OREANDA-NEWS. CalAmp (NASDAQ: CAMP), a leading provider of wireless products, services and solutions, today announced completion of its acquisition of LoJack Corporation and provided a business update on its operations and financial outlook.

Completion of Acquisition of LoJack Corporation

On March 18, 2016, CalAmp completed its previously-announced acquisition of LoJack Corporation ("LoJack") by effecting a short-form merger between its wholly-owned subsidiary, Lexus Acquisition Sub, Inc., and LoJack, with LoJack surviving the merger. As a result of the merger, LoJack became a direct, wholly-owned subsidiary of CalAmp.

Business Update

Preliminary FY16 Fourth Quarter and Full Year Results
The Company expects to report consolidated revenues in its fiscal fourth quarter ended February 29, 2016 of approximately $71 million, versus its previously announced guidance range of $73 to $78 million for the quarter. The Company also expects to report record Adjusted Basis Net Income of approximately $0.32 per diluted share for the fourth quarter, which despite lower than expected revenues is at the high-end of the previously announced guidance range due to a favorable change in product mix. The Company also expects to report records for consolidated gross profit margin, Adjusted EBITDA and Adjusted EBITDA Margin for the fiscal fourth quarter. For the fiscal 2016 full year, CalAmp expects to report record consolidated revenue of approximately $281 million, up 12% year over year, with Wireless DataCom revenue up just over 13%, and record Adjusted Basis Net Income of $1.15 per diluted share, up 20% year over year.

Michael Burdiek, CalAmp's President and Chief Executive Officer, said, "Fiscal 2016 fourth quarter revenue was lower than expected, primarily due to MRM product supply constraints and the slow responsiveness of a supply chain partner following the Chinese New Year. This situation was exacerbated by irregular order flow for MRM products following the year-end holidays. These factors prevented us from fulfilling approximately $3.5 million in product orders in the quarter. We expect to fulfill the majority of this past due backlog in the first quarter of fiscal 2017."

Omega Patent Infringement Lawsuit
CalAmp also announced today that it will file post-trial motions seeking to invalidate asserted patents and if necessary pursue an appeal seeking to overturn a jury verdict in a patent infringement lawsuit brought in 2013 by Omega Patents, LLC (Omega), a non-practicing entity, also known as a patent-assertion entity.

On February 24, 2016, a jury in the U.S. District Court for the Middle District of Florida awarded Omega damages of $2.9 million, for which CalAmp recorded a full reserve in the fiscal 2016 fourth quarter. Omega is seeking enhanced damages and has requested the court to exercise its discretion to treble damages and assess attorney's fees. The Company's responsive motion is pending, and the judge's ruling has not yet been rendered. Nonetheless, management believes that the Company did not, and does not, infringe Omega's patents. In addition to its appeal, CalAmp is seeking to invalidate a number of Omega's patents in actions filed with the U.S. Patent and Trademark Office (USPTO).

Mr. Burdiek said, "We are disappointed in and respectfully disagree with the jury's decision, and plan to appeal this verdict to vindicate our position. We continue to believe that our technology does not infringe Omega's patents, and that those patents will ultimately be invalidated through reexamination at the USPTO."

Preliminary FY17 First Quarter Outlook
CalAmp is also providing its preliminary outlook for the fiscal 2017 first quarter that includes approximately ten weeks of operations in the quarter of LoJack Corporation, which was acquired by CalAmp effective March 18, 2016. Consolidated revenue for the first quarter of fiscal 2017 is expected to be in the range of between $86 and $94 million, with Satellite segment revenues expected to be down approximately $3 million sequentially. In addition, first quarter revenue from the Company's key heavy equipment OEM customer is expected to settle into a normalized quarterly run rate in the range of between $7 to $8 million, down somewhat from an exceptionally strong fiscal 2016 fourth quarter.

Mr. Burdiek said, "Looking at our fiscal 2017 first quarter, we are excited to move forward as a larger, more diverse enterprise with significant financial and technological resources. By uniting CalAmp's leading portfolio of connectivity devices, software and services with LoJack's world renowned brand, targeted channels and distribution capabilities, we have created an industry pioneer poised for long-term growth. As a combined company, we are well positioned to deliver innovative, next generation connected vehicle telematics technologies and accelerate customer adoption in these large and fast growing markets."

The preliminary financial information provided in this press release is based on management's initial review of operations for the fiscal 2016 fourth quarter and is subject to the normal quarter- and year-end accounting review, any additional reserve that may be required for the Omega patent case, and completion of the audit of the fiscal 2016 consolidated financial statements by the Company's independent public accounting firm. The Company expects to announce final fiscal 2016 fourth quarter and full-year results in its regularly scheduled press release and conference call on April 19, 2016, at which time it will provide further comments on the quarter and outlook. Details for the call will be announced shortly.