Implements Additional Cost Reductions Estimated at More Than $3 Million Annually
Reiterates Annual Outlook and Long-term Targets
AUSTIN, Texas, Aug. 10, 2016 (GLOBE NEWSWIRE) -- Xplore Technologies Corp. (NASDAQ:XPLR), a global leader in rugged computing,
today reported results for its fiscal 2017 first quarter ended June 30, 2016.
Fiscal First Quarter and Recent Highlights:
- Reported revenue of $16.5 million, reflecting what the company believes is a short-term global slowdown in rugged tablet
sales and the pushout of delivery for a significant communications customer order;
- Achieved gross margin of 29.5%, in line with expectations;
- Initiated annualized operating cost reductions in excess of $3 million through a combination of headcount adjustments
announced at the start of the quarter plus additional headcount and non-headcount actions;
- Reduced total operating expenses to $6.4 million in the quarter; and
- Reported a GAAP net loss of $1.7 million, or ($0.16) per share, and adjusted negative EBITDA of $1.1 million.
“As released in our preliminary results and outlook announcement, revenue in the first fiscal quarter reflected a more than
seasonal decline due to what we believe is a short-term global slowdown in rugged tablet sales and the pushout of a large order
from a communications customer,” said Philip Sassower, chairman and chief executive officer for Xplore. “While revenue in our
business can be lumpy from quarter to quarter, we remain committed to our long-term goals to gain further share in the global
rugged tablet market and lead expansion into new vertical markets. To that end, we are currently in discussions for multiple large
opportunities with both existing and new customers. We are also investing in our sales channel to maximize the return from our
distributor and reseller relationships, including forward stocking select versions of our platforms for quicker delivery to global
customers.”
“After five years of above-market revenue growth that moved Xplore to the #2 market share position, we have initiated aggressive
cost reductions to transform us from a negative earnings company to one of profitable operations through all market cycles,” said
Mark Holleran, president and chief operating officer for Xplore. “Since the start of this fiscal year, we have cut operating
expenses by more than $3 million on an annualized basis through a combination of headcount reductions and other cost initiatives.
We believe these actions will position Xplore to be at or near breakeven in fiscal 2017 based on our current full-year revenue
outlook of $85 to $95 million, subject to strategic decisions around product development or one-time investments in the business.
We believe these changes also create opportunities for substantially improved profitability and greater value for our stockholders
as we continue to execute on our revenue growth strategies.”
Fiscal 2016 Financial Results
Xplore reported revenue of $16.5 million for the fiscal first quarter ended June 30, 2016, in line with the company’s
pre-announcement and outlook release issued July 12, 2016. This compared to revenue of $20.6 million in the fiscal fourth quarter
of 2016 and $24.0 million in the year-ago first quarter, which was the first reporting period that included the Motion Computing
assets we acquired last April. The decrease in revenue reflected greater than typical seasonality driven by an industry-wide
slowdown in rugged tablet sales, plus the effect of a large customer that has delayed shipment and a temporary slowdown in European
sales related in part to uncertainty around the impact of Brexit.
Gross profit in the first quarter was $4.9 million, or 29.5% of revenue, in line with the company’s expectations, compared to
$6.2 million, or 30.3% of revenue, in the preceding quarter and $8.2 million, or 33.9% of revenue, in the prior year first quarter.
The change in gross margin was primarily attributable to changes in product mix.
Total operating expenses for the first quarter decreased to $6.4 million, declining 11.1% from $7.2 million in the preceding
quarter and 17.9% from $7.8 million in the year-ago quarter. The estimated $3 million decline in annualized operating expenses
reflects headcount reductions initiated at the start of the first quarter, estimated at approximately $2 million per year,
additional cost saving initiatives and completion of the amortization of non-cash compensation issued in prior periods. These
savings are in addition to approximately $3 million in annualized cost reductions previously undertaken in the second quarter of
fiscal 2017. A portion of the cost reduction benefit is being reinvested in sales, marketing and channel and distributor
development to drive future revenue growth.
For the quarter, Xplore reported net loss of $1.7 million, or $0.16 per basic share, compared to net loss of $1.1 million, or
$0.09 per basic share, in the fourth quarter of fiscal 2016 and a net loss of $0.2 million, or $0.02 per share, in the prior year
first quarter.
