CalAmp Corp.(NASDAQ: CAMP) stock lost over 11% on December 22^nd, 2017 (as of   10:30AM EST; Source: Google finance) on the back of flat Software and Subscription Services revenues.The group’s consolidated gross profit rose $3.1 million to $38.2 million, while gross margin reached over 41% during the third quarter as compared to 42% in the prior corresponding period. Gross margin was hurt by rise in cost of sales in our Software and Subscription Services business as the group is migrating their SaaS applications from hosted data centers to public cloud service providers. But the group’s network and OEM products gross margins were strong driven by favorable product mix and lower warranty expense.

On the other hand, the group recently added clients using their SaaS asset and fleet management solutions from several highly attractive verticals. The group delivered a consolidated revenue rise of 12% yoy to $93.7 million, boosted by their Telematics Systems business, which was built based on their current base of blue-chip customers including Caterpillar. The group is enhancing their Software and Subscription Services business via a new and better product solutions which were uniquely positioned in the Connected Vehicle and Industrial Internet of Things marketplace. Their Telematics Systems business generated revenue rise of 5% yoy to $77.8 million, on a sequential basis and reported a 15% year-over-year growth.

MRM Telematics products revenue delivered a 3% growth on a sequential basis and a 24% rise on a year-over-year basis with a broad-based demand across their diversified customer base. The revenue performance in the OEM and heavy equipment market was driven mainly by their major client -Caterpillar. Caterpillar’s revenues surged 24% sequentially to $13.2 million, which was better than expected. The group reported a consolidated revenue rise of 12% yoy to $93.7 million, boosted by their Telematics Systems business, which was built on their current base of blue-chip customers including Caterpillar.

The group’s SaaS customer onboarding activity is contributing to their base of revenue generating subscribers. The group currently has over 689,000 unique subscribers against 665,000 in the prior quarter boosted by new subscriptions from their fleet management applications and LoJack Italy, which contributed revenue of $4.2 million in Q3, as compared to $3.8 million in the prior quarter.