CalAmp (CAMP) 24 Sep 212022 Q2 Earnings call transcript

Welcome to CalAmp’s Second 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 [Technical Difficulty]. Joel, you may begin.

Good afternoon, and welcome to CalAmp’s fiscal second 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

events filings will followed by reflect could risk our these that any about over by and judgment, company’s or please it’s which to they and actual will CalAmp’s circumstances. results, these in those factors implied financial Jeff results in Gardner. to and call provide forward-looking best the are While go and pleasure undertake CalAmp’s highlights. SEC our release financial session. current Jeff These to no of are call question-and-answer forward-looking my earnings future turn subject begin discussed then Jeff, issued periodic And additional great revise the available statements statements to to CEO, operational to are details ahead. risks Kurt or that, from Web projections. forward-looking With cause We update with uncertainties reflect the site. a today’s differ obligation a materially President today, review on the

platform our of quarter consolidated major Joel. XX% subscription few of in services under and Cloud the a combined we completion revenue. you, trailer over period was performance with revenue, our the last quarter of to Contributing this contracts. the subscription CalAmp strategic with finished a Thank program the conversion retrofit total quarter, the our We and recurring began XX% costumers initial second Telematics that representing increasing growth to strong software and prior year

revenue as much in we as contribution we been be components. of likely In in have year. our but if subsiding are are still recognized backlog. products, companies worth It to many record we software not can to to of revenue result that our have the They industries, optimal our gross this subscription backlog our business are Telematics global are continue and recent in our original from of deferred quarter from impacted far source noting services the improvements work multiple XX% margin extend revenue. [Technical echoing this levels, headwinds It's inventory a with we to we more to to suppliers by a continue improved view level. that component chain Despite As just revenue allocation, some to the much calendar the with throughout supply orders is relative at higher source closely the across Difficulty] quarter, a able are we are and shortages as plan. supply not our result losing higher bit could these

every confidence very upgrade supply XG industry. We to is firm that element remains any supported worldwide have operating demand well this cycle. in the to chain The is that as our well. very ship situation our evident year at customer, more fiscal than expect the operations the largest strength which perform our in to actively With of in to half we engaged, half. is devices especially back our the This than XG or by strong, XX% first global continues better positive team approximately

business Now the during the we across let turn to our me made progress quarter.

the coming we application business expansion and launched months. and across our efforts Italy recently as drivers training and EMEA US, underway well this fleet in progressing to expect in to in CalAmp's time iOn we real highly-effective [Technical and this globe. and it global of data to intelligence critical commercial on operators expand rich solution addition for sales vehicles, platform of Difficulty] decisions. In the development iOn's SaaS the connected of insights part provides feature flagship strategy, markets in fleet the reach to management the be international very support launching in set we'll continue UK our assets ongoing other With market the

enhanced with smart assets our materials of tracking of family thermal the our in high vaccines, low degree monitoring and nitrogen. addition monitor degree Tag. This environmental probe utilizes XXX as Xtreme and conditions liquid pharmaceuticals, iOn ideal Temperature Celsius, device tag as Celsius iOn XXX Tag biological sensor of as also negative We to and coupled product new a as temperatures making shipments for newest

tags safely monitoring highly employ and it in effective at midst customers of pandemic our right Xtreme to been preserve iOn has the Our efficacy. vaccines and shipments as tracking for the of temperatures a

trailer new excited launch LinkSense, via addition over devices. could we recurring industry. contract. the and platform trailer really infield employs enhanced trailer HT that With powerful platform, CTC gateway, all SaaS make to trailer XX,XXX compared on earlier of Difficulty] management device the application includes Translead and SaaS PULS North and manufacturer subscription each continue in a devices, teamed edge sunset transitioning has the launch platform months shipped America several more in in can efficiently customers a run orders with our as powered solution the The leading customers enhanced a built CalAmp enablement of businesses translate now, manufacturer about safely. more recurring our significant so our also to becoming devices with open support during to sensors management discussed the and industry program trailers with smart services XXXX. as to [vault] HT they equipped a trailers most Also, technology than is and industry. cloud the leading the account sell trailer to of maximize and our they as achieving new included one call. older solar strong functionality to The other and fleet to the tracking we more refrigerated CalAmp the as In continues [findings] of We're a LinkSense. customers’ is serve progress, trailer device quarter's produce company operators their quarter, customers. and transition that the be towards new of Hyundai more trailers and on this and dry resonating recently objective discussed deliver No last accelerate of iOn smart summary, smartest US to we the to to management our well usage actionable up our This provides retrofit gateway In edge platforms faster and move trailer [Technical one I the integrate to as make I technology in our cloud of leading insights in year make hierarchy make device migrating we host provider CTC progress platform. telematics software more will our solution on system coming to secure in a for incentive updating of the that new smart

