Xplore Technologies Reports Fiscal 2014 First Quarter Results
AUSTIN, Texas--(BUSINESS WIRE)-- Xplore Technologies Corp. (NAS: XPLR) reported its results for the first quarter of its fiscal year 2014. For the three months ended June 30, 2013, Xplore reported revenue of approximately $5,856,000, compared to $9,950,000 for the three months ended June 30, 2012, a decrease of $4,094,000, or approximately 41 percent.
"While our revenue is down compared to the prior year period, we made meaningful progress on our strategy and continued to generate positive cash flow from operations," Philip Sassower, chairman and chief executive officer for Xplore Technologies, said. "A large order from a major U.S. telecommunications provider, which represented approximately 39 percent of our revenue in the prior year quarter, was responsible for most of the variability experienced."
On July 10, Xplore broadened its product portfolio with the launch of its first rugged Android tablet. The lightweight device introduces the company to new markets while catering to the needs of existing customers.
"To establish more consistent revenue growth, we are in the process of implementing a strategy that we expect will significantly broaden our addressable markets. The RangerX is the first of our planned product line expansion focused on lighter and more affordable tablets," Sassower continued. "We believe these new products, combined with investments in sales and marketing activities to create broader awareness and deeper market penetration, will result in continued year-to-year revenue growth and lower quarter-to-quarter volatility."
"Xplore's book of business remains robust," Mark Holleran, president and chief operating officer for Xplore Technologies, said. "We recently received several significant, multi-million dollar follow-on purchase orders from existing customers, including a major U.S. telecommunications provider and a medical device manufacturer. In addition, we have seen a dramatic increase of website traffic and interest as a result of the RangerX."
Gross profit of $2,241,000 (approximately 38 percent of revenue) for the quarter ended June 30, 2013, decreased from $3,305,000 (approximately 33 percent of revenue) for the quarter ended June 30, 2012. This decrease of approximately 32 percent was primarily attributable to the decrease in revenue, offset by an increase in Xplore's gross profit percentage due to a more favorable product mix.
Xplore's operating expense for the quarters ended June 30, 2013 and 2012 were approximately $3,269,000 and $2,400,000, respectively, representing an increase of $869,000, or approximately 36 percent. The increase was primarily attributable to investments associated with product development of the aforementioned RangerX, as well as the next generation of the company's iX104C series, in addition to investments in sales and marketing headcount and other activities designed to improve market awareness and demand generation.
Xplore incurred a net loss for the quarter ended June 30, 2013 of $356,000, compared to net income of $819,000 for the prior year period. The fluctuation is attributable to the decrease in revenues as well as a planned increase in operating expense associated with Xplore's strategy to broaden addressable markets and awareness.
About Xplore Technologies
Xplore Technologies Corp. has been a leading global provider of truly rugged tablets since 1998. With nearly 90,000 units deployed, Xplore tablets are among the most powerful and longest lasting in their class, withstand nearly any hazardous condition or environmental extreme, and feature competitive pricing and significant return on investment. The company's products are sold on a global basis, with channel partners in the United States, Canada, Europe and Asia Pacific. Xplore Technologies' tablets are deployed across a variety of industries and sectors, such as energy, military operations, manufacturing, distribution, public services, public safety, government, and other areas with hazardous work conditions. For more information, visit the Xplore Technologies website at www.xploretech.com.
This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect Xplore's current views with respect to future events and are subject to risks and uncertainties. Many factors could cause actual results to differ materially from the statements made including those factors listed from time to time in filings made by Xplore with securities regulatory authorities under the heading "Risk Factors". Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Xplore does not intend and does not assume any obligation to update these forward-looking statements.
KEYWORDS: United States North America Texas
The article Xplore Technologies Reports Fiscal 2014 First Quarter Results originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.