CalAmp Corp. F3Q08 (Qtr End 11/30/07) Earnings Call Transcript

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2008-01-15 15:28:50.0

Tags: CalAmp Corp.

Question-and-Answer Session

Operator

Thank you. Ladies and gentlemen, at this time we will begin the question and answer session. As a reminder if you have a question, please press the star followed by the one on your touchtone phone. If you would like to withdraw your question, press the star followed by the two. We do ask if you are on a speaker phone you please lift your handset before making your selection. And our first question comes from Murray Arenson with Ferris, Baker Watts, please go ahead.

Murray Arenson – Ferris, Baker Watts, Inc.

Thanks, good afternoon guys. Couple questions, one just to clarify, the requalification, that’s good news, does that apply to all products or certain products and what is that as a percentage of total products going forward?

Fred Sturm

It applies to two of three rework oriented products at this point that have been submitted but the third product is not a product that is considered a new production product in terms of potential revenue, so there’s really no loss of potential revenue at this point by not having approval on the third product.

Murray Arenson – Ferris, Baker Watts, Inc.

Okay and everything can move forward on those two products without waiting for requalification finalization on the third?

Fred Sturm

That’s correct, yes.

Murray Arenson – Ferris, Baker Watts, Inc.

Okay and you talked about having a mix of new product and refurbished product, can you give us any sense of what you expect that mix to look like in the early quarters.

Fred Sturm

Yeah, we’re not prepared to publicly disclose that.

Murray Arenson – Ferris, Baker Watts, Inc.

Okay, the data com business, taking a look at the guidance a little bit looks like data com you’re expecting next quarter to be kind of flat, maybe a little bit down, can you give us some color on why that’s the case and then also maybe talk a little bit about margins which were strong this quarter, is that a sustainable number for you or it looks like it might come down a little bit.

Fred Sturm

Okay, let me address the first question. The revenue guidance is essentially, if you take the middle of it, it’s slightly down from the previous quarter but that is primarily due to our OEM business, which will be down substantially quarter to quarter in terms of our expectation. It’s partially offset by improvements other places but not fully.

 

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