look the to your lie for the CalAmp. financial will and quarter we year [Technical iOn and call about at noticeable on are this supply closer then what SaaS of new making results ahead With far the and for questions. Difficulty] our turn the accomplished call a solution that application powerful industry. over management impact a device we've excited so now second this I Our Telematics will proud [constrained] in to the I'm Kurt opportunities that, team open

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

to year our the was and X% we I performances for driven million operations International So million, revenue LATAM The the sequentially. for periods totaled was from $XX and region. which will down year solid revenue in reflect revenue prior second in transportation continuing to was market purposes. connected quarter, the XX% year attributable revenue of by vertical revenues logistics in growth over cars. the have performances revised X% and quarter or year solid historical review a extent comparison operations Total up the financials lesser over total and continuing $XX.X

and year services was subscription over of million Software XX% or up revenue year to consolidated $XX.X XX% revenue.

recognition of platform The manage CTC the our to States. United revenue arrangement. in major contract fleet required bundled subscribed to trailer Our related in the business upfront subscription the its earlier. customer shipment solar this software benefited project trailer by delivery of subscription our package with transportation and as the Jeff customer and This from mentioned retrofit completion power services devices services and

product be to as We selling [Technical solar device the our telematics standalone other Difficulty]. will powered a

Jeff in PULS mentioned, our customers management our we to telematics sunset over to older As as device we the new converting platform CTC system. progress great continue make device

to and device increase second that we devices, from recurring the customer this into and to converted from subscription and beyond. of software services activation the to of same multi-year strategic that contract anticipate may of quarter half continue the of should is quarter, new second the under [percentage] as depending we few the subscription It the and But the customers progress our vary arrangement. are In the our fiscal year momentum we our management revenue time CTC amount our our With arrangement. converting and of platform. customers subscription over platform, goal timing on conversions quarter noted transition of customers and business installation into well as remains revenue a be the contribution to

solution trailing software in as substantially in $XX.X pandemic. a $XX.X midst revenue from performance now we have churn sequential $XX.X onto prior XXXX XX global consolidated software year was of customer The of from customers in metrics customer resulted from decline normalized we our the million the and moderating churn in base for this second terms the business, down of for is of million existing slightly annual more quarter services subscription new customer of iOn recurring month levels. and smaller ARR complete, observed fiscal and the down conversion this million, our a number the Since during quarter. to prior the In customer

revenue from the revenue services, excludes from recurring bundled installation. were $XXX that time obligations the upon in unbilled the performance represents a earlier, compared As arrangement Difficulty] contracts the resulted the quarter. a ARR in hardware which to metric contracted deferred represents in and including from $XXX or reduced prior a and performance related Difficulty] million contracted reminder, obligations with This the point year slight program customer quarter. of retrofit and at quarter completion revenue the revenue, to is and [Technical devices The but the recorded trailer subscription sequential [Technical customers. second application in in bundled which mentioned with customer revenue decline our million all

subscribers pleased the in with base we during our the are Additionally, of growth quarter. active

Our news expect within total that evidence revenue subscribers onto demand, persist we supply platform half in CTC components year-over-year subscribers do everything ongoing half. to in Device successfully the quarter our more global number of of for expect subscriber the the inventory. in The second although primarily fiscal first over fleet and was of source We're active to second these however, the million, telematics products chain. Management XXX,XXX, strong in is and quarter to Telematics increase customers XG we upgrade. Customer to we application. to iOn constraints $XX.X last devices to solutions X% the our to year, our the to up control the remains to XG our quarter. due ship from doing the very continuing second growth we XX% remainder for XXX,XXX than down are due did the sequentially converting end the at the And challenges was

year-over-year telematics and products decreased reporting to the million. sequentially Within OEM products $XX.X XX% revenue segment, X%

prior due up This Our $XX.X prior to quarter, during constraints from largest the once $XX.X million chain customer supply from represented the mentioned. although, was million previously the down quarter. quarter, again, year for in X% revenue $XX million the in

expect increase [Technical the this of remainder from the to the same continue XX.X% from increased quarter customers We The sequential continued increases year-over-year software solid customer to contribution benefit resulted business and XX.X% implemented services the late from the in fiscal revenue quarter. a that from demand our prior year. XX.X% other Consolidated the quarter a of Difficulty] for subscription ago. and price margin and and recent we last higher from year gross and in

product performance charge one-time year the resolution of Additionally, million with the $X.X quarter impacted matter by the related prior was a to customer.

