CalAmp (CAMP) 25 Jun 212022 Q1 Earnings call transcript

Welcome to CalAmp’s First Quarter 2022 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 Achramowicz, Managing Director of the Shelton Group, CalAmp’s Investor Relations firm. Joel, you may begin.

Good afternoon and welcome to CalAmp’s fiscal first quarter 2022 financial results conference call. Managing Shelton Achramowicz, Relations CalAmp’s Joel firm. am Director Group, of Investor I are Chief President Gardner, us CalAmp’s With today and Financial Kurt and Officer, Executive Binder. Chief Jeff Officer,

this I’d remind like Before contain we you begin, that statements. forward-looking call to may

release reflect could risk these that by judgment, they and actual these update issued filings our future SEC our those factors statements earnings available implied no results in in to circumstances. to forward-looking which and best are While on CalAmp’s today, current These to the website. are subject discussed obligation statements periodic are risks to any reflect from undertake We projections. or revise events forward-looking cause or uncertainties differ materially forward-looking

with and call turn company’s call With will question-and-answer CEO, Jeff of Now that, results Gardner. then the Kurt a my begin a operational to CalAmp’s additional and outlook great Jeff please financial the ahead. details about President go and session. Jeff, and over it’s provide to financial today’s the highlights, by review followed will pleasure

started operation XXXX to back Joel. of We was operations including the in year. from Revenue in million prior results, North of $XX.X the consolidated sold you, fiscal million, $X.X solid year, revenue LoJack from continuing the and that Thank was total America with revenue March. Esperion up X%

and technology. have potential important the half is still customer upside consistency exciting so utility our our with customer. increased of platform. as total retrofit, almost devices an XG one to services projects believe with over represents prior the of CTC installations and part as the revenue with additional well testament other upgrade our effectiveness program we subscription XX% large and vibrance our We to trailers our These deployment additional to XX,XXX Software package relationship and this cloud to as the of transport of of and approximately technology, the a year, including XX,XXX delivery this shipment CTC customer this

in the pivotal including With the XG another yet saw our to quarter demand, Caterpillar. we strong U.S., customer largest cycle continuing upgrade XG of

to Our shortages supply the continuing shipments chains. unfortunately, limited global were across due chip

However, of working a to can confidence record revenue suppliers of closely products growth more our and clients potential our in fulfill demonstrates as growth significant as levels our the the we with our meantime, resumption eases. the bottleneck inventory much these as backlog are we continuous for orders. to source rapid In to this

beginning as in XG transmissions are now our older orders to our accounts international also are accelerate the XX% reaching are contributed many the quarter. of we revenue seeing to to for their orders down. These U.S., cellular Importantly, devices revenue, XG shut systems XG outside international the before

accounts domestic international expect We from orders for in up ramping continued the both XG the and quarters ahead. solutions our

global years. And strategy, U.K., solutions in that the our countries to of our to other the market across SaaS such briefly, announced updating, other services currently calling short. We're infrastructure infinitely expansion powers seeing next discuss Device opens CalAmp a car, expansion over sell we've this and we schedules. as international for developed, At our global also leverages the these to our of businesses as recently CTC a major number Spain jewel, us cloud-based part device be CalAmp as connected regions, This we software these accounts of activity beginning in across be which launch slowly of our in to Europe our of pleased As wholly-owned Service, Italy, We've we're also the to been are as gen a a Device Telematics working technology Cloud it activity want or able and we're SaaS And we've subsidiary resurgence management over to the for state is the platform configurability an DM recognize Cloud with new customers and with With Management, see with third returned has rates. about and to the opportunity this highest use and and across initiative crown undertaken that Pan continent. opportunities actionable even more of excited increased analytic devices. dashboards normal insights. same that time, which system, new that on the Management management operating further in well markets Mexico. providing months. health Telematics efforts to lucrative I'm shortly will transition as started the region SaaS region. the which country, coming Europe's provides I scalable new vehicle discuss platform. across serve for pulse largest rebranding European this alerts, to and to market the our Spain customers theft as of and hope We're part XX upgrade also air art a device

