MINNEAPOLIS, Aug. 5 /PRNewswire-FirstCall/ -- XATA Corporation
(Nasdaq: XATA) reported its results for the third quarter fiscal
2010 period ended June 30, 2010.
Total revenue was $18.0 million
for the quarter ended June 30, 2010,
compared to $17.6 million for the
same period of fiscal 2009. Net income to common shareholders for
the third quarter of fiscal 2010 was $0.6
million, compared to a net loss to common shareholders of
$0.1 million for the same period in
fiscal 2009. Other highlights include:
- Software revenue grew 29 percent to $11.6 million for the quarter ended June 30, 2010, compared to $9.0 million for the same period of fiscal
2009.
- Fiscal 2010 third quarter software revenue accounted for 65
percent of total revenue, compared to 51 percent for the same
period of fiscal 2009.
- The company acquired 56 new customers in the third quarter of
fiscal 2010, bringing its total customer count to over 1,200.
"Our solid results for the third quarter reflect our efforts to
capture the significant growth potential in the trucking industry,"
said Jay Coughlan, chairman and
president of XATA. "We are capitalizing on our position as a
leading compliance-driven, driver-centered technology solution in
the market. As we look ahead, we expect to enhance our
distribution by growing our direct and indirect channel
partnerships with wireless operators as well as further developing
our fleet optimization platform. XATA's success will be measured by
our ability to execute our software-as-a-service solution (SaaS),
integrating the many existing and new technologies into one
offering, and providing the industry with a single source for all
its fleet operations needs."
Mark Ties, chief financial officer of XATA, stated: "Our
significant software revenue growth for the quarter was a function
of the accelerated adoption of the Turnpike product platform.
Growth in software revenue also translated into strong
margins and profitability in the third quarter."
Gross margins were 50 percent for the third quarter of fiscal
2010, compared to 43 percent for the same period of fiscal 2009.
This margin increase was driven by software gross margins improving
to 74 percent for the third quarter of fiscal 2010, compared to 72
percent for the same period of fiscal 2009. Software gross margins
continue to improve as the company expands its number of software
subscriptions.
Selling, general and administrative costs were $6.6 million, or 37 percent of revenue, and
$5.7 million, or 32 percent of
revenue, for the third quarter of fiscal 2010 and 2009,
respectively. The increase in selling, general and administrative
costs as a percentage of revenue was driven by $0.3 million of additional amortization expense
associated with the Turnpike acquisition and $0.6 million in selling costs associated with our
Turnpike product line. Selling, general, and administrative
costs excluding Turnpike acquisition costs were flat on a
year-over-year basis.
Research and development costs were $1.8
million, or 10 percent of revenue, and $1.4 million, or 8 percent of revenue for the
third quarter of fiscal 2010 and 2009, respectively. The
increase was driven by additional investment in research and
development costs associated with new functionality and the impact
of the Turnpike acquisition.
Operating income for the third quarter of fiscal 2010 increased
70 percent to $0.7 million, compared
to $0.4 million for the same period
in fiscal 2009. Net income to common shareholders for the third
quarter of fiscal 2010 is $0.6
million, compared to a net loss to common shareholders of
$0.1 million for the same period in
fiscal 2009. The company reported earnings per diluted share of
$0.02 for the three months ended
June 30, 2010, compared to a loss of
$0.01 per diluted share in the same
period last year.
For the third quarter of fiscal 2010, the company reported a
$0.7 million, or 44 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 $2.2 million, compared to $1.6 million for the same period of fiscal
2009.
As of June 30, 2010, the company
held $15.6 million in cash and cash
equivalents and had working capital of $20.5
million, excluding the current portion of long-term
obligations and deferred revenue.
