CalAmp Shares Soar On Upbeat Q4

CalAmp Corp CAMP reported a fourth-quarter FY22 revenue decline of 16.6% year-on-year to $68.38 million missing the consensus of $68.43 million.
Software & Subscription Services revenue rose 18.9% Y/Y to $41.2 million. Total S&SS subscribers were 1.1 million, up 11% Y/Y.
Telematics Products revenue declined 42.6% Y/Y to $27.1 million.
Due to continuing supply chain constraints, the gross margin contracted 100 bps to 41%.
The adjusted EBITDA margin contracted 500 bps to 7%.
Adjusted EPS loss of $(0.01) beat the consensus loss of $(0.08).
CalAmp held $79 million in cash and equivalents.
"Our Software and Subscription Services revenue increased 13% sequentially and 19% over the prior-year period, reflecting our ongoing success in converting customers to recurring subscription contracts combined with new logo generation," said CEO Jeff Gardner. "Notably, we transitioned approximately one-fifth of our eligible telematics device customers in the quarter and expect to convert the remaining customers throughout fiscal year 2023."
Price Action: CAMP shares traded higher by 17% at $5.85 on the last check Friday.