Net income for the three months ended December 31, 2011 was $284,000, as compared to a net loss of $2,075,000 for the three months ended December 31, 2010, a positive difference of $2,359,000. The difference was primarily due to the increase in revenue and gross profit and a reduction in interest expense. The net loss of the nine months ended December 31, 2011 was $1,848,000, as compared to a net loss of $4,914,000 for the nine months ended December 31, 2010, a positive difference of $3,066,000. The difference was due to the reduction in interest expense and an increase in revenue offset by an increase in operating expenses.Total gross profit increased by $1,469,000 to $2,736,000 (30.7% of revenue) for the three months ended December 31, 2011 from $1,267,000 (29.4% of revenue) for the three months ended December 31, 2010. The increase in gross profit for the three months ended December 31, 2011 was due primarily to the increase in unit sales. Total gross profit increased by $500,000 to $4,938,000 (29.6% of revenue) for the nine months ended December 31, 2011 from $4,438,000 (32.4% of revenue) for the nine months ended December 31, 2010. The increase in gross profit for the nine months ended December 31, 2011 was due primarily to the increase in unit sales. Operating expenses for the three months ended December 30, 2011 and 2010 were approximately $2,377,000 and $1,935,000, respectively, an increase of $442,000 or approximately 23%. Operating expenses for the nine months ended December 30, 2011 and 2010 were approximately $6,588,000 and $5,628,000, respectively, an increase of $960,000 or approximately 17%. The increases were primarily attributable to increases in expenses associated with the launch of our next generation iX104C5 family of products which included increases in headcount related costs, including stock compensation, and expenses related to customer demonstration units, increases in commission expense commensurate with the increase in revenues and non-recurring charges associated with the settlement of litigation offset by a decline in our engineering development costs.
About Xplore Technologies ®Xplore ( www.xploretech.com) is engaged in the business of developing integrating and marketing mobile wireless Tablet PC computing systems. The Company’s products enable the extension of traditional computing systems to a range of field and on-site personnel, regardless of location or environment. Using a range of wireless communication mediums together with the Company’s rugged computing products, the Company’s end-users are able to receive, collect, analyze, manipulate and transmit information in a variety of environments not suited to traditional non-rugged computing devices. The Company’s end-users are in markets that include utility, warehousing/logistics, public safety, field service, transportation, oil and gas, manufacturing, route delivery, military and homeland security. 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.