AUSTIN, Texas – February 12, 2015 – Xplore Technologies Corp. (NASDAQ: XPLR) reported its results for the third quarter of its fiscal year 2015. For the three months ended December 31, 2014, Xplore reported record revenue of $16,443,000 and record net income of $2,401,000. When compared to the same period in the previous year, revenue increased approximately 18 percent from $13,981,000 and net income increased approximately 170 percent from $890,000, respectively. For the nine months ended December 31, 2014, Xplore reported revenue of $32,232,000 and net income of $683,000 as compared to revenue of $27,240,000 and a net loss of $360,000 for the nine months ended December 31, 2013, an increase in revenue of 18 percent and an improvement in profitability of 289 percent. The company's new broader tablet product line featuring the ultra-rugged iX104C6 and fully-rugged RangerX Pro and Bobcat resulted in an increase in units sales of approximately 23 percent and 37 percent for the three and nine months ended December 31, 2014, respectively, compared to the same periods in the previous year.
“The hard work, consistent execution of our strategy and the support of our great customers has culminated in the best quarter of Xplore’s history,” said Philip S. Sassower, chairman and chief executive officer of Xplore Technologies. “Our strategy to broaden Xplore’s product line and increase our reach into a broader set of vertical markets has been validated with yet another record breaking quarter for the company and we couldn’t be happier. The large purchase orders that we were expecting last quarter showed up in this quarter as planned.”
“We have made significant investments in support of our strategy, and those investments have paid off,” said Mark Holleran, president and chief operating officer of Xplore Technologies. "Both existing and new customers have responded well to our new line of ultra and fully rugged tablet PC’s as we continue to implement our strategy of broadening the vertical markets we serve. We saw some large purchase orders come in from both repeat business in the telecommunications and military markets, as well as from new vertical markets like the airline industry.”
Gross profit increased to $5,874,000 (approximately 36 percent of revenue) for the quarter ended December 31, 2014 from $4,845,000 (approximately 35 percent of revenue) for the quarter ended December 31, 2013. Gross profit increased to $11,205,000 (approximately 35 percent of revenue) for the nine months ended December 31, 2014 from $9,747,000 (approximately 36 percent of revenue) for the nine months ended December 31, 2013. The increases in gross profit were primarily attributable to increases in revenue and a favorable product mix, offset slightly by increases in freight, indirect labor and tooling amortization, which also accounted for the gross profit percentage fluctuations.
Xplore’s operating expenses for the three months ended December 31, 2014 and 2013 were approximately $3,425,000 and $3,952,000, respectively, representing a decrease of $527,000, or approximately 13 percent. The decrease was primarily due to a decline in product research and development expenses associated with a decline in major products under development from three in the prior year period to one in the current year period. Operating expenses for the nine months ended December 31, 2014 and 2013 were approximately $10,451,000 and $10,777,000, respectively, representing a decrease of $326,000, or approximately three percent. The decrease was also due to the decline in product research and development expenses associated with a decline in major product activities, partially offset by an increase in sales and marketing expenses associated with efforts to generate more awareness of Xplore’s products through expanded initiatives.
Xplore generated income from operations for the three months ended December 31, 2014 of $2,449,000, compared to income from operations of $893,000 for the prior year period. Xplore generated income from operations for the nine months ended December 31, 2014 of $754,000, compared to a loss from operations of $1,030,000 for the prior year period. The improvement and increases in income were attributable to an increase in revenue and a decrease in operating expenses.
About Xplore Technologies
Xplore Technologies Corp. has been a leading global provider of ultra-rugged and fully-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.
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.
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