MINNEAPOLIS, Aug. 4, 2011 /PRNewswire/ -- Xata Corporation
(NASDAQ: XATA) reported results for its third quarter of fiscal
year 2011 ended June 30, 2011.
Total revenue was $17.0 million
for the quarter ended June 30, 2011,
compared to $18.0 million for the
same period of fiscal 2010. Net loss to common shareholders for the
third quarter of fiscal 2011 was $0.5
million, compared to net income to common shareholders of
$0.6 million for the same period of
fiscal 2010. Other comments include:
- Software revenue increased $0.4
million from $11.0 million to
$11.4 million for the quarters ended
June 30, 2010 and 2011, respectively.
The 3 percent growth in software revenue in the third quarter of
fiscal 2011 was fueled by growth in our SaaS products.
Specifically, third quarter software revenue from our XataNet and
Xata Turnpike solutions increased 4 percent and 51 percent,
respectively.
- Fiscal 2011 third quarter software revenue accounted for
approximately 67 percent of total revenue, compared to 62 percent
for the same period of fiscal 2010.
- The Company acquired 58 new customers in the third quarter of
fiscal 2011.
- As a result of customers adopting the Xata Turnpike solution,
hardware systems and services revenues decreased to $5.6 million in the third quarter of fiscal 2011
compared to $6.3 million in the third
quarter of fiscal 2010.
- Cash flow from operations was $2.0
million for the third quarter of fiscal 2011.
"Our growth strategy continues to generate increased software
revenue," said Jay Coughlan,
chairman and president of Xata. "We look forward to our customers
increasing adoption of our next generation onboard XataNet
platform."
"The growth in our higher margin software revenue continues to
allow the Company to generate positive non-GAAP earnings and cash
flow from operations," said Scott
Christian, chief financial officer of Xata.
Overall gross margins were 46 percent for the third quarter of
fiscal 2011, compared to 50 percent for the same period of fiscal
2010. This margin decrease was driven by declining hardware systems
and services margins, which were partially offset by continuing
improvement in software margins.
Selling, general and administrative costs decreased $0.8 million to $5.8
million compared to $6.6
million for the three months ended June 30, 2011 and 2010, respectively.
Research and development costs were $2.7
million and $1.8 million for
the third quarter of fiscal 2011 and 2010, respectively. The
continued evolution of the compliance requirements facing the
trucking industry warrant additional investment in research and
development in order to meet customers' future needs.
Net loss to common shareholders for the third quarter of fiscal
2011 was $0.5 million, compared to a
net income to common shareholders of $0.6
million for the same period in fiscal 2010. As a result, the
Company reported a loss of $0.04 per
diluted share for the three months ended June 30, 2011, compared to income of $0.02 per diluted share in the same period of the
prior year.
For the third quarter of fiscal 2011, the Company reported
non-GAAP earnings (earnings before interest, non-recurring
acquisition and financing related costs, taxes, depreciation,
amortization, stock based compensation and preferred stock
dividends and deemed dividends) of $1.3
million compared to $2.2
million for the same period of fiscal 2010.
As of June 30, 2011, the Company
held $15.2 million in cash and cash
equivalents and had working capital of $16.7
million, excluding the current portion of long-term
obligations and deferred revenue and applicable deferred costs.
For the nine months ended June 30,
2011, software revenue increased by 8 percent driven by
growth in our XataNet and Xata Turnpike solutions of 11 percent and
74 percent, respectively. Total revenues decreased by 11 percent as
the result of lower hardware systems and services revenue as the
majority of new customers are utilizing the Xata Turnpike solution
which does not require an upfront commitment to purchase hardware
components.
