MINNEAPOLIS, Nov. 3, 2011 /PRNewswire/ -- Xata Corporation
(NASDAQ: XATA) reported results for its fourth quarter and fiscal
year ended September 30, 2011.
Total revenue was $15.3 million
for the quarter ended September 30,
2011, compared to $17.1
million for the same period of fiscal 2010. Net loss to
common shareholders for the fourth quarter of fiscal 2011 was
$1.6 million, compared to net income
to common shareholders of $0.1
million for the same period of fiscal 2010. Other
comments include:
- Software revenue increased $0.3
million from $11.4 million to
$11.7 million for the quarters ended
September 30, 2010 and 2011,
respectively. The 3 percent growth in software revenue in the
fourth quarter of fiscal 2011 was fueled by 56 percent growth in
Xata Turnpike software revenue.
- Fiscal 2011 fourth quarter software revenue accounted for
approximately 77 percent of total revenue, compared to 67 percent
for the same period of fiscal 2010.
- The Company acquired 64 new customers in the fourth quarter of
fiscal 2011 with the majority selecting the Xata Turnpike
solution.
- As a result of customers adopting the Xata Turnpike solution,
hardware systems and services revenues decreased to $3.6 million in the fourth quarter of fiscal
2011, compared to $5.3 million in the
fourth quarter of fiscal 2010. Many new customers are adopting the
no upfront cost Xata Turnpike solution, which does not require the
customer to purchase hardware.
"Our strategy of continuing to invest in fleet optimization
solutions has resulted in increased software revenue," said
Jay Coughlan, chairman and president
of Xata. "Given the rapidly changing business and compliance
environment, it is essential that we continue to invest in
developing solutions that will fulfill our customers' needs."
"Our non-GAAP earnings performance is reflective of the
Company's focus on investing in the development of future compliant
applications and functionality, with the goal of providing
increased return on investment for our customers," said
Scott Christian, chief financial
officer of Xata.
Fiscal 2011 fourth quarter overall gross margins were 52
percent, which was consistent with margins for the same period of
fiscal 2010. The consistency in the margins was attributable to a
positive shift in mix to higher margin software revenue. The
improvement driven by the shift in mix was offset, in part, by
declining hardware systems and services margins.
Selling, general and administrative costs decreased $0.8 million to $6.1
million compared to $6.9
million for the three months ended September 30, 2011 and 2010, respectively.
Research and development costs were $4.0
million and $1.8 million for
the fourth quarter of fiscal 2011 and 2010, respectively. The
continued evolution of compliance requirements facing the trucking
industry warrant additional investment in research and development
to meet customers' future needs.
Net loss to common shareholders for the fourth quarter of fiscal
2011 was $1.6 million, compared to a
net income to common shareholders of $0.1
million for the same period of fiscal 2010. As a
result, the Company reported a loss of $0.15 per diluted share for the three months
ended September 30, 2011, compared to
breakeven per share for the same period of the prior year on a
fully diluted basis.
For the fourth 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 $0.2
million compared to $1.8
million for the same period of fiscal 2010.
As of September 30, 2011, the
Company held $12.4 million in cash
and cash equivalents and had working capital of $15.8 million, excluding the current portion of
long-term obligations and deferred revenue and applicable deferred
costs.
For the fiscal year ended September 30,
2011, software revenue increased by 7 percent. Other
comments include:
- Software revenue increased $2.9
million from $42.9 million to
$45.8 million for 2010 and 2011
fiscal years, respectively. Xata Turnpike software revenue
grew by 68 percent for fiscal 2011.
- Fiscal 2011 software revenue accounted for approximately 73
percent of total revenue, compared to 61 percent for fiscal
2010.
- Cash flow from operations was $4.4
million for fiscal 2011.