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. 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
|
|
Nine Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Revenue
|
$ 17,954
|
|
$ 17,589
|
|
$ 53,582
|
|
$ 49,127
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
8,912
|
|
10,085
|
|
27,669
|
|
26,943
|
|
Selling, general and
administrative
|
6,627
|
|
5,712
|
|
19,702
|
|
17,364
|
|
Research and
development
|
1,759
|
|
1,407
|
|
4,692
|
|
4,218
|
|
Acquisition related
costs
|
-
|
|
-
|
|
837
|
|
-
|
|
Total costs and
expenses
|
17,298
|
|
17,204
|
|
52,900
|
|
48,525
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
656
|
|
385
|
|
682
|
|
602
|
|
Interest expense on financing
activities
|
-
|
|
-
|
|
(1,358)
|
|
-
|
|
Acquisition related interest and
mark to market
|
(2)
|
|
-
|
|
(356)
|
|
-
|
|
Net interest and other
expense
|
(28)
|
|
(351)
|
|
(392)
|
|
(1,148)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
626
|
|
34
|
|
(1,424)
|
|
(546)
|
|
Income tax expense
|
-
|
|
-
|
|
-
|
|
-
|
|
Net income (loss)
|
626
|
|
34
|
|
(1,424)
|
|
(546)
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
|
|
|
|
|
|
|
|
|
and deemed dividends
|
(75)
|
|
(96)
|
|
(1,846)
|
|
(674)
|
|
Net income (loss) to common
shareholders
|
$
551
|
|
$
(62)
|
|
$ (3,270)
|
|
$ (1,220)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.06
|
|
$ (0.01)
|
|
$ (0.36)
|
|
$ (0.14)
|
|
|
Diluted
|
$ 0.02
|
|
$ (0.01)
|
|
$ (0.36)
|
|
$ (0.14)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
and
|
|
|
|
|
|
|
|
|
common share
equivalents:
|
|
|
|
|
|
|
|
|
|
Basic
|
9,718
|
|
8,588
|
|
9,170
|
|
8,530
|
|
|
Diluted
|
26,359
|
|
8,588
|
|
9,170
|
|
8,530
|
|
|
|
|
|
|
|
|
|
|
XATA CORPORATION
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(Amounts in
thousands)
|
|
|
June 30,
|
|
September 30,
|
|
|
2010
|
|
2009
|
|
|
(Unaudited)
|
|
|
|
Current assets
|
|
|
|
|
Cash and
cash equivalents
|
$ 15,551
|
|
$
3,440
|
|
Accounts
receivable, net
|
10,044
|
|
9,323
|
|
Inventories
|
2,538
|
|
4,104
|
|
Deferred
product costs
|
2,161
|
|
2,060
|
|
Prepaid
expenses and other current assets
|
740
|
|
1,064
|
|
Total current assets
|
31,034
|
|
19,991
|
|
|
|
|
|
|
Equipment and leasehold
improvements, net
|
5,487
|
|
3,980
|
|
Intangible assets,
net
|
15,474
|
|
10,725
|
|
Goodwill
|
15,459
|
|
3,011
|
|
Deferred product costs,
non-current
|
1,849
|
|
2,470
|
|
Other assets
|
275
|
|
487
|
|
|
|
|
|
|
Total assets
|
$ 69,578
|
|
$
40,664
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Current portion of long-term
obligations
|
$
852
|
|
$
84
|
|
Accounts payable
|
5,753
|
|
5,366
|
|
Accrued expenses
|
4,927
|
|
5,914
|
|
Deferred revenue
|
4,902
|
|
5,280
|
|
Total current liabilities
|
16,434
|
|
16,644
|
|
|
|
|
|
|
Long-term obligations, net of
current portion
|
397
|
|
8,534
|
|
Deferred revenue, net of current
portion
|
4,113
|
|
6,101
|
|
Other long-term
liabilities
|
682
|
|
820
|
|
Total liabilities
|
21,626
|
|
32,099
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Preferred
stock
|
43,980
|
|
16,860
|
|
Common
stock
|
41,453
|
|
32,624
|
|
Contingent
common stock earn-out
|
6,452
|
|
-
|
|
Accumulated
deficit
|
(44,189)
|
|
(40,919)
|
|
Accumulated
other comprehensive income
|
256
|
|
-
|
|
Total shareholders' equity
|
47,952
|
|
8,565
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$ 69,578
|
|
$
40,664
|
|
|
|
|
|
|
|
|
|
|
XATA CORPORATION
|
|
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
|
|
(Amounts in thousands, except
per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Net income (loss) to
common shareholders
|
$
551
|
|
$ (62)
|
|
($3,270)
|
|
($1,220)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Interest expense on financing
activities
|
-
|
|
-
|
|
1,358
|
|
-
|
|
|
Net interest expense
|
33
|
|
351
|
|
347
|
|
1,148
|
|
|
Stock-based
compensation
|
179
|
|
402
|
|
1,026
|
|
1,195
|
|
|
Depreciation and amortization
expense
|
1,387
|
|
764
|
|
3,707
|
|
2,250
|
|
|
Acquisition related interest,
mark to market, and costs
|
2
|
|
-
|
|
1,193
|
|
-
|
|
|
Preferred stock dividends and
deemed dividends
|
75
|
|
96
|
|
1,846
|
|
674
|
|
Total adjustments
|
1,676
|
|
1,613
|
|
9,477
|
|
5,267
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
|
$ 2,227
|
|
$ 1,551
|
|
$6,207
|
|
$4,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per diluted
share
|
$ 0.08
|
|
$ 0.18
|
|
$0.68
|
|
$0.47
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating
non-GAAP earnings
|
|
|
|
|
|
|
|
|
|
per diluted share
|
26,359
|
|
8,588
|
|
9,170
|
|
8,530
|
|
|
|
|
|
|
|
|
|
|
SOURCE XATA Corporation
Copyright g. 5 PR Newswire