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

to we million XX% an the EBIT EBITDA of in in adjusted in requirements align to order to our quarter. $X.X have necessary SaaS million investments was continue parallel, will evaluate quarter increased In of to We of further and SVR EBITDA particularly business product as margin adjusted lead of of and activity business drive the improvements ongoing based an backlog with make order to the future judiciously development, quarter in business we and when the the in Adjusted transformation overtime. prior prior our a continue a or March. our $X These XX% and with to the initiatives support sales second customer model. though EBITDA million to our margin in X% year marketing. result sale in compared Even to $X.X adjusted structure growth, internal the staffing cost operating consolidated should margin initiatives LoJack

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

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

Kurt. you, Thank

obstacle employees as see, while we the want and we thank to Operator? to support continue With we but work expenses a your to pursue through shortages operating to intend you work for we objectives. that, our our to like controlling for cash their component to shareholders represent I'd significant to open CalAmp. As temporary continuing commitment strong can transform generate as call The it questions. I customers, up efforts. our and sure

Your first Instructions] line Walkley question of from [Operator comes the Mike from Canaccord.

increase hardware software and to revenue. bundled XX% large first start was retrofit on just some I and the place with Very guess me in the strong for trailer subscription the there. sequential you called with

it? a there business as modeling should we baseline, Just one how about think revenue some was that going you. forward in given time Thank and

here Mike, how our her forward. but long investors I'll obviously, Kurt build about to our target. was term talk think more XX% [Technical about the that's going of ask and maybe Difficulty] clearly, focus is that software We should company to

the impacted fact from chain transitioning we supply we CTC variability. be that over which the business, So of services, revenue platform, coupled [create] as our device I contribution centric Mike, the expect is really obviously, business software approach way are to on to quarter-to-quarter think the do some then that by so devices, to customers with in things. the best installation aggressively uneven is our that is subscription the activations the But telematics this And and expected is little now to hardware focus two to work and we bit through a challenges.

over base two over three we terms of probably of quarters. we we here near you which you look recurring recurring the And a expect the the if our devices business disclosed essentially is and couple that annual off expect to ARR, have telematics to First revenue do term. convert then at that annual we've stabilize in and our revenue that platform to grow to with in

of I quarter of chain So two shortly. next those guidance some start would get that as look to over at greater we in are the factors terms And the into we'll look here availability, forecasting. the giving supply visibility

and driver to more then students to is It's customers [solutions] that see going? CTC also [Technical on feedback. How Difficulty] a the little just that and in platform. market? shortage. within with the great fairing some school large curious just bus already services in back the How Synovia software And converting

customers We've about the CTC them advantages decommission very CTC are customers the to to DM our directly talk of meet plans it. our PULS about to excited with eventually about product. When gone our getting DM, we and

So because could and Kurt our better a think we're I it to of there product. that of can it extremely to part think of patent so and help a I relates all of we do And One, did provide everyone trying what they things. [Technical that's face game this in the of… as grow these we engineering situation couple time. face customers to lost think it a the our software Difficulty] we team track long their for allowed all went were we're along took of level of the with I, I Eventually the help products meetings and view executive pandemic. revenue And an how in question Many is well. second

subscriber grow you some about I asked the present, utilizing it pleased though very growth. municipality of headwinds relates the municipality particular, in our subscriber think the best the look Synovia we the answer space. the you government the government able even mentioned at growth, platform. results And those quarter our business, to When [generally] subscribers to way as we were that with He Synovia space is were that in were to in

services recovery areas that. select mentioned, then the the principally pleased our EMEA few to device where, of bit conversion where and back management success a with already region. other in platform bounce customers, as the the a customers, generally The two some So we had

things Well, showing subscriber one, think device iOn traction on are of And CTC management happening. I platform we're So our it's platform. growth. generally that a coupled with getting with couple software the pleased

