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Xplore Technologies Records First Profitable Year

  Xplore Technologies Records First Profitable Year

        Company Reports 11 Percent Increase in Revenue for Fiscal 2013

Business Wire

AUSTIN, Texas -- June 26, 2013

Xplore Technologies Corp. (NASDAQ: XPLR), today reported its results for
fiscal 2013. Profitable for the first time in company history, Xplore reported
net income of $306,000 for the fiscal year ended March 31, 2013, as compared
to a net loss of $523,000 for fiscal 2012. Additionally, Xplore reported an
increase in revenue of approximately 11 percent for the year ended March 31,
2013, with revenue of $30,486,000 compared to $27,528,000 in the prior year.

“We are extremely pleased with our achievements for fiscal 2013. Xplore
continued its revenue growth, generated cash from operations, completed a
significant recapitalization, which included a public offering and the
up-listing of our common stock to NASDAQ, and now for the first time, Xplore
is reporting net income for fiscal year 2013,” said Philip S. Sassower,
chairman and chief executive officer. “We believe this reflects the market’s
demand for rugged tablet PCs and our belief that we build the best and most
rugged tablets available today. We are well positioned to execute on our
strategy to develop and introduce new rugged products to broaden our
addressable markets and enable continued growth.”

“In addition to financial performance achievements in fiscal 2013, we also
made significant gains in the military and medical device markets,” Mark
Holleran, president and chief operating officer for Xplore Technologies,
added. “We believe Xplore's ultra-rugged tablet solution is gaining traction
in these and other markets by delivering on our promise of value, performance
and reliability. In military deployments, whether supporting special
operations, managing workflows on the flight line or delivering real-time data
to mobile field units, our military product family provides what we believe is
the most feature-rich and affordable fully rugged tablet on the market. In the
medical device sector, the multi-million dollar orders we received from a
leading player represents a significant accomplishment in a new vertical
market for us. Our tablet is the control unit for our customer’s advanced
treatment solutions to ensure that a patient’s health is not negatively
affected by a computing hardware failure.”

The revenue growth of $2,958,000 from fiscal 2012 to fiscal 2013 is attributed
to a combination of an increase in Xplore’s average selling prices and volume.
The increase in average selling prices was principally due to a more favorable
product mix and an increase in the number of accessories sold.

The increase in Xplore’s net income for fiscal 2013 resulted from an increase
in gross profit of $2,020,000 and a decrease in other expenses of $178,000,
offset by increases in operating expenses of $1,334,000 and alternative
minimum income taxes of $35,000.

Gross profit increased by approximately 24 percent to $10,408,000
(approximately 34.1 percent of revenue) for the year ended March 31, 2013 from
$8,388,000 (approximately 30.5 percent of revenue) for the year ended March
31, 2012. This increase was attributable to the increases in revenue, average
selling prices and unit sales. The increase in gross profit percentage was
primarily due to the aforementioned favorable product mix and increase in the
number of accessories sold.

Xplore’s operating expenses for the years ended March 31, 2013 and 2012 were
approximately $9,959,000 and $8,625,000, respectively, an increase of
$1,334,000, or approximately 15 percent. The increase was primarily
attributable to investments associated with new product development on the
next generation iX104C series as well as new product lines, investments in
sales and marketing headcount related costs to improve market awareness, an
increase in commission expense commensurate with the increase in revenues, and
increases in marketing expenses, primarily lead generation activities, and
investor-related activities.

For the three months ended March 31, 2013 and 2012, Xplore recorded revenue of
$7,136,000 and $10,832,000, respectively, and a net loss of $164,000 and net
income of $1,325,000, respectively. The decrease in revenue was attributable
to a decrease of $5,638,000, or approximately 52 percent, in revenue from
orders from a major U.S. telecommunications provider (Telco), offset by an
increase of $1,942,000, or approximately 38 percent, in revenue from customers
other than Telco.

Mr. Holleran noted “The project-oriented nature of orders from our customers
can lead to some variability in our operating results on a quarter to quarter
basis. Thus, at this stage, we believe that viewing our revenue results on an
annual basis provides a more meaningful gauge of our performance. In this
case, the prior year fourth quarter included significant revenue from a
project for Telco. Our revenue from customers other than Telco for the three
months and fiscal year ended March 31, 2013 increased over the corresponding
prior year periods by approximately 38 percent and 27 percent, respectively.
We also recently announced the receipt of additional orders from Telco.”

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.

Contact:

Media Inquiries:
Waggener Edstrom Worldwide
Erika Gonzalez, 512-527-7039
egonzalez@waggeneredstrom.com
or
Investor Contact:
Taglich Brothers
Chris Schreiber, 917-445-6207
cs@taglichbrothers.com
 
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