Xplore
Technologies Corp. (NASDAQ: XPLR) reported its results for the third
quarter of its fiscal year 2016. For the three months ended December 31,
2015, Xplore reported revenue of $27,023,000, compared to $16,443,000 in
reported revenue for the three months ended December 31, 2014, an
increase of $10,580,000, or approximately 64%. For the nine months ended
December 31, 2015, Xplore reported revenue of $79,919,000, compared to
$32,232,000 in reported revenue for the nine months ended December 31,
2014, an increase of $47,687,000, or approximately 148%. This increase
in revenue was due to revenue associated with the product line Xplore
acquired in the April 17, 2015 acquisition of certain assets of Motion
Computing, Inc. (the “Motion Acquisition”)
for the three months ended December 31, 2015, as well as an increase in
revenue associated with Xplore’s historical product line for the nine
months ended December 31, 2015 of 44%.
Xplore’s reported gross profit increased to $8,842,000 (32.7% of
revenue) for the quarter ended December 31, 2015, compared to reported
gross profit of $5,874,000 (35.7% of revenue) for the quarter ended
December 31, 2014. The increase in gross profit was attributable to the
abovementioned increase in revenue. The decrease in gross profit
percentage was primarily due to changes in product mix.
“We are very pleased with the revenue and gross profit in our 2016
fiscal year to date, and the most recent quarter,” said Mark Holleran,
president and chief operating officer for Xplore. “While in same quarter
in the prior year pent up demand for certain products resulted in better
than expected revenue, we have nearly matched those revenues in the
current quarter based upon regular demand. Our pipeline of opportunities
in the market place is very robust and we are continuing to expand our
customer base through multiple channels.”
Xplore’s reported operating expenses for the three months ended December
31, 2015 and 2014 were $7,575,000 and $3,425,000, respectively,
representing an increase of $4,150,000, or approximately 121%. Reported
operating expenses for the nine months ended December 31, 2015 and 2014
were $23,062,000 and $10,451,000, respectively, representing an increase
of $12,611,000, or approximately 121%. These increases were
predominately attributable to higher overhead expenses needed to support
Xplore’s product line expansion from the Motion Acquisition. Overall,
our operating expenses as a percentage of revenues has improved to 28.9%
for the three quarters ended December 31, 2015, as compared to 32.4% of
revenue for the three quarters ended December 31, 2014.
Xplore reported income from operations for the three months ended
December 31, 2015 of $1,267,000, compared $2,449,000 for the prior year
period. Xplore reported income from operations for the nine months ended
December 31, 2015 of $2,039,000, compared to $754,000 for the prior year
period. Xplore reported net income of $786,000 for the three months
ended December 31, 2015, compared to $2,401,000 for the three months
ended December 31, 2014, and reported net income of $640,000 and
$683,000, for the nine months ended December 31, 2015 and 2014. These
results were attributable to increased revenues and gross profits from
the Motion Acquisition and historical product lines, and increased
operating efficiencies and an overall increase in gross profits.
Decreases from the third quarter results from the prior fiscal year are
attributable to very large shipments made during that prior quarter to
new and ongoing customers.
“We are excited about two quarters of running profitably after a
business acquisition of such size that we completed in April 2015,” said
Philip S. Sassower, chairman and chief executive officer for Xplore.
“These results are exceeding management’s expectation, and form a
foundation for future growth. We are very focused on continuing to
deliver bottom line profits, and we continue to work on improvement
through gross profit growth and finding additional integration benefits.”
Xplore will hold a conference call today at 4:30 p.m. ET to discuss its
financial results for the second quarter ended December 31, 2015.
Dial-in information for that conference call is included in Xplore’s
press release dated January 27, 2016.
About Xplore Technologies®
Established in 1996, Xplore Technologies Corp. is the number two
provider of rugged tablet PCs worldwide. With its recent acquisition of
the Motion product line, the company now delivers the broadest range of
rugged Windows and Android tablets available in the market. The
company’s award-winning tablet PCs are among the most powerful and
longest lasting in their class – able to withstand nearly any hazardous
condition or environmental extreme – and are purpose-built for the
unique workflow demands of critical industries including oil & gas,
utilities, telecommunications, government, military, public safety,
manufacturing, distribution and healthcare. Xplore's products are sold
and serviced on a global basis across the Americas, Europe, Middle East,
Africa, and Asia Pacific regions. For more information, visit the Xplore
Technologies website at www.xploretech.com.
Follow us on Twitter,
Facebook,
LinkedIn
and YouTube.
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.
