XRS Corporation reported results for its fiscal 2013 fourth quarter and year ended September 30, 2013.
“This past fiscal year, our financial performance generated four consecutive quarters of profitability with strong mobile software growth of 20 percent,” said Jay Coughlan, chairman and chief executive officer.
XRS launched its new mobile solution and strengthened its management team, he added, as the mobile trucking intelligence market continues to expand in anticipation of the federal mandate requiring commercial trucks to have an electronic logging device beginning in calendar 2015.
“Fiscal 2014 will be a year of significant transition for the company as we begin the migration of our legacy customers to the XRS mobile solution. As we transition from our legacy hardware-based solutions to our no upfront cost mobile solutions, we expect soft overall revenue,” he continued. “We expect accelerating mobile revenue growth with consistent margins and will continue to invest in the further development of the XRS mobile solution with key integrations to strategic third-party providers thereby creating a whole product that will position us to capitalize on this expanding market.”
XRS reported non-GAAP earnings of $2.1 million for the fourth quarter of fiscal 2013 compared to $2.0 million for the same period in 2012.
Important developments for the fiscal year include:
• Mobile software revenue grew 20 percent in fiscal 2013 compared to the same period in the prior year.
• Overall gross margin improved to 60 percent of revenue for fiscal 2013 compared to 51 percent for fiscal 2012 as the result of the continuing shift to software revenue.
• Net income of $0.9 million contributed to positive free cash flow of $5.6 million for fiscal 2013, compared to a negative free cash flow of $3.8 million for fiscal 2012.
• The Company signed 322 new mobile customers during fiscal 2013.