Company Reports 11 Percent Increase in Revenue for Fiscal 2013
AUSTIN, Texas–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.
“In addition to financial performance achievements in fiscal 2013, we also made significant gains in the military and medical device markets”
“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.
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.