MINNEAPOLIS, May 6 /PRNewswire-FirstCall/ -- XATA Corporation
(Nasdaq: XATA), today reported revenue of $18.1 million for the quarter ended March 31, 2010 compared to $16.9 million for the same period of fiscal 2009.
This revenue growth was driven by a 35 percent growth in total
software revenue over the same period of fiscal 2009. Fiscal
2010 second quarter software revenue accounted for 63 percent of
total revenue compared to 50 percent for the same period of fiscal
2009. The Company acquired 42 new customers in the second quarter
of fiscal 2010.
"The second quarter represented a very strong software quarter
for us," said Jay Coughlan, chairman
and president of XATA. "Our ability to continue to renew existing
customers and our ability to acquire new customers through our
XATANET and new Turnpike platforms drove our software growth."
Operationally, software gross margins increased to 73 percent
for the second quarter of fiscal 2010 compared to 71 percent for
the same period of fiscal 2009. This improvement was driven by the
Company's ability to leverage its SaaS infrastructure by expanding
its software subscriptions and the addition of new revenue through
the launch of new functionality. Overall gross margins were 50
percent for the second quarter of fiscal 2010 compared to 45
percent for the same period of fiscal 2009. The improved margins
were the result of software revenue growth and improved software
margins.
Selling, general and administrative costs were $6.9 million or 38 percent of revenue and
$5.8 million or 34 percent of revenue
for the second quarter of fiscal 2010 and 2009, respectively. The
increase in selling, general and administrative costs as a
percentage of revenue was driven by additional costs associated
with the Turnpike Global Technologies infrastructure. The Company's
expectation is that these costs will be refined in the upcoming
quarters as the integration continues allowing for further
leveraging of selling, general and administrative costs.
Research and development costs were $1.6
million or 9 percent of revenue and $1.4 million or 8 percent of revenue for the
second quarter of fiscal 2010 and 2009, respectively. The
increase was driven by additional investment in research and
development costs associated with new functionality.
Operating income for the second quarter of fiscal 2010 and 2009
was $0.5 million. Excluding
acquisition and integration related costs that occurred totaling
approximately $0.3 million, operating
income on a non-GAAP basis, increased 50 percent on a
year-over-year basis to 4.4 percent in fiscal 2010.
For the second quarter of fiscal 2010, the Company reported a
$0.7 million or 41 percent
improvement in 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 $2.4 million compared to $1.7 million for the same period of fiscal
2009.
As of March 31, 2010, the Company
held $13.9 million in cash and cash
equivalents and had working capital of $19.9
million excluding the current portion of long-term
obligations and deferred revenue.
"Our operating results for the quarter were very strong on a
year-over-year basis," said Mark Ties, chief financial officer of
XATA. "The performance of our existing software business and the
addition of Turnpike's software stream drove a 2 percentage point
increase in our software margins and allowed us to improve
operating income performance."
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 104,000 trucks across
North America. For more
information, visit 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
www.xata.com and through the SEC Web site at 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
|
|
Six Months
Ended
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Revenue
|
$
18,104
|
|
$
16,895
|
|
$
35,628
|
|
$
31,538
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
9,065
|
|
9,263
|
|
18,757
|
|
16,858
|
|
Selling, general and
administrative
|
6,925
|
|
5,752
|
|
13,075
|
|
11,653
|
|
Research and development
|
1,599
|
|
1,403
|
|
2,933
|
|
2,810
|
|
Acquisition related costs
|
