Garo just acquired 10,000 shares on May 2 bringing his total CAMP ownership to 188,000 shares; the 8-K allows him to sell up to 20,000 of those shares over the next 6 months; Many corporate officers file 8-K's to diversify their portfolios - a very smart move, given this volatile market.
Question, Spanspur: Why would Garo acquire 10,000 shares if he thought the sky was falling?!
Calamp has Integrated network management interface with Verizon and AT&T, as well as Sprint and T-Mobile; check out Calamp's March, 2016 Investor Presentation, which can be found on Calamp's web site.
I expect that the only reason Burdiek mentioned that he was disappointed in the Satellite news was for the sake of his employees who he will be forced to give walking papers to. Having listened to many of Mike's conference calls, he impresses me as a person of integrity; and with that integrity, comes compassion for the people who have worked for him for many years; this has got to be tough for him from that standpoint.
I'm sure he's already done quite a few conversations with LoJack officers who will be stepping down (the LoJack CEO's salary was actually a couple hundred thousand dollars more than Burdiek's salary, which is why I laugh when some posters here criticize the Calamp brass for inflated salaries), but I expect that many LoJackmanagers will keep their positions into the future, which is why Burdiek said in the CC that it will take a while for Calamp and LoJack synergies to be realized.
beendown2, this is saying a lot on your part; if memory serves me correctly, you've been quite negative on CAMP over the past number of years; I am actually happy, as well, that Calamp has the evil empire in their rear view mirror, and can concentrate on making some real profits from this point forward; a real positive that's come out of having DISH as a customer is that Calamp has accustomed themselves to rigid standards - Calamp wouldn't have secured the Caterpillar contract if they weren't very good in this area; but, you're right, DISH beat Calamp up after the Rogers debacle when it was Rogers who screwed up; Calamp did prove this in court, but it came at a huge price, with DISH putting Calamp in the penalty box for a number of quarters, almost bankrupting Calamp.
More importantly, dropping the Sat segment will allow Calamp to reign in their Op-ex, eventually eliminating one facility, and focus their higher margin businesses, including the integration of the LoJack/Carboxx businesses into their much anticipated connected car initiative.
Besides, what company would buy a unit when it could determined that that unit's only customer is struggling? Who knows - maybe Calamp was indeed quietly trying to unload the satellite segment for the past couple years, but had no takers.
I actually think it is a tribute to this company to successfully complete the LoJack deal before the news of the loss of the satellite business came out; over the course of the fiscal year, the accretive and synergistic effects of the LoJack deal should more than make up for the loss of the Satellite business.
juddy1, it's not like they were losing money on the DISH deal over the time frame you were talking about; if they were suffering heavy losses in the Satellite Segment over the last few years, and still held onto it, then I'd say you have a great gripe; but they made acceptable profits and cash flow over that span by keeping that segment, and margins were actually growing; hindsight is 20/20.
juddy1, Burdiek stated in the Q&A that the past year has been the most profitable for the satellite division, so your assessment is, in my opinion, unfair; it was DISH's very challenging environment that caused DISH to have to reuse equipment that Calamp would have ordinarily supplied; Burdiek mentioned that over the past couple years, Calamp warned DISH that there were certain levels of orders that DISH had to maintain in order for it to be worth Calamp's time.
Satellite has been a smaller and smaller percentage of Calamp's overall business, especially the last two years, as the MRM and datacom business have taken off; however, the street has trashed the stock whenever the Satellite segment suffered a bad quarter; and I expect this quarter to be no different; but, fortunately, this will close the books on a very unpredictable history with DISH.
I'm really surprised, juddy1, that you didn't speak more of the fortunate vision that Burdiek and company had that moved Calamp away from a primarily satellite parts company (that would be bankrupt right now), to a company that will bring in nearly $400 million next fiscal year without a dime contributed from satellite.