CalAmp Stock

CalAmp Corp. (CalAmp) operates as a connected intelligence company that leverages a data-driven solutions ecosystem to help people and organizations improve operational performance.

The company solves complex problems for customers within the market verticals of transportation and logistics, commercial and government fleets, industrial equipment, K12 fleets, and consumer vehicles by providing solutions that track, monitor, and protect their vital assets. The data and insights enabled by CalAmp solutions provide real-time visibility into a user's vehicles, assets, drivers, and cargo, giving organizations greater understanding and control of their operations. Ultimately, these insights drive operational visibility, safety, efficiency, maintenance, and sustainability for organizations around the world.

The company is generating data for a global customer portfolio across an installed base of approximately 10 million devices reporting to its cloud-based platform. The magnitude and diversity of this data generation has played an instrumental role in the development of the company's flexible and scalable cloud platform, the CalAmp Telematics Cloud (CTC). CTC's ability to ingest vast amounts and types of data is critical to the company's long-term strategy of providing differentiated insights to customers with a wide variety of needs and use cases. The platform also serves as the backbone for the company's software applications, which offer user-friendly interfaces to interact with the data and insights produced at the edge and in the cloud. Finally, to better address customer needs and enable a focused investment strategy, the company is focused on enabling partnerships with third-party organizations, integrating devices, services, and application features into its consolidated solutions.

Segments

The company operates through two segments: Software & Subscription Services (S&SS) and Telematics Products.

Software & Subscription Services

This segment offers solutions consist of telematics devices bundled with cloud-based application enablement and telematics service platforms that facilitate integration of its own applications, as well as those of third parties, through open APIs to deliver full-featured mobile IoT solutions to a wide range of customers and markets. The company's scalable proprietary applications and other subscription services enable rapid and cost-effective development of high-value solutions for customers all around the globe. Services include tracking and monitoring services within Fleet Management, as well as Supply Chain Integrity and International Vehicle Location.

Telematics Products

This segment offers a series of advanced telematics products for the broader connected vehicle and emerging industrial IoT marketplace, which enable customers to optimize their operations by collecting, monitoring and effectively reporting business-critical information and desired intelligence from high-value remote and mobile assets. The company's telematics products include asset tracking units, mobile telematics devices, fixed and mobile wireless gateways, and routers. These wireless networking devices underpin a wide range of solutions, and are ideal for applications demanding secure, reliable and business-critical communications. Telematics Products include original equipment manufacturers (OEM) and mobile resource management (MRM) products.

Solutions

CalAmp Telematics Cloud (CTC): The company offers flexible solutions to meet the requirements of varying organizations, business processes and operational strategies. At the core of the CalAmp approach is the CTC platform. This dependable and highly scalable platform seamlessly integrates with CalAmp's edge computing products to provide customers detailed information and insights via Application Programming Interfaces (APIs) or software applications built on this platform. The information captured here helps companies more efficiently manage their vital assets, including fleet video intelligence, remote asset tracking, real-time crash response and driver behavior scoring, among others. Customers can choose to access this information via intuitive purpose-built Software-as-a-Service (SaaS) applications and/or they can programmatically integrate information from CTC with their own custom in-house applications and workflows using open APIs also offered by CalAmp. In this way, customers who want a complete turnkey solution can quickly leverage CalAmp's information and insights while those customers wishing to integrate that information into their own applications and processes can easily do so, also.

Intuitive SaaS Applications: The company provides its customers with intelligent analytics and reporting solutions that are accessible via a single view, user-friendly interface through a SaaS-based application designed to address market needs. The CalAmp application is purpose-built for fleets, transportation and logistics needs, and industrial equipment, turning multiple data feeds from previously unconnected networks of vehicles, drivers and associated assets into clear and actionable insights that optimize operations, increase productivity and deliver compelling return on investment for virtually any business challenge. The applications also deliver real-time visibility about the location and environmental status of pharmaceuticals, electronics, food or other perishables from the manufacturing plant or point of origin to the point of delivery, helping to manage quality and compliance across land, air or sea shipments. The company's K-through-12 solutions include Here Comes The Bus, an award-winning mobile application that provides real-time school bus location through push notifications and email alerts to help family members monitor bus arrival and keep students safe. Bus Guardian enables contact tracing and hygiene verification to keep students, drivers and other school staff safe amid the COVID-19 pandemic.

