The wireless communications provider CalAmp (NASDAQ:CAMP) just beat the expectations of Wall Street analysts for both revenue and profit in its fiscal second quarter on the back of growth in its software and subscription services and telematics business.
In the three months ended August 31, the Irvine, California-based company reported adjusted net income of $11 million or $0.31 per share on revenue of $96 million.
The results came in higher than the consensus estimate of $0.28 per share on revenue of $95.36 million.
Investors welcomed the performance, sending CalAmp shares up 8.6% to $24.20 in Thursday's after-hours trading session.
Revenue from CalAmp’s telematics systems came to $77.1 million, which was 37% higher than the same period a year ago. Its software & subscription services revenue for the second quarter amounted to $18.9 million, or 20% of consolidated revenue, driven higher by more freight transport subscribers and the success of its LoJack Italia business.
In the quarter, the company announced a partnership with Premier Wireless Solutions, a wireless products company, to provide telematics and Internet of Things technologies to support a scooter-based, vehicle sharing service.
CalAmp also entered into a business deal with Hello Tractor and Aeris to equip John Deere tractors with intelligent telematics and wireless connectivity in a bid to create an “Uber for tractors”. The venture supports small farmers requiring access to tractors and other rental equipment in developing countries.
CalAmp completed a $230 million convertible debt issuance with a portion of the proceeds or about $54 million used to repurchase outstanding convertible notes due in May of 2020 and another $15 million used to repurchase stock.
Based in Irvine, California, CalAmp provides telematics devices for the Internet of Things market as well as wireless networking products.