Xplore announces continued revenue growth
TSX-XPL AUSTIN, TX, Nov. 9 /CNW/ - Xplore Technologies Corp. (TSX: XPL) ("Xplore"or the "Company"), a leading rugged mobile computer provider, reported itsfinancial results today for second quarter ended September 30, 2006, includingrevenue of approximately $8.7 million, representing growth of approximately31.6% over the prior year period. The financial results announced are inUnited States dollars. Mark Holleran, President and Chief Operating Officer, indicated, "We arepleased to see our award winning rugged tablet accepted by the Fortune500/Global 2000 as well as the U.S. military." Financial Results of Operations ------------------------------- Revenue for the three months ended September 30, 2006 and 2005 wereapproximately $8.7 million and $6.6 million, respectively, and for the sixmonths ended September 30, 2006 and 2005 were approximately $17.8 million and$12.7 million, respectively. Current year revenue increased over the prioryear revenue by approximately 31.6% for the three months ended and 40.4% forthe six months ended. The increase in revenue is primarily attributable toincreasing acceptance and demand for our product in the Fortune 500/Global2000 markets, in addition to a slightly larger sales force focusing on thosemarkets in fiscal 2007. Gross profit for the three months ended September 30, 2006 and 2005 wasapproximately $2.4 million and $1.7 million, respectively, and gross profit asa percent of revenue for those periods were 27.9% and 25.7%, respectively.Gross profit for the six months ended September 30, 2006 and 2005 wasapproximately $4.9 million and $3.1 million, respectively, and gross profit asa percent of revenue for those periods was 27.6% and 24.6%, respectively. Theimprovement in gross profit as a percentage of revenue in the current year isdue to manufacturing efficiencies gained from increased volume associated withthe revenue increase and a more favorable product mix. Operating expenses for the three months ended September 30, 2006 and 2005were approximately $3.1 million and $3.3 million, respectively, and for thesix months ended September 30, 2006 and 2005 were approximately $6.1 millionand $6.0 million, respectively. The three and six months periods endedSeptember 30, 2005 include non-recurring charges of $0.6 million and$1.0 million, respectively, related to the settlement of the OntarioSecurities Commission matter in fiscal 2006. When these one-time charges areexcluded, operating expenses have increased in the current year. The increasesare attributable to an increase in selling costs for investments in a slightlylarger sales force and their related travel and higher commission costscommensurate with the increases in revenue combined with an increase in newproduct development costs. The Company's net loss was approximately $0.8 million and $1.5 millionfor the three months ended September 30, 2006 and 2005, respectively, andapproximately $2.5 million and $3.3 million for the six months endedSeptember 30, 2006 and 2005, respectively. Net loss per share was $0.01 and$0.03 for the three months ended September 30, 2006 and 2005, respectively,and $0.04 and $0.06 for the six months ended September 30, 2006 and 2005,respectively. Financings ---------- During the three months ended September 30, 2006, the Company completedprivate placements raising total gross proceeds of approximately $7.1 millionthrough the issuance of 20,789,119 shares including Series A Preferred Shares,Series B Preferred Shares and Common Shares. Annual and Special Meeting -------------------------- Xplore will hold its annual and special meeting of shareholders at 14000Summit Drive, Suite 900, Austin, Texas, U.S.A. on Wednesday, December 6, 2006at 3:30 p.m. (central standard time). About Xplore Technologies(R) ---------------------------- Xplore Technologies Corp, founded in 1996, is an innovative leader in therugged PC industry. Xplore, whose common shares are listed for trading on theToronto Stock Exchange under the symbol XPL, has offices in Austin Texas andHelsinki Finland. Its rugged iX104(TM) family of hardware solutionsincorporate leading-edge technology, and are designed based on years ofcustomer design input. Xplore's diverse customer base comes from the publicsafety, retail and wholesale warehousing, utility, military, field service andtransportation industries. Xplore hardware solutions are available from Xploreor one of its authorized channel partners, for more information, visit
www.xploretech.com. The Toronto Stock Exchange has neither approved nor disapproved the information contained herein. Xplore Technologies is a registered trademark of Xplore TechnologiesCorporation of America. iX104, iX104R, iX104T, Renegade, All Terrain, iX104C2are trademarks of Xplore Technologies Corporation of America. All othertradenames, marked or not, are the sole property of their respective owners. This news release contains forward-looking statements that involve risksand uncertainties, which may cause actual results to differ materially fromthe 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-lookingstatements. Such statements reflect Xplore's current views with respect tofuture events and are subject to such risks and uncertainties. Many factorscould cause actual results to differ materially from the statements madeincluding those factors detailed from time to time in filings made by Xplorewith securities regulatory authorities. Should one or more of these risks oruncertainties materialize, or should assumptions underlying the forwardlooking statements prove incorrect, actual results may vary materially fromthose described herein as intended, planned, anticipated or expected. Xploredoes not intend and does not assume any obligation to update theseforward-looking statements.
11-10-2006, 01:06 PM
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