MINNEAPOLIS, Feb. 8, 2012 /PRNewswire/ -- Xata Corporation
(NASDAQ:XATA) reported results for its fiscal 2012 first quarter,
ended December 31, 2011.
Total revenue was $16.6 million
for the quarter ended December 31,
2011, compared to $14.0
million for the same period of fiscal 2011. Net loss to
common shareholders for the first quarter of fiscal 2012 was
$1.7 million, compared to net loss to
common shareholders of $0.1 million
for the same period of fiscal 2011. Other comments
include:
- Software revenue increased $0.4
million to $11.7 million for
the quarter ended December 31, 2011.
The 3-percent growth in software revenue in the first quarter of
fiscal 2012 was fueled by 52-percent growth in Xata Turnpike
software revenue.
- Fiscal 2012 first quarter software revenue accounted for
approximately 70 percent of total revenue, compared to 81 percent
for the same period of fiscal 2011.
- Hardware systems revenue increased to $4.5 million in the first quarter of fiscal 2012,
compared to $1.7 million for the same
period of fiscal 2011. This increase was driven by increased
adoption of the X5 hardware platform as customers continue to
invest in the XataNet solution.
- The Company acquired 54 new customers in the first quarter of
fiscal 2012, with the majority selecting the Xata Turnpike
solution.
"First quarter results reflect our investment in developing
solutions utilizing the latest technologies that meet our
customers' current and future needs," said Jay Coughlan, chairman and president, Xata. "Our
focus on providing fleet management solutions that will meet the
needs of any size fleet has resulted in software revenue growth in
XataNet and Xata Turnpike solutions."
"The increase in hardware systems revenue reflects our
customers' continued commitment to Xata and the importance of our
fleet management solutions to their business. We look forward
to continuing to provide value-added solutions to these customers,"
said Scott Christian, chief
financial officer, Xata.
Fiscal 2012 first quarter total gross margin was 48 percent,
which was impacted by $4.5 million of
lower margin hardware systems revenue. Overall, software gross
margin remained strong at 73 percent of software revenue.
Summary of revenue and gross margins is as follows (in
thousands, except percentage data):
|
For the
Three Months Ended December 31,
|
|
|
2011
|
|
2010
|
|
Change
|
|
Revenue:
|
|
|
|
|
|
|
Software
|
$ 11,686
|
|
$ 11,341
|
|
3%
|
|
Hardware
systems
|
4,464
|
|
1,733
|
|
158%
|
|
Services
|
451
|
|
904
|
|
(50%)
|
|
Total revenue
|
$ 16,601
|
|
$ 13,978
|
|
19%
|
|
|
|
|
|
|
|
|
Gross Margins
(Deficits):
|
|
|
|
|
|
|
Software
|
73%
|
|
76%
|
|
|
|
Hardware
systems
|
(7%)
|
|
(18%)
|
|
|
|
Services
|
(48%)
|
|
4%
|
|
|
|
Total gross
margin
|
48%
|
|
60%
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses remained consistent
at $6.1 million for the first
quarters of fiscal 2012 and 2011. However, it decreased as a
percentage of revenue from 44 percent in the first quarter of
fiscal 2011 to 37 percent in the first quarter of fiscal 2012.
Research and development costs increased by $1.3 million to $3.5
million for the first quarter of fiscal 2012, compared to
$2.2 million for the same period of
fiscal 2011. The continued evolution of compliance
requirements facing the commercial trucking industry warrants
additional investment in the development of new solutions and
additional enhancements to existing solutions that meet our
customers' current and anticipated fleet management and regulatory
needs.
Net loss to common shareholders for the first quarter of fiscal
2012 was $1.7 million, compared to a
net loss to common shareholders of $0.1
million for the same period of fiscal 2011. The Company
reported a loss of $0.16 per diluted
share for the three months ended December
31, 2011, compared to a loss of $0.01 per diluted share for the same period of
fiscal 2011.
For the first quarter of fiscal 2012, the Company reported
non-GAAP earnings of $0.5 million,
compared to $1.6 million for the same
period of fiscal 2011. As a result, the Company reported non-GAAP
earnings of $0.02 per diluted share
for the three months ended December 31,
2011, compared to non-GAAP earnings of $0.06 per diluted share for the same period of
the prior year.
As of December 31, 2011, Xata held
$11.2 million in cash and cash
equivalents and had $11.7 million of
working capital.
Non-GAAP vs. GAAP Financial Measures
To assist investors in understanding the Company's financial
performance, the Company supplements the financial results that we
provide in accordance with the accounting principles generally
accepted in the United States, or
GAAP, with non-GAAP financial measures. These non-GAAP financial
measures are useful to investors for evaluating the Company's
historical and prospective financial performance, as well as our
performance relative to competitors. Management regularly uses
these non-GAAP financial measures internally to understand, manage
and evaluate the business, and to make operating decisions. These
non-GAAP financial measures are among the primary factors
management uses in planning for and forecasting future period
performance. Management believes that these non-GAAP financial
measures reflect an additional way of viewing aspects of the
Company's operations that, when viewed with our GAAP results,
provides a more complete understanding of the factors and trends
affecting our business.
