Software and Subscription Services revenue increases 13% sequentially to
Total consolidated revenue also increases 13% sequentially to
“Consolidated revenue exceeded our expectations for mid to high single digit sequential growth, driven largely by Software and Subscription Services revenue that was 61% of total revenue,” said
Second Quarter Fiscal Year 2023 Financial Overview
- Total revenue increased 13% to
$72.8 million , compared to$64.7 million in the prior quarter. - Software and Subscription Services (S&SS) revenue was a record
$44.5 million , or 61% of total revenue, compared to$39.6 million in the prior quarter. - Telematics Products revenue increased 13% sequentially to
$28.3 million due to an increase in device shipments. - Gross margin in the quarter increased to 39.8%, compared to 39.6% last quarter.
- GAAP net loss from continuing operations was
$7.5 million , or a loss of$0.21 per share. - Adjusted EBITDA was
$4.8 million , or 7% of revenue, compared to adjusted EBITDA of$1.9 million , or 3% of revenue in the prior quarter. - Total S&SS subscribers were 1.3 million at quarter end, a 9% sequential increase and a 32% increase year-over-year.
- Ended the quarter with
$47.7 million in cash and cash equivalents, down from$59.0 million in the prior quarter.
Other Business and Recent Highlights
- Converted top tier customers Localiza and Trimble to a subscription model.
- Expanded its relationship with BMW in EMEA, adding the MINI brand.
- Renewed contract with the
City of Dallas to track and monitor additional vehicles. - Launched Transportation & Logistics solutions in EMEA, offering global use cases that include Supply Chain visibility and fleet management solutions.
Summary Financial Information From Continuing Operations:
(In thousands except per share amounts)
Three Months Ended | Six Months Ended | |||||||||||||||
Description | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenues: | ||||||||||||||||
Software & Subscription Services (S&SS) | $ | 44,511 | $ | 41,434 | $ | 84,068 | $ | 76,477 | ||||||||
Telematics Products | 28,317 | 37,577 | 53,486 | 82,208 | ||||||||||||
$ | 72,828 | $ | 79,011 | $ | 137,554 | $ | 158,685 | |||||||||
Gross margin | 40 | % | 42 | % | 40 | % | 41 | % | ||||||||
Net loss | $ | (7,494 | ) | $ | (5,425 | ) | $ | (19,667 | ) | $ | (11,425 | ) | ||||
Net loss per diluted share | $ | (0.21 | ) | $ | (0.15 | ) | $ | (0.55 | ) | $ | (0.33 | ) | ||||
Non-GAAP measures: | ||||||||||||||||
Adjusted basis net income (loss) | $ | (752 | ) | $ | 2,903 | $ | (4,157 | ) | $ | 5,849 | ||||||
Adjusted basis net income (loss) per diluted share | $ | (0.02 | ) | $ | 0.08 | $ | (0.12 | ) | $ | 0.16 | ||||||
Adjusted EBITDA | $ | 4,766 | $ | 8,301 | $ | 6,622 | $ | 16,686 | ||||||||
Adjusted EBITDA margin | 7 | % | 11 | % | 5 | % | 11 | % |
Description | 2022 | 2022 | ||||||
Cash and cash equivalents | $ | 47,721 | $ | 79,221 | ||||
Working capital | 78,524 | 90,928 | ||||||
Deferred revenue | 35,412 | 39,670 | ||||||
Total debt (carrying value) | 228,720 | 192,288 | ||||||
S&SS Supplemental Information: | 2022 | 2021 | ||||||
Remaining performance obligations | $ | 210,340 | $ | 136,286 | ||||
Subscribers | 1,307 | 989 |
Third Quarter Fiscal Year 2023 Business Outlook
The Company is maintaining its policy of not providing quarterly guidance due to visibility into product shipments remaining difficult to accurately assess. However, the Company does expect to achieve low to mid single digit percentage point sequential revenue growth in the third quarter.
