Xplore Technologies Reports Record Revenue and Net Income for Fiscal Year 2015, Continues to Broaden Product Line

AUSTIN, Texas — (BUSINESS WIRE) — June 29, 2015 — Xplore Technologies Corp. (NASDAQ: XPLR) reported results for its fiscal year 2015 , including record revenue of $42,639,000 for the fiscal year ended March 31, 2015, compared to revenue of $35,585,000 for the prior year, an increase of $7,054,000, or approximately 20 percent. The increase in revenue was due to an approximate 37% increase in unit sales for the year ended March 31, 2015, as compared to the year ended March 31, 2014. The increase in unit sales was partially offset by a decrease in Xplore’s average sales price of approximately 17% due to changes in the product mix sold, primarily arising from sales of its RangerX Pro and Bobcat systems, which have a lower price point than its iX104 systems.

“Another strong year of growth gives evidence that our strategy is working. The company continues to grow its addressable markets through the release of new products and broadening awareness of our offering through greater marketing and sales activities. Once again, the company has posted record revenue,” said Philip S. Sassower, chairman and chief executive officer for Xplore. “Increased gross profit, combined with decreased operating expenses, once again produced positive EBITDA, as well as net profit.”

“The company continued to execute its plan to bring new, lighter weight products to market at a lower price point with the introduction of the Bobcat line,” said Mark Holleran, president and chief operating officer for Xplore. “Sales of the Bobcat line, along with the RangerX Pro that was introduced last year, have made major contributions to revenue growth both within existing accounts, and in new verticals that require these lighter weight and still fully rugged mobile computing solutions.”

Gross profit increased by $1,598,000 to $14,319,000 (approximately 33.6 percent of revenue) for the fiscal year ended March 31, 2015, from $12,721,000 (approximately 35.7 percent of revenue) for the fiscal year ended March 31, 2014. The increase in gross profit for the year ended March 31, 2015, as compared to the prior year, was attributable to the increase in revenue. The decrease in the gross profit percentage was due to changes in sales product mix, as well as, increases in freight, indirect labor and tooling amortization.

Xplore’s operating expenses for the fiscal years ended March 31, 2015 and 2014 were approximately $13,992,000 and $15,140,000, respectively, a decrease of approximately 8 percent. The decrease was primarily due to a decline in product research and development expenses associated with a reduction in major product activities with the recent releases of new products, 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 had net income for the fiscal year ended March 31, 2015 of $249,000, compared to net loss of $1,758,000 for the prior year period. The fluctuation was primarily attributable to the increase in revenue coupled with the reduction in operating expenses.

The company will conduct a conference call and webcast to review the results on Monday, June 29, 2015, at 4:30 p.m. ET. In addition, the company will be discussing its recent acquisition of certain assets of Motion Computing, Inc. and related information filed on Form 8-K by Xplore with the SEC today.

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, or anyone can listen via a live Internet webcast at http://www.investorcalendar.com/IC/CEPage.asp?ID=173986. A replay of the conference call will be available until July 29, 2015 by calling 877-660-6853 from the United States or 201-612-7415 from outside the United States and entering conference ID number 13607960.

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.

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 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.

           

XPLORE TECHNOLOGIES CORP.

Audited Consolidated Balance Sheets

(in thousands)

           
      March 31,
2015
  March 31,
2014
ASSETS          
CURRENT ASSETS:          
Cash and cash equivalents     $ 19,455     $ 5,400  
Accounts receivable, net       6,633       6,182  
Inventory, net       7,883       7,240  
Prepaid expenses and other current assets       315       441  
Total current assets       34,286       19,263  
Fixed assets, net       1,030       883  
      $ 35,316     $ 20,146  
LIABILITIES AND STOCKHOLDERS’ EQUITY          
LIABILITIES:          
Accounts payable and accrued liabilities     $ 5,008     $ 4,381  
Total current liabilities       5,008       4,381  
Deferred revenue and non-current warranty liabilities       1,517       636  
Total liabilities       6,525       5,017  
Commitments and contingencies              
STOCKHOLDERS’ EQUITY:          
Preferred Stock, par value $0.001 per share; authorized 5,000, and none, respectively; shares issued none and none, respectively              
Common Stock, par value $0.001 per share; authorized 15,000; shares issued 10,784 and 8,430, respectively       11       8  
Additional paid-in capital       168,379       154,969  
Accumulated deficit       (139,599 )     (139,848 )
        28,791       15,129  
      $ 35,316     $ 20,146  
               

XPLORE TECHNOLOGIES CORP.