Summary of revenue and gross margins for the nine months ended
June 30, 2011 and 2010 (amounts in
thousands):
|
For the Nine
Months Ended June 30,
|
|
|
2011
|
|
2010
|
|
Change
|
|
Revenue:
|
|
|
|
|
|
|
Software
|
$
34,102
|
|
$
31,508
|
|
8%
|
|
Hardware
systems
|
11,507
|
|
17,142
|
|
(33%)
|
|
Services
|
2,134
|
|
3,213
|
|
(34%)
|
|
Other
|
-
|
|
1,719
|
|
(100%)
|
|
Total revenue
|
$
47,743
|
|
$
53,582
|
|
(11%)
|
|
|
|
|
|
|
|
|
Gross Margins:
|
|
|
|
|
|
|
Software
|
76%
|
|
75%
|
|
|
|
Hardware
systems
|
(9%)
|
|
4%
|
|
|
|
Services
|
(21%)
|
|
24%
|
|
|
|
Total gross
margin
|
51%
|
|
48%
|
|
|
|
|
|
|
|
|
|
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
Xata Corporation (NASDAQ: XATA) provides intuitive, automated
fleet management software solutions to the trucking industry. By
delivering real-time critical information on vehicle and driver
performance, Xata makes it easy for fleet managers, dispatchers and
drivers to collect, sort, view and analyze data to help reduce
costs, increase safety and compliance, and improve customer
satisfaction.
Our award-winning solutions include 1) XataNet, a full featured,
enterprise-wide solution that helps private and for-hire fleets
drive continuous improvement, and 2) Xata Turnpike, a
technologically advanced, low-cost, easy-to-install solution that
runs on drivers' existing cell phones, smartphones and tablet
computers. Both solutions help fleet managers and drivers meet
established and emerging electronic onboard recorder (EOBR)
regulations. We also offer a portfolio of professional services,
including implementation, training and consulting to help our
customer deliver bottom-line results. Today Xata solutions increase
the productivity of approximately 114,000 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, 2010 (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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended June 30,
|
|
For the Nine
Months Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Software
|
$ 11,381
|
|
$ 11,042
|
|
$ 34,102
|
|
$ 31,508
|
|
|
Hardware systems
|
4,875
|
|
5,362
|
|
11,507
|
|
17,142
|
|
|
Services
|
768
|
|
984
|
|
2,134
|
|
3,213
|
|
|
Other
|
-
|
|
566
|
|
-
|
|
1,719
|
|
|
Total revenue
|
17,024
|
|
17,954
|
|
47,743
|
|
53,582
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
9,119
|
|
8,912
|
|
23,420
|
|
27,669
|
|
Selling, general and
administrative
|
5,840
|
|
6,627
|
|
18,617
|
|
19,702
|
|
Research and
development
|
2,697
|
|
1,759
|
|
7,168
|
|
4,692
|
|
Acquisition related
costs
|
-
|
|
-
|
|
-
|
|
837
|
|
Total costs and
expenses
|
17,656
|
|
17,298
|
|
49,205
|
|
52,900
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
(632)
|
|
656
|
|
(1,462)
|
|
682
|
|
Net interest and other
expense
|
(93)
|
|
(28)
|
|
(272)
|
|
(392)
|
|
Interest expense on financing
activities
|
-
|
|
-
|
|
-
|
|
(1,358)
|
|
Acquisition related interest and
mark to market
|
-
|
|
(2)
|
|
-
|
|
(356)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes
|
(725)
|
|
626
|
|
(1,734)
|
|
(1,424)
|
|
Income tax benefit
|
(289)
|
|
-
|
|
(486)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
(436)
|
|
626
|
|
(1,248)
|
|
(1,424)
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends and
deemed dividends
|
(32)
|
|
(75)
|
|
(122)
|
|
(1,846)
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income to common
shareholders
|
$ (468)
|
|
$
551
|
|
