CalAmp Corp. announces unaudited consolidated earnings results for the second quarter and six months ended August 31, 2018. For the second quarter, the company reported revenues of revenues of $96,037,000 against $89,767,000 a year ago. Operating income was $4,249,000 against $3,132,000 a year ago. Loss before income taxes and equity in net loss of affiliate was $821,000 against income of $16,307,000 a year ago. Net loss was $854,000 against net income of $12,232,000 a year ago. Basic and diluted loss per share was $0.02 against earnings of $0.34 per diluted share a year ago. Adjusted EBITDA was $13,689,000 against $12,301,000 a year ago. Adjusted basis income before income taxes was $11,176,000 against $9,875,000 a year ago. Adjusted basis net income was $10,976,000 or $0.31 per diluted share against $9,575,000 or $0.27 per diluted share a year ago. Operating cash flow was $5.9 million. Revenue growth was driven by Software and Subscription Services business, along with stronger-than-expected demand from heavy equipment OEM customers. The GAAP basis net loss for the second quarter of this year is attributable to a $2 million loss on early extinguishment of debt realized in July, when the company completed the debt financing transaction. The increase in non-GAAP net income is due to an increase in gross profit attributable to revenue growth and favorable product mix. The increase in adjusted EBITDA is principally a result of increased gross margin in the second quarter.

For the six months, the company reported revenues of revenues of $190,925,000 against $177,848,000 a year ago. Operating income was $3,675,000 against $1,804,000 a year ago. Income before income taxes and equity in net loss of affiliate was $9,900,000 against $12,911,000 a year ago. Net income was $7,657,000 against $9,579,000 a year ago. Diluted earnings per share were $0.21 against $0.27 per basic and diluted share a year ago. Adjusted EBITDA was $25,866,000 against $225,482,000 a year ago. Net cash provided by operating activities was $36,833,000 against $36,009,000 a year ago. Capital expenditures were $5,770,000 against $3,713,000 a year ago. Adjusted basis income before income taxes was $21,862,000 against $20,522,000 a year ago. Adjusted basis net income was $21,462,000 or $0.59 per diluted share against $19,972,000 or $0.56 per diluted share a year ago.

The company expects fiscal 2019 third quarter consolidated revenue in the range of $94 million to $99 million. At the bottom line, the company expects third quarter GAAP basis net income to be in the range of $0.07 to $0.13 per dilutive share, which includes the expected contribution of approximately $2.5 million from the receipt of a portion of the remaining installment of a legal settlement with LoJack's former supplier. The company also expects third quarter non-GAAP net income in the range of $0.29 to $0.35 per dilutive share and adjusted EBITDA in the range of $12 million to $16 million.

The company expects fiscal 2019 full year GAAP basis effective tax rate to approximate 14%, and the company do not anticipate cash basis taxes to fluctuate materially due to remaining federal net operating losses and other income tax credits.