Summary of revenue and gross margins for the twelve months ended
September 30, 2011 and 2010 (amounts
in thousands):
|
For the Year
Ended September 30,
|
|
|
2011
|
|
2010
|
|
Change
|
|
Revenue:
|
|
|
|
|
|
|
Software
|
$
45,800
|
|
$
42,862
|
|
7%
|
|
Hardware
systems
|
14,635
|
|
21,641
|
|
(32%)
|
|
Services
|
2,596
|
|
4,041
|
|
(36%)
|
|
Other
|
-
|
|
2,107
|
|
(100%)
|
|
Total revenue
|
$
63,031
|
|
$
70,651
|
|
(11%)
|
|
|
|
|
|
|
|
|
Gross Margins:
|
|
|
|
|
|
|
Software
|
75%
|
|
75%
|
|
|
|
Hardware
systems
|
(8%)
|
|
3%
|
|
|
|
Services
|
(30%)
|
|
23%
|
|
|
|
Total gross
margin
|
51%
|
|
49%
|
|
|
|
|
|
|
|
|
|
Non-GAAP vs. GAAP Financial Measures
To supplement the Company's consolidated financial statements
presented in accordance with GAAP, the Company provides certain
non-GAAP financial measures. These non-GAAP financial 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 financial 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 financial 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 most
directly comparable GAAP financial measure of all non-GAAP
financial measures included in this press release can be found in a
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 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 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
September 30,
|
|
For the Year
Ended
September 30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Software
|
$
11,698
|
|
$
11,354
|
|
$
45,800
|
|
$
42,862
|
|
|
Hardware systems
|
3,128
|
|
4,499
|
|
14,635
|
|
21,641
|
|
|
Services
|
462
|
|
828
|
|
2,596
|
|
4,041
|
|
|
Other
|
-
|
|
388
|
|
-
|
|
2,107
|
|
|
Total revenue
|
15,288
|
|
17,069
|
|
63,031
|
|
70,651
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
7,293
|
|
8,195
|
|
30,713
|
|
35,864
|
|
Selling, general and
administrative
|
6,074
|
|
6,939
|
|
24,691
|
|
26,641
|
|
Research and
development
|
3,951
|
|
1,796
|
|
11,119
|
|
6,488
|
|
Acquisition related
costs
|
-
|
|
-
|
|
-
|
|
837
|
|
Total costs and
expenses
|
17,318
|
|
16,930
|
|
66,523
|
|
69,830
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
(2,030)
|
|
139
|
|
(3,492)
|
|
821
|
|
Net interest and other income
(expense)
|
58
|
|
26
|
|
(214)
|
|
(365)
|
|
Interest expense on financing
activities
|
-
|
|
-
|
|
-
|
|
(1,358)
|
|
Acquisition related interest and
mark to market
|
-
|
|
(2)
|
|
-
|
|
(359)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes
|
(1,972)
|
|
163
|
|
(3,706)
|
|
(1,261)
|
|
Income tax (benefit)
expense
|
(422)
|
|
50
|
|
(908)
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
(1,550)
|
|
113
|
|
(2,798)
|
|
(1,311)
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
|
|
|
|
|
|
|
|
|
|
and deemed dividends
|
(55)
|
|
(53)
|
|
(176)
|
|
(1,899)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income to common
shareholders
|
$
(1,605)
|
|
$
60
|
|
$
(2,974)
|
|
$
(3,210)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.15)
|
|
$
0.01
|
|
$
(0.28)
|
|
$
(0.34)
|
|
|
Diluted
|
$
(0.15)
|
|
$
0.00
|
|
$
(0.28)
|
|
$
(0.34)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
and
|
|
|
|
|
|
|
|
|
common share
equivalents:
|
|
|
|
|
|
|
|
|
|
Basic
|
10,672
|
|
9,733
|
