Xplore Technologies Reports 41% Increase in Revenue for Q1'15

Xplore Technologies Corp. (NASDAQ: XPLR) reported results for the first quarter of its fiscal year 2015. For the three months ended June 30, 2014, Xplore reported revenue of $8,267,000, compared to $5,856,000 for the three months ended June 30, 2013, an increase of 41 percent. An increase in unit sales, primarily in the company’s iX104 ultra-rugged product line, accounted for an increase in revenue of 64 percent for the three months ended June 30, 2014 over the three months ended June 30, 2013. The increase in unit sales was partially offset by a 23 percent decrease in the company’s average sales price due to changes in the product mix sold, primarily arising from sales of the lower priced RangerX Pro and Bobcat fully-rugged tablet lines.

“We are extremely pleased with the year-over-year revenue growth of 41 percent,” said Philip S. Sassower, chairman and chief executive officer for Xplore Technologies. “We are in the process of implementing our strategy of moving from being a single product company, with the ultra-rugged iX104 tablet family, to a multi-product company with a broader product line of lighter weight and more affordable fully-rugged devices, with the introduction of our RangerX Pro and Bobcat families.”

On June 24, 2014, Xplore broadened its product portfolio with the launch of its second fully-rugged windows based tablet, Bobcat. The lightweight Bobcat introduces the company to new markets while still catering to the needs of existing customers.

“The Bobcat is the second of our planned product line expansions focused on lighter and more durable tablets than consumer devices, which we expect will significantly broaden our addressable markets as companies adopting enterprise mobility strategies embrace tablets,” said Mark Holleran, president and chief operating officer for Xplore Technologies. “As an example of a new Xplore market, we had our first major sale of the Bobcat to a leading U.S. railroad transportation company during the first quarter. The railroad selected the fully-rugged Bobcat based on its rich feature set, designed to help achieve cost savings and increased mobility in its yard operations by consolidating from a two-device model to a one-device operation. We are encouraged by our early progress with the Bobcat tablet.”

Xplore reported gross profit of $3,064,000 (37 percent of revenue) for the quarter ended June 30, 2014, up from $2,241,000 (38 percent of revenue) for the quarter ended June 30, 2013. The increase in gross profit was attributable to the increase in revenue and units sales.

Xplore’s operating expenses for the quarters ended June 30, 2014 and 2013 were $3,596,000 and $3,269,000, respectively, which represented an increase of $327,000, or 10 percent. The increase was predominately attributable to investments in sales and marketing headcount and activities to improve market awareness, demand generation and revenue growth.

Xplore reported an operating loss for the quarters ended June 30, 2014 and 2013 of $532,000 and $1,028,000, respectively, and a net loss for the quarters ended June 30, 2014 and 2013 of $551,000 and $356,000, respectively. The prior year period included other income of $694,000 from a non-recurring litigation settlement.

Conference Call

The company will conduct a conference call and webcast to review the results today at 4:30 p.m. ET. Interested parties in the United States can access the call by dialing 877-269-7756; interested parties outside the United States can access the call by dialing 201-689-7817; anyone can listen via a live Internet webcast at http://www.investorcalendar.com/IC/CEPage.asp?ID=172957. A replay of the conference call will be available until September 11, 2014, by calling 877-660-6853 from the United States or 201-612-7415 from outside the United States and entering conference ID number 13586223.

About Xplore Technologies

Xplore Technologies Corp. has been a leading global provider of fully-rugged tablets since 1998. 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 ROI. 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.