Conference Call and Webcast
About
Forward-Looking Statements
This announcement contains forward-looking statements (including within the meaning of Section 21E of the
Non-GAAP Financial Measures
“GAAP” refers to financial information presented in accordance with
In this announcement, we report the non-GAAP financial measures of Adjusted basis net income (loss), Adjusted basis net income (loss) 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 and legal expenses, impairment losses and certain other adjustments as detailed in the accompanying non-GAAP reconciliation), and Adjusted EBITDA margin. Adjusted basis net income (loss) excludes the impact of intangible asset amortization expense, stock-based compensation, non-cash interest expense, acquisition and integration expenses, non-cash costs and expenses arising from purchase accounting adjustments, litigation and legal expenses, income tax provision adjustments, impairment losses and certain other adjustments as shown in the non-GAAP reconciliation provided in the table at the end of this announcement. We use these non-GAAP financial measures to provide investors with additional information about our financial performance and future prospects of our core business activities. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating our core operating performance, 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 our operations, and benchmarking performance externally against our competitors. We believe this non-GAAP financial information provides additional insight into our ongoing performance and have therefore chosen to provide this information to investors to help them evaluate our results of ongoing operations and enable additional period-to-period comparisons. The presentation of these and other similar items in our non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual.
AT | AT |
EVP & CFO | (949) 224.3874 |
ir@calamp.com | sheltonir@sheltongroup.com |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Revenues | $ | 72,828 | $ | 79,011 | $ | 137,554 | $ | 158,685 | |||||||||||
Cost of revenues | 43,816 | 45,641 | 82,895 | 92,868 | |||||||||||||||
Gross profit | 29,012 | 33,370 | 54,659 | 65,817 | |||||||||||||||
Operating expenses: | |||||||||||||||||||
Research and development | 6,757 | 7,729 | 13,757 | 14,669 | |||||||||||||||
Selling and marketing | 12,734 | 12,047 | 24,212 | 24,509 | |||||||||||||||
General and administrative | 13,530 | 13,198 | 28,692 | 26,220 | |||||||||||||||
Intangible asset amortization | 1,330 | 1,394 | 2,672 | 2,647 | |||||||||||||||
34,351 | 34,368 | 69,333 | 68,045 | ||||||||||||||||
Operating loss | (5,339 | ) | (998 | ) | (14,674 | ) | (2,228 | ) | |||||||||||
Non-operating income (expense): | |||||||||||||||||||
Investment income (loss) | (58 | ) | 420 | (172 | ) | 1,068 | |||||||||||||
Interest expense | (1,464 | ) | (3,804 | ) | (2,997 | ) | (7,653 | ) | |||||||||||
Other expense, net | (507 | ) | (710 | ) | (1,449 | ) | (1,986 | ) | |||||||||||
(2,029 | ) | (4,094 | ) | (4,618 | ) | (8,571 | ) | ||||||||||||
Loss from continuing operations before income taxes | (7,368 | ) | (5,092 | ) | (19,292 | ) | (10,799 | ) | |||||||||||
Income tax provision from continuing operations | (126 | ) | (333 | ) | (375 | ) | (626 | ) | |||||||||||
Net loss from continuing operations | (7,494 | ) | (5,425 | ) | (19,667 | ) | (11,425 | ) | |||||||||||
Net income from discontinued operations, net of tax | - | - | - | 4,052 | |||||||||||||||
Net loss | $ | (7,494 | ) | $ | (5,425 | ) | $ | (19,667 | ) | $ | (7,373 | ) | |||||||
Loss per share - continuing operations: | |||||||||||||||||||
Basic | $ | (0.21 | ) | $ | (0.15 | ) | $ | (0.55 | ) | $ | (0.33 | ) | |||||||
Diluted | $ | (0.21 | ) | $ | (0.15 | ) | $ | (0.55 | ) | $ | (0.33 | ) | |||||||
Earnings per share - discontinued operations: | |||||||||||||||||||
Basic | $ | - | $ | - | $ | - | $ | 0.12 | |||||||||||
Diluted | $ | - | $ | - | $ | - | $ | 0.12 | |||||||||||
Shares used in computing earnings (loss) per share: | |||||||||||||||||||
Basic | 36,006 | 35,152 | 35,864 | 34,998 | |||||||||||||||
Diluted | 36,006 | 35,152 | 35,864 | 34,998 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
2022 | 2022 | |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 47,721 | $ | 79,221 | ||||||||
Accounts receivable, net | 74,802 | 61,544 | ||||||||||
Inventories | 22,145 | 18,269 | ||||||||||
Prepaid expenses and other current assets | 24,781 | 22,348 | ||||||||||