The specific non-GAAP financial measures, along with a
reconciliation to the nearest comparable GAAP measures and further
explanation of their usefulness to investors can be found at the
end of this release.
About Xata
Xata Corporation (NASDAQ: XATA) provides intuitive, automated
fleet management software solutions to the commercial 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 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 117,000 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, the ability of our solutions
to be compliant with future regulations, dependence on propriety
technology and communication networks owned and controlled by
others, the failure to renew contracts or failure to sell
additional solutions or services to existing customers, 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, 2011 (as updated in our
subsequent reports filed with the SEC). These reports are
available under the "Investors" section of our website at
www.xata.com and through the SEC website 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
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
December 31,
|
|
(In thousands, except per share
data)
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
Software
|
$ 11,686
|
|
$ 11,341
|
|
|
Hardware systems
|
4,464
|
|
1,733
|
|
|
Services
|
451
|
|
904
|
|
|
Total revenue
|
16,601
|
|
13,978
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
8,651
|
|
5,658
|
|
Selling, general and
administrative
|
6,120
|
|
6,113
|
|
Research and
development
|
3,488
|
|
2,224
|
|
Total costs and
expenses
|
18,259
|
|
13,995
|
|
|
|
|
|
|
|
|
Operating loss
|
(1,658)
|
|
(17)
|
|
Net interest and other
expense
|
(111)
|
|
(83)
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(1,769)
|
|
(100)
|
|
Income tax benefit
|
(100)
|
|
(15)
|
|
|
|
|
|
|
|
|
Net loss
|
(1,669)
|
|
(85)
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
|
|
|
|
|
|
and deemed dividends
|
(6)
|
|
(35)
|
|
|
|
|
|
|
|
|
Net loss to common
shareholders
|
$ (1,675)
|
|
$ (120)
|
|
|
|
|
|
|
|
|
Net loss per common
share:
|
|
|
|
|
|
Basic and diluted
|
$ (0.16)
|
|
$ (0.01)
|
|
|
|
|
|
|
|
|
Weighted average common and
common share equivalents:
|
|
|
|
|
|
Basic and diluted
|
10,675
|
|
9,740
|
|
|
|
|
|
|
|
Xata
Corporation
|
|
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
(In thousands)
|
2011
|
|
2011
|
|
|
(Unaudited)
|
|
|
|
Current assets
|
|
|
|
|
Cash and
cash equivalents
|
$
11,166
|
|
$
12,407
|
|
Accounts
receivable, net
|
8,901
|
|
8,556
|
|
Inventories
|
3,259
|
|
3,374
|
|
Deferred
product costs
|
1,148
|
|
1,148
|
|
Prepaid
expenses and other current assets
|
1,017
|
|
1,006
|
|
Total current assets
|
25,491
|
|
26,491
|
|
|
|
|
|
|
Equipment and leasehold
improvements, net
|
10,141
|
|
9,155
|
|
Intangible assets,
net
|
11,592
|
|
12,158
|
|
Goodwill
|
16,749
|
|
16,474
|
|
Deferred product costs, net of
current portion
|
778
|
|
857
|
|
Other assets
|
787
|
|
690
|
|
|
|
|
|
|
Total assets
|
$
65,538
|
|
$
65,825
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Current portion of debt
obligations
|
$
1,989
|
|
$
1,746
|
|
Accounts
payable
|
5,422
|
|
5,003
|
|
Accrued
expenses
|
5,183
|
|
4,533
|
|
Deferred
revenue
|
3,266
|
|
3,442
|
|
Total current liabilities
|
15,860
|
|
14,724
|
|
|
|
|
|
|
Debt obligations, net of current
portion
|
1,176
|
|
1,386
|
|
Deferred revenue, net of current
portion
|
1,706
|
|
1,874
|
|
Deferred tax
liabilities
|
609
|
|
596
|
|
Other long-term
liabilities
|
487
|
|
559
|
|
Total liabilities
|
19,838
|
|
19,139
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Preferred
stock
|
44,209
|
|
44,149
|
|
Common
stock
|
47,605
|
|
47,356
|
|
Contingent
common stock earn-out
|
1,912
|
|
1,912
|
|
Accumulated
deficit
|
(48,778)
|
|
(47,103)
|
|
Accumulated
other comprehensive income
|
752
|
|
372
|
|
Total shareholders' equity
|
45,700
|
|
46,686
|
|
Total liabilities and shareholders' equity
|
$
65,538
|
|
$
65,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xata
Corporation
|
|
Consolidated
Statements of Cash Flows
|
|
(Unaudited)
|
|
|
|
|
|
For the
Three Months
Ended December 31,
|
|
(In thousands)
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
Net loss
|
|
$ (1,669)
|
|
$
(85)
|
|
Adjustments to reconcile net
loss to net cash provided by
|
|
|
|
|
operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
1,955
|
|
1,440
|
|
|
Loss on sale or disposal of
equipment and leased equipment
|
64
|
|
-
|
|
|
Stock-based
compensation
|
249
|
|
205
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
Accounts receivable,
