AUSTIN, Texas--(BUSINESS WIRE)--Xplore Technologies Corp. (OTCQB: XLRT) today reported its first quarter fiscal 2013 results. For the three months ended June 30, 2012, Xplore reported revenue of $9,950,000 compared to $2,678,000 for the three months ended June 30, 2011, an increase of $7,272,000 or approximately 272%. The increase in revenue was due to an increase in unit sales of approximately 256% for the three months ended June 30, 2012 compared to the three months ended June 30, 2011, along with an increase in our average sales price of approximately 16%. The increase in unit sales was principally attributable to the fulfillment of a portion of the previously announced purchase orders we received in the second half of our fiscal year 2012, approximating $20,300,000. The increase in average selling prices was principally due to a more favorable product mix.
Xplore reported net income for the three months ended June 30, 2012 of $819,000 as compared to a net loss of $1,463,000 for the three months ended June 30, 2011, an increase of $2,282,000. The increase is due to the increase in revenue offset by an increase in operating expenses of approximately 21%.
“The Company’s results mark our third consecutive quarter of profitability,” stated Philip S. Sassower, Chairman and Chief Executive Officer. “This quarter and our fourth quarter of fiscal 2012, when we achieved $10,832,000 in revenue that represented the single largest dollar amount of revenue in our 16-year history, come at a time when we believe there is a strong increase in awareness and demand for tablet computers. We have introduced a family of computers that based upon third-party certifications, we believe surpass the standards and specifications that are accepted measuring sticks for rugged tablets in today’s marketplace. We believe that if we gain more awareness of our iX104C5 tablet PC family of products, we can increase our future revenue.”
Mark Holleran, President and Chief Operating Officer of Xplore Technologies concurred, adding: “During the quarter we continued to ship product from the $20,300,000 of previously-announced purchase orders. Shipments of these orders, which are in addition to our on-going sales of product, are expected to be completed within the second quarter of our fiscal 2013.” Holleran stated that a key differentiator of Xplore is to “listen to our customers so we are able to provide hardware solutions to best meet their needs. It is this customer-centered philosophy that has led to our development of what we believe are the most rugged tablets in the marketplace today. As a result, we have seen an increase in requests from software providers for specific vertical industries indicating their interest in co-marketing with Xplore, which provides us with additional entrees into our target markets.”
Xplore’s overall financial condition strengthened as a result of the quarter. Michael J. Rapisand, Xplore’s Chief Financial Officer, stated, “Our operating activities generated $2,835,000 of cash for the three months ended June 30, 2012 as compared to $49,000 of cash provided by operating activities for the three months ended June 30, 2011. The increase is a result of our effective collections of account receivables as well as our net income.” At June 30, 2012, Xplore had $2,893,000 in cash and cash equivalents and $7.2 million of working capital.
The Company’s operating expenses totaled $2,400,000 and represented 24% of revenues for the quarter ended June 30, 2012, compared to operating expenses of $1,987,000 representing 74% of revenue for the same quarter one year ago. The increase in operating expenses is primarily attributable to an increase in headcount related costs, including an increase in commission expense commensurate with the increase in revenue and an incentive compensation accrual for meeting interim revenue and cash flow performance objectives with such payout contingent upon achievement at year end.
Mr. Rapisand added, “The Company recently renegotiated our working capital agreement with Far West Capital LLC to decrease our cost of funds rate and eliminate the discount charged on each invoice purchased by Far West. These changes will reduce our future borrowing costs. Far West has been a valuable and flexible partner while helping Xplore meet our goals.”
About Xplore Technologies®
Xplore (www.xploretech.com) 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 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, oil and gas, 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 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.