XRS Corporation (formerly Xata Corporation), reported its results for its fiscal 2013 first quarter ended December 31, 2012.
The Company reported net income to common shareholders for the first quarter of fiscal 2013 of $0.3 million, or $0.01 per diluted share, compared to net loss to common shareholders of $1.7 million, or $0.16 per diluted share, for the comparable period in fiscal 2012. Total revenue was $14.2 million for the quarter ended December 31, 2012, compared to $16.6 million for the comparable period in fiscal 2012. Further highlights for the quarter include:
“We are pleased with the first quarter financial performance. We are also encouraged by the progress we are making in the testing of our new XRS mobile platform which is now in its beta phase,” said Jay Coughlan, chairman, president and CEO of XRS Corporation. “Customers are eager to begin using the XRS solution, and we anticipate rollout of this new mobile solution in the spring of 2013.”
Research and development expenses were $3.1 million and $3.5 million for the first quarter of fiscal 2013 and 2012, respectively, or 21 percent of revenue. Research and development expenses reflect the Company’s continued investment in the successful development and roll out of the new XRS mobile solution.
The Company reported non-GAAP earnings of $2.2 million, or $0.08 per diluted share for the first quarter of fiscal 2013, compared to non-GAAP earnings of $0.5 million, or $0.02 per diluted share, for the same period in fiscal 2012, an increase of $1.7 million. The increase in non-GAAP earnings is a reflection of improved margins and a reduced cost structure.
During the first quarter of fiscal 2013, the Company used cash generated from operations to pay down all outstanding debt facilities, resulting in a debt-free balance sheet as of December 31, 2012 as compared to debt of $2.3 million recorded as of September 30, 2012. In addition, the Company generated positive free cash flow of $1.6 million for the first quarter of fiscal 2013, compared to negative free cash flow of $0.7 million in the comparable period in fiscal 2012, resulting in an improvement of $0.7 million in working capital, which was $10.3 million at December 31, 2012.
“Looking ahead, we remain focused on the successful launch of our XRS mobile solution, as well as continuing to serve our existing customer base to ensure that our solutions are able to meet their needs now and into the future,” Coughlan said.
