AUSTIN, Texas, Nov 12, 2010 (BUSINESS WIRE) -- Xplore Technologies Corp.
(OTCBB: XLRT) ("Xplore" or the "Company"), a manufacturer of award-winning rugged tablet PCs, today reported revenue of $4,328,000 and $9,406,000 for the three and six months ended September 30, 2010, respectively, compared to $5,248,000 and $10,242,000 for the three and six months ended September 30, 2009, respectively.
Mark Holleran, President and Chief Operating Officer, stated: "The difficult economy has contributed to our decline in revenue, as well as, many of our customers are awaiting the significantly improved next generation of our iX104 Tablet PC family of products that will launch later this fiscal year. We believe the market's increased awareness and acceptance of the tablet form factor, improving economic conditions and Xplore's foray into new geographies and vertical markets, position the Company for a ramp-up in revenues." Holleran also added, "We continue to lower our cash burn and improve our year over year operating performance with significant gross profit improvement of approximately 15% and 21% for the three and six months ended September 30, 2010, respectively, and continued reduction of operating expenses of approximately 14% and 19% for the three and six months ended September 30, 2010, respectively." The decrease in revenue of approximately 18% for the three months ended September 30, 2010 as compared to the three months ended September 30, 2009 was attributable to a decrease in average sales price of approximately 15% along with a decline in unit sales of approximately 4%. The decrease in revenue of approximately 8% for the six months ended September 30, 2010 as compared to September 30, 2009 was the result of a decline in unit sales of approximately 6% along with a decline in average sales price of approximately 3%.
Gross profit for the three months ended September 30, 2010 was $1,526,000 (approximately 35.3% of revenue) as compared to $1,329,000 (approximately 25.3% of revenue) for the three months ended September 30, 2009. Gross profit for the six months ended September 30, 2010 was $3,171,000 (approximately 33.7% of revenue) as compared to $2,629,000 (approximately 25.7% of revenue) for the six months ended September 30, 2009. The increase in gross profit of $197,000 and $542,000 for the three months and six ended September 30, 2010 was due to the effects of special pricing discounts for two significant customers who accounted for approximately 48% and 37% of revenue for the three and six months ended September 30, 2009, respectively.
Operating expenses for the three months ended September 30, 2010 and 2009 were approximately $2,090,000 and $2,425,000, respectively, a decline of $335,000 or approximately 14%. Operating expenses for the six months ended September 30, 2010 and 2009 were approximately $3,693,000 and $4,582,000, respectively, a decline of $889,000 or approximately 19%. The majority of the decline was attributable to a reduction in research and development expenses arising from fewer new major product development activities in the current period as compared to the prior year period. Also contributing to the decline in operating expenses was a reduction in general administration attributable to the cost reduction initiatives offset by an increase in sales, marketing and support expenses primarily due to an increase in marketing related activities.
The net loss for the three months ended September 30, 2010 was $2,172,000 as compared to a net loss of $1,799,000 for the three months ended September 30, 2009, an increase of $373,000. The net loss for the six months ended September 30, 2010 was $2,839,000 as compared to a net loss of $3,120,000 for the six months ended September 30, 2009, a decrease of $281,000.
Additional financial information regarding Xplore's operating results for the fiscal 2011 first quarter is available in the Company's Form 10-Q filed with the Securities & Exchange Commission and is available at www.sec.gov.
About Xplore Technologies(R) Xplore (www.xploretech.com) is engaged in the business of developing integrating and marketing mobile wireless 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, 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 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.
SOURCE: Xplore Technologies Corp.
CONTACT: Xplore: For Media or U.S. Investor Information Contact: Martin Janis & Company, Inc. Beverly Jedynak Tel: (312) 943-1123 (Direct) Email:firstname.lastname@example.org Copyright Business Wire 2010 -0- KEYWORD: United States
Texas INDUSTRY KEYWORD: Technology
Mobile/Wireless SUBJECT CODE: Earnings