58
|
|
-
|
|
837
|
|
-
|
|
Total costs and expenses
|
17,647
|
|
16,418
|
|
35,602
|
|
31,321
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
457
|
|
477
|
|
26
|
|
217
|
|
Interest expense on financing
activities
|
(579)
|
|
-
|
|
(1,358)
|
|
-
|
|
Acquisition related interest and mark
to market
|
(192)
|
|
-
|
|
(354)
|
|
-
|
|
Net interest and other
expense
|
(88)
|
|
(386)
|
|
(364)
|
|
(797)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes
|
(402)
|
|
91
|
|
(2,050)
|
|
(580)
|
|
Income tax expense
|
-
|
|
-
|
|
-
|
|
-
|
|
Net (loss) income
|
(402)
|
|
91
|
|
(2,050)
|
|
(580)
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
and deemed dividends
|
(1,706)
|
|
(534)
|
|
(1,771)
|
|
(578)
|
|
Net loss to common
shareholders
|
$
(2,108)
|
|
$
(443)
|
|
$
(3,821)
|
|
$
(1,158)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share - basic and
diluted
|
$
(0.23)
|
|
$
(0.05)
|
|
$
(0.43)
|
|
$
(0.14)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common and
|
|
|
|
|
|
|
|
|
common share equivalents
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
9,147
|
|
8,524
|
|
8,894
|
|
8,500
|
|
|
|
|
|
|
|
|
|
|
XATA
CORPORATION
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(Amounts in
thousands)
|
|
|
March
31,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
|
(Unaudited)
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash
equivalents
|
$
13,865
|
|
$
3,440
|
|
Accounts
receivable, net
|
10,698
|
|
9,323
|
|
Inventories
|
2,488
|
|
4,104
|
|
Deferred product
costs
|
2,267
|
|
2,060
|
|
Prepaid expenses
and other current assets
|
645
|
|
1,064
|
|
Total current assets
|
29,963
|
|
19,991
|
|
|
|
|
|
|
Equipment and leasehold improvements,
net
|
5,379
|
|
3,980
|
|
Intangible assets, net
|
16,317
|
|
10,725
|
|
Goodwill
|
15,775
|
|
3,011
|
|
Deferred product costs,
non-current
|
2,108
|
|
2,470
|
|
Other assets
|
248
|
|
487
|
|
|
|
|
|
|
Total assets
|
$
69,790
|
|
$
40,664
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Current portion of
long-term obligations
|
$
1,077
|
|
$
84
|
|
Accounts
payable
|
5,238
|
|
5,366
|
|
Accrued
expenses
|
4,841
|
|
5,914
|
|
Deferred
revenue
|
5,012
|
|
5,280
|
|
Total current liabilities
|
16,168
|
|
16,644
|
|
|
|
|
|
|
Long-term obligations, net of current
portion
|
490
|
|
8,534
|
|
Deferred revenue, net of current
portion
|
4,784
|
|
6,101
|
|
Other long-term liabilities
|
726
|
|
820
|
|
Total liabilities
|
22,168
|
|
32,099
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Preferred
stock
|
43,853
|
|
16,860
|
|
Common
stock
|
41,270
|
|
32,624
|
|
Contingent common
stock earn-out
|
6,452
|
|
-
|
|
Accumulated
deficit
|
(44,740)
|
|
(40,919)
|
|
Accumulated other
comprehensive income
|
787
|
|
-
|
|
Total shareholders' equity
|
47,622
|
|
8,565
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$
69,790
|
|
$
40,664
|
|
|
|
|
|
XATA
CORPORATION
|
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
(Amounts in
thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Net loss to common
shareholders
|
$
(2,108)
|
|
$
(443)
|
|
($3,821)
|
|
($1,158)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Interest expense on financing
activities
|
579
|
|
-
|
|
1,358
|
|
-
|
|
|
Net interest expense
|
33
|
|
386
|
|
314
|
|
797
|
|
|
Stock-based compensation
|
559
|
|
450
|
|
847
|
|
793
|
|
|
Depreciation and amortization
expense
|
1,385
|
|
753
|
|
2,320
|
|
1,486
|
|
|
Acquisition related interest, mark to
market, and costs
|
250
|
|
-
|
|
1,191
|
|
-
|
|
|
Preferred stock dividends and deemed
dividends
|
1,706
|
|
534
|
|
1,771
|
|
578
|
|
Total adjustments
|
4,512
|
|
2,123
|
|
7,801
|
|
3,654
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
|
$
2,404
|
|
$ 1,680
|
|
$3,980
|
|
$2,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per diluted
share
|
$
0.26
|
|
$
0.20
|
|
$0.45
|
|
$0.29
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating non-GAAP
earnings
|
|
|
|
|
|
|
|
|
|
per diluted share
|
9,147
|
|
8,524
|
|
8,894
|
|
8,500
|
|
|
|
|
|
|
|
|
|
|
SOURCE XATA Corporation