Software revenue growth of 27 percent in the first quarter of
fiscal 2010 drives non-GAAP earnings per share of $0.18
MINNEAPOLIS, Feb. 4 /PRNewswire-FirstCall/ -- XATA Corporation
(NASDAQ: XATA), today reported revenue of $17.5 million for the
quarter ended December 31, 2009, including revenue of newly
acquired Turnpike Global Technologies (Turnpike), an increase of 20
percent compared to $14.6 million for the same period in fiscal
2009. This revenue growth reflects organic growth of 15 percent
compared to the same period of the prior year fueled by software
revenue growth of 27 percent over the same period. Fiscal 2010
first quarter software revenue accounted for 59 percent of total
revenue compared to 55 percent for the same period in fiscal 2009.
The Company acquired 8 new customers in the first quarter of fiscal
2010. "We are very pleased with our first quarter revenue growth in
what continues to be a very difficult economic environment," said
Jay Coughlan, chairman and president of XATA. "The ROI our
customers achieve through the use of our software continues to
drive year-over-year software revenue growth. We are also excited
to see the impact the acquisition of Turnpike Global Technologies
and the launch of our next-generation Fleet Performance Management
applications will have on our overall revenue and software growth
in the future." Operationally, software gross margins increased to
74 percent for the first quarter of fiscal 2010 compared to 71
percent for the same period of fiscal 2009. This improvement was
driven by our ability to leverage our SaaS infrastructure as the
number of software subscriptions increase and revenue growth
through the launch of new functionality. Overall gross margins were
45 percent for the first quarter of fiscal 2010 compared to 48
percent for the same period of fiscal 2009. This decline was driven
by our system gross margins. Selling, general and administrative
costs were $6.2 million or 35 percent of revenue and $5.9 million
or 40 percent of revenue for the first quarter of fiscal 2010 and
2009, respectively. The increase in cost reflects the increase in
the size of the organization as the result of the acquisition of
Turnpike Global Technologies. Continued leveraging of selling,
general and administrative costs resulted in a 5 percentage point
decrease in costs relative to revenue. Research and development
costs were $1.3 million or 8 percent of revenue and $1.4 million or
10 percent of revenue for the first quarter of fiscal 2010 and
2009, respectively. Operating loss for the first quarter of fiscal
2010 was $0.4 million compared to an operating loss of $0.3 million
for the same quarter of fiscal 2009. Excluding acquisition related
costs of $0.8 million, operating income showed improvement of $0.7
million on a year-over-year basis when compared to an operating
loss of $0.3 million for the first quarter of fiscal 2009. For the
first quarter of fiscal 2010, the Company reported non-GAAP
earnings (earnings before interest (net), non-recurring acquisition
and financing related costs, taxes, depreciation, amortization,
stock based compensation and preferred stock dividends and deemed
dividends) of $1.6 million and $0.18 per diluted share compared to
non-GAAP earnings of $0.8 million and $0.10 per diluted share for
the same period of fiscal 2009. As of December 31, 2009, the
Company held $11.8 million in cash and cash equivalents and had
working capital of $19.7 million excluding the current portion of
long-term obligations and deferred revenue. Long-term obligations
include $39.5 million that will convert into equity upon
shareholder approval, leaving a total $1.7 million of capital lease
financing outstanding. "The acquisition of Turnpike Global
Technologies and the $30.2 million financing we completed in
December was a transformational event for the company," said Mark
Ties, chief financial officer of XATA. "Through the combined
transaction we improved our ability to grow revenue by adding
additional products and expanding the markets we serve. In
addition, we were able to pay-off all of our outstanding bank
financing while improving our cash and working capital." Non-GAAP
vs. GAAP Financials To supplement the Company's consolidated
financial statements presented in accordance with GAAP, the Company
provides certain non-GAAP measures of financial performance. These
non-GAAP measures include non-GAAP earnings, which is earnings
before interest (net), acquisition and financing related costs,
taxes, depreciation, amortization, stock based compensation and
preferred stock dividends and deemed dividends, and non-GAAP
earnings per diluted share. The Company's reference to these
non-GAAP measures should be considered in addition to results
prepared under current accounting standards, but are not a
substitute for, or superior to, GAAP results. These non-GAAP
measures are provided to enhance investors' overall understanding
of the Company's current financial performance and ability to
generate cash flow. In many cases non-GAAP financial measures are
used by analysts and investors to evaluate the Company's
performance. Reconciliation to the nearest GAAP measure of all
non-GAAP measures included in this press release can be found in a
financial table included below. About XATA Based in Minneapolis,
MN, XATA Corporation (NASDAQ:XATA) is an expert in optimizing fleet
operations by reducing costs and ensuring regulatory compliance for
the trucking industry. Our customers have access to current vehicle
data anywhere, anytime, through our monthly service packages. Our
software and professional services help companies manage fleet
operations, enhance driver safety and deliver a higher level of
customer satisfaction. XATA provides expert services to develop the
business processes required to deliver the profitability, safety
and service level demanded by today's competitive transportation
environments. Today, XATA systems increase the productivity of
approximately 100,000 trucks across North America. For more
information, visit http://www.xata.com/ or call 1-800-745-9282.
