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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Q & A
Operator
Operator

(Operator Instructions) Your first question is from Mike Walkley from Canaccord Genuity. Your line is now open.

Analyst
Mike Walkley

Great. Thank you. Michael, you mentioned you're seeing some revenue synergies from the Tracker, Car Track and Synovia acquisitions. Can you just discuss how integration is going so far and maybe give us more color on what you're mentioning on some potential revenue synergies?

Executive
Michael Burdiek

Sure. Thank you. Well, the integration is going very well. We tried to express that in our prepared remarks, and as relates to revenue synergies, we see a number of opportunities to really combine sales and marketing activities in different market verticals to really drive recurring revenue short to medium term and I think one of the greatest opportunities is in the state municipal government market here in the United States and with the acquisition of Synovia, we have real scale now as it relates to market coverage across the United States and in even into Canada to a certain extent. So I would say that's one of the biggest areas of focus for us, and we look forward to continuing to drive contract win similar to the one we described for this Department of Transportation Agency in our prepared remarks.

Analyst
Mike Walkley

Great, thank you. And just to follow-up on that -- on the MRM business, you mentioned some large customers weak, one being Synovia which obviously is part of your company now, but are you seeing any share losses at customers or can you just maybe discuss demand trends for the MRM business?

Executive
Michael Burdiek

Yes. We were concerned about share loss as it relates to some of our supply chain challenges over the last couple of quarters. I think this latest quarter we felt pretty good about our ability to retain existing customers and potentially even claw back to a certain extent some share losses especially in the Latin American markets. So I would say, we feel pretty good that we're almost back to where we were prior to some of the issues that we faced in Q3 and Q4.

On the demand side, I think we see encouraging signs that a large percentage of our customer population here in the United States is starting to take seriously the 3G sunset issue. And we're feeling good that that could produce some tailwinds for us, over the coming quarters especially over the next two years as that sunset becomes very imminent at the end of 2021.

Analyst
Mike Walkley

Okay. Thanks. Last question for me, and I'll pass it on. Just given the start to year on the guidance, can you just help us think about adjusted EBITDA, for the year do you still think it's similar to last year and slightly higher and if so with the purchase accounting how should we think maybe about the slope of the adjusted EBITDA ramp throughout the rest the fiscal year? Thank you.

Executive
Michael Burdiek

Yes. Well, given our guidance of roughly $92 million at midpoint on revenue for Q2 and approximately $9.5 million of adjusted EBITDA at the