Xata Corp., a provider of onboard fleet management systems for private fleet transportation, has announced that it achieved record revenue in the first quarter of fiscal 2006, while deferred revenue increased 71 percent on a year-over-year basis. Net sales for the first quarter of fiscal 2006 increased 41 percent to $6.4 million, compared to $4.5 million in the first quarter of fiscal 2005. Deferred revenue totaled $10.9 million at the end of the first quarter of fiscal 2006, compared to $6.4 million at the end of the first quarter of fiscal 2005.
System revenue associated with the Xatanet product is recognized over the initial term of each subscription rather than fully at the time of delivery. The growth in net sales and deferred revenue primarily was due to Xatanet system sales that increased 27 percent on a year-over-year basis. Xatanet system sales were 48 percent of total net sales for the first quarter of fiscal 2006, compared to 10 percent for the first quarter of fiscal 2005.
“We are pleased to report record quarterly revenue in our first quarter of fiscal 2006 and our sixth consecutive quarter of sequential growth in Xatanet sales,” says Craig Fawcett, chairman and chief executive officer of Minneapolis-based Xata. “The market momentum continues to build for our Xatanet product as we add increased functionality. Today, we have now penetrated over 30 different verticals within the private fleet sector and have over 375 customers operating on our Xatanet platform.”