EBITDA adjusted for non-cash compensation and historical integration costs was negative $1.1 million, compared to negative
adjusted EBITDA of $0.1 million in the fiscal fourth quarter 2016, and a positive $1.4 million in the prior year first quarter.
Non-cash compensation declined to $175,000 in the first quarter, from $522,000 in the preceding quarter and $607,000 in the prior
year first quarter. The prior year first quarter also included $670,000 in integration costs related to the acquisition of Motion
Computing assets. A reconciliation is provided in the tables included in this release.
Cash Flow and Balance Sheet
Net cash used in operating activities was $6.6 million for the three months ended June 30, 2016, compared to $3.6 million in the
prior year quarter. At quarter end, cash was $4.4 million and short-term debt increased to $6.7 million. The increase in net cash
used by operating activities and short term borrowing reflects the operating loss, changes in accounts receivable and accounts
payable, as well as a $6.3 million increase in inventory, to $21.1 million, in anticipation of orders that were expected to ship
during the quarter, but which have been delayed, as well as the need to take on larger shipments to meet minimum order quantities
for various products. This inventory is expected to be sold in the coming two quarters.
Outlook
For fiscal 2017, Xplore continues to anticipate revenue to range between $85 million and $95 million, reflecting the impact of what
the company believes is a temporary global slowdown in the rugged tablet market and shipment delays experienced during the first
fiscal quarter. Gross margin for the fiscal year is expected to be between 28% and 30%. Reflecting the company’s cost reductions,
operating expenses are expected to be approximately $27-29 million. Based on these estimates, the company anticipates net income at
or near breakeven for the full year.
Additionally, Xplore continues to anticipate significant bottom line contribution from sales growth beyond its fiscal year 2017
revenue targets, reflecting both efficiencies of scale provided by such growth and the reduced operating cost structure recently
initiated. As such, the company reiterated the following business operating targets as revenue scales to a $120 million run-rate,
assuming both organic growth and cost reduction initiatives are achieved in future periods: gross margin 28-30%, operating margin
8-10%, profit margin 6-8% and EBITDA margin 9-11%.
Conference Call
The company will conduct a conference call and webcast to review the results on Wednesday, August 10, 2016, 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 +1-201-689-7817. A live and archived webcast will be available online in the investor relations
section of Xplore’s website at www.xploretech.com. A replay of the conference call will be available until 5 p.m. ET on
September 10, 2016, by calling 877-660-6853 from the United States or 201-612-7415 from outside the United States and entering
conference ID number 13642570.
About Xplore Technologies