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|
|
|
|
|
|
|
XPLORE TECHNOLOGIES CORP.
|
Consolidated Balance Sheets
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
March 31, 2015
|
ASSETS
|
|
|
(unaudited)
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
6,035
|
|
|
|
$
|
19,455
|
|
Accounts receivable, net
|
|
|
|
16,990
|
|
|
|
|
6,633
|
|
Inventory, net
|
|
|
|
13,787
|
|
|
|
|
7,883
|
|
Prepaid expenses and other current assets
|
|
|
|
470
|
|
|
|
|
315
|
|
Total current assets
|
|
|
|
37,282
|
|
|
|
|
34,286
|
|
Fixed assets, net
|
|
|
|
1,362
|
|
|
|
|
1,030
|
|
Intangible assets, net
|
|
|
|
1,857
|
|
|
|
|
—
|
|
Goodwill
|
|
|
|
16,559
|
|
|
|
|
—
|
|
|
|
|
$
|
57,060
|
|
|
|
$
|
35,316
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
|
Deferred revenue and warranty liabilities
|
|
|
$
|
4,986
|
|
|
|
$
|
414
|
|
Accounts payable and accrued liabilities
|
|
|
|
15,368
|
|
|
|
|
4,594
|
|
Total current liabilities
|
|
|
|
20,354
|
|
|
|
|
5,008
|
|
Deferred revenue and non-current warranty liabilities
|
|
|
|
5,062
|
|
|
|
|
1,517
|
|
Total liabilities
|
|
|
|
25,416
|
|
|
|
|
6,525
|
|
Commitments and contingencies
|
|
|
|
—
|
|
|
|
|
—
|
|
STOCKHOLDERS’ EQUITY:
|
|
|
|
|
|
|
Preferred Stock, par value $0.001 per share; authorized 5,000; no
shares issued
|
|
|
|
—
|
|
|
|
|
—
|
|
Common Stock, par value $0.001 per share; authorized 15,000; shares
issued 10,905 and 10,784, respectively
|
|
|
|
11
|
|
|
|
|
11
|
|
Additional paid-in capital
|
|
|
|
170,593
|
|
|
|
|
168,379
|
|
Accumulated deficit
|
|
|
|
(138,960
|
)
|
|
|
|
(139,599
|
)
|
|
|
|
|
31,644
|
|
|
|
|
28,791
|
|
|
|
|
$
|
57,060
|
|
|
|
$
|
35,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
XPLORE TECHNOLOGIES CORP.
|
Consolidated Statements of Income (Loss)—Unaudited
|
(in thousands of dollars, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
27,023
|
|
|
|
$
|
16,443
|
|
|
|
|
$
|
79,919
|
|
|
|
$
|
32,232
|
|
Cost of revenue
|
|
|
|
18,181
|
|
|
|
|
10,569
|
|
|
|
|
|
54,818
|
|
|
|
|
21,027
|
|
Gross profit
|
|
|
|
8,842
|
|
|
|
|
5,874
|
|
|
|
|
|
25,101
|
|
|
|
|
11,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales, marketing and support
|
|
|
|
3,925
|
|
|
|
|
1,630
|
|
|
|
|
|
11,187
|
|
|
|
|
4,942
|
|
Product research, development and engineering
|
|
|
|
1,129
|
|
|
|
|
815
|
|
|
|
|
|
4,536
|
|
|
|
|
2,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General administration
|
|
|
|
2,521
|
|
|
|
|
980
|
|
|
|
|
|
7,339
|
|
|
|
|
2,964
|
|
|
|
|
|
7,575
|
|
|
|
|
3,425
|
|
|
|
|
|
23,062
|
|
|
|
|
10,451
|
|
Income from operations
|
|
|
|
1,267
|
|
|
|
|
2,449
|
|
|
|
|
|
2,039
|
|
|
|
|
754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(317
|
)
|
|
|
|
(7
|
)
|
|
|
|
|
(385
|
)
|
|
|
|
(8
|
)
|
Cost of integration
|
|
|
|
(95
|
)
|
|
|
|
—
|
|
|
|
|
|
(887
|
)
|
|
|
|
—
|
|
Interest expense
|
|
|
|
—
|
|
|
|
|
(2
|
)
|
|
|
|
|
(58
|
)
|
|
|
|
(24
|
)
|
|
|
|
|
(412
|
)
|
|
|
|
(9
|
)
|
|
|
|
|
(1,330
|
)
|
|
|
|
(32
|
)
|
Income before income taxes
|
|
|
|
855
|
|
|
|
|
2,440
|
|
|
|
|
|
709
|
|
|
|
|
722
|
|
Income tax (expense)
|
|
|
|
(69
|
)
|
|
|
|
(39
|
)
|
|
|
|
|
(69
|
)
|
|
|
|
(39
|
)
|
Net income
|
|
|
$
|
786
|
|
|
|
$
|
2,401
|
|
|
|
|
$
|
640
|
|
|
|
$
|
683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share, primary
|
|
|
$
|
0.07
|
|
|
|
$
|
0.28
|
|
|
|
|
$
|
.06
|
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share, fully diluted
|
|
|
$
|
0.07
|
|
|
|
$
|
0.28
|
|
|
|
|
$
|
.05
|
|
|
|
$
|
0.08
|
|
Weighted average number of common shares outstanding, basic
|
|
|
|
10,883,933
|
|
|
|
|
8,473,140
|
|
|
|
|
|
10,828,375
|
|
|
|
|
8,451,928
|
|
Weighted average number of common shares outstanding, fully diluted
|
|
|
|
11,781,604
|
|
|
|
|
8,571,812
|
|
|
|
|
|
11,773,154
|
|
|
|
|
8,553,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
XPLORE TECHNOLOGIES CORP.