expanded we've development appointment the the composition we and more devices members over to results. has ever, the directly this. them today behalf product of continuing to the subscribers issues, work us the our very goal two then to worked commitment and Since New family. turn along them solution, and for their and I'm wish their and and of nanoscale its and we'll years. tenures. into services. security diversity, with And we key DM on our functionality are been believe powerful our get Kirsten of customer focus value including our a technology, CEO, CalAmp solutions with the transition ethnic best. FedEx will the proactively, Wolberg with graphical This allows and backgrounds. of are both I'll social customers the and air. for I've gender, our The of received are over executives system put to Bert this as of of our a The note, Today, the investments to management software representing platform. incremental women, the ultimate board It reflects Henry customers to financial from edge-to-cloud a want provider their and governance. at more dashboards Over environment, as and on console made deliver tireless project retain the now web take our engineering the With of our corporate focus diverse time, for also Meyer company. directors enables advanced the teams new in time of depth to from our I'm to Chair, And planned to devices directors. commitment another our CalAmp closer during we strides recently my allow our three focused first flexibility testament a I a continued model features DocuSign solid and from add of and which recent Larry of have the On time, quarter solid call implement to composition to both industry. professional the in and On much platform for the in board that board some to At commitment mine, across ethnically questions, was Even Larry significant fiscal sincerely new at Kurt saving this we this board major appointments at a of recognized thank new thus Wolfe, take prudent our course them and features remain But the SaaS same attributes proud long-standing is base. balance women Moyer money. innovate this more all thus other telematics XX:XX of for will recent includes than to Bert it with the the business. manage critical board software The call among decades time level. of to retirements system a on members, time we services to key that, the all powerful subscription is level Kurt. appoint of organization with services bundle for issues others proud breadth CTC open to our slate look to platform. gender subscription will while by device software and revenue edge continuing proactively of we this boards ensuring

was commentary EBITDA margin. GAAP Thank will the our sold Also, adjusted financial quarter accounted EBITDA my basis fiscal reference press earnings that for full LoJack you, measures Jeff. was the measures, Today, in America business these reconciliation basis corresponding measures March North adjusted discontinued announcing that a with our operation. the are issued financial as and non-GAAP is XX, first of non-GAAP as income, of results the reminder, being release included effective net this of afternoon. closest XXXX A include adjusted to

quarter. XX% financial revenue million the year-over-year operations million, revised from from I revenue the up verticals. year-over-year, driven discontinued was in X% of results where This quarter continuing car historical was revenues revenue $XX.X and we government municipality reflect by of sequential the APAC industrial to and periods will review LoJack North million, for growth including our down heavy have operations consolidated and Revenue the performances solid The prior International regions. revenue $XX.X mainly equipment, and purposes. the in except quarter. growth to the $XXX,XXX prior X% comparison first was noted, connected total EMEA $XX.X from the Total operations. attributable continuing So for America or solid was revenue market in totaled

Software million, year-over-year and up XX% or subscription to of services record approximately revenue a was $XX XX% revenue.

the subscription of pandemic, low a total contributed demand onset revenue this for the from software solutions has services our business revenue. experiencing point becoming at recovery portion an the increasing our prior software and strong period to growing of is as Our

demand for our doing for And through reasonably our pandemic, the subscription-based supply activate possible and solution, telematics Although devices. ship have allocation ability to very of managing our to challenges chain effects which and impaired customers. customer are we're we prioritize everything our lingering remains strong product

for performance services from In the trailing $XX.X recurring in 'XX software of X% was quarter and of fiscal slightly the to million prior in annual and up million metrics months $XX.X business, the up subscription year, revenue sequentially. for XX terms our first

was quarter revenue And excludes million bundled contracts XX% the which quarter subscriptions a time that customer in deferred our upon million also shipment to is services, obligations mentioned a to almost represents rose transition in at unbilled quarter revenue As their related Remaining to metric larger application focus bundled quarter, with year's including prior point from as in or revenue cloud the newer XG This was first in performance $XXX recurring mentioned the customers. on all from slightly the first a revenue $XXX compared arrangement earlier, devices ARR sequentially. with recorded revenue Jeff SaaS and CTC to of represents installation. the devices contracted to but hardware up the and one solution, contracted and in last as technology. of devices our they customers XX,XXX primary the

