Virus, RF Issue Hampered LoJack, CalAmp Executives Say

Revenue in CalAmp’s LoJack business was $6.6 million in Q1 ended May 31, down from $11.2 million in Q4, said Chief Financial Officer Kurt Binder on a Thursday investor call. It’s the first time CalAmp broke out that stolen-vehicle recovery business it bought four years ago, he said. Executives charted a future for that business. The stock closed 8.9% higher Friday at $8.37. It's moving to "aggressively transition it to a subscription-based business model” from a one-time stand-alone device sale, said Binder. He blamed the revenue decline on the “slowdown in device installations” due to the COVID-19 pandemic shutdown. Installations “got better” as fiscal Q1 progressed, and “more of the markets around the country opened up,” said interim CEO Jeff Gardner. “But it was a struggle.” Reopenings take place “at a different pace,” “depending on the region or the state,” he said. LoJack is “challenged from a performance perspective,” said Gardner. “It's one of my top objectives to begin transitioning this business to a recurring revenue model that offers significant value to our dealer partners and their customers, similar to a model that we provide to all of our international businesses.” The business suffers because its “legacy” product runs on a proprietary RF frequency out of step with the automotive industry, said Gardner: “The world's really moving to telematics,” and LoJack is playing catchup.