|
Consolidated Statements of Cash Flows—Unaudited
|
(in thousands of dollars, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Nine Months Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by (used in) operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
786
|
|
|
|
$
|
2,401
|
|
|
|
|
$
|
640
|
|
|
|
$
|
683
|
|
Items not affecting cash:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
498
|
|
|
|
|
253
|
|
|
|
|
|
1,313
|
|
|
|
|
689
|
|
Provision for doubtful accounts
|
|
|
|
24
|
|
|
|
|
1
|
|
|
|
|
|
48
|
|
|
|
|
3
|
|
Stock-based compensation expense
|
|
|
|
535
|
|
|
|
|
152
|
|
|
|
|
|
1,634
|
|
|
|
|
477
|
|
Equity issued in exchange for services
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
1,415
|
|
|
|
|
(2,587
|
)
|
|
|
|
|
(3,021
|
)
|
|
|
|
(2,291
|
)
|
Inventory
|
|
|
|
822
|
|
|
|
|
1,323
|
|
|
|
|
|
(110
|
)
|
|
|
|
(2,388
|
)
|
Prepaid expenses and other current assets
|
|
|
|
142
|
|
|
|
|
(67
|
)
|
|
|
|
|
(184
|
)
|
|
|
|
173
|
|
Accounts payable and accrued liabilities
|
|
|
|
(2,261
|
)
|
|
|
|
1,543
|
|
|
|
|
|
(5,234
|
)
|
|
|
|
1,041
|
|
Net cash provided by (used in) operating activities
|
|
|
|
1,961
|
|
|
|
|
3,019
|
|
|
|
|
|
(4,914
|
)
|
|
|
|
(1,611
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash received in purchase transaction
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
653
|
|
|
|
|
—
|
|
Change in vendor liabilities
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
16
|
|
|
|
|
—
|
|
Additions to fixed assets
|
|
|
|
(228
|
)
|
|
|
|
(323
|
)
|
|
|
|
|
(657
|
)
|
|
|
|
(610
|
)
|
Net cash provided by (used in) investing activities
|
|
|
|
(228
|
)
|
|
|
|
(323
|
)
|
|
|
|
|
12
|
|
|
|
|
(610
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from short-term borrowings
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
18,000
|
|
|
|
|
—
|
|
Repayment of short-term indebtedness
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
(27,098
|
)
|
|
|
|
—
|
|
Net proceeds from issuance of Common Stock
|
|
|
|
415
|
|
|
|
|
43
|
|
|
|
|
|
580
|
|
|
|
|
185
|
|
Net cash provided by (used in) financing activities
|
|
|
|
415
|
|
|
|
|
43
|
|
|
|
|
|
(8,518
|
)
|
|
|
|
185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE IN CASH AND CASH EQUIVALENTS
|
|
|
|
2,148
|
|
|
|
|
2,739
|
|
|
|
|
|
(13,420
|
)
|
|
|
|
(2,036
|
)
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
|
3,887
|
|
|
|
|
625
|
|
|
|
|
|
19,455
|
|
|
|
|
5,400
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
|
$
|
6,035
|
|
|
|
$
|
3,364
|
|
|
|
|
$
|
6,035
|
|
|
|
$
|
3,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for interest
|
|
|
$
|
—
|
|
|
|
$
|
7
|
|
|
|
|
$
|
58
|
|
|
|
$
|
8
|
|
Payments for income taxes
|
|
|
$
|
8
|
|
|
|
$
|
—
|
|
|
|
|
$
|
8
|
|
|
|
$
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160211005329/en/
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