AUSTIN, Texas – February 11, 2016 – Xplore Technologies Corp. (NASDAQ: XPLR) reported its results for the third quarter of its fiscal year 2016. For the three months ended December 31, 2015, Xplore reported revenue of $27,023,000, compared to $16,443,000 in reported revenue for the three months ended December 31, 2014, an increase of $10,580,000, or approximately 64%. For the nine months ended December 31, 2015, Xplore reported revenue of $79,919,000, compared to $32,232,000 in reported revenue for the nine months ended December 31, 2014, an increase of $47,687,000, or approximately 148%. This increase in revenue was due to revenue associated with the product line Xplore acquired in the April 17, 2015 acquisition of certain assets of Motion Computing, Inc. (the “Motion Acquisition”) for the three months ended December 31, 2015, as well as an increase in revenue associated with Xplore’s historical product line for the nine months ended December 31, 2015 of 44%.
Xplore’s reported gross profit increased to $8,842,000 (32.7% of revenue) for the quarter ended December 31, 2015, compared to reported gross profit of $5,874,000 (35.7% of revenue) for the quarter ended December 31, 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.
“We are very pleased with the revenue and gross profit in our 2016 fiscal year to date, and the most recent quarter,” said Mark Holleran, president and chief operating officer for Xplore. “While in same quarter in the prior year pent up demand for certain products resulted in better than expected revenue, we have nearly matched those revenues in the current quarter based upon regular demand. Our pipeline of opportunities in the market place is very robust and we are continuing to expand our customer base through multiple channels.”
Xplore’s reported operating expenses for the three months ended December 31, 2015 and 2014 were $7,575,000 and $3,425,000, respectively, representing an increase of $4,150,000, or approximately 121%. Reported operating expenses for the nine months ended December 31, 2015 and 2014 were $23,062,000 and $10,451,000, respectively, representing an increase of $12,611,000, or approximately 121%. These increases were predominately attributable to higher overhead expenses needed to support Xplore’s product line expansion from the Motion Acquisition. Overall, our operating expenses as a percentage of revenues has improved to 28.9% for the three quarters ended December 31, 2015, as compared to 32.4% of revenue for the three quarters ended December 31, 2014.
Xplore reported income from operations for the three months ended December 31, 2015 of $1,267,000, compared $2,449,000 for the prior year period. Xplore reported income from operations for the nine months ended December 31, 2015 of $2,039,000, compared to $754,000 for the prior year period. Xplore reported net income of $786,000 for the three months ended December 31, 2015, compared to $2,401,000 for the three months ended December 31, 2014, and reported net income of $640,000 and $683,000, for the nine months ended December 31, 2015 and 2014. These results were attributable to increased revenues and gross profits from the Motion Acquisition and historical product lines, and increased operating efficiencies and an overall increase in gross profits. Decreases from the third quarter results from the prior fiscal year are attributable to very large shipments made during that prior quarter to new and ongoing customers.
“We are excited about two quarters of running profitably after a business acquisition of such size that
we completed in April 2015,” said Philip S. Sassower, chairman and chief executive officer for Xplore.
“These results are exceeding management’s expectation, and form a foundation for future growth.
We are very focused on continuing to deliver bottom line profits, and we continue to work on
improvement through gross profit growth and finding additional integration benefits.”
Xplore will hold a conference call today at 4:30 p.m. ET to discuss its financial results for the second
quarter ended December 31, 2015. Dial-in information for that conference call is included in Xplore’s
press release dated January 27, 2016.
About Xplore Technologies®
Established in 1996, Xplore Technologies Corp. is the number two provider of rugged tablet PCs worldwide. With its recent acquisition of the Motion product line, the company now delivers the broadest range of rugged Windows and Android tablets available in the market. The company’s award-winning tablet PCs are among the most powerful and longest lasting in their class – able to withstand nearly any hazardous condition or environmental extreme – and are purpose-built for the unique workflow demands of critical industries including oil & gas, utilities, telecommunications, government, military, public safety, manufacturing, distribution and healthcare. 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. Follow us on Twitter, Facebook, LinkedInand YouTube.
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 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.