While CalAmp reported slight declines in overall second-quarter revenue and adjusted net income, the company said its telematics revenue jumped 29 percent compared to second-quarter 2016.
Irvine, Calif.-based CalAmp also expanded its relationships with key customers, including a 7.4 percent increase in revenue from Caterpillar to more than $10.5 million, a new quarterly record.
“We experienced accelerating momentum on multiple fronts in the quarter, including strong financial results,” said Michael Burdiek, president and CEO. “We continue to be a leader and pioneer in the connected-vehicle and industrial Internet of Things marketplace.
“We announced a number of novel product releases and also expanded on our important partnerships in the quarter, including a contract award from a new blue-chip customer representing the largest SaaS contract in the company’s history. We also expanded our relationship with Caterpillar and launched a new program with another global heavy equipment customer. We continue to make progress and achieved a number of important strategic milestones while establishing a solid foundation for long-term growth.”
Among the company’s second-quarter highlights:
- The Telematics Systems and Software & Subscription Services business segments experienced solid growth, which on a combined basis increased $6 million or 7.1 percent year-over-year.
- MRM Telematics product revenue grew $8.5 million, or 29 percent year-over-year to a record $38.1 million, and was a key growth driver for the Telematics Systems segment.
- The company announced its V-Series Electronic Logging Device (ELD) designed to enable the U.S. trucking industry to meet the Federal Motor Carrier Safety Administration ELD mandate.
- Cal-Amp was awarded the largest SaaS contract in the company’s history with a global freight transport company to track mobile assets across North America. The program will roll out over the next few quarters and is expected to contribute 10 percent incremental growth in SaaS recurring revenue.
- The company announced the availability of the CalAmp Telematics Suite, which enables transportation, construction, government, energy and other companies to view detailed information about vehicles, equipment and packages with a single software platform.
- Car Security, a LoJack licensee in Argentina, adopted CalAmp’s comprehensive telematics technology stack, including an extensive device portfolio, and the CrashBoxx vehicle risk management services platform to streamline its connected-car offerings