CalAmp Corp. (NASDAQ:CAMP), a connected intelligence company that helps organizations monitor, track and protect their vital assets, stock plunges 31.42% (As on October 6, 11:50:57 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the second quarter of FY 24. Gross margin in the quarter decreased 200 basis points sequentially and 370 basis points year over year to 36.2% as a result of lower volumes and shift in product mix driven by strong shipments to industrial customers. Software and Subscription Services (S&SS) revenue was $40.4 million in the quarter, down $4.6 million sequentially and $4.2 million year over year. Telematics Products revenue was $21.4 million, including a strong quarter from a large Industrial customer. This represented a $4.6 million decline sequentially and a $7.0 million decline year over year. Recurring Application Subscription revenues were $18.7 million, representing a $0.5 million sequential decline, and a $1.8 million decline year over year. Adjusted EBITDA decreased sequentially by $0.2 million and increased year over year by $1.1 million to $5.9 million in the quarter, or approximately 10% of revenue, driven by the realization of cost efficiencies.
CAMP in the second quarter of FY 24 has reported the adjusted loss per share of 11 cents, missing the analysts’ estimates for the adjusted earnings per share of 3 cents. The company had reported the decline in adjusted revenue to $61.7 million in the second quarter of FY 24 from an $11.1 million decline year over year, missing the analysts’ estimates for revenue of $70.4 million. Consolidated revenue in the quarter was softer than expected as shipments of Telematics Products to the TSP and Channel customers slowed. The company ended the quarter with $38.6 million in cash and cash equivalents and have $32.7 million of undrawn line availability subject to customary covenant tests. CalAmp has generated positive Cash Flow from Operations of $7.1 million in the quarter.
The company expects FY24 Q3 revenues and Adjusted EBITDA to be slightly down sequentially.
Additionally, the company had chosen by Transportes Castores, one of the largest Transportation and Logistics fleets in Mexico, as their partner for both tractor and trailer telematics. The company has launched the new Electronic Logging Device (ELD) solution to the market. The company continued strong performance in the International Connected Car business (LoJack), powered by expanding deployments with large automotive OEMs and car rental agencies.