Established in 1996, Xplore Technologies Corp. is the #2 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, Vimeo 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 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.
XPLORE TECHNOLOGIES CORP. |
Consolidated Balance Sheets |
(in thousands) |
|
|
|
June 30,
2016
|
|
March 31,
2016 |
|
|
|
|
|
|
|
|
|
ASSETS |
|
(unaudited) |
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,418 |
|
|
$ |
5,594 |
|
Accounts receivable, net |
|
|
9,992 |
|
|
|
14,277 |
|
Inventory, net |
|
|
21,130 |
|
|
|
14,858 |
|
Prepaid expenses and other current assets |
|
|
375 |
|
|
|
800 |
|
Total current assets |
|
|
35,915 |
|
|
|
35,529 |
|
Fixed assets, net |
|
|
1,152 |
|
|
|
1,003 |
|
Intangible assets, net |
|
|
1,695 |
|
|
|
1,785 |
|
Goodwill |
|
|
15,159 |
|
|
|
14,872 |
|
|
|
$ |
53,921 |
|
|
$ |
53,189 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
Short-term indebtedness with bank |
|
$ |
6,124 |
|
|
$ |
— |
|
Accounts payable |
|
|
7,741 |
|
|
|
9,611 |
|
Accrued liabilities |
|
|
1,975 |
|
|
|
3,409 |
|
Deferred revenue and current warranty liabilities |
|
|
4,255 |
|
|
|
4,413 |
|
Total current liabilities |
|
|
20,095 |
|
|
|
17,433 |
|
Deferred revenue and non-current warranty liabilities |
|
|
4,210 |
|
|
|
4,568 |
|
Total liabilities |
|
|
24,305 |
|
|
|
22,001 |
|
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 10,908 and 10,908,
respectively |
|
|
11 |
|
|
|
11 |
|
Additional paid-in capital |
|
|
171,313 |
|
|
|
171,138 |
|
Accumulated deficit |
|
|
(141,708 |
) |
|
|
(139,961 |
) |
|
|
|
29,616 |
|
|
|
31,188 |
|
|
|
$ |
53,921 |
|
|
$ |
53,189 |
|
|
|
|
|
|
|
|
|
|
XPLORE TECHNOLOGIES CORP. |
Consolidated Statements of
Loss—Unaudited |
(in thousands of dollars, except share and
per share amounts) |
|
|
|
|
Three Months Ended |
|
|
|
|
June 30,
2016 |
|
June 30,
2015 |
|
|
|
|
|
|
|
|
Revenue |
|
|
$ |
16,473 |
|
|
$ |
24,043 |
|
|
Cost of revenue |
|
|
|
11,609 |
|
|
|
15,893 |
|
|
Gross profit |
|
|
|
4,864 |
|
|
|
8,150 |
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
Sales, marketing and support |
|
|
|
3,435 |
|
|
|
3,620 |
|
|
Product research, development and engineering |
|
|
|
953 |
|
|
|
1,830 |
|
|
General administration |
|
|
|
2,039 |
|
|
|
2,331 |
|
|
|
|
|
|
6,427 |
|
|
|
7.781 |
|
|
Income (loss) from operations |
|
|
|
(1,563 |
) |
|
|
369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
(96 |
) |
|
|
63 |
|
|
Cost of integration |
|
|
|
— |
|
|
|
(670 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
(8 |
) |
|
|
(6 |
) |
|
|
|
|
|
(104 |
) |
|
|
(613 |
) |
|
Loss before income taxes |
|
|
|
(1,667 |
) |
|
|
(244 |
) |
|
Income tax (expense) |
|
|
|
(80 |
) |
|
|
— |
|
|
Net loss |
|
|
$ |
(1,747 |
) |
|
$ |
(244 |
) |
|
Loss per common share |
|
|
$ |
(0.16 |
) |
|
$ |
(0.02 |
) |
|
Weighted average number of common shares outstanding, basic and fully
diluted |
|
|
|
10,908,355 |
|
|
|
10,789,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
XPLORE TECHNOLOGIES CORP. |
Consolidated Statements of Cash
Flows—Unaudited |
(in thousands) |
|
|
|
Three Months Ended
June 30, |
