Xplore Technologies Corp. (NASDAQ: 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.
Forward-Looking Statements
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.
Copyright Business Wire 2013