Bad Bird Whacks CalAmp

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Shares in CalAmp Corp. plunged more than 37 percent Friday after the wireless communications firm reported dismal fourth quarter numbers it attributed to satellite problems.


CalAmp reported fourth quarter net income of $732,000 (3 cents per share), a 79 percent plunge from $3.5 million (15 cents) from the same period a year earlier. Revenues for the Oxnard-based provider of wireless communications products rose 19 percent to $57 million.


The company also added that it expects a first-quarter loss of 6 cents to 9 cents a share on revenue of $44 million to $47 million. The firm blamed the decline on the malfunction of technology in one of the firm’s satellites.


“We recently filed suit against one of our suppliers related to a material quality issue that has caused field performance issues on an older generation direct broadcast satellite” said Fred Sturm, the company’s chief executive. “We are working closely with our direct broadcast satellite customer to mitigate the impact of these performance issues and to identify and implement a corrective action plan. However, we expect that this matter will adversely affect our sales volume with this customer for fiscal 2008.”


Shares in CalAmp were down $2.92, or 37.3 percent, to $4.90 in afternoon trading Friday on the Nasdaq.

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