CalAmp Earnings Hit by Lower Sales

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Shares in CalAmp Corp. plunged more than 11 percent Friday after the company said it expected to swing to a loss for its fiscal second quarter as sales fell in its satellite division.


CalAmp said it expects a loss of $4.4 million (-19 cents per share) for the quarter ended Aug. 31, a sharp turnaround from a profit of $1.2 million (5 cents) the same period a year earlier.


The Oxnard-based telecom company also said it expects a 40 percent decline in revenue to $33 million due to a 76-percent drop in its satellite division sales. However, the company said it expects sales from its wireless datacom unit to rise 44 percent to $23 million.


During the quarter, CalAmp completed the sale of its TelAlert software business in a deal worth about $9.4 million as the company exits the software solutions business.


Shares in CalAmp 11 percent, or 50 cents, to $3.86 in afternoon trading Friday on the Nasdaq.

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