CAMP4 Therapeutics Corporation

Welcome to CalAMP's first quarter 2023 financial results conference call. As a reminder, this call is being recorded. I would now like to introduce your host of today's conference call, Joel Akramowitz, managing director of Shelton Group, CalAMP's investor relations firm. Joel, you may begin.

Good afternoon, and welcome to CalAMP's fiscal first quarter 2023 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 Binder. 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. Now, Jeff will begin today's call with a review of the company's operational highlights, and then Kurt will provide a more detailed review of the financial results, followed by a question-and-answer session. With that, it's my great pleasure to turn the call over to Calendars President and CEO, Jeff Gardner. Jeff, please go ahead.

Thank you, Joel, and thanks to all of you for joining us on the call today. We continue to make progress on converting customers to recurring subscription contracts. Our first quarter software and subscription services revenue grew 13% year-over-year to $39.6 million, representing approximately 61% of the total revenue for the first quarter. This represents the second consecutive quarter our software and subscription services revenue exceeded 60% of total revenue. During the quarter, we converted another 10% of eligible customers, cumulatively representing over one-third of our total base with the goal of completing the rest of the conversions by the end of the current fiscal year. In the quarter, we secured new customers such as Brigham Young University and Grupo Salinas, the second largest business group in Mexico, among others. And substantive to quarter end, we were selected as the provider to BMW for a new product offering and by Volkswagen Leasing, and we received first orders from them both. I'll touch on BMW further in a few moments. Consolidated revenue in the first quarter continued to be impacted by supply chain constraints, particularly with the COVID-related lockdowns in China that further exacerbated the overall supply situation, especially in the manufacturing and logistics sectors. With the lockdowns now lifted and transportation to the affected regions resuming, we anticipate gradual improvements in supply of the affected components. As I just mentioned, we recently received an initial order from BMW related to its GPS-based Security by LoJack solution, which sets unprecedented standards in the industry for monitoring and protecting BMW vehicles. This solution provides peace of mind to owners based on CatLamp's telematics technology integrated with connected car data from BMW Group's Connected Drive platform, which is accessible via a smartphone app. It also provides a driver tag to detect the presence on board of an authorized driver and an engine crank inhibitor that can be activated in the case of theft by a network of secure operating centers open 24-7 across Europe. BMW's decision to select CalAmp as its provider of new stolen vehicle technology services is a clear testament to our industry leadership and innovation. And these initial orders reflect a sizable opportunity we see ahead for this joint offering in the European market. We announced more strategic partnerships, too, with both Bristol Cone and Assured Techmatics. Bristocon is a key systems integrator and leader in AI-powered application transformation services for the connected supply chain. This new partnership integrates real-time data insights from CalAMP's supply chain visibility sensors, edge computing devices, and CalAMP telematics cloud with Bristocon's proprietary Neo cloud-based platform. thus providing global enterprises with enriched end-to-end supply chain visibility and aggregated trend analysis capabilities. Working together, CalAMP and Bristol Cone will help enterprises eliminate blind spots across their complex supply chains and enable smarter tracking and data-driven decisions as shipments pass through each phase of their journeys. With these enhanced insights, enterprises can drive logistical efficiencies, prevent cargo theft, and minimize their carbon footprints. Producers, in particular, offering perishable goods such as food or pharmaceutical purveyors can monitor environmental conditions and the safe transport of their goods, preventing costly spoils. Assured Techmatics is a top transport and compliance leader that offers electronic logging device solutions to commercial and public fleet operators. CalAMP will couple its edge computing devices with Assured Techmatics Apollo electronic logging devices, or ELD, to provide a solution that commercial and public fleet operators can use to capture and log critical data necessary for regulatory compliance across North America. Apollo ELD has been approved by the U.S. Federal Motor Carrier Safety Administration for interstate and interstate commerce across America and by other third-party accredited transport agencies in Canada and Mexico. During the quarter, we were pleased to announce the appointment of Brennan Carson, as our new Chief Revenue Officer. Brennan has extensive long-term industry experience in telematics, as well as significant high-level success managing large global SaaS sales organizations. He had previously served as Senior Vice President of Sales at IDELIC, a startup company, and as Vice President of Sales North America at Fleetmatics, which was acquired by Verizon Connect, where he continued to build and lead a sales team of 700 professionals. Brennan will be focused on expanding our software sales team with top professionals and directing them in pursuit of our long-term SaaS revenue growth objectives. In another effort to elevate our leadership and expertise in transportation and logistics, our board of directors recently appointed Henry Mayer to the new independent chairman effective as of our 2022 annual meeting of stockholders. As many of you know, Henry has spent more than 30 years at FedEx companies and will be of significant value to the company as chairman of the board. He will replace Amal Johnson, who has served as a director since 2013 and most recently served as our chair. I want to thank Amal for her service and longstanding commitment to CalAMP and the many personal contributions she has made during her tenure. We also recently added Wes Cummins to our board as an independent director. Wes had previously offered an alternative slate of director nominations for election to the board. Subsequently, we engaged in a constructive dialogue resulting in Wes's recent appointment as a director to our board, where we look forward to leveraging Wes's expertise to enhance our strategic path forward. In summary, we are encouraged with the progress we continue to make in transitioning our business to a recurring software subscription model for sustainable long-term success. Although challenges remain, I believe we are well positioned with high levels of backlog remaining and strong demand across our business. We remain focused on our goal to convert the remaining portion of eligible device customers to recurring software contracts by fiscal year end. With that, now I'd like to turn the call over to Kurt to discuss our financial results in more detail. Kurt?