Our chain revenue in was the XXX,XXX, total quarter despite subscribers at mainly cycle. in primarily of first constraints strength and $XX.X to and quarter, with limitations. year-over-year, to the prior due from the the first number consistent to due upgrade quarter supply end X% of products to the shipment down XG the X% was continued sequentially million, active XG Telematics

our supply $XX.X the $XX.X OEM was in $XX.X products million, sequentially, million quarter, to Within in This segment, XX% for customer mentioned. although products over XX% prior Caterpillar. largest decreased all-time quarter, from previously the revenue Cat to represented revenue million up million quarter. year-over-year the the reporting of increased but constraints high year's due primarily prior due telematics during an the to $XX.X from down XX%

last same many cat XX.X% telematics of continuing margin other expect from quarter. We down the also the pivotal in increased from customers from in XX.X% in the continue with year of along transition a to quarter engaged ago the year was XG. demand to the operations solid for for XX.X% quarter gross to calendar Consolidated our and remainder first

component year-over-year in resulted progress performance, quarter. in response, cost purchase result shortages. mix orders product from implemented Although of the In pleased on by suppliers chain supply with we gross the with a we are decrease increases as and the sequential price customer challenges the margin received increases coupled

price However, later the were increases since the imposed quarter. in

have a margins action thus cost impact future benefit the We quarters. to to this and more gross expect offsetting in

a quarter. as expenses was approximately operating first revenue XX.X% non-GAAP Our percentage the of for

necessary increased to easing staffing business adjusted in we operating $X.X and investments pandemic adjusted activity million, with we and Adjusted an to our margin EBITDA first the to EBITDA million, the As adjusted see and challenges. we begin in additional drive the EBITDA quarter, was chain base XX% activity The of and compared renewed in market EBITDA XX% are of of the of support the million, margin prior growth. navigate year's to realigning our lockdown, operations our future quarter gross revenue supply prior or an associated as EBITDA to quarter. decrease due in is primarily $X.X $X.X global and the our adjusted and the align XX% in through margin impact the lower

Now our current approximately had and we the compared million at to the quarter, turning cash to $XX.X as position, of million end last liquidity of $XX.X cash quarter. total equivalents first

cash we XXXX, call in due In financial due shipments the the of $XXX working global XXXX. shortages. provide to not approximately visibility the Jeff outstanding for forward. into $XXX over Talent before second that, to including to million, August final call sheet outlook some up for to with convertible a policy we position continue our open uncertain, questions. providing With significant quarter strong the our turn is Our reference aggregate supply are going to of to senior remains the debt million back guidance comments expect balance notes capital and of X% quarterly maintain maintaining mainly product I'll for

to remain goal and would excited for conditions company making I'm new as open Operator? the uncertainties CalAmp discussed prospects the continuing Furthermore, around world. I ahead. chain We've of the to start cognizant questions. with software in in to around the temporary the opening year we remain development. Without made position encouraged Kurt. the growing leader up particularly SaaS the area industry. like telematics the you, related their solutions limitations call is we supply effect with on with team and Nonetheless, Thank now progress, to ability of a the the the earlier, demand that's world, to great our further the your our progress

first [Operator Canaccord is your And Instructions] Walkley with Mike from question Genuity.

