Xplore Technologies Reports Fiscal 2014 First Quarter Results
AUSTIN, Texas -- August 12, 2013
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
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
“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.
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.
Waggener Edstrom Worldwide
Erika Gonzalez, 512-527-7039
Chris Schreiber, 917-445-6207
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