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Cash (used in) provided by operations: |
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,747 |
) |
|
$ |
(244 |
) |
|
Items not affecting cash: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
348 |
|
|
358 |
|
|
Provision for doubtful accounts |
|
15 |
|
|
(84 |
) |
|
Stock-based compensation expense |
|
175 |
|
|
607 |
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
4,270 |
|
|
(4,151 |
) |
|
Inventory |
|
(6,272 |
) |
|
(1,932 |
) |
|
Prepaid expenses and other current assets |
|
425 |
|
|
11 |
|
|
Accounts payable and accrued liabilities |
|
(3,820 |
) |
|
1788 |
|
|
Net cash used in operating activities |
|
(6,606 |
) |
|
(3,647 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Net cash received in purchase transaction |
|
— |
|
|
653 |
|
|
Change in liabilities assumed in purchase of business |
|
(287 |
) |
|
— |
|
|
Additions to fixed assets |
|
(407 |
) |
|
(237 |
) |
|
Net cash provided by (used in) investing activities |
|
(694 |
) |
|
416 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds from short-term borrowings |
|
11,600 |
|
|
5,000 |
|
|
Repayment of short-term indebtedness |
|
(5,476 |
) |
|
(10,233 |
) |
|
Net proceeds from issuance of Common Stock |
|
— |
|
|
26 |
|
|
Net cash provided by (used in) financing activities |
|
6,124 |
|
|
(5,207 |
) |
|
|
|
|
|
|
|
|
|
CHANGE IN CASH AND CASH EQUIVALENTS |
|
(1,176 |
) |
|
(8,438 |
) |
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
5,594 |
|
|
19,455 |
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
4,418 |
|
|
$ |
11,017 |
|
|
|
|
|
|
|
|
|
|
|
|
NONCASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Net assets acquired with debt in purchase transaction |
|
$ |
— |
|
|
$ |
9,079 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS: |
|
|
|
|
|
|
|
Payments for interest |
|
$ |
8 |
|
|
$ |
6 |
|
|
Payments for income taxes |
|
$ |
80 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
XPLORE TECHNOLOGIES CORP. |
Adjusted EBITDA
Reconciliation—Unaudited |
(in thousands) |
|
|
|
Three Months Ended
June 30, |
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,747 |
) |
|
$ |
(244 |
) |
|
|
|
|
|
|
|
|
|
Income taxes |
|
80 |
|
|
— |
|
|
Interest expense |
|
8 |
|
|
6 |
|
|
Depreciation and amortization |
|
348 |
|
|
358 |
|
|
Stock-based compensation expense |
|
175 |
|
|
607 |
|
|
Cost of integration |
|
— |
|
|
670 |
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA |
|
$ |
(1,136 |
) |
|
$ |
1,397 |
|
|
|
|
|
|
|
|
|
|
|
|
Xplore Technologies Quarterly Historical Information |
|
|
|
|
|
|
|
FY 2017 |
|
|
|
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
YTD |
|
|
|
|
|
|
|
|
Revenue |
$ |
16,473 |
|
|
|
|
$ |
16,473 |
|
Cost of revenue |
|
11,609 |
|
|
|
|
|
11,609 |
|
|
Gross profit |
|
|
4,864 |
|
|
|
|
|
4,884 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
Sales, marketing and support |
|
|
3,435 |
|
|
|
|
|
3,435 |
|
|
Product research, development & engineering |
|
|
953 |
|
|
|
|
|
953 |
|
|
General administrative |
|
|
2,039 |
|
|
|
|
|
2,039 |
|
Total operating expenses |
|
(6,427 |
) |
|
|
|
|
(6,427 |
) |
|
|
|
|
|
|
|
|
