Xplore Reports First Quarter FY 2012 Results
Xplore Technologies Corp. (OTCMarkets.com – XLRT), a manufacturer of award-winning rugged tablet PCs, today reported results for the first quarter of fiscal 2012. Revenue for the three months ended June 30, 2011 was $2,678,000 as compared to $5,078,000 for the three months ended June 30, 2010, a decrease of 47%. This decrease is attributable to the Company’s current transition to its newly-introduced product line, the iX104C5, which was introduced near the end of this first fiscal quarter.
“This current fiscal quarter and the one that ended on June 30, 2011 represent a transition period for Xplore as the roll out of our new iX104C5 line ramps-up,” said Mark Holleran, President and Chief Operating Officer of Xplore. “Enterprise sales have significantly longer sales cycles than consumer products. Now that our new line is available, we have been seeding a number of opportunities with existing and prospective customers and expect to see our sales return to historical levels in the coming quarters. We believe that the recent decrease in sales is attributable to the market wanting to wait for the new and improved line of products, instead of purchasing our iX104C4 line, which remains available as a robust and more affordable alternative. This was in line with our expectations and we were able to minimize the negative effects of the lower sales level through strong asset management that resulted in positive cash from operations.”
Total gross profit decreased by $1,072,000 to $573,000 (21.4% of revenue) for the three months ended June 30, 2011 from $1,645,000 (32.4% of revenue) for the three months ended June 30, 2010. The decrease in gross profit for the three months ended June 30, 2011 was due primarily to the decline in unit sales, as well as charges for obsolete inventory components of $59,000 and new product tooling amortization of $55,000, which were not included in the three months ended June 30, 2010.
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