Xplore Technologies Reports Record Revenue for Fiscal Year 2014 and Broadens Product Line

  Xplore Technologies Reports Record Revenue for Fiscal Year 2014 and Broadens
  Product Line

Business Wire

AUSTIN, Texas -- June 25, 2014

Xplore Technologies Corp. (NASDAQ: XPLR) reported results for its fiscal year
2014, including record revenue of $35,585,000 for the fiscal year ended March
31, 2014, compared to $30,486,000 for the prior year, an increase of
approximately 17 percent. The increase in sales was primarily due to sales of
the company’s new RangerX Pro Android tablet launched during the fiscal year
and an increase in iX104 unit sales of approximately 13 percent, offset by a
decrease in the iX104 average sales price of approximately 10 percent due to
changes in the product mix sold.

“The strong execution of our plan to significantly grow our addressable
markets through the release of new products and to broaden awareness of our
offering through greater marketing and sales activities resulted in record
revenue and year-over-year growth for our company,” said Philip S. Sassower,
chairman and chief executive officer for Xplore. “In addition to delivering
the highest revenue in Xplore history, we also generated positive EBITDA,
which is an outstanding result given the significant increases in both
development expenses of approximately 121 percent that were primarily
associated with our newly released products, RangerX Pro, iX104C6 and Bobcat,
and in sales and marketing expenses of approximately 45 percent.”

“Our strategic plan to bring new, lighter weight products to market at a lower
price point is working and is delivering the expected revenue growth,” said
Mark Holleran, president and chief operating officer for Xplore. “Our first
multi-million sale of RangerX Pro to a major U.S. telecommunications provider,
along with multi-million dollar sales of the ultra-rugged iX104 tablet into
four different market verticals, evidence the broadening market acceptance of
our products. We are encouraged by our improving performance and look forward
to further progress as we continue the implementation of our growth strategy.”

Gross profit increased to $12,721,000 (approximately 35.7 percent of revenue)
for the fiscal year ended March 31, 2014, from $10,408,000 (approximately 34.1
percent of revenue) for the fiscal year ended March 31, 2013. The increase in
gross margin was due primarily to the increase in revenue and the increase in
gross profit margin percentage was due to a more favorable product mix.

Xplore’s operating expenses for the fiscal years ended March 31, 2014 and 2013
were approximately $15,140,000 and $9,959,000, respectively, representing an
increase of approximately 52 percent. The increase in operating expenses was
primarily attributable to investments associated with the development of the
aforementioned new products, in addition to increases in sales and marketing
headcount and to costs incurred on other activities designed to improve market
awareness and demand generation.

Xplore incurred a net loss for the fiscal year ended March 31, 2014 of
$1,758,000, compared to net income of $306,000 for the prior year period. The
fluctuation was primarily attributable to the planned increases in operating
expenses associated with Xplore’s strategy to broaden addressable markets and
awareness.

The company will conduct a conference call and webcast to review the results
today at 9:15 a.m. ET. Interested parties in the United States can access the
call by dialing 877-269-7756, parties outside the United States can access the
call by dialing 201-689-7817, or anyone can listen via a live Internet webcast
at http://www.investorcalendar.com/IC/CEPage.asp?ID=172594. A replay of the
conference call will be available until July 24, 2014, by calling 877-660-6853
from the United States or 201-612-7415 from outside the United States and
entering conference ID number 13579813.

About Xplore Technologies

Xplore Technologies Corp. has been a leading global provider of truly 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.

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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