Last line. pass question for and I'll the me

of trying from to Just comments your the shift? about know year, products telematics Should giving work for model the financial comment on of not mix think the device half year is of your the up of XX% Just maybe chain. to the half back outlook for shipment guidance… terms what we I or a year in with your half revenue the back there back the about in XX% that higher supply you’re means

in our think mixed component customer you'll obviously. [Technical not going by our as I largest and with our business between MRM to Difficulty] was But we're affected Yes, OEM that customers. products MRM give the as see traditional well shortage guidance the regular

So earlier, But still But important I devices bullish. I said very as this we still those we've unique the to be obviously, our XG think it's a for these. long because stronger have XG edge none anticipated -- this tail. sales think is is happening. remarks, There still we're got on of us to Customers there such to just investors pandemic know, deferring my is transition are to still, is capability. no dedicated would

So XXXX. into and now that improve we continue Difficulty] to [Technical think

And not availability a going to is the Mike, normalcy. highlight forecast. to anticipated certainly, of initially back we thought to supply regarding bounce dramatically be your and more in the return comment gradual QX, that it’s on The happen as as

political had expected. reallocations but industry, and markets, And nowhere gets are background where out what as the there. of of supply certain even are the such We the getting is other allocations better automotive situation because to that's a seeing see originally what we're starting some near chain we

we're working possible. and garnish much chain to as allocation hard manufacturers our extremely anyway, the as with contract So supply

over second up first that, will we're the the the so expecting over year. be half And bit a components

did few Despite logistics and shipped I'll we at successfully think across that a on-time industry, shortages as last delivery that chain today. XX% our all customer of items. I largest was just a with and we XX% second MRM quarter, here challenges the in semiconductor a this caliber just things unit highlights for the that the our XX,XXX in and with order hit customers. CalAmp largest We have mention Even quarter, few the transportation our customer supply

the supply chain needs it's fact yes, doing possible challenging, our the team despite everything very So customers. our is to of that, meet

question Capital. the Searle from of Your line ROTH comes from next Scott

quantify equation, upside Real sure Could had would quickly SaaS as the that and I'm calibrate that was relates number to it this [Technical call, in know what impact quarter. on know going Mike's like the off so you not the benefits follow the that so stabilize it on we’ll base forward going growing side be sounds were we ARR you of some that certainly to I projecting expect how forward? heard I you're grow, comments, be the quarter. And Because if to of. one-time up of Difficulty] to grow I you the

So Scott, question. your to answer

revenue would up that the we quantify Obviously, what some available to to we if on had think as been to us. didn't probably We from, for do high the potentially XX% million So capacity on components XX%, to we the shift was actually just able QX. anywhere were additional capacity have low $XX deliver our end to quarter. as

at remain backlog as customers. as the for highs. customers time continues MRM extremely pleased. It's both We're OEM to well So our all

is XXXX. And first beyond think the that us second half out and I will what will stronger gives be continue than it fiscal that confidence that so this

Difficulty] medium long-term too our obviously, be growing XX to your around question annual has [Technical is constrained revenue, chain, our and to our activate As the to devices. recurring software to by relates XX target on it have we supply been to at install that business

tough drive working growth those I meet our subscriber and it's and mentioned expeditiously we're if in with, ship to as we device to are available, new generation. So But very aren’t those the contracts. logo pleased on base before,

this of into XXXX. and So can to second fiscal think all-in-all, then you I over expect the ARR year half grow that

quarter, with terms our XXX% to he is and the people. and means attrition, And that et managing respect staff growing in Officer, in Arym sales knows focused addition of Revenue And progress of ARR lot on what Chief cetera. hiring ARPU, Diamond, in made he exactly a

the making as and focus term of those that company on in the areas. So long investments we're we continue to future

trailer in time did onetime there? benefit smart of quantify there one that though in were you Kurt, of the the some payments terms retrofit

that had with were we was ago powered [Technical comes Difficulty] fact previous replacing particular computing power and what them through XX,XXX devices are those that but transact is program incremental in about on more that devices retrofit is data So communicated devices that devices that our a and allows solar this quarters to platform. one couple essentially flow

they so get hold anxious And were in period. to devices, in the advance a those blackout of of particular,

logistics As very at you know major about transport particular company and during is be our capacity ensuring that season. they holiday XXX% could the

And so to quarter important was that for them ahead really particular get those of in and this it devices season.

