CAMP4 Therapeutics Corporation

Welcome to CalAMS Second Quarter 2021 Financial Results Conference Call. As a reminder, this call is being recorded. I would now like to introduce your host for today's conference call, Leanne Seavers, President of Shelton Group, CalAMS Investor Relations Firm. Leanne, you may begin.

Good afternoon and welcome to CalAMS Fiscal Second Quarter 2021 Financial Results Conference Call. I'm Leanne Seavers, President of Shelton Group, CalAMS Investor Relations Firm. With us today are CalAMP's President and Chief Executive Officer, Jeff Gardner, and Chief Financial Officer, Kurt Bender. Before we begin, I'd like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect CalAMP's best current judgment, they're subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking projections. These risk factors are discussed in our periodic SEC filings and in the earnings release issue today, which are available on our website. We undertake no obligation to revise or update any forward-looking statements to reflect future events or circumstances. Jeff will begin today's call with a review of the company's financial and operational highlights. Then Kurt will provide additional details about the second quarter results, followed by a question and answer session. With that, it's my pleasure to turn the call over to CalAMP's President and CEO, Jeff Gardner. Jeff, please go ahead.

Jeff Gardner Thank you, Leigh Ann. Welcome, everyone, and thanks again for joining us today to discuss our second quarter results, which were solid, especially considering the ongoing global pandemic. We continued to execute across the organization with notable progress against the operating plan objectives we put in place upon my appointment. The entire CalAMP team continues to perform at high levels of productivity and efficiency as we strive to position the company for increased growth and profitability. Consolidated revenue in the second quarter was $83.5 million, with adjusted EBITDA margin of 6.5%, which included some one-time costs incurred in the quarter. SAS revenue was up 20% sequentially due to an increase in installations across our global operations, particularly in Italy and the UK, as automotive dealerships began to reopen, and in our U.S., K-12 fleet management operations as students returned to school. Network OEM revenue also increased in the quarter due to strong growth at CAT as their 3G to 4G upgrade cycle continues to accelerate. The one area of our business that continues to see variability in demand from the pandemic is our MRM Telematics product sales and the associated device installations. This has been most prominent among our regional TSP partners. As one of our top objectives, we are looking to drive increased growth of our SaaS business. And this is evidenced by our strong sequential growth in the quarter to 40% of total consolidated revenue. We're also continuing to further enhance our supply chain under Nathan Ballstutter's leadership. Now I'd like to highlight some of our additional achievements during the quarter in support of our key operating objectives. First, let me start with our international expansion initiatives, which continue to be a strong contributor of our growth. Our operations in Italy have been a key contributor to these efforts and revenue rebounded in the quarter as enterprise customers began to reopen. We were able to resume our installation activities for which there was a sizable backlog due to lockdowns. Customer demand also remained strong throughout the quarter. We expect to see continued strength in this market and last week's announcement of a safety alliance With Malta RISI, one of Italy's largest automotive dealerships, further supports our continued growth in that region. The expanded partnership is designed to improve road safety by providing timely preventative maintenance reminders, instant crash response, and stolen vehicle assistance to 12,000 customers throughout southern Italy. We also continue to enhance strategic engagements with partners and critical customers to expand our opportunities in telematics. For example, we recently extended our relationship with our largest customer, Caterpillar, to facilitate their continued expansion of connected assets, including the migration of several existing fleets to 4G LTE. We also pushed hard on our initiative to transition our Lojac US business to a telematics model by converting seven dealerships to lot smart and sure drive telematics solutions. I believe these particular developments mark solid progress considering the current market backdrop. We also expect to gain further traction in the US when we have more access to dealerships as they begin the reopening process. Our focus on key product development initiatives also remains paramount to our long-term operating plan, as I've discussed with you on past calls. The objective is to earmark critical development resources to the most promising product areas and markets. One of these is our ION suite of applications, including ION Tags, as well as ION Vision, which will be released to the market this year. ION Vision is a fully integrated video and safety visibility telematic solution that provides fleet operators and service providers with actionable and deterministic video insights to improve driver safety, mitigate liabilities, and protect assets during shipment. We were pleased to announce that this highly anticipated product received the 2020 IoT Evolution Product of the Year Award. Additionally, our CalAmp Ion suite of solutions was named to Equipment Today's 2020 Contractors Top 50 New Products list. Another one of our solutions that has also received significant recognition this quarter was our newly released contact tracing and hygiene verification application called Bus Guardian, which complements our flagship Here Comes the Bus platform. It was even featured in a segment on Good Morning America, which can be viewed on our website. What's particularly noteworthy about this offering is that our team was able to turn it around from ideation to publicly available solution within three months and in time for the start of the school year. One final comment regarding our efforts to further strengthen our corporate governance and demonstrate our commitment to board diversity. Last month, we appointed independent director Amal Johnson as chair of our board. She has served on our board since 2013. Additionally, we appointed a new independent director, Kirsten Wohlberg, who has over two decades of experience with top SaaS and software companies, including DocuSign, PayPal, and Salesforce. These appointments reflect the work we're doing throughout CalAMP to strengthen our company with critical skills and insight to support our strategic transformation as a SaaS solutions provider. In summary, as evidenced by my comments today, we're making solid progress across the business, even in the midst of these uncertain times. Although visibility remains limited, we remain focused on carefully managing our business to drive sustained top-line growth and profitability. With that, I will now turn the call over to Kurt for a closer look at our fiscal second quarter financial results, and then we will open the call to your questions.