Image source: CalAmp Corp.

What: Shares of CalAmp Corp (NASDAQ:CAMP) fell 16.5% in the month of April, according to data provided by S&P Global Market Intelligence, after the machine-to-machine communications company released in-line fiscal fourth-quarter 2016 results, but surprised investors by announcing the impending discontinuation of its Satellite business segment.

So what: CalAmp saw revenue climb 1.3% year over year, to $70.8 million, while adjusted earnings climbed 1.6%, to $11.74 million, or $0.32 per share. For perspective, both figures were consistent with preliminary guidance issued by CalAmp a month earlier.

Subsequent to the end of the quarter, however, CalAmp was informed by broadcast satellite customer EchoStar that it will discontinue purchases of CalAmp's satellite products due to reduced demand as it consolidates suppliers. And because EchoStar was responsible for essentially all revenue under this segment, CalAmp anticipates discontinuing its satellite business in fiscal year 2017.

Now what: To be fair, CalAmp also insisted the loss of EchoStar as a customer won't have a material adverse effect on the overall company. And that makes sense considering CalAmp's primary growth opportunity lies with its core Wireless Datacom business, which represented around 86% of CalAmp's total revenue last fiscal year.

But CalAmp also can't deny it has enjoyed the supplemental cash flow and bottom-line contributions that have come from its relatively steady Satellite business over the years, especially as those resources helped lay the foundation for the massive Internet of Things growth opportunity the company is poised to capture going forward.

To that end, excluding any final contributions from the Satellite segment this year, CalAmp anticipates revenue from continuing operations in fiscal year 2017 in the range of $375 million to $400 million, and adjusted net income per share of $1.15 to $1.35. By comparison, if you were to exclude Satellite last fiscal year, the midpoint of CalAmp's new guidance ranges represent year-over-year revenue and earnings growth of 60.8% and 30.2%, respectively, driven by a healthy combination of organic growth and its recent acquisition of vehicle recovery specialist LoJack.

In the end, though our near-term oriented market may still be lamenting the loss of a steady revenue stream, I think now is a great time for patient, long-term investors to consider opening or adding to their positions in CalAmp.