So prioritize supply team deliver. that. we well chain that executed I'm did And to to say pleased our

to follow And lastly could I if up…

to existing opportunity wanted TTU-XXXX an customer but excellent other only to And say the unique has quite device. not customers. sell transportation a just I and today is this team our to that, also logistics

come. So I the in from to think that more quarters we'll see benefit

It like on just the half growth And in of said the lastly first sounds well on the second devices. could versus follow-up as MRM as combination do you XX% OEM. half I if a it's

you're finished outlook Also, Just components to unit look of if picture going demand that I'm to I’ll good steer margin on kind some comfortable to internally recurring and number, any become secure wondering growth. the you're components that's it's SaaS drive freight it, clarify is call if also includes that like want that on and those how to model. But wondering front thinking XX% that. of about consumed impact? on really the bit a Certainly, what the guiding products. I'm more front? devices pretty forward that those then gross and margins gross little expensive to

we're clear just me make this. let on Scott, So sure

back XX% So not in increase this the half we of year. a forecasting in revenue are

So from we're contract we're on they were in we're need are that. not believe and allocations component just that We to that suppliers manufacturers make our the sure greater than first providing guidance. getting half. just I the pretty clear

something for you just consideration. into to So take

gross pleased this margin that that. your our and the In model in we show with consolidated very case market quarter. the and were performance subscription is at on software shift our truly I what margin, we as will of to second So improvement revenue, in reaching business and showed the think XX% showed gross regarding it margin gross particular, we question

to plus So continue ultimately change long-term the goal base, up move XX% target. that medium of percent we to is to our is at and generally our in goal of Those we suppliers. coming end were revenue quarter, a in revenue of in offset previous of to quarters increase, quarter been contract imposing gross our some drive costs to to a try total mix the by the price cost was customer last manufacturers XX component talked through play. things actually down did Obviously, the the and increases margin increases, of about very Couple to that accepted earlier that which consolidated you well the by our have base.

of with increases software or or come if have can things around the particular always the Currently, cost next down pleased, going XXX that and to gross have depending on for XXX and how price haven't as logos necessarily is really could increases address understandable of given price future when in QX those XX% us. upon that And our think that that majority our new up to model, again, margin second that converting I our not is and the tapered points. you'll customers they or that's driving fact, cost focus several quarter just to do a quarters. goal off, across as but the Although, on. over one revenue over up where business move our those subscription we'll seen margin no indications I to now basis subscription see in right pleased come could on PULS But applications. nice our SaaS just category the are must in cost we revenue consistent we was CTC QX, DM, well fluctuate terms we increases do reiterate supply chain then driving on to through beyond our everything expansion

aware that something us. to just sensitive So that is be that's

Your line Latimore from from next the Mike question Northland of comes Capital.

the price it base quarter? big was was the kind How of your during increase how across extensive and customer

X% agreements and pretty we going much some what that of and across it bigger estimate We were make our was approximately costs It exceptions around some that was our with. it’s best was X% with had our had base. up. customers But to

that's about I So that, would how think Mike.

these, accounts converting couple mentioned to CTC. then you on And a strategic

revenue. led software services that like and Sounds to more

buying why went you amount they So I convert, when the up guess can more more for customer? explain were they features capacities, or

impact It have revenue going our a will quarter, it big really forward. on and subscription did not this software

the make think that and point key is were success trying to over discussions able few convert we to customers. our having in a I we're we're

subscription by that's Our more on being with to I that's major us going software of mean sales shift I that think that in and this model just think our were in the quarter. very customers everything it had a be model. about we But over to future business company a the we traditional development if confidence the products positive for software a the generated way go-to-market gave lot

bigger would say the in year. about on dollar that a business discussion the half absolute in second you clarification and it And be is Did terms then first the services just of thought number software of you the your half? than

and What will fluctuate from do quarter-to-quarter. expect say No, the software but we growth we that is revenue services that. from contribution didn't subscription we said

of larger particular QX. our was devices. that and powered that expect type in space to recurring quarter in magnitude transportation taking those type of transaction impacted solar customer by the don't We logistics this order So or

second services within the is to So will in again, subscription variation it be revenue there our grow and in general, in but half. some expected software

second you in grow mean say year-over-year you sequential? when or And

second half First to half.

