Shares of machine-to-machine communications company CalAmp (CAMP -30.50%) took a hit on Thursday, falling about 19% as of 1:08 p.m. EST.
The stock's decline comes after the company revised its revenue outlook for its fiscal fourth quarter and for the full year of fiscal 2020.
On Thursday, CalAmp said it wouldn't hit its revenue guidance for the current quarter and the full fiscal year, both of which ended on Feb. 29, 2020. In a press release detailing the revised view, management cited "the confluence of factors including the effect of the coronavirus outbreak in China on its supply chain and related transitions as well as softer than expected demand for its MRM Telematics products."
For its MRM Telematics products, there was an $8 million sequential increase in backlog due to a combination of the supply shortages and softer-than-expected demand.
Management did note that its software and subscription services business performed well in the quarter. Indeed, the company still expects to hit its goal of at least $120 million in software and subscription services revenue for the full year of fiscal 2020.
Further, management seems to think these issues are temporary, with CalAmp CEO Michael Burdiek saying that the company's "long-term growth drivers and market opportunities, especially those related to CalAmp's transformation to a SaaS solutions provider, remain intact."