|
Profit/(loss) from operations |
|
|
(1,563 |
) |
|
|
|
|
(1,563 |
) |
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
Interest expense |
|
|
(6 |
) |
|
|
|
|
(6 |
) |
|
Cost of integration |
|
|
(670 |
) |
|
|
|
|
(670 |
) |
|
Other income/expenses |
|
|
(80 |
) |
|
|
|
|
(80 |
) |
|
|
|
|
(104 |
) |
|
|
|
|
(104 |
) |
|
Income/(loss) before taxes |
|
|
(1,667 |
) |
|
|
|
|
(1,667 |
) |
|
Income taxes |
|
|
(80 |
) |
|
|
|
|
(80 |
) |
Net income |
$ |
(1,747 |
) |
|
|
|
$ |
(362 |
) |
|
|
|
|
|
|
|
|
|
Depreciation & amortization |
|
|
348 |
|
|
|
|
|
348 |
|
|
Interest expense |
|
|
8 |
|
|
|
|
|
8 |
|
|
Income taxes |
|
|
80 |
|
|
|
|
|
80 |
|
|
EBITDA |
|
|
(1,311 |
) |
|
|
|
|
(1,311 |
) |
|
|
|
|
|
|
|
|
|
Non-cash compensation |
|
|
175 |
|
|
|
|
|
175 |
|
|
Cost of integration |
|
|
- |
|
|
|
|
|
- |
|
|
Adjusted EBITDA |
|
$ |
(1,136 |
) |
|
|
|
$ |
(1,136 |
) |
|
|
|
|
|
|
|
|
Key Statistics |
|
|
|
|
|
|
Gross margin |
|
|
29.5 |
% |
|
|
|
|
29.5 |
% |
|
Operating margin |
|
|
-9.5 |
% |
|
|
|
|
-9.5 |
% |
|
Periodic revenue % |
|
|
N/A |
|
|
|
|
|
N/A |
|
|
Quarter over Quarter |
|
|
|
|
|
|
|
Revenue Change % |
|
|
-20.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2016 |
|
|
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
YTD |
|
|
|
|
|
|
|
Revenue |
$ |
24,043 |
|
$ |
28,853 |
|
$ |
27,023 |
|
$ |
20,611 |
|
$ |
100,530 |
|
Cost of revenue |
|
15,893 |
|
|
20,744 |
|
|
18,181 |
|
|
14,365 |
|
|
69,183 |
|
|
Gross profit |
|
8,150 |
|
|
8,109 |
|
|
8,842 |
|
|
6,246 |
|
|
31,347 |
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
Sales, marketing and support |
|
3,620 |
|
|
3,642 |
|
|
3,925 |
|
|
3,909 |
|
|
15,096 |
|
|
Product research, development & engineering |
|
1,830 |
|
|
1,577 |
|
|
1,129 |
|
|
1,235 |
|
|
5,771 |
|
|
General administrative |
|
2,331 |
|
|
2,487 |
|
|
2,521 |
|
|
2,088 |
|
|
9,427 |
|
Total operating expenses |
|
7,781 |
|
|
7,706 |
|
|
7,575 |
|
|
7,232 |
|
|
30,294 |
|
|
|
|
|
|
|
|
|
Profit/(loss) from operations |
|
369 |
|
|
403 |
|
|
1,267 |
|
|
(986 |
) |
|
1,053 |
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
Interest expense |
|
(6 |
) |
|
(52 |
) |
|
- |
|
|
- |
|
|
(58 |
) |
|
Cost of integration |
|
(670 |
) |
|
(122 |
) |
|
(95 |
) |
|
(26 |
) |
|
(913 |
) |
|
Other income/expenses |
|
63 |
|
|
(131 |
) |
|
(317 |
) |
|
(65 |
) |
|
(450 |
) |
|
|
|
(613 |
) |
|
(305 |
) |
|
(412 |
) |
|
(91 |
) |
|
(1,421 |
) |
|
Income/(loss) before taxes |
|
(244 |
) |
|
98 |
|
|
855 |
|
|
(1,077 |
) |
|
(368 |
) |
|
Income taxes |
|
- |
|
|
- |
|
|
(69 |
) |
|
75 |
|
|
6 |
|
Net income |
$ |
(244 |
) |
$ |
98 |
|
$ |
786 |
|
$ |
(1,002 |
) |
$ |
(362 |
) |
|
|
|
|
|
|
|
|
Depreciation & amortization |
|
358 |
|
|
457 |
|
|
498 |
|
|
417 |
|
|
1,730 |
|
|
Interest expense |
|
6 |
|
|
52 |
|
|
- |
|
|
- |
|
|
58 |
|
|
Income taxes |
|
- |
|
|
- |
|
|
69 |
|
|
(75 |
) |
|
(6 |
) |
|
EBITDA |
|
120 |
|
|
607 |
|
|
1,353 |
|
|
(660 |
) |
|
1,420 |
|
|
|
|
|
|
|
|
|
Non-cash compensation |
|
607 |
|
|
492 |
|
|
535 |
|
|
522 |
|
|
2,156 |
|
|
Cost of integration |
|
670 |
|
|
122 |
|
|
95 |
|
|
26 |
|
|
