CalAmp Expects to Post Wider 1Q Loss
11.07.2007 21:28
Computers
- Source: Forbes
Wireless communications equipment maker CalAmp Corp. said Wednesday it expects a larger-than-anticipated loss for the fiscal first-quarter because of a hefty charge related to the resolution of a customer's product issues. CalAmp now anticipates a loss of 47 cents to 49 cents per share after a pretax charge of $16 million, or 41 cents per share, on sales of $47.4 million. In May, the company projected a loss of 6 cents and 9 cents per share on sales of $44 million to $47 million. CalAmp anticipates an adjusted loss of 40 cents to 42 cents per share, excluding amortization of intangible assets, stock-based compensation expense and write-off of acquired research and development costs. The company said the charge stems from the resolution of a customer issue related to prematurely deteriorating printed circuit board, or PCB, laminate material, which was shipped by CalAmp but made by another vendor. Previously, the company had increased its accrued warranty costs by $500,000 on the belief that the customer's field performance problems could be fixed just by retuning circuitry. The company has previously said it filed a suit against the PCB laminate material provider that it thinks is responsible for the issues. CalAmp also said Wednesday that the projected loss will prevent it from borrowing additional funds under its revolving credit facility until it can get a waiver from lenders or an amendment of its credit agreement. CalAmp said it intends to file a five-day filing extension notice with the Securities and Exchange Commission regarding its quarterly report and now anticipates filing on July 17. CalAmp shares lost 1 cent to $3.89 in after-hours trading, after finishing regular trading up 7 cents at $3.90. __________ Questions or comments about this story should be directed to the Financial News desk of The Associated Press at 212-621-7190. Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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