CalAmp Corp. slides on downgraded guidance
CalAmp Corp. (Nasdaq:CAMP) slid 7.69%, or $0.30, to $3.60 in after-hours trading Wednesday after the provider of wireless communications products lowered financial guidance for the fiscal 2008 first quarter ended May 31.
The Oxnard, Calif.-based company said it anticipates a first-quarter pre-tax charge of $16 million, or $0.41 per share, due to a previously disclosed product performance issue with a Direct Broadcast Satellite customer. As a result, CalAmp said it now expects to record a net loss in the range of $0.47 to $0.49 per share for the first quarter. In May, the company said it expected a first-quarter net loss of $0.06 to $0.09 per share.
Two analysts surveyed by Thomson Financial estimated a loss of $0.07 per share for the first quarter.
CalAmp previously disclosed that certain products shipped by CalAmp to a key DBS customer during calendar years 2004 to 2006 experienced a field performance issue as a result of the premature deterioration of printed circuit board laminate material provided by another vendor.
CalAmp said that in addressing this matter, the DBS customer returned product to CalAmp for corrective action and put on hold all orders for CalAmp equipment, pending the re-qualification of all products manufactured by CalAmp for this customer.