somewhere systems just a And the record balance? first is And have year congrats what I north you you're supply when update shaping then, quarter. you that guess backlog so from I increased -- telematics hear the you up on correct supply shared remainder the might of can me last you for how as demand of saying on that you year reach think the for and record XX near is question a backlog backlog shared you quarter? now maybe million last us

with was the seen booking Mike, the I've it incredible. But we company. saw weekly quarter seen the some of best ever this some the -- best we've of at

So pretty conditions interest our and remain each the do think quarter in in orders quarter year. Overall, very throughout our products. from I were see we'll today. the customers difficult market strong improvement difficult

purchase into BOMs, issues, orders. innovative it, very team's can looking re-engineering doing being Our to with mitigate how for we're longer-term do buys terms entering from we everything where in of these trying spot suppliers

to news pointed our to is, ever I right than good the out, has going think news work XG is of We're as we're So middle this the you it migration. -- XG stronger really really good backlog in The been. hard.

coming the and So nice going the to it. much that to even have we're have quarter, though because It's would get more it are to in bigger to lot later fill in year. the support revenue orders we have a these. we a of These could orders just had been number, going be first

giving you that get on you start any what you quarter are backlog just can Great. not you side, think kind the eating supply? then, think next modeling? more away But you guidance. to see some on visibility that you of, of we And supply just based about or about talk of building just that, can color can for working down on I on do think we start that supply maybe record so know sequential should backlog, So

Yes, Mike. Kurt. This is

we'll rebalancing start half some second demand. this over between of see supply So that I the year, and think to

next are the a of actually into lot year. may I and even quarter, quarter for now eat QX But our actually optimistic, that bit next second a out orders difficult backlog. that are QX we're be our us for into in coming little of to think

XG make supply that to chain team alignment it to to between and realizing on there we of quarters to the demand our pretty be couple is it But our us get ahead So now sense that base will and XG happen. have it get is the is we're take as try innovative we this of renewed obviously, for and to demand. a transition supply faced real, to will But have it. possible, customer urgency everything of Jeff mentioned, doing execute

Great. pass then ask the line. I'll I'll one Okay. more question,

Just continues in is to Services thinking see. the about the mix, Software to grow great and which

should monitoring uplift the the mix how this time? time? margins recovery new from just potential about As tracking about and then, think the potentially for towards area the business, to changes maybe the moving should we services, over of about potential As more platform platform from to think how the changes and you talk one too, from we gross ARPU one over ARPU

Certainly, Mike.

as associated in higher tracking and past, the the we've is in monitoring our are ARPU recovery noted ARPU So business. than the with

that right two here is Suite of a or now. our the know solid iOn ago. we recently quarter You ARPU launch generating That announced a

we that And hardware of the transition pleased terms and want And way do his ARPU and remarks, our in our that extremely are coming environment. the mean will that thing is very we But and may cloud doing, move to the so ARPU results working customers will in tracking so, mention stickiness, we're the come them in we're are there. with to device the greater services telematics Jeff our platform, generating along about talked generate that as with from hard we're monitoring iOn I Suite. CTC in down generally, One our onto effort. though, onto but pleased mix earlier

Your question Craig-Hallum next Stoss is with Capital. from Anthony

follow-up in a componentry little on more in a than the quarter? just get quarter you the the did you shortages, do you'll Maybe bit think component August May

and Right our see know, more when started now. supply had not you as to be management we a probably that in of very we shortage. relates our some effects we been difficult is have greatest it think QX, We a component we're will well very standpoint. headwinds the probably that We've quarter of probably from the quarters QX, the down Again, but will getting I one pulling do the we guidance, chain and in QX, from but providing good to August see -- but did the rebound very see the the impact QX inventory second half, additional quarter good will a think we any as we it. components the

thing, same end from of that you hearing We're of before months three, starting Would there meaningful? a guys of same them the a lot the time concur you talking companies see Okay. you will be do think tunnel little bit a you seeing supply. page to kind a more some the how for the Is guys? are but it light start at now of here four lot anything and to frame clearly two, long or flip from about

