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
Operator
Operator

Welcome to CalAmp's First Quarter 2020 Financial Results Conference Call. As a reminder, this call is being recorded. I would now like to introduce your host for today's conference call, Leanne Sievers of Shelton Group, CalAmp's Investor Relations firm, Leanne, you may begin.

Executive
Leanne Sievers

Good afternoon, and welcome to CalAmp's first quarter 2020 financial results conference call. I'm Leanne Sievers, President of Shelton Group, CalAmp's Investor Relations firm. With us today are CalAmp's President and Chief Executive Officer, Michael Burdiek; and Chief Financial Officer, Kurt Binder.

Before we begin, I'd like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect CalAmp's best current judgment, they're subject to risks and uncertainties that could cause actual results to materially differ from those implied by these forward-looking projections. These risk factors are discussed in our periodic SEC filings and the earnings release issued today, which are available on our website.

We undertake no obligation to revise or update any forward-looking statements to reflect future events or circumstances. Michael will begin today's call with a review of the Company's financial and operational highlights, then Kurt will provide additional details about the financial results and outlook followed by a question-and-answer session.

With that, it's my pleasure to turn the call over to CalAmp's President and CEO, Michael Burdiek. Michael, please go ahead.

Executive
Michael Burdiek

Thank you, Leanne. We are pleased with our first quarter results with consolidated revenue of $89.1 million, which was at the high end of our guidance range. Software and subscription services exceeded our expectations with record SaaS revenue of close to $26 million, up 38% year-over-year driven by strong performance from our three recent acquisitions. We also delivered solid profitability as non-GAAP net income was $4.2 million, or $0.12 per diluted share, also at the high end of our guidance range.

Collectively, our first quarter results demonstrate further progress on our strategic transformation to a global SaaS solutions provider which I will elaborate on in a few minutes. First, I would like to address the progress we made on our supply chain initiatives. During the quarter, Telematics Systems revenue was in line with expectations at $63.6 million supported by marked improvement in our supply chain performance as we executed on our plan to be more methodical in our diversification efforts in order to meet near-term customer demand.

The steps we took to implement new operational processes and tighter synchronization with our key suppliers has resulted in a more stabilized supply chain and shorter lead times. While we made substantial progress in the latest quarter, we continue to believe it will take two more quarters to fully optimize our supply chain structure and realize the full benefits of global diversification with optimum inventory levels and delivery lead times.

I would now like to highlight our recent progress in driving CalAmp's transformation to a global SaaS solutions provider. As I previously mentioned, our software and subscription services first quarter revenue reached a record level at $25.5 million or 29% of consolidated