Xata Corp. today, May 4, reported a 39 percent increase in revenue for the second quarter ended March 31 as revenue increased to $16.9 million from $12.1 million for the same period in fiscal 2008 primarily driven by a 45 percent growth in software revenue. The company reported an improvement in earnings to a net profit of $91,000 compared to a loss of $1.3 million.
The organic revenue growth — which includes Geologic Solutions Inc. revenue for the two-month period from the date of acquisition to March 31, 2008, and the comparable period in fiscal 2009 — was 26 percent for the three months ended March 31; the company said it acquired seven new customers in the second quarter of fiscal 2009. Software revenue, including monthly subscriptions from Xatanet and monthly fees from the company’s MobileMax and OpCenter product lines, accounted for 50 percent of total revenue compared to 48 percent; Xatanet software revenue increased by 72 percent.
“In challenging economic environments, fleet optimization plays a significant role in reducing cost for trucking owners and operators,” said Jay Coughlan, chairman and president of Minneapolis-based Xata Corp. “Our second-quarter results are indicative of the trucking industry’s demand for software solutions that enhance fleet optimization and lower operating costs while maintaining regulatory compliance.”
The company said it improved EBITDA — earnings before interest (net), taxes, depreciation, amortization, stock-based compensation and preferred stock dividends and deemed dividends — performance by $0.19 per diluted share, reporting EBITDA of $0.20 per diluted share compared to an EBITDA of $0.01 per diluted share. “We remain focused on our goal of reaching profitability as we just delivered our fifth consecutive EBITDA positive quarter,” Coughlan said. “Excluding the deemed dividends that we incurred associated with the sale of the Series E preferred stock, we would have attained our goal of profitability.”