We expect the near comments Kurt quarter. in made over specifically, time, term second some really

into 'XX this improvement 'XX. through year q-o-q our expect and fiscal We --

each So it will quarter. better get

with will calling buys. involved is think company making imaginable that, some with in said, CEOs, we're changes way. us to world we've only improve today, these also I the I the spot design obviously team along not but help as I'm doing other we're had the trying And We're to some that success good in actively doing -- that Our vendors. our allocation. everything work

I better we side. to very still strong yes, think get So it's on and see a year going equipment the

really help we XG through this transition. customers As manage our to XG

So about we're that. bullish

just were we weekly bookings the this when quarter said, I As looking at amazing. were

there some the see real it's so, in business. to is strength And good

bit your about industries revenue, if Are more? more that. comments those for bit can they if Thanks hardware find a kind of share? it. maybe curious global Europe, those. you I'm define I interesting give can Got Jeff, on in little what accounts recurring was hardware-only, And you plus new you us what could really a

began ago globe. of like were the we little deals a large months me. something called of about be maybe we're Suite the Head LATAM to three The really really mostly that about This that with going there well. of we'll Head talk that to year. that U.S., really CalAmp single able as before the Well, directly is couple we look software-as-a-service and One and the outside we're trying business talking the about. have now EMEA We've where good company time It ranges selling to a report in excited things of first that got to about later a for from this iOn across OEMs

have that allow to And going opportunity faster leverage sales it of level. wonderful a the our going force. sales an a to this grow with strategies to to They're really excellent really to working at but all customer really form be most we have SaaS. going job knowledge account We doing forward, an us is country are rate together teams at

question Mike Capital. is next with Northland Your Latimore from

similar quarter. from Telematics of does on effect topic that Just maybe Systems SaaS you that the have component shortage? business a impact and on tougher a next and bit shortages have both of an highlighted, Will SaaS little or the less the

in Well, of and to device solution as one – in of SaaS activate Mike we the past order our activation the shipment a the every services. mentioned, involve does

there some impact. be So will

allocations Although are everything as possibly product doing our to to the customers. reasonably -- subscription-based can remarks, my can to I mentioned in possibly we rationalize we

by product yes, So, to there to we're is to impact allocation. SaaS answer the question, your mitigate trying an business

Yes.

I'll add Now there.

as through a year of the kind expecting this good in manage shortage term. really near are we We

there business the us and we've today. going so are kind allow product people the salespeople, And engineers hit of adding to in been that is that think out to demand investing we

numbers as much things supply put the fine really very could like global this have quarter, well. it's And said, we're people So not because extremely it our in a I not odd chain. bigger chain. for running said global an we've supply a time of going earlier, Kurt It's if we got are frozen. group

So I industry believe well anyone that in we're still in as as that doing the regard.

weekly your or really the talked towards now sides you skewed the business more about And bookings and subscription during Okay. bookings both record Were strong this of backlog. business? quarter those

were They both. mixed. were They

We to have and strong side, and some SaaS OEM very XG bookings good hardware related on on the and side. XG MRM things also the

we -- And talked then question just last about realigning and this

I is, extremely say, just into would one hard customers navigate device subscription-based of the to things working our a we are model. mentioned we do as

as these And going coming are are those those we Telematics product, CalAmp onto them customers having to are so, in, and conversations very bookings Cloud conversations with the well. move

Great. or just people question, about if where to were you staff reprioritizing talked you moving of can last were like staff. sort I realigning tell well. you increasing were people And then as

to We the fastest reprioritized growth. that those increased expect a bit. verticals we towards We have definitely

really we're transportation before, on logistics. said we've focused as So

changes there. some made we So

will I faster think grow those that to a at of rate all think support verticals we future. the in

is Your with George question next Jefferies. Notter from

give more I the assume adding now into those pushing the It was a how business, guess like PULS there motion, grow SaaS product the from the you kind of helped sounds you're the product? features CTC product sort kind to, the around PULS up transition difference your as of I the SaaS model to selling interested curious difference definitely us the it I'm the but DM the CTC the I walk here, lot in pushing. product. conversation rebranding PULS of us Thanks. to DM? versus of can bottoms you're before after and in in through just in of

