp. (NASDAQ: CAMP) reported Q1 EPS of $0.02, $0.07 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $80.2 million versus the consensus estimate of $75.29 million.

First Quarter Fiscal Year 2021 Financial Overview

• Consolidated revenue was $80.2 million, down 10% year-over-year due to a decline in Telematics Systems revenue largely attributable to the COVID-19 impact on LoJack U.S. SVR (Stolen Vehicle Recovery) product sales.
• Software & Subscription Services revenue was $28.0 million, up 10% year-over-year, and 35% of consolidated revenue.
• LoJack U.S. SVR products revenue was $6.6 million and is now being presented as a separate reportable segment.
• Gross margin was 38.7%, reflecting the decline in Telematics Systems revenue and the write-off of inventories related to the transition out of the automotive vehicle financing business.
• GAAP net loss was $14.4 million, or a loss of $0.42 per share, and reflecting a noncash impairment loss of $4.3 million on goodwill and other intangible assets related to the LoJack U.S. SVR business.
• Adjusted basis non-GAAP net income was $0.6 million, or $0.02 per diluted share.
• Operating cash flow was $5.9 million, with adjusted EBITDA of $6.5 million and an adjusted EBITDA margin of 8.1%.
• Redeemed the remaining $27.6 million in aggregate principal amount of the 1.625% Convertible Senior Notes plus accrued interest that was due on May 15, 2020.
• Ended the quarter with $104 million in cash and cash equivalents and approximately $262.6 million in outstanding debt, including $230 million of the 2.0% Convertible Senior Notes due in August 2025.

"Despite significant impact from the ongoing COVID-19 pandemic, our first quarter results were solid as a result of the highly coordinated effort from our team, combined with close interactions with our customers in support of their product supply requirements," said Jeff Gardner, interim president and chief executive officer. "We also made significant progress on the plan I discussed in early May, as evidenced by continued improvements across our supply chain as well as the recent appointment of a new senior vice president of global supply chain and operations."

"Additionally, in support of our initiative to focus resources on our most profitable lines of business, we made the strategic decision to transition out of the automotive vehicle financing business, which we believe will enhance the quality of our overall SaaS revenue while improving gross margins and profitability. We are also refocusing our engineering resources on the most promising product opportunities and end markets, as demonstrated by the launch of our critical iOn Tag visibility services as well as our iOn Vision application to be released this fall."

Second Quarter Fiscal 2021 Business Outlook

"Visibility into customer demand and product shipments remains uncertain due to the ongoing effects of the worldwide COVID-19 pandemic," said Kurt Binder, CalAmp's executive vice president and chief financial officer. "As a result, we are not providing guidance for the second quarter. As we obtain more clarity regarding the future business outlook and overall customer demand, we expect to return to providing quarterly guidance."

For earnings history and earnings-related data on Calamp Corp. (CAMP) click here.