Total current assets | 169,449 | 181,382 | ||||||||||
Property and equipment, net | 34,621 | 37,674 | ||||||||||
Operating lease right-of-use assets | 10,367 | 12,327 | ||||||||||
Deferred income tax assets | 3,633 | 4,165 | ||||||||||
93,377 | 94,436 | |||||||||||
Other intangible assets, net | 28,769 | 31,965 | ||||||||||
Other assets | 30,822 | 29,632 | ||||||||||
Total assets | $ | 371,038 | $ | 391,581 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current liabilities: | ||||||||||||
Current portion of long-term debt | $ | 1,828 | $ | 2,585 | ||||||||
Accounts payable | 39,863 | 31,815 | ||||||||||
Accrued payroll and employee benefits | 10,181 | 10,929 | ||||||||||
Deferred revenue | 23,378 | 26,174 | ||||||||||
Other current liabilities | 15,675 | 18,951 | ||||||||||
Total current liabilities | 90,925 | 90,454 | ||||||||||
Long-term debt, net of current portion | 226,892 | 189,703 | ||||||||||
Operating lease liabilities | 10,717 | 13,382 | ||||||||||
Other non-current liabilities | 20,684 | 22,640 | ||||||||||
Total liabilities | 349,218 | 316,179 | ||||||||||
Stockholders' equity: | ||||||||||||
Common stock | 371 | 361 | ||||||||||
Additional paid-in capital | 180,463 | 242,386 | ||||||||||
Accumulated deficit | (155,993 | ) | (165,965 | ) | ||||||||
Accumulated other comprehensive loss | (3,021 | ) | (1,380 | ) | ||||||||
Total stockholders' equity | 21,820 | 75,402 | ||||||||||
Total liabilities and stockholders' equity | $ | 371,038 | $ | 391,581 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Six Months Ended | ||||||||||
2022 | 2021 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net loss | $ | (19,667 | ) | $ | (7,373 | ) | ||||
Less: Net income from discontinued operations, net of tax | - | 4,052 | ||||||||
Net loss from continuing operations | (19,667 | ) | (11,425 | ) | ||||||
Depreciation expense | 8,215 | 8,472 | ||||||||
Intangible asset amortization | 2,672 | 2,647 | ||||||||
Stock-based compensation | 6,156 | 5,409 | ||||||||
Amortization of debt issuance costs and discount | 594 | 5,191 | ||||||||
Noncash operating lease cost | 1,756 | 1,691 | ||||||||
Revenue assigned to factors | (1,524 | ) | (2,601 | ) | ||||||
Deferred tax assets, net | 129 | 250 | ||||||||
Other | (67 | ) | 200 | |||||||
Changes in operating assets and liabilities of continuing operations | (23,939 | ) | 1,012 | |||||||
Net cash provided by (used in) operating activities - continuing operations | (25,675 | ) | 10,846 | |||||||
Net cash used in operating activities - discontinued operations | - | (395 | ) | |||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (25,675 | ) | 10,451 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Capital expenditures | (4,891 | ) | (6,569 | ) | ||||||
Net cash used in investing activities - continuing operations | (4,891 | ) | (6,569 | ) | ||||||
Net cash provided by investing activities - discontinued operations | - | 6,616 | ||||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (4,891 | ) | 47 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Taxes paid related to net share settlement of vested equity awards | (1,568 | ) | (4,017 | ) | ||||||
Proceeds from exercise of stock options and contributions to employee stock purchase plan | 502 | 900 | ||||||||
(1,066 | ) | (3,117 | ) | |||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 132 | (954 | ) | |||||||
Net change in cash and cash equivalents | (31,500 | ) | 6,427 | |||||||
Cash and cash equivalents at beginning of period | 79,221 | 94,624 | ||||||||
Cash and cash equivalents at end of period | $ | 47,721 | $ | 101,051 |
RECONCILIATION OF NON-GAAP MEASURES TO GAAP
(Unaudited)
GAAP refers to financial information presented in accordance with
In this announcement, we report the non-GAAP financial measures of Adjusted basis net income (loss), Adjusted basis net income (loss) per diluted share, Adjusted EBITDA (earnings before investment income, interest expense, taxes, depreciation, amortization, stock-based compensation and other adjustments as identified below), and Adjusted EBITDA margin. We use these non-GAAP financial measures to provide investors with an overall understanding of the financial performance and future prospects of our core business activities. Specifically, we believe that the use of these non-GAAP measures facilitates the comparison of results of core business operations between current and past periods.
