Xplore Reports Fourth Consecutive Quarter of Net Income on Fiscal Second Quarter Revenue of $7.5M Million
Six Months Revenue Up 124% Year over Year
AUSTIN, Texas--(BUSINESS WIRE)-- Xplore Technologies Corp. (NAS: XPLR) (www.xploretech.com) ("Xplore" or the "Company") today reported its results for the second quarter of its fiscal 2013. For the three months ended September 30, 2012, Xplore reported revenue of $7,473,000 compared to $5,100,000 for the three months ended September 30, 2011, an increase of $2,373,000, or approximately 47%. For the six months ended September 30, 2012, revenue was $17,423,000 compared to six months ended September 30, 2011 revenue of $7,778,000, an increase of $9,645,000, or approximately 124%. The increase in revenue for the six months ended September 30, 2012 was the result of an increase in unit sales of approximately 110% as well as an increase in average sales price of approximately 14% due to favorable changes in the product mix sold. The unit sales increase was principally attributable to the fulfillment of a portion of significant purchase orders the Company received from one of the world's largest telecommunications companies and one of the largest conventional oil and natural gas producers in North America.
Xplore reported net income for the three months ended September 30, 2012 of $277,000 compared to a net loss of $669,000 for the three months ended September 30, 2011, an improvement of $946,000. The increase was due to increases in revenue and gross profit and a decrease in operating expenses. The net income for the six months ended September 30, 2012 was $1,096,000 compared to a net loss of $2,132,000 for the six months ended September 30, 2011, an improvement of $3,228,000, resulting from increases in revenue and gross profit that were partially offset by an increase in operating expenses.
The Company's operating expenses were $2,022,000 for the three months ended September 30, 2012 compared to $2,224,000 for the three months ended September 30, 2011, a decrease of approximately 9%. For the six months period ended September 30, 2012, operating expenses were $4,422,000 compared to $4,211,000 for the six months ended September 30, 2011, an increase of approximately 5%.
Philip S. Sassower, Chairman and Chief Executive Officer of Xplore said: "This quarter marks our fourth consecutive quarter of profitability. Awareness and growing demand for tablet computers enables Xplore to capitalize on opportunities that present themselves with entities requiring rugged tablet PCs that can withstand challenging environments. We are recognized in the marketplace as 'the experts' in rugged tablets, a result of our more than 16 year track-record of developing tablet PCs that, based upon third-party certifications, surpass the standards and specifications that are accepted benchmarks for rugged tablets in today's marketplace." Sassower added that the Company's recent recapitalization and public offering have been completed, whereby the Company: converted all outstanding preferred stock to common stock; effected a reverse stock split; raised gross proceeds of $10 million from the sale of common stock; and listed its shares of common stock on the NASDAQ Capital Markets. Mr. Sassower indicated that these actions strengthen the Company going forward.
Xplore operates in one segment, the sale of rugged mobile wireless tablet PC computing systems. Mark Holleran, President and Chief Operating Officer of Xplore said: "We continue to see a significant increase in sales opportunities for our existing line of products from software providers for specific vertical industries who often want to co-market their products with us. This increased interest helps provide us with additional entrees into our target markets, as well as new markets." Holleran noted that the Company recently announced approximately $2.2 million in purchase orders received in October 2012, which included one purchase order for approximately $1.1 million representing the Company's first entry into the medical equipment market.
About Xplore Technologies®
Xplore is engaged in the business of developing, integrating and marketing mobile wireless tablet 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 media 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.
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 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.
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