Xplore Technologies Reports 284% Increase in Revenue for Second Quarter of Fiscal 2016
AUSTIN, Texas, Nov. 12, 2015—Xplore Technologies Corp. reported its results for the second quarter of its fiscal year 2016. For the three months ended September 30, 2015, Xplore reported revenue of $28,853,000, compared to $7,522,000 in reported revenue for the three months ended September 30, 2014, an increase of $21,331,000, or approximately 284%. For the six months ended September 30, 2015, Xplore reported revenue of $52,896,000, compared to $15,789,000 in reported revenue for the six months ended September 30, 2014, an increase of $37,107,000, or approximately 235%. These increases resulted from revenue associated with the product line Xplore acquired in the April 17, 2015 acquisition of certain assets of Motion Computing, Inc. (the “Motion Acquisition”), as well as an increase in revenue associated with Xplore’s historical product line for the three months and six months ended September 30, 2015, of 44% and 37%, respectively.
“We are thrilled by the better than expected and record revenue for the quarter and the fiscal first half,” said Philip S. Sassower, chairman and chief executive officer for Xplore. “Even more importantly, we are very pleased that Xplore was able to generate a bottom line profit in the second quarter as our integration efforts with respect to the Motion Acquisition are proceeding ahead of schedule. We are very focused on the bottom line and we continue to work on delivering additional integration benefits.”
“We are very pleased with the continued improvement of Xplore’s success in our 2016 fiscal year with the favorable results for this quarter,” said Mark Holleran, president and chief operating officer for Xplore. “Pent up demand for certain products resulted in better than expected revenue, during what has traditionally been a slow quarter for us. The market place is strong and we are seeing success with expanding the offering of our products through multiple sales channels.”
Xplore’s reported gross profit increased to $8,109,000 (28.1% of revenue) for the quarter ended September 30, 2015, compared to reported gross profit of $2,267,000 (30.1% of revenue) for the quarter ended September 30, 2014. The increase in gross profit was attributable to the abovementioned increase in revenue. The decrease in gross profit percentage was primarily due to changes in product mix.
Xplore’s reported operating expenses for the three months ended September 30, 2015 and 2014 were $7,706,000 and $3,430,000, respectively, representing an increase of $4,276,000, or approximately 125%. Reported operating expenses for the six months ended September 30, 2015 and 2014 were $15,487,000 and $7,026,000, respectively, representing an increase of $8,461,000, or approximately 120%. These increases were predominately attributable to higher overhead expenses needed to support Xplore’s product line expansion.
Xplore reported income from operations for the three months ended September 30, 2015 of $403,000, compared to a reported loss of $1,163,000 for the prior year period. Xplore reported income from operations for the six months ended September 30, 2015 of $772,000, compared to a reported loss from operations of $1,695,000 for the prior year period. Xplore reported net income of $98,000 for the three months ended September 30, 2015, compared to a reported net loss of $1,167,000 for the three months ended September 30, 2015, and reported net losses of $146,000 and $1,718,000, for the six months ended September 30, 2015 and 2014, respectively. These improvements in results were attributable to increased revenue and an overall increase in gross profit, partially offset by an increase in operating expenses to support the new product lines.
Xplore will hold a conference call today at 4:30 p.m. ET to discuss its financial results for the second quarter ended September 30, 2015. Interested parties can access the call from the United States by dialing 877-269-7756, from outside the United States by dialing 201-689-7817 or anyone can listen via a live Internet webcast at http://www.investorcalendar.com/IC/CEPage.asp?ID=174343.
About Xplore Technologies
Established in 1996, Xplore Technologies Corp. is the number two provider of rugged tablet computers worldwide. With its recent acquisition of the Motion product line, the company now has the broadest range of purpose-built tablets for a variety of industries including energy, utilities, telecommunications, military operations, manufacturing, distribution, public services, public safety, healthcare, government and other areas with hazardous work conditions. The company’s tablets are among the most powerful and longest lasting in their class – able to withstand nearly any hazardous condition or environmental extreme. Xplore’s products are sold and serviced on a global basis across the Americas, Europe, Middle East, Africa, and Asia Pacific regions. 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.