Science & Technology
Science and Technology
Science and Technology
Fri, February 13, 2009 Xplore Reports Q3?09 Revenue Growth
AUSTIN, Texas--([ BUSINESS WIRE ])--Xplore Technologies Corp. (OTCBB: XLRT) ("Xplore" or the "Company"), a manufacturer of award-winning rugged tablet PCs, reported today revenue of $6,011,000 for the three months ended December 31, 2008 as compared to approximately $5,394,000 for the three months ended December 31, 2007, a 11% increase over the prior period.
Mark Holleran, President and Chief Operating Officer, stated "despite challenging circumstances in the marketplace, we have been able to grow revenues over the prior period. We believe our recent launch of our new generation of the iX104 enabled this growth. In these times where the marketplace is to do more with less, we believe our products are being well received because they enable cost reductions via enhanced productivity and automation."
Michael J. Rapisand, Chief Financial Officer, stated "we believe we reacted quickly to the current market conditions by reducing our headcount by approximately 43% during our last quarter. Additionally, our development spending has been reduced and is limited solely to products we expect to introduce to the market in 2009. We have and continue to evaluate all other operating costs with a view to further reduce our operating expenses. We estimate that these cost reduction actions should significantly reduce our calendar 2009 cash operating expenses."
Financial Results of Operations
Revenue for the three months ended December 31, 2008 was $6,011,000 as compared to $5,394,000 for the three months ended December 31, 2007, an increase of $617,000, or approximately 11%. Revenue for the nine months ended December 31, 2008 was $18,569,000 as compared to $18,303,000 for the same period ended December 31, 2007, an increase of $266,000, or approximately 1%. The fluctuations were attributable to increases in unit sales of 19% for both the three and nine months ended December 31, 2008 offset by declines in average selling prices for the three and nine months ended December 31, 2008. Revenue for the nine months ended December 31, 2008 includes our largest single order in our history which accounted for over $2,650,000 of revenue. Excluding our three largest orders which accounted for 27% of our revenue and had special pricing due to their volume and unique customizations, our average selling prices declined by less than 5% for both the three and nine months ended December 31, 2008. The declines were attributable to lower pricing associated with older generation products that accounted for the majority of our product mix.
Gross profit increased by $263,000 to $1,885,000 (31.4% of revenue) for the three months ended December 31, 2008 from $1,622,000 (30.1% of revenue) for the three months ended December 31, 2007. Gross profit decreased by $358,000 to $5,192,000 (28.0% of revenue) for the nine months ended December 31, 2008 from $5,550,000 (30.3% of revenue) for the nine months ended December 31, 2007. The reduction in the gross profit as a percentage of revenue for the nine months ended December 31, 2008 was due to a lower margin associated with three large orders which had special pricing commensurate with the volume and the impact of an inventory obsolescence charge of $300,000 in our second quarter. Excluding these factors, the gross margin percentages for the three and nine month periods ended December 31, 2008 were approximately the same as in the prior corresponding periods.
Operating expenses for the three months ended December 31, 2008 and 2007 were approximately $3,672,000 and $3,927,000, respectively. The decrease of $255,000 was due to a decline in expenses attributable to cost reduction initiatives implemented during the three months ended December 31, 2008 offset by an increase in development costs of $284,000 related to our next generation ix104 that was recently introduced to the market and our rugged military docking system which is expected to be completed in 2009. The full impact of the Company's recent cost reduction initiatives will occur in 2009. Operating expenses for the nine months ended December 31, 2008 and 2007 were approximately $13,294,000 and $10,632,000, respectively. The increase was principally due to research and development costs associated with products under development offset by reductions in sales, marketing and general administration expenses attributable to the Company's recent cost reduction initiatives.
The Company's net loss was approximately $2,308,000 ($0.03 per share) and $2,287,000 ($0.03 per share) for the three months ended December 31, 2008 and 2007, respectively, and approximately $8,783,000 ($0.12 per share) and $5,145,000 ($0.07 per share) for the nine months ended December 31, 2008 and 2007, respectively.
Additional financial information regarding Xplore's fiscal 2009 third quarter is available in the Company's Form 10-Q filed with the Securities & Exchange Commission and is available at [ www.sec.gov ].
About Xplore Technologies®
Xplore ([ www.xploretech.com ]) is engaged in the business of developing, integrating and marketing of rugged mobile wireless PC computing systems. The Company's products enable the extension of traditional computing systems to a range of field and on-site personnel, regardless of location or environment. Using a range of wireless communication mediums together with the Company's rugged computing products, the Company's end-users are able to receive, collect, analyze, manipulate and transmit information in a variety of environments not suited to traditional non-rugged computing devices. The Company's end-users are in markets that include utility, warehousing/logistics, public safety, field service, transportation, manufacturing, route delivery, military and homeland security.
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.
