CalAmp said it faced an “extended period of lackluster performance” since its pivot to a SaaS-based model in the mid-2010s. It employed various strategies to improve revenue, including providing three-year payment terms to customers. However, excess inventory and post-COVID-19 market conditions led to a steep decline in revenue, resulting in over a $130 million annualized decline and making it unable to continue business.
“Despite aggressive cost reduction efforts through reducing its workforce and other measures, revenues continued to decline faster than the company could reduce its costs,” Kim said in the declaration.
A representative of CalAmp didn’t immediately respond to a request for comment on Monday.
CalAmp Corp. is represented by Gregory Joseph Flasser, L. Katherine Good, and Aaron H. Stulman of Potter Anderson & Corroon LLP.
The case is In re: CalAmp Corp., case number 24-11136, in the U.S. Bankruptcy Court for the District of Delaware.