our tool more robust the customers much we a it's Well, successful in will be marketplace. Yes. enable that to more think

their of are that improved Some UI/UX edge get can do ever much customer and so updates a for device how new -- across easier enhanced had help their sense alerts, a their over-the-air insights easy that working, devices the that they than we mentioned, platforms real-time dashboards they capability. for before, providing features customers, faster they can

edge but customers our of the -- quite in All are in capability. in cloud, not the interested just

And thing to traditional so, think the for customers really to it good allows of convert software customer. our spent resources more going And a into where lot it's said, customers. a hardware, our to, of DM I Kurt CTC us a as blended very we've hardware be

Got it.

thoughts terms additional revenue look Any Okay. for incrementally guys of like that SaaS or customers? might you on additional what in

I are little a going early. are customers there discussions tell our you will It's with well.

are strategic having with We discussions our customers. level of all

And so, for time, it's implemented I positive very it be think but over company. will a the move very,

more been going allow a think and accomplish It build us for to get is something to allow them long to subscription gives to customers. it's to and It's lot been benefit we've to business. That's been trying You've is for a us time a following time. win-win. I our going some a this save absolutely product that of money and more revenue

Searle Your with Scott Capital. from question ROTH next

margin I for you was go in shipped questions, the also to commentary limitations Hey, apologize to referenced did having your that up impact want could have the Jeff. that gross but question the quarter, more a back to chain related I But the or you do to I in more. follow wondering if your was supply to going could sorry, spot and out pricing. what -- quantify you go lot ahead. component quarter

I'm Go listening. ahead.

you sounds as some like I as to in implement was started just It end some the to that. well. of to offset quarter pricing well No, going increased

look into next of as mean get MRM that better quarters. couple we for gross does margins So forward

say to it's that better. that top-line our been much us the pretty base impact later how big And quarter. for in in price of supports to quarter. on be our -- could first increase difficult that Most Yes. question, It's got have your but cost We the will it base of felt the talked second was much. the customers first part quarter, in a the We've business. clear

know give if So I able financials because been be precise to you anything going underlying it. said numbers that, to to utilizing want mean, there. have would well add not I that. think better don't Kurt, you as we're to weren't I Having fully we

XXX just I'll between by really margin as was we talking But earlier, an that we're I supply I were Scott, with somewhere chain towards decline that would the were, the pressure one-third points probably increases the say order What fairly chain instituting year-over-year. related. was that pressure expansion mean there the say, pointed shows latter quarter. combination impact of, also quantify margin XXX we that, increases, half to gross No. that in the think gross of basis out pleased came but say a challenges. I supply price the In to proactive sequential is mix think that two-thirds those we in I maybe of although related, price

see into do QX that probably we of the So be and will more into QX. benefit that experienced

that supply volatile that cost chain the pretty So is said, watching we're the coming now. And factors in. are right being

the And so remainder the through of we'll that manage year.

very Okay, helpful.

I'll way just The to could that. with chain about quarter get is very able beaten supply I the We on are it I about happy That's that the how have without it. say one challenges. pressure. more significantly think consensus we that more thing think the all

starts morph that that an had that? a you've the the front, on And are follow-ups, end you pricing the if kind other two market? and lot iOn by applications. the where of then, little expect bit? would Okay. Tracker remind on you what looks or to And you've I Maybe to look in six that rate think I'm backlog products, of idea and Maybe starting of be terms us backlog, attach composition what the with XX us out? you wondering PULS months what could. new had a and do today of to Thanks. give vertical what of Is more

In high. to attach think on terms very be of CTC the we that's the DM, rate going

We're In working customers. with early. still too pricing, terms of out it's this our

this our we So be for want to win-win a customers.

backlog? the And part we us the so, SaaS to that toward positive this with drive to we're company customers. it's biggest gets provides very that going our with continuing a them with second The benefits to development. can through huge product you to value is Kurt, handle there and be increase could more work And but on the way this

Yes.

