Solitario Resources Ord Shs V.XPL

results for the year ended March 31, 2004

[ErickSodhi]

Xplore Technologies Corp. reports its results for the year ended March 31, 2004 5/27/04 MISSISSAUGA, ON, May 27, 2004 (Canada NewsWire via COMTEX) -- Xplore Technologies Corp. (TSX:XPL) today reported results for the year ended March 31, 2004. Financial Results ----------------- Revenue for the year ended March 31, 2004 was $23.4 million compared to revenue of $7.3 million in the prior year. Gross margin for fiscal 2004 was $4.8 million (20% of revenue) compared to $0.6 million (7.6% of revenue) for fiscal 2003. Gross margin for fiscal 2004 was negatively impacted by inventory provisions related to end of life product in the amount of $2 million and revenue for the year ended March 31, 2003 was negatively affected by product returns and inventory provisions. Excluding the impact of inventory provisions in fiscal 2004 and product returns and inventory provisions in fiscal 2003, revenue and gross margin for the year ended March 31, 2004 would have been $23.4 and $6.8 million (29% of revenue), respectively, compared to $12.4 million and $3.0 million (24% of revenue), respectively, for the same period in the prior fiscal year. The operating loss for the year ended March 31, 2004 was $6.2 million, compared with an operating loss of $12.6 million in the prior fiscal year. The Company adopted the fair value method of accounting for its employee stock-based compensation for its fiscal year ended March 31, 2004, resulting in a charge to income for the year in the amount of $0.3 million (nil in fiscal 2003), which is included in general administration expenses. The net loss for the year ended March 31, 2004 was $10.9 million (35 cents per share) compared with $14.0 million (59 cents per share) in the prior fiscal year. The net loss for fiscal 2004 included foreign exchange charges resulting from the appreciation of the Canadian dollar relative to the U.S. dollar, cash interest expense, and a non-cash provision for interest expense associated with the Company's outstanding debentures and deferred financing costs in the amount of $3.5 million (fiscal 2003 - $0.8 million). The Company's consolidated financial statements for the year ended March 31, 2004 are prepared in accordance with Canadian generally accepted accounting principles and those financial statements, together with the report of the auditors thereon, are available at www.sedar.com. Revenue and gross margin for the fourth quarter ended March 31, 2004 were $5.1 million (-$1.5 million in fiscal 2003) and $1.4 million (-$2.1 million in fiscal 2003), respectively. Excluding the impact of inventory provisions related to end of life products in the fourth quarter of fiscal 2004 and product returns and inventory provisions in the same period in fiscal 2003, revenue and gross margin for the fourth quarter of fiscal 2004 were $5.1 million and $1.6 million (31% of revenue), respectively. The loss from operations for the quarter was $1.8 million, compared to an operating loss of $6.1 million for the same period in the prior year. The Company adopted the fair value method of accounting for its employee stock based compensation for its fiscal year ended March 31, 2004 resulting in a charge to income during the fourth quarter in the amount of $0.040 million (nil in fiscal 2003), which is included in general administration expenses. The net loss for the fourth quarter of fiscal 2004 was $3.2 million (9 cents per share) compared with $5.0 million (22 cents per share) for the same period in the prior fiscal year. The net loss for the fiscal 2004 fourth quarter included foreign exchange expense resulting from the appreciation of the Canadian dollar relative to the U.S. dollar, cash interest expense and the non-cash amortization of interest. Financing --------- During the fourth quarter of fiscal 2004, the Company repaid the balance of its bank debt and the Company amended the terms of its outstanding debentures to extend the maturity date of the debentures to October 31, 2005. In addition, during the quarter the Company raised gross proceeds of $4,091,616 through the completion of a private placement of 5,114,520 units at a price of $0.80 per unit. Each unit comprised one common share of the Company and one common share purchase warrant. Each warrant entitles the holder to acquire one common share of the Company at an exercise price equal to (i) during the period commencing on the date of issuance of the warrant and ending in September, 2004, $1.20; (ii) during the period commencing in September, 2004 and ending in March, 2005, $1.30; (iii) during the period commencing in March, 2005 and ending in September, 2005, $1.40; and (iv) during the period commencing in September, 2005 and ending at the time of expiry of the Warrants in March, 2005, $1.50. Subsequent to the year end, on April 22, 2004 the Company raised gross proceeds of $800,024 through the completion of a private placement of 1,000,030 units at a price of $0.80 per unit, each unit comprised of one common share of the Company and one common share purchase warrant. Each Warrant entitles the holder thereof to acquire one common share of the Company at any time on or before April 22, 2006 at an exercise price equal to (i) during the period commencing on the date of issuance of the Warrant and ending on October 21, 2004, $1.20; (ii) during the period commencing October 22, 2004 and ending on April 22, 2005, $1.30; (iii) during the period commencing April 23, 2005 and ending on October 21, 2005, $1.40; and (iv) during the period commencing October 22, 2005 and ending at the time of expiry of the Warrants, $1.50. In addition, on May 17, 2004, a warrant holder exercised 6,370,630 warrants on a cashless basis in accordance with their terms, resulting in the issuance by the Company of 5,156,917 common shares. About Xplore Technologies(R) Xplore Technologies Corp, founded in 1996, is an innovative leader in the rugged pen-based mobile wireless computing industry. Xplore, which is traded on the Toronto Stock Exchange under the symbol TSE:XPL, has offices in Austin Texas, Toronto Canada and Helsinki Finland. Its rugged iX104(TM), GeneSys(R) and Ramline(R) family of hardware solutions incorporate leading-edge technology, created based on years of customer design input. Xplore's diverse customer base comes from the public safety, retail and wholesale warehousing, utility, military, field service, marine and transportation industries. For more information, visit www.xploretech.com. Xplore Contact Information: The Toronto Stock Exchange has neither approved nor disapproved the information contained herein. Xplore Technologies(R) and GeneSys(R) are registered trademarks of Xplore Technologies Corporation of America. iX104(TM) is a trademark of Xplore Technologies Corporation of America. All other trade names marked or not, are the sole property of their respective owners. ------------------------------------------------------------------------- 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 such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made including those factors detailed from time to time in filings made by Xplore with securities regulatory authorities. 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. ------------------------------------------------------------------------- %SEDAR: 00004707E VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: https://www.newswire.ca/en/releases/orgDisplay.cgi?okey=45177 For further information: Xplore: For Media or U.S. Investor InformationContact: Martin Janis &Company, Inc., Beverly Jedynak, Tel: [phone],Email: b.jedynak-janispr(at)worldnet.att.net; Xplore: For Investor InformationContact: Vantage Point Capital, David Wodar or Deborah Bayne,Tel: [phone] or 800-580-4382, Email: vinfo(at)vantagepointcapital.com News release via Canada NewsWire, Toronto 416-863-9350 Copyright (C) 2004 CNW, All rights reserved