Xata reports 91% increase in 1Q sales

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Xata Corp. on Wednesday, Feb. 4, reported a 91 percent increase in sales of its Xatanet fleet management system for the first quarter ended Dec. 31 as sales increased to $14.6 million from $7.7 million for the same period in fiscal 2008. Comparable, year-over-year sales increased 33 percent. For the first quarter of fiscal 2009, Geologic Solutions sales represented about $4.4 million of the total revenue. The company said it acquired 19 new customers in the first quarter of fiscal 2009.

Recurring revenue for the first quarter of fiscal 2009, including monthly subscriptions from Xatanet and monthly fees from the company’s MobileMax and OpCenter product lines, accounted for 53 percent of total sales compared to 41 percent for the same quarter of fiscal 2008. For the first quarter of fiscal 2009, Xatanet recurring subscription revenue increased by 68 percent compared to the same period of fiscal 2008.

On a GAAP basis, the company reported an improvement in earnings for the first quarter of fiscal 2009 of 35 percent, with a net loss of $0.7 million compared to $1.1 million for the same period of fiscal 2008.

“We’ve entered fiscal 2009 strong with solid financial results – increased revenue, improved gross margins and another quarter of positive EBIDTA performance,” said Jay Coughlan, chairman and president of Minneapolis-based Xata Corp. “While first-quarter revenue was down sequentially, it was expected due to the cyclical nature of the business, but as we enter the second quarter, our pipeline is strong, and we remain focused on our goal of achieving profitability.”