The reconciliation of GAAP basis net loss to Adjusted basis (non-GAAP) net income (loss) is as follows (in thousands except per share amounts):
Three Months Ended | Six Months Ended | ||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||
GAAP basis net loss | $ | (7,494 | ) | $ | (5,425 | ) | $ | (19,667 | ) | $ | (7,373 | ) | |||||||
Net income from discontinued operations, net of tax | - | - | - | (4,052 | ) | ||||||||||||||
Intangible assets amortization | 1,330 | 1,394 | 2,672 | 2,647 | |||||||||||||||
Stock-based compensation | 3,196 | 2,937 | 6,156 | 5,409 | |||||||||||||||
Non-cash interest expense | 290 | 2,585 | 594 | 5,191 | |||||||||||||||
GAAP basis income tax provision | 126 | 333 | 375 | 626 | |||||||||||||||
Litigation and non-recurring legal expenses | 1,417 | 471 | 4,548 | 1,119 | |||||||||||||||
Costs incurred in transition of | 233 | 482 | 985 | 1,715 | |||||||||||||||
Other | 310 | 321 | 520 | 962 | |||||||||||||||
Adjusted basis income (loss) before income taxes | (592 | ) | 3,098 | (3,817 | ) | 6,244 | |||||||||||||
Income tax provision (non-GAAP basis) (a) | (160 | ) | (195 | ) | (340 | ) | (395 | ) | |||||||||||
Adjusted basis net income (loss) | $ | (752 | ) | $ | 2,903 | $ | (4,157 | ) | $ | 5,849 | |||||||||
Adjusted basis net income (loss) per diluted share | $ | (0.02 | ) | $ | 0.08 | $ | (0.12 | ) | $ | 0.16 | |||||||||
Weighted average common shares outstanding on a diluted basis | 36,006 | 36,122 | 35,864 | 36,083 |
The reconciliation of GAAP-basis net loss to Adjusted EBITDA and the calculation of Adjusted EBITDA margin are as follows (dollars in thousands):
Three Months Ended | Six Months Ended | ||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||
GAAP basis net loss | $ | (7,494 | ) | $ | (5,425 | ) | $ | (19,667 | ) | $ | (7,373 | ) | |||||||
Net income from discontinued operations, net of tax | - | - | - | (4,052 | ) | ||||||||||||||
Investment (income) loss | 58 | (420 | ) | 172 | (1,068 | ) | |||||||||||||
Interest expense | 1,464 | 3,804 | 2,997 | 7,653 | |||||||||||||||
Income tax provision | 126 | 333 | 375 | 626 | |||||||||||||||
Depreciation and amortization | 5,389 | 5,636 | 10,887 | 11,119 | |||||||||||||||
Stock-based compensation | 3,196 | 2,937 | 6,156 | 5,409 | |||||||||||||||
Litigation and non-recurring legal expenses | 1,417 | 471 | 4,548 | 1,119 | |||||||||||||||
Costs incurred in transition of | 233 | 482 | 985 | 1,715 | |||||||||||||||
Other | 377 | 483 | 169 | 1,538 | |||||||||||||||
Adjusted EBITDA | $ | 4,766 | $ | 8,301 | $ | 6,622 | $ | 16,686 | |||||||||||
Revenues | $ | 72,828 | $ | 79,011 | $ | 137,554 | $ | 158,685 | |||||||||||
Adjusted EBITDA margin | 7 | % | 11 | % | 5 | % | 11 | % |
(a) | The non-GAAP income tax provision represents cash taxes paid or payable for the period after giving effect to the utilization of net operating losses and tax credit carryforwards. |
(b) | Costs incurred in transition of business to acquiror are attributable to the wind-down and transfer of the |
Source:
2022 GlobeNewswire, Inc., source