Cautionary note regarding forward-looking statements. This
announcement includes forward-looking statements. Statements that
are not historical or current facts, including statements about
beliefs and expectations, are forward-looking statements. Such
statements are based on current expectations, and actual results
may differ materially. The forward-looking statements in this
announcement are subject to a number of risks and uncertainties
including, but not limited to, the possibility of continuing
operating losses, the ability to adapt to rapid technological
change, dependence on positioning systems and communication
networks owned and controlled by others, the receipt and
fulfillment of new orders for current products, the timely
introduction and market acceptance of new products, the ability to
fund future research and development activities, the ability to
establish and maintain strategic partner relationships, and the
other factors discussed under "Risk Factors" in Part IA, Item 1 of
our Annual Report on Form 10-K for the fiscal year ended September
30, 2009 (as updated in our subsequent reports filed with the SEC).
These reports are available under the "Investors" section of our
Web site at http://www.xata.com/ and through the SEC Web site at
http://www.sec.gov/. Forward-looking statements speak only as of
the date they are made, and we undertake no obligation to update
them in light of new information or future events. XATA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except
per share amounts) (Unaudited) Three Months Ended December 31,
------------ 2009 2008 ---- ---- Revenue $17,523 $14,643 Cost of
goods sold 9,692 7,595 Selling, general and administrative 6,150
5,901 Research and development 1,333 1,407 Acquisition related
costs 779 - --- --- Total costs and expenses 17,954 14,903 ------
------ Operating loss (431) (260) Interest expense on financing
activities (779) - Acquisition related interest and mark to market
(162) - Net interest and other expense (276) (412) ---- ---- Loss
before income taxes (1,648) (672) Income tax expense - - --- ---
Net loss (1,648) (672) Preferred stock dividends and deemed
dividends (65) (44) --- --- Net loss to common shareholders
$(1,713) $(716) ======= ===== Net loss per common share - basic and
diluted $(0.20) $(0.08) ====== ====== Weighted average common and
common share equivalents Basic and diluted 8,646 8,468 ===== =====
XATA CORPORATION CONSOLIDATED BALANCE SHEETS (Amounts in thousands)
December September 31, 30, 2009 2009 ---- ---- (Unaudited) Current
assets Cash and cash equivalents $11,754 $3,440 Accounts
receivable, net 12,119 9,323 Inventories 3,140 4,104 Deferred
product costs 2,207 2,060 Prepaid expenses and other current assets
667 1,064 --- ----- Total current assets 29,887 19,991 Equipment
and leasehold improvements, net 5,261 3,980 Capitalized software
development costs, net 100 - Intangible assets, net 16,798 10,725
Goodwill 15,444 3,011 Deferred product costs, non-current 2,243
2,470 Other assets 13 487 -- --- Total assets $69,746 $40,664
======= ======= Current liabilities Current portion of long-term
obligations $36,572 $84 Accounts payable 4,655 5,366 Accrued
expenses 5,518 5,914 Deferred revenue 5,223 5,280 ----- ----- Total
current liabilities 51,968 16,644 Long-term obligations, net of
current portion 4,552 8,534 Deferred revenue, net of current
portion 5,473 6,101 Other long-term liabilities 772 820 --- ---
Total liabilities 62,765 32,099 Shareholders' equity Preferred
stock 16,976 16,860 Common stock 32,411 32,624 Accumulated deficit
(42,632) (40,919) Accumulated other comprehensive income 226 - ---
--- Total shareholders' equity 6,981 8,565 ----- ----- Total
liabilities and shareholders' equity $69,746 $40,664 =======
======= XATA CORPORATION RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES (Amounts in thousands, except per share amounts)
(Unaudited) Three Months Ended December 31, ------------ 2009 2008
---- ---- Net loss to common shareholders $(1,713) $(716)
Adjustments: Interest expense on financing activities 779 - Net
interest expense 282 412 Stock-based compensation 287 343
Depreciation and amortization expense 935 733 Acquisition related
interest, mark to market, and costs 941 - Preferred stock dividends
and deemed dividends 65 44 --- --- Total adjustments 3,289 1,532
----- ----- Non-GAAP earnings $1,576 $816 ====== ==== Non-GAAP
earnings per diluted share $0.18 $0.10 ===== ===== Shares used in
calculating non-GAAP earnings per diluted share 8,646 8,468 =====
===== DATASOURCE: XATA Corporation CONTACT: Mark Ties, CFO of XATA
Corporation, +1-952-707-5600, Web Site: http://www.xata.com/
Copyright
Xata (NASDAQ:XATA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Xata (NASDAQ:XATA)
Historical Stock Chart
From Jul 2023 to Jul 2024