CalAmp Corp. (NASDAQ:CAMP) Q1 2020 Earnings Conference Call Transcript

Jun 27, 2019 • 04:30 pm ET

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CalAmp Corp. (NASDAQ:CAMP) Q1 2020 Earnings Conference Call Transcript

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Presentation
Executive
Michael Burdiek

revenue. We saw particularly strong traction from CalAmp's iOn fleet management applications and LoJack subscription services. Additionally, the integration of our recent acquisitions which include Tracker in the UK, Car Track in Mexico and Synovia Solutions in North America is progressing well. The addition of these businesses aligns with our global SaaS expansion strategy and helped drive international revenue across our entire business to a record 29% of the consolidated total. Additionally, we are very pleased thus far with the incremental revenue synergies we have identified from these acquisitions which we believe will further bolster our software and subscription services revenue both domestically and internationally in the coming quarters.

With the inclusion of our recent acquisitions, our worldwide subscriber base expanded dramatically and has now reached over 1.2 million subscribers. We expect a substantial subscriber base to drive us towards our recurring revenue target of more than $30 million a quarter, exiting this fiscal year, and more importantly, advances towards our long-term target of $200 million in annual subscription revenue. About the last quarter, I would like to take a few minutes to highlight some customer case studies that I believe offer insights into our global strategy to drive CalAmp's software and services transformation.

The first case study involves a recent fleet management contract win with the Mid-Atlantic State Department of Transportation Agency. Similar to the contract win announced early last year with the Commonwealth of Pennsylvania, this new customer is launching an initiative to reduce costs and streamline snow removal operations by leveraging CalAmp's iOn fleet SaaS technology to manage fleet vehicles and snowplow assets encompassing approximately 12,000 vehicles statewide. This new customer will roll out CalAmp's iOn fleet management service to help its local governance manage their resources and increase fleet accountability efficiency and asset reliability. CalAmp's iOn solution was viewed by this important new customer as the most innovative and progressive transportation technology that could deliver better citizen service and support statewide road safety initiatives. Vehicle deployments under this new contract will begin late in our current quarter and are expected to continue over the next 12 months. The total contract value for this award is approximately $10 million over an initial five-year term.

Another case study I would like to highlight is a recent engagement with a global humanitarian aid organization, whose mission is to improve the health of people affected by poverty and provide relief aid during natural disasters. This partnership enables safe and reliable cold chain shipments of pharmaceuticals and other disaster relief supplies. In this application, CalAmp's FCI on command supply chain solution will provide real-time package tracking and temperature monitoring of global land and air vaccine and pharmaceutical shipments. This integrated solution helps ensure compliance and proper quality control so products won't become compromised due to exposure under extreme environmental conditions. As a result, more efficient and effective aid can be delivered to patients in disaster areas who would not otherwise have access to critical vaccines or life sustaining medications. The overall