AUSTIN, Texas – August 13, 2015 – Xplore Technologies Corp. (NASDAQ: XPLR), reported results for the first quarter of its fiscal year 2016. For the three months ended June 30, 2015, Xplore reported revenue of approximately $24,043,000, compared to approximately $8,267,000 for the three months ended June 30, 2014, an increase of $15,776,000, or approximately 191 percent. This increase in revenue was due to a 31 percent increase in revenue associated with Xplore’s historical product line. The remaining increase resulted from revenue associated with products acquired in the April 17, 2015 acquisition of Motion Computing, Inc. assets (the “ Motion Acquisition”).
“This quarter represents a seismic shift in Xplore’s growth,” said Philip S. Sassower, chairman and chief executive officer for Xplore. “With the acquisition of the Motion product line, our team was able to deliver growth that could have taken years to achieve organically. We could not be more excited with both the record revenue attained and with our bottom line performance, which, but for certain one-time costs related to the Motion Acquisition, would have generated net income.”
“We are very pleased with the favorable results for the quarter,” said Mark Holleran, president and chief operating officer for Xplore. “Certain of our actions resulted in a better than expected first quarter including the Motion assets. Our integration efforts remain on track and we are very happy with our ability to drive improvement and to begin to leverage synergies from our expanded product line. We have received positive feedback from both distributors and end customers alike and are seeing solid demand for our products in the marketplace.”
Xplore reported gross profit of $8,150,000 for the quarter ended June 30, 2015, increased from $3,064,000 for the quarter ended June 30, 2014. The increase in gross profit was attributable to the abovementioned increase in revenue. Gross profit percentage was 34% for the quarter ended June 30, 2015, as compared to 37% for the quarter ended June 30, 2014. The decrease in gross profit percentage was primarily due to changes in product mix.
Xplore’s operating expenses for the quarters ended June 30, 2015 and 2014 were approximately $7,781,000 and $3,596,000, respectively, representing an increase of $4,185,000, or approximately 116 percent. The increase was predominately attributable to higher overhead needed to support Xplore’s expanded product lines.
Xplore had income from operations for the quarter ended June 30, 2015 of $369,000, compared to an operating loss of $532,000 for the prior year period. Xplore incurred a net loss for the quarter ended June 30, 2015 of $244,000, compared to net loss of $551,000 for the prior year period. The current period includes expenses of $670,000 related to nonrecurring costs incurred in the Motion Acquisition.
The company will conduct a conference call and webcast to review the results today at 4:30 p.m. ET. Interested parties in the United States can access the call by dialing 877-269-7756; interested parties outside the United States can access the call by dialing 201-689-7817; anyone can listen via a live Internet webcast at http://www.investorcalendar.com/IC/CEPage.asp?ID=174184. A replay of the conference call will be available until September 14, 2015, by calling 877-660-6853 from the United States or 201-612-7415 from outside the United States and entering conference ID number 13614404. See Financial Results >>
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 Computing product portfolio, the company now delivers the broadest range of rugged Windows and Android tablets available on 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 websites at www.xploretech.com and www.motioncomputing.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.