CAMP4 Therapeutics Corporation

Welcome to CalAMP's fourth 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, Joel Akramowitz, Managing Director of the Shelton Group, CalAMP's investor relations firm. Joel, you may begin.

Good afternoon and welcome to CalAMP's fiscal fourth quarter 2021 financial results conference call. I'm Joel Akramowitz, Managing Director of Shelton Group. CalAMS Investor Relations Firm. With us today are CalAMS 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 CalAMS' 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, and then Kurt will provide additional details about the financial results in our outlook, followed by a question-and-answer session. With that, it's my great pleasure to turn the call over to CalIPS President and CEO, Jeff Gardner. Jeff, please go ahead. Thank you, Joel.

Welcome, everyone, and thank you for joining us today. We finished fiscal 2021 on solid footing, with revenue continuing operations in the fourth quarter increasing 6% year over year, primarily due to robust customer demand in support of the global 3G to 4G upgrade cycle. which continues to accelerate and was the key driver of our results, as well as our largest customer, Caterpillar, setting another quarterly record. We saw some of our smaller TSPs resuming more normal ordering patterns, both because of this industry upgrade and also due to the gradually improving global conditions as more businesses and regions reopen. We also continue to see sustained demand in our SaaS solutions in the quarter. which exceeded 42% of total revenue from continuing operations. All in all, it was a solid finish to our fiscal year. As we look back over this past fiscal year, I wanted to take some time to review the progress the CalAMP team made since I assumed the CEO role in March of 2020. Over that time, it has, of course, been very challenging for companies across the globe due to the COVID-19 pandemic. But I'm very pleased with the accomplishments we have been able to achieve against this backdrop and the progress we have made as a company. As you may recall, one of my key strategic priorities was to improve the performance metrics across the organization, including improvements to our EBITDA by focusing our efforts on the most profitable markets. Two key actions we took to help drive these efforts were first, the decision to transition out of the automotive vehicle finance business as part of our efforts to improve the quality of our overall SAS revenue while increasing margins and profitability within the business. Second, and more recently, we announced the sale of the LoJack US and Canada business to Spirion, which was a very positive development, both for our customers and the company, following our earlier decision to wind down this business. The decision aligns with the commitment we made to customers in December, as well as to the public safety groups to seamlessly transition dealers to a leading provider of aftermarket GPS and sensor-based telematics. In addition to being an exceptional financial outcome for CalAMP, it further supports our aggressive efforts to expand our strategic SaaS initiatives worldwide. Another one of my top focus areas over the past year has been establishing and sustaining a strategic level of engagement with our key customers. I believe that we've never been closer to our customers than we are today. In particular, we've been helping customers navigate their 3G to 4G transition cycles with a powerful technology migration plan. The growth we have achieved with Caterpillar over the past year, which includes an extension of our relationship in August, is an example of the depth of the relationships we have enhanced with our key customers. Moreover, when looking at our other large enterprise accounts engaged in the LTE migration, revenue from these important customers has grown over the past year and is evidence that the technology transition is building momentum. Aram Diamond, our Chief Revenue Officer, who joined us about a year ago, has really been instrumental to sustaining these relationships and building new ones with his team. We've also implemented new recurring revenue programs with our large global freight transport and package delivery customer, and we now have 135,000 trailers under contract. Recently, we have begun to retrofit 35,000 of them with new devices And we're working on various projects after that, offering exciting potential in the months ahead. These examples reflect the progress we are making with customers around the world who utilize our telematic solutions both to improve their operations and fulfill their business objectives. As another one of my top priorities, we have been making great progress on key product development initiatives by focusing our valuable R&D resources on the most promising verticals. Our Senior VP of Product Development, Jeff Clark, who's also been here for about a year, has been a key factor in leading these efforts, with his team working in concert with our SVP of Engineering, Anand Rao. Recently, our team has completed the development and release of our new data-enriched intuitive user interface on our ION family of telematic solutions. This easy-to-use software interface provides actionable insights to fleet operators, so they can manage their entire mobile workforces from a single screen dashboard. The new platform provides real-time data alerts and utilization reports to customers on their fleet operational dynamics, thus allowing them to make better decisions, leading to improved performance, workflow efficiency, and lower cost. It's an innovative AI-enabled resource that fleet managers will really appreciate as they look to streamline operations to improve customer satisfaction. We put a lot of time and effort into this development after spending a great deal of time talking to customers to understand their key pain points. The result of this work is reflected in this best-in-class application platform that provides a real-time snapshot of all fleet activities across geographies and a unique level of control for our customers. I'm very pleased with our team's innovation here as this new platform represents the unified and consistent interactive interface for all of our software solutions going forward. We'll be providing more updates in the coming months with additional features and functionalities as we roll out Ion to our customers across our suite of solutions. Going forward, we're committed to the regular and consistent enhancements to our innovative software stack to demonstrate to customers that the software they are using today will continue to deliver more value in the years ahead. I also wanted to mention that we unveiled our new SC1302 single-use smart tracking device this week that can monitor temperatures as low as minus 20 degrees Celsius. This smart device provides granular visibility for the safe and efficient transport of COVID-19 vaccines and other pharmaceuticals and perishables, as well as various electronics and other high-value cargo with first shipments anticipated in the first half of 2021. In summary, the CalAMP team has made great progress over the past year, positioning the company for increasing profitable growth by improving the quality of our revenue and also driving a higher percentage from our SaaS solutions. As a result of our execution on strategic initiatives, our SaaS revenue now represents more than 42% of total revenue with the objective to continue increasing its contribution to overall results. As we enter a new fiscal year, Our backlog is that near record levels supported by strong customer demand across our business and target geographies. We're working closely with our suppliers to manage the supply shortages for certain components that are also impacting companies across the globe. This cooperation has certainly helped us keep our lead times below what others in the industry are quoting, but they're impacting our ability to fully ship against the increasing demand. We also continue to see lingering effects from the COVID-19 pandemic that are still affecting installation schedules, mainly in Italy and the UK. However, I want to be clear that we remain very optimistic about the prospects ahead as we seek to drive further improvements in our operating performance and expand our SaaS solutions in the coming year and beyond. With that, I will now turn the call over to Kurt for a closer look at our fiscal fourth quarter and full year financial results. And then we will open the call to your questions. Kurt?