$ (1,370)
|
|
$ (3,270)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (income) per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$ (0.04)
|
|
$ 0.06
|
|
$ (0.13)
|
|
$ (0.36)
|
|
|
Diluted
|
$ (0.04)
|
|
$ 0.02
|
|
$ (0.13)
|
|
$ (0.36)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common and
common share equivalents:
|
|
|
|
|
|
|
|
|
|
Basic
|
10,667
|
|
9,718
|
|
10,427
|
|
9,170
|
|
|
Diluted
|
10,667
|
|
26,359
|
|
10,427
|
|
9,170
|
|
|
|
|
|
|
|
|
|
|
Xata
Corporation
|
|
Consolidated
Balance Sheets
|
|
(Amounts in
thousands)
|
|
|
June
30,
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
|
|
Current assets
|
|
|
|
|
Cash and
cash equivalents
|
$ 15,233
|
|
$
13,374
|
|
Accounts
receivable, net
|
9,508
|
|
11,392
|
|
Inventories
|
2,205
|
|
3,047
|
|
Deferred
product costs
|
1,348
|
|
2,042
|
|
Prepaid
expenses and other current assets
|
1,239
|
|
1,260
|
|
Total current assets
|
$ 29,533
|
|
$
31,115
|
|
|
|
|
|
|
Equipment and leasehold
improvements, net
|
8,961
|
|
5,798
|
|
Intangible assets,
net
|
13,235
|
|
14,901
|
|
Goodwill
|
17,911
|
|
17,048
|
|
Deferred product costs,
non-current
|
1,031
|
|
1,757
|
|
Other assets
|
876
|
|
420
|
|
|
|
|
|
|
Total assets
|
$ 71,547
|
|
$
71,039
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Current
portion of long-term obligations
|
$
1,338
|
|
$
839
|
|
Accounts
payable
|
6,258
|
|
5,138
|
|
Accrued
expenses
|
5,211
|
|
4,872
|
|
Deferred
revenue
|
3,520
|
|
5,070
|
|
Total current liabilities
|
$ 16,327
|
|
$
15,919
|
|
|
|
|
|
|
Long-term obligations, net of
current portion
|
1,245
|
|
485
|
|
Deferred revenue, net of current
portion
|
2,138
|
|
3,591
|
|
Deferred tax
liabilities
|
1,780
|
|
1,905
|
|
Other long-term
liabilities
|
596
|
|
638
|
|
Total liabilities
|
$ 22,086
|
|
$
22,538
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Preferred
stock
|
44,149
|
|
43,980
|
|
Common
stock
|
44,929
|
|
41,637
|
|
Contingent
common stock earn-out
|
4,062
|
|
6,452
|
|
Accumulated
deficit
|
(45,499)
|
|
(44,129)
|
|
Accumulated
other comprehensive income
|
1,820
|
|
561
|
|
Total shareholders' equity
|
49,461
|
|
48,501
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$ 71,547
|
|
$
71,039
|
|
|
|
|
|
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,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net loss to common
shareholders
|
|
$ (468)
|
|
$ 551
|
|
$ (1,370)
|
|
$ (3,270)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
1,687
|
|
1,387
|
|
4,675
|
|
3,707
|
|
|
Stock based
compensation
|
|
272
|
|
179
|
|
860
|
|
1,026
|
|
|
Net interest expense
|
|
77
|
|
33
|
|
171
|
|
347
|
|
|
Preferred stock dividends and
deemed dividends
|
|
32
|
|
75
|
|
122
|
|
1,846
|
|
|
Income taxes
|
|
(289)
|
|
-
|
|
(486)
|
|
-
|
|
|
Interest expense on financing
activities
|
|
-
|
|
-
|
|
-
|
|
1,358
|
|
|
Acquisition related interest
mark to market, and costs
|
|
-
|
|
2
|
|
-
|
|
1,193
|
|
Total adjustments
|
|
1,779
|
|
1,676
|
|
5,342
|
|
9,477
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
|
|
$ 1,311
|
|
$ 2,227
|
|
$ 3,972
|
|
$ 6,207
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per diluted
share
|
|
$ 0.05
|
|
$ 0.08
|
|
$ 0.15
|
|
$ 0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating
non-GAAP earnings per diluted share
|
|
27,086
|
|
26,359
|
|
26,876
|
|
20,580
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Xata Corporation