Investor Presentation

Transcription

1 Investor Presentation Presented by: Fred Sturm, President & CEO June 2, 2006 CalAmp.com

2 Forward-Looking Statements This presentation and Q&A session may contain forward-looking statements relating to CalAmp s plans, strategies, objectives, projections, expectations and other information regarding future performance that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical results or from those anticipated. These risks and uncertainties include, without limitation, CalAmp s concentrated customer base, highly competitive markets, rapid technology changes, and other risk factors that are described in the Company s Annual Report on Form 10-K filed on May 10, 2006 with the SEC and in other filings made from time to time with the SEC. 2 Enabling Anytime/Anywh ere Access

3 Cal Amp Corporate Highlights Provider of wireless products and services enabling Anytime/Anywhere access to data and content Founded in Publicly traded since 1983 (NASDAQ: CAMP) Corporate Headquarters in Oxnard, CA Leading supplier for the U.S. Direct Broadcast Satellite (DBS) market Growth initiative in wireless Machineto-Machine (M2M) communication and public safety Strong financial position and operating cash flow 3 Enabling Anytime/Anywh ere Access

4 CalAmp s s Primary Goals Maintain market share, competitiveness, and profitability in a growing U.S. DBS market Diversify business base by investing in growing wireless markets which leverage our core competencies 4 Enabling Anytime/Anywh ere Access

5 FY2006 Financial Highlights (YE 2/28/06) Revenue of $217M Gross Margins improvement from 19% in FY05 to 24% Record EPS of 62 cents Record cash generated from operations of $22M Cash balance of $46M, debt of $8M 5 Enabling Anytime/Anywh ere Access

6 Satellite Business Update CalAmp is the leader in the U.S. DBS outdoor equipment market CalAmp s addressable DBS market estimated to grow from $370M in CY 2005 to $650M in 2010 HDTV and DVR rollouts increasing product complexity and ASPs 6 Enabling Anytime/Anywh ere Access

7 Complexity of Outdoor Unit Increasing single SA T single coax single SA T dual coax dual SA T quad coax triple SAT stacked coax Integrated triple SAT stacked coax dual SA T dual coax triple SAT quad coax Ka/Ku band five SAT quad coax Ka/Ku Integrated five SAT quad coax 7 Enabling Anytime/Anywh ere Access

8 Product Mix Shifting to Higher ASPs % of total DBS Sales 100% 80% 60% 40% 20% 0% High High High Medium Medium Medium Low Low Low FY05 FY06 Q4 FY06 Low ASP (<$25) Medium ASPs High ASPs (>$50) 8 Enabling Anytime/Anywh ere Access

9 Total U.S. DBS Subscriber Base Growing Subscribers in millions million subscribers as of 3/31/06 DirecTV U.S.:15.4 million subs. Dish Network: 12.3 million subs * 1995* 1996* 1997* 1998* 1999* 2000* 2001* 2002* 2003* * are the industry s actual total subscriber numbers. Based on 2005 Carmel Group estimates. 9 Enabling Anytime/Anywh ere Access 2004* 2005*

10 Addressable DBS Market Growing Upgrades, churn and rising ASPs are projected to drive market to $650M in 2010 (CAGR of 11%) Source: CalAmp & Carmel Group estimates 10 Enabling Anytime/Anywh ere Access

11 Dataradio Acquisition Privately held company with 25 years experience serving wireless data communication market 175 employees 3 locations (Montreal, Minnesota, Atlanta) Leader in Public Safety and Private Network data communication systems $32M in revenue for 12 months ending April 30, 2006 (unaudited) Gross Margins above 50% No customer greater than 4% of revenue Purchase price is approximately US$54M Financed with $23M cash & $38M new debt ($7M used to pay off existing loans) Expected to be accretive in FY07 excluding acquisition related costs Expands CalAmp s M2M offering and provides nucleus around which to develop a significant wireless DataCom business 11 Enabling Anytime/Anywh ere Access

12 Building CalAmp s s Wireless DataCom Business TTM Revenue Markets Product Line Public Safety Enterprise / Industrial / Critical Infrastructure Total Cellular Network Based Modems Expansion Opportunity $11M $11M Private Networks $16M $10M $26M RF OEM Systems & Modules $10M $15M $25M Engineering Services Total Revenue Included above $26M $40M 12 Enabling Anytime/Anywh ere Access $4M $4M $66M

13 Public Safety Wireless DataCom Focus Industrial & Critical Infrastructure Enterprise Dispatch and mobile data Emergency Services Fire / Police Public works & utilities Variable message signs Remote equipment monitoring & actuation Oil & Gas exploration & transport Water / Wastewater management Wireless security & cameras SCADA, Automatic Meter Reading Mobile Resource Management Fleet management Asset tracking IT Backup Point-of-Sale equipment 13 Enabling Anytime/Anywh ere Access

14 Quarterly Revenue $70 $44M - $48M* $60 (in millions) $50 $40 $30 $20 $10 $0 FY04 Q1 FY04 Q2 FY04 Q3 FY04 Q4 FY05 Q1 FY05 Q2 14 Enabling Anytime/Anywh ere Access FY05 Q3 FY05 Q4 FY06 Q1 FY06 Q2 FY06 Q3 * Projected range based on Company guidance provided on May 9, 2006 FY06 Q4 FY07 Q1

15 Annual Revenue $250 $200 $150 $100 (in millions) $50 $0 FY02 FY03 FY04 FY05 FY06 15 Enabling Anytime/Anywh ere Access

16 $.70 Earnings per Share Q1 Estimate $.09 - $.13 * $.60 Diluted EPS $.50 $.40 $.30 $.20 $.10 $.00 FY02 FY03 FY04 FY05 FY06 Q1 FY07 Diluted shares 14.0M 14.9M 15.4M 22.2M 23.4M * Projected range based on Company guidance provided on May 9, Includes FAS123R stock compensation expense of approximately $ Enabling Anytime/Anywh ere Access

17 Operating Income & Operating Cash Flow $25 $20 Operating income Operating cash flow (in millions) $15 $10 $5 $0 FY 02 FY 03 FY 04 FY 05 FY Enabling Anytime/Anywh ere Access

18 Summary History of profitable operations Strong position in growing DBS market Executing on market diversification Building wireless DataCom business Strong balance sheet and cash flow 18 Enabling Anytime/Anywh ere Access

19 CalAmp Corp. (Nasdaq: CAMP) 1401 N. Rice Avenue Oxnard, CA (805) For more information contact: Lasse Glassen Financial Relations Board (310)