|
10,488
|
|
9,313
|
|
|
Diluted
|
10,672
|
|
26,226
|
|
10,488
|
|
9,313
|
|
|
|
|
|
|
|
|
|
|
|
Xata
Corporation
|
|
Consolidated
Balance Sheets
|
|
(Amounts in
thousands)
|
|
|
September
30,
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
|
|
Current assets
|
|
|
|
|
Cash and
cash equivalents
|
$
12,407
|
|
$
13,374
|
|
Accounts
receivable, net
|
8,556
|
|
11,392
|
|
Inventories
|
3,374
|
|
3,047
|
|
Deferred
product costs
|
1,148
|
|
2,042
|
|
Prepaid
expenses and other current assets
|
1,006
|
|
1,260
|
|
Total current assets
|
26,491
|
|
31,115
|
|
|
|
|
|
|
Equipment and leasehold
improvements, net
|
9,155
|
|
5,798
|
|
Intangible assets,
net
|
12,158
|
|
14,901
|
|
Goodwill
|
16,474
|
|
16,635
|
|
Deferred product costs,
non-current
|
857
|
|
1,757
|
|
Other assets
|
690
|
|
420
|
|
|
|
|
|
|
Total assets
|
$
65,825
|
|
$
70,626
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Current portion of
long-term obligations
|
$
1,746
|
|
$
839
|
|
Accounts
payable
|
5,003
|
|
5,138
|
|
Accrued
expenses
|
4,533
|
|
4,872
|
|
Deferred
revenue
|
3,442
|
|
5,070
|
|
Total current liabilities
|
14,724
|
|
15,919
|
|
|
|
|
|
|
Long-term obligations, net of
current portion
|
1,386
|
|
485
|
|
Deferred revenue, net of current
portion
|
1,874
|
|
3,591
|
|
Deferred tax
liabilities
|
596
|
|
1,492
|
|
Other long-term
liabilities
|
559
|
|
638
|
|
Total liabilities
|
19,139
|
|
22,125
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Preferred
stock
|
44,149
|
|
43,980
|
|
Common
stock
|
47,356
|
|
41,637
|
|
Contingent
common stock earn-out
|
1,912
|
|
6,452
|
|
Accumulated
deficit
|
(47,103)
|
|
(44,129)
|
|
Accumulated
other comprehensive income
|
372
|
|
561
|
|
Total shareholders' equity
|
46,686
|
|
48,501
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$
65,825
|
|
$
70,626
|
|
|
|
|
|
|
|
|
|
|
Xata
Corporation
|
|
Reconciliation of GAAP to
Non-GAAP Financial Measures
|
|
(Amounts in
thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the Year
Ended
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net (loss) income to common
shareholders
|
|
$
(1,605)
|
|
$
60
|
|
$
(2,974)
|
|
$
(3,210)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
1,802
|
|
1,410
|
|
6,477
|
|
5,117
|
|
|
Stock based
compensation
|
|
277
|
|
185
|
|
1,137
|
|
1,211
|
|
|
Net interest expense
|
|
91
|
|
22
|
|
263
|
|
369
|
|
|
Preferred stock
dividends
|
|
|
|
|
|
|
|
|
|
|
and deemed
dividends
|
|
55
|
|
53
|
|
176
|
|
1,899
|
|
|
Income taxes
|
|
(422)
|
|
50
|
|
(908)
|
|
50
|
|
|
Interest expense on financing
activities
|
|
-
|
|
-
|
|
-
|
|
1,358
|
|
|
Acquisition related
interest,
|
|
|
|
|
|
|
|
|
|
|
mark to market, and
costs
|
|
-
|
|
2
|
|
-
|
|
1,195
|
|
Total adjustments
|
|
1,803
|
|
1,722
|
|
7,145
|
|
11,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
|
|
$
198
|
|
$
1,782
|
|
$
4,171
|
|
$
7,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per diluted
share
|
|
$
0.01
|
|
$
0.07
|
|
$
0.15
|
|
$
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating
non-GAAP earnings
|
|
|
|
|
|
|
|
|
|
|
per diluted share
|
|
27,126
|
|
26,226
|
|
26,941
|
|
22,172
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Xata Corporation