Consolidated Statements of Income (Loss)

(in thousands of dollars, except share and per share amounts)

               
      Three Months Ended     Twelve Months Ended  
      March 31,
2015
    March 31,
2014
   

March 31,
2015

    March 31,
2014
 
                           
        (Unaudited)       (Unaudited)       (Audited)       (Audited)  
                                   
Revenue     $ 10,407     $ 8,345     $ 42,639     $ 35,585  
Cost of revenue     7,293     5,371     28,320     22,864  
Gross profit     3,114     2,974     14,319     12,721  
                           
Expenses:                          
Sales, marketing and support     1,410     1,571     6,352     6,067  
Product research, development and engineering     992     1,526     3,537     4,850  
General administration     1,139     1,266     4,103     4,223  
      3,541     4,363     13,992     15,140  
Income (loss) from operations     (427 )   (1,389 )   327     (2,419 )
                           
Other income (expense):                          
Interest expense             (8 )   (3 )
Other     (7 )   (9 )   (31 )   652  
      (7 )   (9 )   (39 )   649  
Income (loss) before income taxes       (434 )     (1,398 )     288       (1,770 )
Income tax (expense) benefit             (39 )   12  
Net income (loss)     $ (434 )   $ (1,398)     $ 288     $ (1,758 )

Income (loss) per common share, primary

    $ (0.05 )   $ (0.17 )   $ 0.03     $ (0.21 )

Income (loss) per common share, fully diluted

    $ (0.05 )   $ (0.17 )   $ 0.03     $ (0.21 )
Weighted average number of common shares outstanding, basic     9,067,813     8,415,621     8,603,732     8,399,205  
Weighted average number of common shares outstanding, fully diluted     9,067,813     8,415,621     8,759,113     8,399,205  
               

XPLORE TECHNOLOGIES CORP.

Consolidated Statements of Cash Flows

(in thousands)

               
      Three Months Ended
March 31,
    Twelve Months Ended
March 31,
 
      2015     2014     2015     2014  
                           
      (Unaudited)     (Unaudited)     (Audited)     (Audited)  
                           
CASH FLOWS FROM OPERATING ACTIVITIES:                          
Cash provided by (used in) operations:                          
Net income (loss)     $ (434 )   $ (1,398 )   $ 249     $ (1,758 )
Items not affecting cash:                          
Depreciation and amortization     230     184     919     714  
Provision for doubtful accounts     (1 )   (2 )   2     (7 )
Stock-based compensation expense     207     255     684     1,165  
Equity issued in exchange for services         3     2     11  
                           

Changes in operating assets and liabilities:

                         
Accounts receivable     1,838     4,558     (453 )   (1,129 )
Inventory     1,745     187     (643 )   (3,404 )

Prepaid expenses and other current assets

    (47 )   5     126     (89 )
Accounts payable and accrued liabilities     467     (3,789 )   1,508     328  

Net cash provided by (used in) operating activities

    4,005     3     2,394     (4,169 )
                           
CASH FLOWS FROM INVESTING ACTIVITIES:                          
Additions to fixed assets     (456 )   (63 )   (1,066 )   (900 )
Net cash used in investing activities     (456 )   (63 )   (1,066 )   (900 )
                           
CASH FLOWS FROM FINANCING ACTIVITIES:                          

Net proceeds from issuance of Common Stock

    12,542     158

 

  12,727     189  
Net cash provided by financing activities     12,542     158     12,727     189  
                           
CHANGE IN CASH AND CASH EQUIVALENTS     16,091     98     14,055     (4,880 )

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

    3,364     5,302     5,400     10,280  
CASH AND CASH EQUIVALENTS, END OF PERIOD     $ 19,455     $ 5,400     $ 19,455     $ 5,400  
                           

SUPPLEMENTAL DISCLOSURE OF CASH FLOWS:

                         
Payments for interest     $     $     $ 8     $ 3  
Payments for (refunds of) income taxes     $     $     $ 9     $ 24  

 

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