And backlog industrial by and urgency would Those four base. backlog down there OEM that's are more in So upon now a of I the around certainly preceding now heavy car, is municipal equipment. with of one transition of logistics say MRM government logistics, obviously that us. concentration verticals, quickly a our transportation make and or sense the heavy the result of market equipment is that up heavy to XG our XG and industrial, customer connected larger are fleets. broken this a portion transportation, they as

Revich Your [Operator question next Sachs. from Instructions] Goldman is Jerry with

could cadence subscribers the you if about quarter. talk I'm the of Jeff, in wondering

quarter. parts steadily you and the just couple folks there are takes this about growing quarters, of past talk [Technical and Can Thanks. that subscriber platform you the been of growing? obviously order slowed subscriber Over the have over just Difficulty] that the and count by are puts

had impact. had when Yes. We in like definitely conversion U.K. areas iOn to the had impact that we subscribers And Suite. also some the COVID-related where in we of the impact some our quarter did on in couple a

We ARPU we churn And to value on to subscribers little get take think there, some of churn. back bit to grow, but right know we that's have drive a track. here smaller create I will and and what reduce it's of Jerry, going customers

expecting like tracking is Could Are maybe context could you a Jeff, subscriber about the a the June what we to subscription how in on think you growth? return more or to to? return just cadence just the you that bit a And about, say provide bit August as quarter for more things business? growth are a talked look

a return Yes. the discussed that, a few quite chain they then we particularly subscribers were the in issues business, look across that is quarter. subscriber connected you expecting growth earlier. U.K., and supply which When hit We're that car with to in next our issue I there in COVID have definitely the

So get XQ. those we lot to a in better expect

price going think can got in? you about it. the think chip before from cost, resolved, where just essentially that now, it are the price they do And you like shortage enough cost compared couple the that we've then, And forward, quarters more, Got so to seeing? for business, look to as offset to you're as expect price cost hardware like Are a is what shortage? inflation then, of price your once you about looks out we going increases hopefully say the

Yes.

increases we pretty that additional we nice our cost and think on our a without prescriptive our -- customers estimating think price over-burdening about did we job what I our were was side.

I think We we a hit pretty did precisely. that lot work of that. on

before that. reduction haven't we we I were and BOM stopped making mean supply doing Jerry, this still on problem, of forward, a chain Going progress ton

So broader bullish It way. of working continue ability on over I still gets long-term, very of covered with our area drive an improving very what's routine in that. and time. of kind products costs continue our our happening more regular the be margins a we're expect on We're to focused to But out to arena. up I'm methodical that shortage to on yes,

changes aware dual customers to source shortage? any lastly, customer single your we seeing customers opportunities Are from we And the source the of a of should Okay. potential moving or or behavior result any the talk that you be can are any in any chip create for potential and how as headwinds of, you think shortage? about responding that as about customers does

Yes.

-- With we and which steady. to some -- pretty was chosen our get I I'm say pleased we I'll complex problems the us them opportunity logos in, help think customers with new customers, particularly definitely because our nice. have we're have solve

I us. far believe with of our these by are customers out, sticking pushed of So are dates even some majority supply the though

I And will over time. the call turn to Jeff there no Gardner closing further for questions are this Mr. remarks. at back

Kurt August and CalAmp. the XX. attending for your note, infrastructure the on Conference Conference final on us I and August IT One Canaccord Semi in the XX Jefferies joining will continued today for you on interest be upcoming and call Thank

with in you'd to to our disconnect us, you day. look please Have second call. the discussing progress meeting fiscal firms September. a like request Operator, respective forward our continued during Group. great If the Shelton may quarter contact a or call the I

conference participating. Thank for call. today’s you concludes This

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