913 |
|
|
Adjusted EBITDA |
$ |
1,397 |
|
$ |
1,221 |
|
$ |
1,983 |
|
$ |
(112 |
) |
$ |
4,489 |
|
|
|
|
|
|
|
|
Key Statistics |
|
|
|
|
|
|
Gross margin |
|
33.9 |
% |
|
28.1 |
% |
|
32.7 |
% |
|
30.3 |
% |
|
31.2 |
% |
|
Operating margin |
|
1.5 |
% |
|
1.4 |
% |
|
4.7 |
% |
|
-4.8 |
% |
|
1.0 |
% |
|
Periodic revenue % |
|
23.9 |
% |
|
28.7 |
% |
|
26.9 |
% |
|
20.5 |
% |
|
100.0 |
% |
|
Quarter over Quarter |
|
|
|
|
|
|
Revenue Change % |
|
131.0 |
% |
|
20.0 |
% |
|
-6.3 |
% |
|
-23.7 |
% |
|
|
|
|
|
|
|
|
|
|
FY 2015 |
|
|
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
YTD |
|
|
|
|
|
|
|
Revenue |
$ |
8,267 |
|
$ |
7,522 |
|
$ |
16,443 |
|
$ |
10,407 |
|
$ |
42,639 |
|
Cost of revenue |
|
5,203 |
|
|
5,255 |
|
|
10,569 |
|
|
7,293 |
|
|
28,320 |
|
|
Gross profit |
|
3,064 |
|
|
2,267 |
|
|
5,874 |
|
|
3,114 |
|
|
14,319 |
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
Sales, marketing and support |
|
1,598 |
|
|
1,714 |
|
|
1,630 |
|
|
1,410 |
|
|
6,352 |
|
|
Product research, development & engineering |
|
991 |
|
|
739 |
|
|
815 |
|
|
992 |
|
|
3,537 |
|
|
General administrative |
|
1,007 |
|
|
977 |
|
|
980 |
|
|
1,139 |
|
|
4,103 |
|
Total operating expenses |
|
3,596 |
|
|
3,430 |
|
|
3,425 |
|
|
3,541 |
|
|
13,992 |
|
|
|
|
|
|
|
|
|
Profit/(loss) from operations |
|
(532 |
) |
|
(1,163 |
) |
|
2,449 |
|
|
(427 |
) |
|
327 |
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
Interest expense |
|
|
(1 |
) |
|
(2 |
) |
|
- |
|
|
(3 |
) |
|
Cost of integration |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Other income/expenses |
|
(19 |
) |
|
(3 |
) |
|
(7 |
) |
|
(7 |
) |
|
(36 |
) |
|
|
|
(19 |
) |
|
(4 |
) |
|
(9 |
) |
|
(7 |
) |
|
(39 |
) |
|
|
|
|
|
|
|
|
Income/(loss) before taxes |
|
(551 |
) |
|
(1,167 |
) |
|
2,440 |
|
|
(434 |
) |
|
288 |
|
|
Income taxes |
|
- |
|
|
- |
|
|
(39 |
) |
|
- |
|
|
(39 |
) |
Net income |
$ |
(551 |
) |
$ |
(1,167 |
) |
$ |
2,401 |
|
$ |
(434 |
) |
$ |
249 |
|
|
|
|
|
|
|
|
|
Depreciation & amortization |
|
172 |
|
|
264 |
|
|
253 |
|
|
230 |
|
|
919 |
|
|
Interest expense |
|
- |
|
|
1 |
|
|
2 |
|
|
- |
|
|
3 |
|
|
Income taxes |
|
- |
|
|
- |
|
|
39 |
|
|
- |
|
|
39 |
|
|
EBITDA |
|
(379 |
) |
|
(902 |
) |
|
2,695 |
|
|
(204 |
) |
|
1,210 |
|
|
|
|
|
|
|
|
|
Non-cash compensation |
|
159 |
|
|
166 |
|
|
152 |
|
|
207 |
|
|
684 |
|
|
Cost of integration |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Adjusted EBITDA |
$ |
(220 |
) |
$ |
(736 |
) |
$ |
2,847 |
|
$ |
3 |
|
$ |
1,894 |
|
|
|
|
|
|
|
|
Key Statistics |
|
|
|
|
|
|
Gross margin |
|
37.1 |
% |
|
30.1 |
% |
|
35.7 |
% |
|
29.9 |
% |
|
33.6 |
% |
|
Operating margin |
|
-6.4 |
% |
|
-15.5 |
% |
|
14.9 |
% |
|
-4.1 |
% |
|
0.8 |
% |
|
Periodic revenue % |
|
19.4 |
% |
|
17.6 |
% |
|
38.6 |
% |
|
24.4 |
% |
|
100.0 |
% |
|
Quarter over Quarter |
|
|
|
|
|
|
Revenue Change % |
|
-0.9 |
% |
|
-9.0 |
% |
|
118.6 |
% |
|
-36.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact Information: Tom Wilkinson Chief Financial Officer (512) 637-1162 twilkinson@xploretech.com Darrow Associates Investor Relations (512) 696-6401 xplr@darrowir.com