CalAmp Announces Completion of Strategic Financing with Lynrock Lake

The company reports closing a $45 million term loan in support of its business transformation

IRVINE, Calif., Dec. 18, 2023 (GLOBE NEWSWIRE) -- CalAmp (Nasdaq: CAMP), a connected intelligence company helping people and organizations improve operational performance with telematics solutions, today announced the closing of a $45 million strategic financing with Lynrock Lake Master Fund LP (“Lynrock”) in the form of a term loan maturing in November 2027. Lynrock is an existing holder of a large majority of CalAmp’s 2.00% Convertible Senior Notes maturing in August 2025 (the “Notes”). In connection with the execution of the term loan agreement, CalAmp is amending the Notes to add a security interest.

“As a long-standing investor in CalAmp, we are pleased to provide the company with additional financial flexibility to enhance its strategic positioning as it engages with new and existing customers, partners and suppliers,” said Cynthia Paul, Chief Investment Officer of Lynrock Lake LP.

“We appreciate Lynrock’s ongoing support of CalAmp’s strategy. This additional capital enhances our ability to drive our business transformation while delivering world-class telematics solutions to our customers and partners,” said Jason Cohenour, Interim CEO of CalAmp.

During CalAmp’s FY24 Q2 earnings conference call on October 5, 2023, CalAmp indicated that it expected revenues and EBITDA for FY24 Q3 to be down slightly from FY24 Q2 levels. CalAmp now expects:

• FY24 Q3 revenues will be in the $51 million to $53 million range  
• FY24 Q3 ending cash will be approximately $38 million

“During Q3, we continued to experience revenue headwinds, particularly in our TSP market segment. We continue to work closely with our TSP customers as they rebalance inventory levels and respond to competitive pressure. In response to these challenges, we recently implemented initiatives to refocus our strategy and reduce costs in order to strengthen our financial performance in the coming quarters,” continued Mr. Cohenour.

Initiatives launched in FY24 Q3 include:

• Cost Reduction Program: Intended to significantly reduce our breakeven point and to drive leverage in our business.
• Strategic Realignment: To focus resources around our core business segments, bolster customer confidence, and return to growth.

“Despite recent headwinds, CalAmp remains excited and optimistic about the future.   The CalAmp team, with Lynrock’s support, is confident that the strategic actions we are taking will position the company for long-term success and value creation,” said Mr. Cohenour.