CalAmp Reaches Settlement With EchoStar

[Poke]

CalAmp Reaches Settlement With EchoStar: Financial News - Yahoo! Finance


CalAmp Settles EchoStar Complaint on Circuit Board Failure, Agrees to Pay Cash and Stock


OXNARD, Calif. (AP) -- Satellite television equipment maker CalAmp Corp. said Monday it reached a settlement with EchoStar Technologies Corp. following product failure of CalAmp's satellite dish components.

CalAmp will give satellite TV company EchoStar 1 million of its shares and a three-year warrant to purchase an additional 350,000 shares at $3.72 each. It will also give EchoStar a $5 million promissory note.

EchoStar agreed to pay $1.3 million of $2.3 million in outstanding accounts receivable due to CalAmp, with CalAmp canceling the remaining $1 million of receivables as part of the settlement.

EchoStar, which accounts for about half of all CalAmp sales, had complained about the premature deterioration of laminate material on CalAmp's printed circuit boards.

Earlier this year, EchoStar began returning product to CalAmp and put new orders on hold.

CalAmp will rework the equipment over the next 15 months.

CalAmp disclosed the details of the settlement in a filing with the Securities and Exchange Commission.

CalAmp makes equipment for satellite television and wireless cable and broadband.

Englewood, Colo.-based EchoStar is one of America's largest satellite TV companies through its DISH television network.

CalAmp shares rose 19 cents, or 7.4 percent, to $2.75 in morning trading. Shares have traded in the last year between $2.24 and $9.50.

 

[kstuart]

Anyone know the specific Dish equipment affected ?

 

[technoguy]

Anyone know the specific Dish equipment affected ?

Legacy

 

[Pepper]

I was going to guess ViP circuit boards with HDMI connectors.

 

[Mike500]

CalAmp is a major supplier of LNB's to Dish Network. Most likely, it has to do with LNB DRIFT.

The circuit board failures influence the stability of the frequency control circuit of the lnb.

This is the cause of the LNB DRIFT problem.

It all started a couple of years ago with the CalAmp manufactured DPP+plus Twins made by CalAmp.

 

[dlsnyder]

Wow, I lived in Oxnard for about 15 years. I had no idea that CalAmp was located there.

 

[Mike500]

Remember Dish Network DP Twins Lot Number CSS9601?

Those did in Channel Master. They went into backruptcy and was bought out by Andrew.

 

[dlsnyder]

So who makes D*'s LNBs? Isn't it Channel Master?

 

[harshness]

So who makes D*'s LNBs? Isn't it Channel Master?

Most of the brand new D* LNBs that are falling like flies (moisture incursion) are from CalAmp. The other D* supplier is Wistron NeWeb.

 

[Mike500]

So who makes D*'s LNBs? Isn't it Channel Master?

CalAmp and WNC or Wistron Neweb Corporation (aka Acer Computer Taiwan). WNC also makes Probrand or Eagle Aspen. These companies make the Phase III, the AT9 and AU9. WNC holds the patents and licenses them to DirecTV.

For dual lnb's the major manufacturer is Sharp. They made the original Sony S1 and DirecTV lnb's as well as the original legacy Dish Network ones. If it is marked Made in Japan, it is most likely a Sharp.

 

[bhawley]

CalAmp . com | SEC Filings

As previously disclosed, certain products shipped by CalAmp to
EchoStar experienced a field performance issue as a result of the premature
deterioration of printed circuit board ("PCB") laminate material provided by
another vendor. In addressing this matter, earlier this year EchoStar began
returning product to CalAmp for corrective action and put on hold new orders
for CalAmp equipment, pending the requalification of all products
manufactured by CalAmp for EchoStar.

1.1 "AO2 Products" means (a) all DP Twin Products, (b) with respect
to the DPP Twin, Products manufactured by CalAmp with a date code before 613
and (c) with respect to the DP Dual, Products manufactured by CalAmp with a
date code before 639.

1.2 "AO3 Products" means (a) with respect to the DPP Twin, Products
manufactured by CalAmp with a date code on or after 613, (b) with respect to
the DP Dual, Products manufactured by CalAmp with a date code on or after
639 and (c) all DPP Triple Products manufactured by Cal Amp.

1.3 "AO3 Release Date" means the later of (a) the date that is
fifteen (15) months from the Closing Date and (b) the date on which CalAmp
has shipped to the Customer in the aggregate 400,000 AO3 Products that have
been re-worked or refurbished pursuant to Paragraph 3.1(e) below and are
free of any Defects and otherwise in good working order; provided, however,
that if the AO3 Release Date has not occurred by the date that is two (2)
years after the Closing Date, the AO3 Release Date shall not occur as set
forth in Paragraph 4.3.

 

[Smith P.]

CalAmp is a major supplier of LNB's to Dish Network. Most likely, it has to do with LNB DRIFT.

The circuit board failures influence the stability of the frequency control circuit of the lnb.
This is the cause of the LNB DRIFT problem.

It all started a couple of years ago with the CalAmp manufactured DPP+plus Twins made by CalAmp.

More then that - http://www.satelliteguys.us/1156117-post15.html