AUSTIN, Texas--(BUSINESS WIRE)--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.
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.