net
|
222
|
|
4,932
|
|
|
|
Inventories
|
115
|
|
(1,011)
|
|
|
|
Deferred product
costs
|
79
|
|
433
|
|
|
|
Prepaid expenses and other
assets
|
(109)
|
|
101
|
|
|
|
Accounts payable
|
(455)
|
|
(1,728)
|
|
|
|
Accrued expenses and other
liabilities
|
74
|
|
(973)
|
|
|
|
Deferred revenue
|
(345)
|
|
(1,807)
|
|
|
|
|
Net cash provided by operating
activities
|
180
|
|
1,507
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
Purchase of equipment and
leasehold improvements
|
(907)
|
|
(553)
|
|
|
Proceeds from the sale of
equipment
|
2
|
|
-
|
|
|
|
|
Net cash used in investing
activities
|
(905)
|
|
(553)
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
Payments on debt
obligations
|
(512)
|
|
(342)
|
|
|
|
|
Net cash used in financing
activities
|
(512)
|
|
(342)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects of exchange rate on
cash
|
(4)
|
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease) increase in cash and
cash equivalents
|
(1,241)
|
|
656
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
Beginning
|
|
12,407
|
|
13,374
|
|
|
Ending
|
|
$ 11,166
|
|
$ 14,030
|
|
|
|
|
|
|
|
|
Xata
Corporation
|
|
Reconciliation of GAAP to
Non-GAAP Financial Measures
|
|
(Unaudited)
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
|
|
|
|
December
31,
|
|
(In thousands, except per share
data)
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
Net loss to common
shareholders
|
|
$
(1,675)
|
|
$
(120)
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
1,955
|
|
1,440
|
|
|
Stock-based
compensation
|
|
249
|
|
205
|
|
|
Net interest expense
|
|
109
|
|
40
|
|
|
Preferred stock dividends and
deemed dividends
|
|
6
|
|
35
|
|
|
Income taxes
|
|
(100)
|
|
(15)
|
|
Total adjustments
|
|
2,219
|
|
1,705
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
|
|
$
544
|
|
$
1,585
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per diluted
share
|
|
$
0.02
|
|
$
0.06
|
|
|
|
|
|
|
|
|
|
Shares used in calculating
non-GAAP earnings
|
|
|
|
|
|
|
per diluted share
|
|
27,146
|
|
26,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
December
31,
2011
|
|
September
30,
2011
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
$
25,491
|
|
$
26,491
|
|
Current liabilities
|
|
(15,860)
|
|
(14,724)
|
|
|
Net current assets
|
|
9,631
|
|
11,767
|
|
Current portion of deferred
revenue net of deferred costs
|
|
2,118
|
|
2,294
|
|
|
Non-GAAP working
capital
|
|
$
11,749
|
|
$
14,061
|
|
|
|
|
|
|
|
|
Footnotes to GAAP to Non-GAAP Reconciliation
(Unaudited)
The non-GAAP financial measures are not meant to be considered
in isolation or as a substitute for comparable GAAP measures. The
method we use to produce non-GAAP results is not computed according
to GAAP and may differ from the methods used by other companies.
The methods of calculation and explanations of the adjustments to
the most comparable GAAP measures are set forth below:
Non-GAAP earnings
This measure provides a supplemental view of earnings trends.
Non-GAAP earnings excludes depreciation, amortization, stock-based
compensation, net interest expense, preferred stock dividends and
deemed dividends, income taxes, acquisition and financing related
costs and litigation settlement costs from GAAP net loss to
common shareholders. We believe our investors benefit from
understanding these exclusions and from an alternate view of our
earnings performance as compared to our past earnings
performance.
Non-GAAP diluted earnings per share
We believe investors benefit by understanding the Company's
non-GAAP operating performance as reflected in a per share
calculation as a way of measuring non-GAAP operating performance by
ownership in the Company. Non-GAAP diluted earnings per share is
based on non-GAAP earnings, as defined above, divided by the sum of
the weighted average common and dilutive common shares equivalents,
such as options, restricted stock awards, restricted stock units,
warrants or convertible preferred stock, assuming they were
exercised or converted into common stock that then shared in the
non-GAAP earnings of the Company, as defined by GAAP. We believe
that these adjustments offer investors a useful view of our diluted
earnings per share as compared to our past diluted earnings per
share.
Working capital
Working capital represents current assets, less current
liabilities, excluding the current portion of deferred revenue, net
of deferred costs. We believe working capital provides investors
with an additional view of the Company's liquidity and ability to
repay current obligations.
SOURCE Xata Corporation