XRS Corporation (formerly Xata Corporation) reported its results for its fiscal 2013 second quarter ended March 31, 2013.
The Company reported net income to common shareholders for the second quarter of fiscal 2013 of $0.1 million, or $0.01 per diluted share, compared to net loss to common shareholders of $2.1 million, or $0.20 per diluted share for the comparable period in fiscal 2012. Total revenue was $14.5 million for the quarter ended March 31, 2013, compared to $15.9 million for the comparable period in fiscal 2012. Further highlights for the quarter include:
• Mobile software revenue growth of 27 percent drove total software revenue to $11.6 million for the second quarter of fiscal 2013.
• Fiscal 2013 second quarter software revenue accounted for approximately 80 percent of total revenue, compared to 74 percent for the same period of fiscal 2012, contributing to a 7 percentage point improvement in overall gross margins.
• The Company signed 98 new customers in the second quarter of fiscal 2013, all of whom selected the Turnpike mobile solution.
• Net income of $0.2 million contributed to free cash flow of $1.2 million for the second quarter of fiscal 2013, compared to negative free cash flow of $2.2 million for the same period in fiscal 2012.
“We are encouraged by our second consecutive quarter of net income,” said Jay Coughlan, chairman and chief executive officer of XRS Corporation. “This performance is consistent with our strategy of shifting our business to a mobile solution. We are continuing to invest in the XRS mobile solution and the growth opportunities in that market, while at the same time maintaining our commitment to provide support to our existing customers.”