CalAmp Marketplace: The CalAmp Marketplace provides enhanced contextual information from third party systems or partners that augment the core telematics data being captured by CTC to provide customers with improved understanding of their business. Examples of these value-added insights include crash detection and notifications that speed life-saving assistance to drivers and fleet operators, and predictive remote diagnostics that enable preemptive alerts about vehicle issues before critical failures occur. This valued-added information provided by all the CalAmp Marketplace offerings bolsters the value the company provides customers while also improving customer retention rates.

CalAmp Developer Portal: The CalAmp Telematics Cloud is the core engine that enables seamless management of data through a diverse set of assets, from service vehicles to high-value equipment. CTC is an enablement platform that connects the company's customers to edge data and insights for a wide range of applications and software services. Through CTC CalAmp provides the Developer Portal to facilitate integration with third-party applications through open APIs. The company's partners leverage the multiple APIs it has created to rapidly deliver full-featured telematics solutions available to its mutual customers and markets. The company's proven CTC platform is architected to integrate with numerous global Mobile Network Operator account management systems and leverage these carrier backend systems to provide customers access to services that are essential for creating and managing flexible end-to-end solutions.

Flexible Edge Computing Products: The company offers a series of telematics edge products that serve as the foundation of its mobile connected ecosystem by collecting data insights from vehicles, drivers, assets, and cargo. These wireless enabled devices, including asset tracking units, mobile telematics devices, fixed and mobile wireless gateways and routers--underpin its wide range of proprietary and third-party software applications and services for business-critical deployments demanding secure and reliable communications and controls anywhere in the world. The company's customers select its products and solutions based on optimized feature sets, programmability, configurability, manageability, long-term support, reliability and, in particular, overall value.

Growth Strategy

The key elements of the company's strategy are to drive ongoing transformation to SaaS business model; launch new innovative software solutions in the emerging connected asset market worldwide; expand in key verticals and target geographies; and continue to help customers realize the value of fully connected ecosystems.

Research and Development

For the year ended February 28, 2023, the company's research and development expenses were $24.6 million.

Sales and Marketing

The company markets and sells its solutions and services through its global direct sales organization, channel partner program and Original Equipment Manufacturers (OEM) sales organizations while driving awareness through its websites and digital presence. The company's global direct sales organization consists of teams of field salespeople, key account managers and business development managers, who work closely with solutions and applications specialists and other internal sales support personnel. The company has organized its field sales personnel, together with internal sales and field support personnel, into teams within each business group based on their specialized knowledge and expertise relating to specific solutions and service areas, geographies and customer groups. These sales teams are closely aligned with their respective solutions management, engineering and operations organizations.

The company sells its solutions and services to large global enterprises, small- to mid-sized companies, channel accounts and distributors, as well as industrial OEM customers.

The company also actively sells its products in certain markets through independent sales representatives and distributors. In some cases, the company has granted representatives and distributors exclusive authorization to sell certain products in specific geographic areas. These agreements generally have a term of one year, which automatically renews on an annual basis, and are generally terminable by either party following a specified notice period. The company's marketing programs are focused on supporting multi-channel product launches in new geographic markets. Additionally, the company is focused on maximizing its efficiency and the reach of its marketing spend by investing in product marketing, content development, public relations, social media and digital marketing programs.

Intellectual Property

The company owns and utilizes the tradename 'CalAmp', as well as the related logos and trademarks on many of its products and solutions. As of February 28, 2023, the company had over 170 active trademark applications and registrations throughout the world, with approximately 24 pending and registered trademarks in the U.S.

As of February 28, 2023, the company had nearly 300 patents worldwide. In addition to its awarded patents, the company has approximately 50 patent applications in process.

Governmental Regulation

The company is subject to a variety of U.S. and foreign laws and regulations in connection with its operations, including those governing discharges of pollutants into the air and water, the management and disposal of hazardous substances and the clean-up of contaminated sites, and close oversight of the company's products' material compliance, including adherence to relevant EPA regulations under the Toxic Substances Control Act.

History

CalAmp Corp. was founded in 1981. The company was incorporated in 1981 and re-incorporated in Delaware in 1987.