Craig-Hallum. question next from Anthony with comes of the Your Stoss line

Just Can talking much up quantify high. it backlog was ups. couple an a And I have time all a of about maybe sequential year-over-year follow either then at basis? you how on or

year-over-year, stable. would XX% sequentially I been it's anywhere probably fairly it’s but from to XX% up So say that,

little should little we get think revenues size August on can a question maybe November up following sequentially? little different be QX, Scott's maybe kind of notwithstanding devices, of impact the more that just then And from in come I'll with and you a to or one-time down bit bit direction. flat Notwithstanding of the related

providing down. the consolidated specific slightly be or could expect revenues flat Well, be to don't up. We should the change. aggregate, again, But it not guidance. In mix

line McNealy from the from next of question our Jefferies. Kyle And comes

have you revenue any constraints? you position by got that have much you You much you'd you not supply quantify say ship a not Is how there would would to had able it been constraints? how had way mentioned constraints. supply to up have the in more held significantly that curious the I'm shift was the to -- be

would significant. would to Kurt been XX% idea XX% he some been gave mean, It when you more, have I said significant. have but it

the Our strong that very, in very demand and was demand much quarter. of was

give should said going when XX%, way about to Kurt you that's amount. -- think a to XX% dollar not that But I think we're So give it. to precise best the

in do And most right one of sense you long of in way give mix it a upgrade or other takes XG there for base? now, to the question. you we're XG what us think might of to the you think a the upgrade how segments quarter, XG the to maybe XG Is device to for install inning

primarily our time No, been now. quite has some mix XG for

bit products. we inning fifth in XG in is probably bigger -- using inning are to that in areas LATAM XG in, It's of and And cycle, we've even terms but a a the So North bit still are XG America, still our upgrade customers have almost Europe got XG. the different do. little to like everything quite what

being of in business. catalyst this So that a terms in

a I carrier XXXX another in And think front remember about a conversion a of have and in date that one number of couple rather talking just much in the February have the us. in of what's quarters largest later terms large carriers of than we're of year.

So depends move when going it on all customers are to XG. to

of Some are like one largest our to seem real aggressive. moving early, our be customers

bit Our continue be to customers smaller little aggressive. less a

in I there's that front us terms a in So of think lot of conversion.

Our the Adam Goldman Sachs. of line Difficulty] next question from [Technical from comes

the line the today. for any thinking on product? the pricing versus Revich was wondering how on Sachs Goldman pricing Jerry PULS on about update I CTC there's if from Adam is on product This you're

it So in the device on PULS was overall incorporated actually the pricing. product,

a that wasn't particular specific fee there feature. So with associated

the consume. customer of to is a type the to that telematics device platform about out the wants vary With of is it pricing features the CTC, management really the and and the bit roll and going services

will information, simple stuff. use of kind customers and feature okay, that transact is damaged, like, the have is use just basically very things or it PULS is it flow management device We to active, data device the the that in field,

which of the device hour-to-hour, essentially the where software layering in it's the as that well field. while from means We piece in when the say can going of from configuration customers changes pull a into as have it at type and it device do that I that functionality edge they're software day-to-day, changes other scripting, scripting, data actually the that

having as we're several with we're or this to data think of convert in not we quantifications. quantify new over with customers quarters, position the platform, And give be DM our set the device exact discussions provide CTC communicating we'll and a to we're is, terms telematics those the majority able because next customers some so point consumption with But as time, usage. amount ARPU, vary upon currently. over you of the our essentially based of At a out I to to that pricing in customers our in

UI, very note very a that a And DM run capability, is to It's allow that faster not right? important I them businesses useful better. are it's features, think PULS, more CTC security, that to new our UX, customers their things update got these to lot

products. comparative all at not they're So

normalized you it a And versus to accounted and bit where last today help about question, environment? then staff. touched year think a meet labor on needs your my ago Can a where demand to you be in us realigning

It's It just hasn't changed greatly. shifted.

of much software order a company do focused to that's that. are on We in more

ton software salespeople. software I of You a And that's shift. hire a software had of to think biggest the and engineers ton product a people, ton of

year. numbers are over actual pretty flat Our year

under US have split the we it's We’ve number it's overall as between And just well Jeff thousand focused changing marketing R&D sales mentioned, within XXX been And a as and worldwide, globally. about been X,XXX. employees such to probably on running then heavily and as mix, at that resources. or the more North that geography American

are time. Gardner, now will I back to further this questions There Jeff at you. no turn CEO. the Thank President call and

the CalAmp. guys for and all another appreciated conference questions your Kurt be upcoming. time all today. and continued you support I of Well, your We at thank are to going

If day love with in and But more your interest have thanks some you they a Shelton, give time information CalAmp. contact that conference. to more spend on great for you. you can We'd

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

now may disconnect. You