CAMP (CalAMP)

Hi all,

CAMP (CalAMP), which is a Stocks 2014 pick, is down some 25% on Q4 miss (by $0.01) and weaker than expected guidance for Q1 FY15. However, they still expect non-GAAP EPS growth of 30% for FY 15 (over FY14). So, may be an opportunity to start a position or write some puts. The puts are paying well.

Some quick notes on CAMP’s earnings:
http://www.marketwatch.com/story/calamp-reports-fiscal-2014-…

  • Revenue growth of 31% year-over-year to record revenues of $236 million for FY 14

  • Performance driven by a 34% increase in Wireless Datacom segment revenues; YoY international revenue was also up.

  • Q4 FY14 revenue was $59.8 million compared to $48.4 million for Q4 FY13, an increase of 24%. Wireless Datacom revenue increased to $49.2 million from $37.3 million in the same period last year, about 32% YoY growth.

  • Non-GAAP net income for the fiscal 2014 fourth quarter was $7.1 million, or $0.20 per diluted share, compared to non-GAAP earnings of $4.8 million, or $0.16 per diluted share, for the same quarter last year.

  • The consolidated gross margin was 34.4% in the fiscal 2014 fourth quarter, up from 31.1% in the fourth quarter last year. The increase in consolidated gross margin is due primarily to the contribution of the higher margin Software-as-a-Service (SaaS) revenue from the Wireless Matrix acquisition and margin improvement in the Satellite segment.

All of this looks like solid growth, with the Datacom business now accounting for bulk of the revenue and growing at about a 30% clip. I suppose the market is spooked by flattening of revenues on a sequential basis. Q3 2014 revenue was about $64M, Q4 2014 came in at $60M, and the company is guiding Q1 2015 revenue between $56-$60M.

Anyways, I took the opportunity to add some shares and write some puts. I believe in the IoT area and over the long-term expect CAMP to do well. I have CAMP paired with SWIR, and this addition of shares roughly balances my CAMP and SWIR holdings.

Anirban

4 Likes

I have been watching CAMP for a while. I was ecstatic to start a position today at $19/share! Thanks for the info

Nate