Mr. Holleran added, “We believe the markets’ response to our iX104 line has been favorable, as indicated by this revenue growth. We introduced the iX104C5 line late in our fiscal first quarter of 2012 and in the third and fourth fiscal quarters we announced approximately $20.3 million in purchase orders. One purchase order represented more than $14 million in aggregate sales from one of the world’s largest utility companies, followed by our receipt of an additional $3.5 million purchase order shortly thereafter from the same utility company and another purchase order for more than $2.8 million from one of the largest conventional oil and natural gas producers in North America. These purchase orders began to be filled in the third and fourth quarters of our fiscal year 2012.”Fiscal Year 2012 Results Indicate Company Turnaround The revenue growth of $9,769,000, or 55%, from fiscal 2011 to fiscal 2012 was attributable to an increase in unit sales of approximately 54%, along with an increase in the average selling prices of approximately 1%. The increase in unit sales was principally attributable to revenue related to fulfillment of a portion of the previously announced purchase orders above; the increase in average selling prices was principally due to a more favorable product mix. The net loss for the year ended March 31, 2012 was $523,000 compared to a net loss of $6,389,000 for the year ended March 31, 2011. The $5,866,000 decrease in the net loss in fiscal 2012 was primarily due to a decrease in interest expense of $3,514,000 and a reduction in operating loss of $2,374,000 primarily attributable to the increase in revenue. Total gross profit increased by $2,967,000 to $8,388,000 (30.5% of revenue) for the year ended March 31, 2012 from $5,421,000 (30.5% of revenue) for the year ended March 31, 2011. This increase was attributable to the increase in revenue and unit sales.
Operating expenses for the years ended March 31, 2012 and 2011 were approximately $8,625,000 and $8,032,000, respectively, an increase of $593,000, or approximately 7%. The increase was primarily attributable to increases in expenses associated with the launch of the Company’s next generation iX104C5 family of products, which included sales and marketing headcount related costs, 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 the Company’s engineering development costs as the majority of the iX104 C5 developments costs were incurred in the prior year combined with a non-recurring benefit for the reversal of an engineering accrual from a prior year.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 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.